Notes to Accounts of Esha Media Research Ltd.

Mar 31, 2024

2.10 Provisions, contingent liabilities and contingent assets
Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows at
a pre-tax rate that reflects current market assessments of the time value ofmoney and the risks—
specific to the liability. Where discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Contingent assets

Contingent assets are not recognized in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that an inflow of economic benefits will
arise, the asset and related income are recognized in the period in which the change occurs.

2.11 Revenue Recognition

Revenue from contracts with customers

Revenue is recognized when the Company substantially satisfied its performance obligation
while transferring a promised good or service to its customers. The company considers the
terms of the contract and its customary business practices to determine the transaction price.
Performance obligations are satisfied at the pomt of time when the customer obtains controls
of the asset.

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Revenue is measured based on transaction price, which is the fair value of the consideration
received or receivable, stated net of discounts, returns and value added tax. Transaction price
is recognised based on the price specified in the contract, net of the estimated sales incentives
/ discounts. Accumulated experience is used to estimate and provide for the discounts/ right
of return, using the expected value method.

2.12 Dividend and Interest Income

Dividend income is recognised in profit or loss on the date on which the Group''s right to
receive payment is established.

Interest Income mainly comprises of interest on Margin money deposit with banks relating to
bank guarantee and term deposits.

Interest income or expense is recognised using the effective interest method (EIR).

Interest is recognized using the time-proportion method, based on rates implicit in the
transactions

2.13 Tax Expenses

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or
in Other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including
uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted
for them under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date. Current income tax
relating to items recognised outside the statement of profit and loss is recognised outside the
statement of profit and loss (either in OCI or in equity in correlation to the underlying
transaction). Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes
provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities and assets are recognized for all taxable temporary differences and
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Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized.

The carrying amount of deterred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilised.

Unrecognised defened tax assets are re-assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of profit and loss is recognised
outside the statement of profit and loss (either in OC1 or in equity in correlation to the
underlying transaction).

Defened tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses

When the tax incurred on purchase of assets or services is not recoverable from the taxation
authority, the tax paid is recognised as part of the cost of acquisition of the asset or as part of
the expense item, as applicable. Otherwise, expenses and assets are recognized net of the
amount of taxes paid. The net amount of tax recoverable from, or payable to, the taxation
authority is included as part of receivables or payables in the balance sheet.

2.14 Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable
to equity shareholders (after deducting preference dividends and attributable taxes) by the
weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for
events such as bonus issue, bonus element in a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination of
basic earnings per share) after considering the effect of interest and other financing costs or
income (net of attributable taxes) associated with dilutive potential equity shares by the
weighted average number of equity shares considered for deriving basic earnings per share
adjusted for the weighted average number of equity shares that would have been issued upon
conversion of all dilutive potential equity shares.

2.15 Segment reporting

The Company is engaged “advertising and media agencies” and the same constitutes a single
reportable business segment as per Ind AS 108. And hence segment reporting specified as per
IND AS 108 is not applicable.

2.16 Share capital

Incremental costs directly attributable to the issue of equity shares are recognised as a
deduction from equity. Income tax relating to transaction costs of an equity transaction is
accounted for in accordance with Ind AS 12.

2.17 New standards adopted by the company

Ind AS 1 - Presentation of Restated financial information

The amendments require companies to disclose their material accounting policies rather than
their significant accounting policies. Accounting policy information, together with other
information, is material when it can reasonably be expected to influence decisions of primary
users of general purpose financial statements. The Company does not expect this amendment
to have any significant impact in its financial statement.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments narrowed the scope of the
recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that
it no longer applies to transactions that, on initial recognition, give rise to equal taxable and
deductible temporary differences. The Company does not expect this amendment to have any
significant impact in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting
estimates. The definition of a change in accounting estimates has been replaced with a
definition of accounting estimates. Under the new definition, accounting estimates are
“monetary amounts in financial statements that are subject to measurement uncertainty”.
Entities develop accounting estimates if accounting policies require items in Restated
financial information to be measured in a way that involves measurement uncertainty. The
company does not expect this amendment to have any significant impact in its financial
statements.

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2.18 New Accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended March 31. 2024. MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.

---

Mar 31, 2023

Provisions, contingent liabilities and contingent assets Provisions

A provision is recognized in the statement of profit and loss if, as a result of a past event, the
Company has a present legal or constructive obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits wall be required to settle the obligation. If the
effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities and contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that an inflow of economic benefits will
arise, the asset and related income are recognized in the period in which the change occurs.

