Accounting Policies of BMB Music & Magnetics Ltd. Company

Mar 31, 2024

2B. Summary of Significant Accounting Policies

211.3 Property. Plant and Equipment

I l.im and Equipment ore stnted ut coat, net nf uccumulutcd depreciation and
rtviunuil.utd uupnu tneni losses, if any. The cost comprises purchase price, borrowing costs, if
i.q unit, .uion v ''* nditn u h i tlu inn ndt d use. Any trade discounts and rebates are deducted in arriving at the
purchase price

Subsequent measurement (Depreciation)

Depreciation on Properly, Plant and Equipment is charged on WDV either on the basis of rates
atti\(d at with relercnce to the useful life of the assets evaluated approved by the management
ot tales arrived at based on useful life prescribed under Part C of Schedule II of the Companies
Act. .1013.

1 he residual values, useful lives and methods of Depreciation of Property, Plant and Equipment
arc reviewed at each financial year etui and adjusted prospectively, if appropriate.

2B.3 Financial Instruments
Financial Assets

Financial assets arc recognized when the Compuny becomes a party to the contractual provisions
of the Financial Instrument and arc measured initially at fair value adjusted for transaction cost.
Company has investment only in National Saving Certificate (NSC) which is recognized at cost.
Company does not have any other financial assets.

Financial liabilities

Financial liabilities arc classified, at initiul recognition, as financial liabilities at fair value through
statement of profit and loss, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

All financial liabilities arc recognized initially at lair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings.

Company have unsecured loans and borrowings for which future repayment of interest and
principal tepavmcnt can’, be estimated reliably hence it is recognized at principal amount of loan
L any -payment made up to the btdance sheet together with any interest aeenred but no. patd.

2B.4 Borrowing Costs m.oiifvins assets arc

Borrowing costs that are attributable to the _{onc lhat} takes necessarily

capitalized as par. of the cos. _{ndcd usc}. _{AU 01hcr} borrowing costs ore charged

substantial period of lime to

to revenue. I \

1 • f/ .. .nilR /

( 2B.S Impairment of »o_{n flriancia]} ^

The Company _a: c;»eh ------ . .

f ''• ''¦•/* C. r«C-Tm^j'' / , * f- • ,

an asset mas be ?/ . ...... •* ^ vutr

^pa,rod- ^{M ar}-y exiv* « whzr „ _

•*** » requard, the Company ... 7 '' ...... .....** «

. p _£1CC . ...... ^aAV:''* recenrer*bSe arrzvunh *o soar. *gz*srs»~ •/

^N .....“***• ^;A during the per^ under a.dm

2B.6 Inventories

As per explanation jpvcn by the r-a-a__

»«hout ___ _____.. ’ *--------- ** ~r.ZT.-r.Tj Trt''Xh » mc^v.nrf H CVS*

^w‘*“considering the dcvelopmcn- e^* ,k^____

„ ‘ .....^v"^ci" rca..zab.e va._e, "ah.jr.-j.zrzz a. h*.*.,

Cuompan\ is cr.r^pcd . .

s gee in production of feature films. As such feature Ossa are *i£j - ^

p.onuc.ion. ail the direct expenses incurred ''—.•w_____ . .

. ‘ “ -----------g sorrowing coat d arpp.Aiabile as per ;jfL» AS

~ ~“”^{R tr}‘^C "^nanciaI -^{vcar :s} Cecily recognized as closing stock.

2B.7 Taxation
Current Income tax

......come .ax assets ar.c .labilities are measured at the amount errcected to le reowtrsd

..cm c. pa.c .o the taxation authorities. The tax rates and tax laws used to compute the amount
a.c .l.osc .hat are enacted or suDstantivc.v enacted a* the rec*0"*ti*"^ f*>*.

Current income tax relating to items recognized outside profit or loss is retvgruzed outside trout
or .oss. Current tax items are recognized in correlation to the underlying transaction either m OCJ
cr circctl> in equity. Management periodically evaluates positions taken in the tax returns whb
respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.

Deferred tax

Deferred lax is provided using the liability method on temporary differences between the tax

bases of assets and liabilities and their carrying amounts :or financial repertmg purposes =---

reporting date. Deferred tax liabilities arc recognized for all taxable temporary differences, except
when it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets arc recognized for all deductible temporary differences, the carry’ toward of
unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent
that it is probable that taxable profit will be available against wmcr. the cecucuble tempera...

- • - . -ov rrrvii?^ a-fl llllUSCd 1SX lOSSCS C£J1 OC UllI2ZttL

diiTcror.ccs, and the carry forward o: unuseG -

• ___: r^-r’r •rvnrtrtine date and reauccc to me

Tr.c carrying amount of deferred tax assets is review a. each reporting c*......

Viahie sufficient taxable profit will be avauame .o ¹

extent that it is no longer prooab.e u.a. s- .. - ^ .