2.12 Revenue recognition:

Revenue from contracts with customers:

Revenue is recognized when the company satisfies a performance obligation by transferring a
promised good or service to its customers. The company considers the terms of the contract and
its customary business practices to determine the transaction price. Performance obligations are
satisfied at the point of time when the customer obtains controls of the asset.

Revenue is measured based on transaction price, which is the fair value of the consideration
received or receivable, stated net of discounts, returns and Goods and Sendee tax. Transaction
price is recognised based on the price specified in the contract, net of the estimated sales
incentives/ discounts. Accumulated experience is used to estimate and provide for the
discounts/ right of return, using the expected value method.

2.13 Dividend and Interest Income

Dividend income is recognised in profit or loss on the date on wdiich the Group’s right to
receive payment is established. ——

Interest Income mainly comprises of interest on Margin money deposit with banks relating to
bank guarantee and term deposits.

Interest income or expense is recognised using the effective interest method (EIR).

Interest is recognized using the time-proportion method, based on rates implicit in the
transactions

2.14 Tax Expenses

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or
in other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including
uncertain tax treatments, do not meet the definition of income taxes, and therefore accounted
for them under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date. Current income tax
relating to items recognised outside the statement of profit and loss is recognised outside the
statement of profit and loss (either in OCI or in equity in correlation to the underlying
transaction). Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and establishes
provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities and assets are recognized for all taxable temporary differences and
deductible temporary differences.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.

Deferred tax relating to items recognised outside the statement of profit and loss is recognised
outside the statement of profit and loss (either in OCI or in equity in correlation to the
underlying transaction).

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as
current tax for the year. The deferred tax asset is recognised for MAT credit available only to
the extent that it is probable that the Company will pay normal income tax during the specified
year, i.e., the year for which MAT credit is allowed to be carried forward. In the year in which
the Company recognizes MAT credit as an asset, it is created by way of credit to the statement
of profit and loss and shown as part of deferred tax asset. The Company reviews the “MAT
credit entitlement” asset at each reporting date and writes down the asset to the extent that it is
no longer probable that it will pay normal tax during the specified period.

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses
When the tax incurred on purchase of assets or services is not recoverable from the taxation
authority, the tax paid is recognised as part of the cost of acquisition of the asset or as part of
the expense item, as applicable. Otherwise, expenses and assets are recognized net of the
amount of taxes paid. The net amount of tax recoverable from, or payable to, the taxation
authority is included as part of receivables or payables in the balance sheet.

2.15 Earnings Per Share
Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable
to equity shareholders (after deducting preference dividends and attributable taxes) by the
weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for
events such as bonus issue, bonus element in a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination of
basic earnings per share) after considering the effect of interest and other financing costs or
income (net of attributable taxes) associated with dilutive potential equity shares by the
weighted average number of equity shares considered for deriving basic earnings per share
adjusted for the weighted average number of equity shares that would have been issued upon
conversion of all dilutive potential equity shares.

2.16 Segment reporting

The Company is engaged in the in “Advertising and media agencies” and the same constitutes a
single reportable business segment as per Tnd AS 108.

2.17 Share capital

Incremental costs directly attributable to the issue of equity shares are recognised as a
deduction from equity. Income tax relating to transaction costs of an equity transaction is
accounted for in accordance with Ind AS 12.

2.18 Significant accounting judgements, estimates, and assumption

The preparation of the financial statements in conformity with Ind AS requires management
to make judgments, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. These estimates
and associated assumptions are based on historical experiences and various other factors that
are believed to be reasonable under the circumstances. Actual results may differ from these
estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected. In particular, the areas involving critical estimates or Judgment are:

Determining the lease term of contracts with renewal and termination options

The Company determines the lease term as the noncancellable term of the lease,, together with
any periods covered by an option to extend the lease if it is reasonably certain to be exercised,
or any periods covered by an option to terminate the lease, if it is reasonably certain not to be
exercised. The Company has several lease contracts that include extension and tennination
options. The Company applies judgement in evaluating whether it is reasonably certain to
exercise the option to renew or terminate the lease. That is, it considers all relevant factors that
create an economic incentive for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects its ability to exercise or not to
exercise the option to renew or to terminate. Furthermore, the periods covered by termination
options are included as part of the lease term only when they are reasonably certain not to be
exercised.

Significant management judgement is required to determine the amounts of impairment loss on
the financial and nonfmancial assets. The calculations of impairment loss are sensitive to
underlying assumptions.

Tax provisions and contingencies

Significant management judgement is required to determine the amounts of tax provisions and
contingencies. Deferred tax assets are recognised for unused tax losses and MAT credit
entitlements to the extent it is probable that taxable profit will be available against which these
losses and credit entitlements can be utilized. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely
timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans

The cost of the defined benefit plan and the present value of the obligation are determined
using actuarial valuation. An actuarial valuation involves various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate,
future salary increases and mortality rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate
discount rate for plans operated in India, the management considers the interest rates of
government bonds where remaining maturity of such bond correspond to expected term of
defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and
gratuity increases are based on expected future inflation rates.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured using
internal valuation techniques. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.

costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of
other costs that relate directly to fulfilling contracts.

This amendment is essentially clarification and had there is no significant impact on the
standalone financial statements.

Amendments to Ind AS 16- Property, Plant and Equipment: Proceeds before Intended Use

The amendments modified paragraph 17(e) of Ind AS 16 to clarify that excess of net sale
proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit
or loss but deducted from the directly attributable costs considered as part of cost of an item of
property, plant, and equipment.

The amendments are effective for annual reporting periods beginning on or after 1 April 2022.
These amendments had no impact on the standalone financial statements.

Amendments to Ind AS 103, Business Combinations: Reference to the Conceptual Framework

This amendment added an exception to the recognition principle of Ind AS 103 Business
Combinations to avoid the issue of potential ‘day T gains or losses arising for liabilities and
contingent liabilities that would be within the scope of Ind AS 37 Provisions, Contingent
Liabilities and Contingent Assets or Appendix C, Levies, of Ind AS 37, if incurred separately.
The exception requires entities to apply the criteria in Ind AS 37 or Appendix C, Levies, of Ind
AS 37, respectively, instead of the Conceptual Framework, to determine whether a present
obligation exists at the acquisition date.

The amendments also add a new paragraph to IFRS 3 to clarify that contingent assets do not
qualify for recognition at the acquisition date.

In accordance with the transitional provisions, the company applies the amendments
prospectively, i.e., to business combinations occurring after the beginning of the annual
reporting period in which it first applies the amendments (the date of initial application).

These amendments had no impact on the consolidated financial statements of the company as
there were no transactions within the scope of these amendments that arose during the period.

2.20 New Accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015
by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable
from April 01, 2023, as below:

The amendments require companies to disclose their material accounting policies rather than
their significant accounting policies. Accounting policy information, together with other
information, is material when it can reasonably be expected to influence decisions of primary
users of general purpose financial statements. The group does not expect this amendment to
have any significant impact in its standalone financial statements.

Ind AS 12 — Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases
and decommissioning obligations. The amendments narrowed the scope of the recognition
exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer
applies to transactions that, on initial recognition, give rise to equal taxable and deductible
temporary differences. The company does not expect this amendment to have any significant
impact in its standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting
estimates. The definition of a change in accounting estimates has been replaced with a
definition of accounting estimates. Under the new definition, accounting estimates are
“monetary amounts in financial statements that are subject to measurement uncertainty”.
Entities develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The company does
not expect this amendment to have any significant impact in its standalone financial statements.

---

Mar 31, 2014

1) Remuneration to Directors

a) Salary & L.T.A. Rs. 37,48,765/-

b ) Contribution to provident fund NIL

c) Other Benefits NIL

2) In the opinion of the Board Of Directors , the Current Assets, Loans & Advances arc approximately of the values stated in Balance - Sheet if realised in the ordinary course of business.

3) Sundry Debtors and Sundry Creditors reflected in the Balance Sheet are subject to confirmation & reconciliation.

4) Advances To Companies under the same Management for of goods and services

a) RGE Digital Imaging Solutions Pvt Ltd Balance at the end of the year 1174377

b) Jyoti Printing Inks Private Limited Balance at the end of the year 1,84,111

5) Contingent Liabilities

The company is the receipt of sales tax demand notices amounting to Rs.46,56,878/- towards sales tax payable for earlier years for which appeal is pending with the A P High court and sales tax appellate tribunal and it is expected that the decision will be in the company''s favour. Company has deposit with Sales Tax department of Rs. 2711537.

6) Related Party Transactions

a) Names Of Related Companies : APBC Printing Inks Private Limited, Jyoti Printing Inks Private Limited, RGE Digital maging Solutions Private Limited, Esha Broadcast Monitoring Private Limited, Stonerigde Advisors Private Limited.

b) Names Of Other Related Parties : Reliance Graphic Enterprises And PRR Family Trust.

c) Names Of Key Management Personnel : Mr. P.Ragahava Raju, Mr. R S Iyer, Ms. Jyoti Babar.

7) Recasting of Balances;

Wherever possible & found necessary regrouping & recasting of ledger balances have been made.

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Mar 31, 2013

I) In the opinion of the Board Of Directors, the Current Assets, Loans & Advances are approximately of the values stated in Balance-Sheet if realised in the ordinary course of business.