I part of the deferred tax asset to oe uuuzed. g? future

- ¦ patent that it has become prooab.e ma. n-ture

each reporting dale and arc recognizee ^L

taxable profits will allow the dcicrred tax asse. i0 be .ec „_nsov land ar.d

_{J r} . onri-o* and, since the company na\c m.so.u

Tr.c company incurred profit in r Y -uz - ... . __ri__inanv will have

^ir„rY> hence it is nrobablc that co-.?a~>
reduced operating and administration expenditure,

-h./flTT ¦H.vernrr applicable.

taxable profit in future hence DTA

f Deferred tax assets and liabilities arc

the year when the asset is rcalj₇ d ^{mcasurcd ul thc lHX} rules that arc expected to apply in
that have been enacted or c,,i ^{1C is sc}Ulcd, based on tnx rates (and lax laws)

Deferred ,ax re_taU„_g ......—¦

loss (cither in other comprehensiv^"^¹¹ °^{Ut5fKlC Pr0fl1} ''’^{r ,OSB is} ''ceo_Knl/.ed outside profit or

correlation to the underlying in ° ^cciu''^lv)- Deferred tax items are recognized in

Deferred tax assets and def ^CiUlCr in OC1 or dirct-’^l|y equity.

set otT current lax ^ ^llUb‘^l‘^{llCS Qrc} °^{rfscl if u lc}K^l,»y enforceable right exists to

same taxable emit d H ^{U8amSl CU,TCnl} ^ ^{UabiliUc8 und lhc d}<*™^d relate to the
same taxable entity and the same taxation authority.

GST. Sale./ value added taxes paid on _ne_quisiu„„ „f „_s„_{s or} „„ _incurrlng cxpcnsc8

Wh .^tS T. ^{aSStlb da rLC}°^{Bnlzcd nct} °^{r ,hc} dmount or sales/ value added luxes paid, except:
incurred °^{n a} P^{UIchasc of} assets or services is not recoverable from the
authority, in which ease, thc tax paid is recognized ns part of the cost of acquisition
of the asset or as part of thc expense item, as applicable.

receivables and payables arc staled with the amount of tax included, the nct amount
of tax recoverable from, or payable to, thc taxution authority is included as purl of
receivables or payables in thc balance sheet.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in thc form of adjustment to future income lux liability, is considered as un
asset if there is convincing evidence that the Compuny will puy normal income lax. In FY 2023-
24, Company do not have the liability for MAT.

2B.8 Employee benefit schemes

Short-term employee benefits are recognized as an expense at the undiscounted umount in the
Statement of profit and loss for the year in which the related service is rendered. Post
employment and other long term employee benefits arc recognized os an expense in thc profit
and loss account of the year in which thc employee has rendered services and treated us
defined benefit plans. Thc expense is recognized on the assumption that such benefits arc
payable at the end of thc year to all thc eligible employees.

---

Mar 31, 2015

Accounting Policies no specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Principles.

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

a) The Financial Statements have been prepared under the historical cost convention in accordance with the Generally Accepted Accounting Principles and the provisions of the Companies Act, 1956 as adopted consistently.

b) The Company follows mercantile system of Accounting and recognizes significant items of income & expenditure on accrual basis unless stated otherwise elsewhere.

2. FIXED ASSETS

Fixed Assets are stated at Original Cost less Depreciation.

3. INVENTORIES

Finished Goods, Negative Rights and Other Stock are Valued at cost.

Unamortised cost of production of feature films - The Company amortizes 60% of the cost of movie rights acquired or produced by it, on first theatrical release of the movie. The said amortization is made proportionately based on management's estimate of revenues pertaining to domestic theatrical rights, international theatrical rights, television rights, video rights and others over a period of 12 months from the date of theatrical release of the movie.

The balance 40% of the cost of acquisition or cost of production is amortized as per the management's estimate / review of future revenues but not exceeding nine years and subject to a minimum of 4.44% in any year.

4. DEPRECIATION

The Depreciation has been calculated on the Straight Line Method over the useful lives and manner as prescribed in the Schedule II of the Companies Act 2013.

5. Extraordinary Items

The extra-ordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and therefore not expected to recur frequently or regularly. The profit or loss from extraordinary items have been disclosed separately in the statement of profit and loss.

5. REVENUE RECOGNITION

Revenue on sales of goods is recognized only when it is probable that the economic benefits will flow to the company and revenue can be reliably measured. Revenue from operations includes sale of goods, services, freight and insurance and price variation and are net of sales tax/ VAT wherever applicable.

Revenue in respect of contracts for services is recognized on when the services are rendered and related costs are incurred.

Revenue from theatrical sales/ distribution is recognized on exhibition of films. In case of distribution through theatres, revenue is recognized on the basis of box office reports of collection received from various exhibitors on a net collection basis. Contracted minimum guarantees are recognized on theatrical release. In case of Jointly Controlled Operations proportionate revenue and expenses attributable to the company are recognized in the financial statements, as per terms of joint venture agreement in accordance with Accounting Standard 27 issued by Institute of Chartered Accountants of India.

Sale of films rights is recognized on effective delivery of materials to customers as per terms of the sale agreements. Sale of overseas rights is recognized on assignment of such rights, as per respective agreements.

6. EMPLOYEE BENEFITS

Short term benefits to employees have been charged as expense in the profit and loss account of the year in which respective services are rendered by the employee.

Provident fund contribution, ESI contribution by employer and deduction made from the employees are remitted to respective departments of which funds are managed by central government. Employer's contribution is charged to profit and loss account of the respective year.

7. SEGMENTAL REPORTING

The company primarily operates in Production of Feature Films segment of business. There are no reportable segments of business as defined under the Accounting Standard 17 issued by Institute of Chartered Accountants of India.

8. EARNINGS PER SHARE

Basic/ diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) and after reducing the dividend obligation (including dividend distribution tax) on preference shares by the weighted average number of equity shares outstanding during the year.

9. TAXES ON INCOME

The tax expense is the aggregate of current year tax and deferred tax charged or credited to the profit and loss statement for the year.

a. Current tax is the provision made for income tax liability on the profits for the year in accordance with the applicable tax laws.

b. Deferred tax is recognized on timing differences, being the difference resulting from the recognition of items in the financial statements and in estimating its current income tax provisions.

c. Deferred tax liability is measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be a outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

11. NON-APPLICATION OF AS-28 "IMPAIRMENT OF ASSETS".

The objective of AS-28 is to ensure that the assets of an organization are carried at no more than its recoverable amounts. If the carrying amount exceeds the recoverable amount, then "Loss on Impairment of Assets" needs to be recognized in the books.

The company is in possession of old plant and machinery lying at RIICO Industrial Area, Sitapura, Jaipur on which the company has not recognized "Loss on Impairment of Assets" in its financial statements as required by AS-28 issued by The Institute of Chartered Accountants of India due to non-determination of Recoverable amounts of its assets by the company.

12. INTEREST IN JOINT VENTURES

The company has entered into following Joint Venture Agreements as Jointly Controlled Operations of production of feature film. The company has recognized the proportionate share of expenses it incurred and proportionate share of the income earned from jointly controlled operations in its financial statements in accordance with Accounting Standard 27 issued by Institute of Chartered Accountants of India.

S.N. Particulars Share of JV (Respectively)

1 BMB Music & Magnetics Limited, 50% Bloomberg Entertainment Pvt Ltd 25% and Sonia Films Pvt Ltd 25%

13. PENDING LITIGATIONS AGAINST THE COMPANY

There are no litigations filed against the company and hence there is impact on the financial position of the company.

14. NOTES ON ACCOUNTS & AUDITOR'S OBSERVATIONS

1. The balances of sundry debtors, sundry creditors, Loans and advances and unsecured loans accounts are subject to confirmations from these parties.

2. The bank balances are subject to reconciliation from respective banks.

3. In absence of necessary information with the company relating to the registration status of suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said act could not be compiled and disclosed.

15. QUANTITY INFORMATION

As the company has not taken up any production activity during the year, the quantity information is NIL.

---

Mar 31, 2014

Not Available.

---

Mar 31, 2012

A) Rasis of Accounting:

by the Institute of Chartered Accountants of India.

The preparation, of financial affec the ''reported liabilities and the disclosures relating to of fixed assets, provision for

b) Revenue recognition

Revenue on accrual basis and in Revenue recognized and expenses inci Sales are recognized on accordance with the requirements of the Companies aci, dispatch of goods to Customers.

c) Fixed Assets:

Fixed assets are stated at Original cost less depreciation

d) Depreciation:

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use, Strgigh Line Method at the rates and in the manner specified under schedule XIV to the Companies Act, 1956.

e) Inventorie.si-

Finished Goods, Negative Rights and otherstock are valued at cost.

f) Prepared as per the Revised Schedule reclassified to confirm to the

Affairs. Previous Year figure have be®r''Snafiqures of the current year. Adoption of and recognition principles followed in preparation of the financial statements.

---

Mar 31, 2010

Accounting Policies no specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Principles.

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

a) The Financial Statements have been prepared under the historical cost convention in accordance with the Generally Accepted Accounting Principles and the provisions of the Companies Act, 1956 as adopted consistently.

b) The Company follows mercantile system of Accounting and recognizes significant items of income & expenditure on accrual basis unless stated otherwise elsewhere.

2 FIXED ASSETS

Fixed Assets are stated at Original Cost less Depreciation.

3. INVENTORIES

Finished Goods, Negative Rights and Other Stock are Valued at cost.

4. DEPRECIATION

The Depreciation has been calculated on the Straight Line Method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956.

5. REVENUE RECOGNITION

i) All other expenditures are accounted on accrual basis except circumstances mentioned below in notes on accounts.

ii) Figures of the Previous Year have been rearranged where necessary.

iii) In the opinion of the Board of Directors of the Company the current assets and loans & advances have a value on realization in the ordinary course of the business approximately the amount at which they are stated.