II) Sundry Debtors and Sundry Creditors reflected in the Balance Sheet are subject to confirmation & reconciliation.

III) Advances To Companies under the same Management for of goods and services

Nil

IV) Contingent Liabilities

The company is the receipt of sales tax demand notices amounting to Rs.46,56,878/- towards sales tax payable for earlier years for which appeal is pending with the A P High court and sales tax appellate tribunal and it is expected that the decision will be in the company''s favour. Company has deposit with sales tax department of Rs. 11,87,729.

V) Related Party Transactions

a) Names Of Related Companies : Esha Broadcast Monitoring Private Limited,

b) Names Of Other Related Parties : Reliance Graphic Enterprises

And PRR Family Trust.

c) Names Of Key Management Personnel : Mr.P.RagahavaRaju,

Smt. P. SwarajyaLakshmi, Mr. R Slyer, Ms. JyotiBabar.

VI) Recasting of Balances:

Wherever possible & found necessary regrouping & recasting of ledger Aalances have been made.

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Mar 31, 2011

01. Nature of Activity : The Company is engaged in providing comprehensive processing services such as colour scanning, colour separation, image processing, etc., for printing and publishing industry.

The nature of company's operations is such that there is no known physical measures or standard classification for its saleable products or services. The quantitative details of actual production, turnover, stock-in-trade and raw-material consumption are not given due to reasons of impossibility as the products are heterogenous in the type and quality.

2010-2011 2009-2010

2. Contingent Liabilities:

The Company is in receipt of sales tax demand notices towards sales tax payable for earlier years for which appeal is being preferred and expecting no liability in this regard. 4,656,878 4,656,878

3. Related Party Transactions:

a) Names of Related Companies : APBC Printing Inks Private Limited,

Jyothi Printing Inks Pvt Ltd and

RGE Digital Imaging Solutions Private Limited

b) Names of Other Related Parties : Reliance Graphic Enterprises and P R R Family Trust

c) Names of Key Management Personnel : Mr. E Ragahava Raju, Managing Director and Smt. P Swarajya Lakshmi, Director

Note: a) Related party relationship is identified by the company and relied up on by the auditors.

b) Previous year figures are given in brackets

4. Deferred Tax:

Since the company has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future and hence it is not considered necessary to create deferred tax asset in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by ICAI. The company has not provided for the differed tax liability in respect of timing differences in allowability of depreciation on fixed assets since it is not a material amount and its effect on the Profit and Loss Account is also not material.

5. Leases:

The Company's significant leasing arrangements are in respect of operating leases for premises like operational units, offices, etc., These leases which are not non-cancellable are generally for more than 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent to profit and loss account. During the year Rs.2,66,232/- (Rs.2,66,232/-) was charged to Profit and Loss Account as lease rent.

6. Secured Loans:

Working Capital loan from Vijaya Bnak is secured by hypothecation of rawmaterials & finished goods, book debts and second charge on plant and machiney, other assets & personally guaranteed by two Directors of the Company.

7. Segment Reporting:

The Company is engaged in providing comprehensive processing services such as colour scanning, colour separation, image processing, etc., for printing and publishing industry. These activities constitute . the Primary Segment which is the only reportable segment

8. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

The Management is currently in the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of Micro, Medium and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006. Accordingly the disclosure in respect of the amount payable to such medium and small enterprises as at 31-03- 2011 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

9. Share Capital:

Share Capital includes 4,54,130 (4,54,130) Equity Shares of Rs.10/- each alloted as fully paid up bonusshares by capitalisation of General Reserve.

10. Provision for Tax:

Since the company has brought forward losses available for set off no provision for tax has been created.

11. Loans, advances, deposits, sundry debtors and creditors are subject to confirmation and reconciliation.

12. Previous year figures have been regrouped recast and reclassified wherever necessary to confirm with the current years classification.

13. The figures have been rounded off to the nearest rupee.

14. In the opinion of the board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

15. Prior period tax adjustments amounting to Rs.31,431/- debited to profit and loss account represents income tax adjustments relating to earlier years as per the Income Tax Orders.

16. For the Assessment Years 2003-2004, 2004-2005 and 2006-2007 in the Income Tax Assessments of the company, the assessing authority has made certain additions and adjusted the taxable income against the brought forward business losses and unabsorbed depreciation and no demand was raised. The company has appealed against the additions. The appeals are pending with the Income Tax Appellate Tribunal, Hyderabad.

For the AY 2007-2008 the company has received a demand notice for Rs.2,34,047/- from the Income Tax Authority. The company has not provided for the same in the books of account on the ground that once the Income Tax Appellate Tribunal Orders are decided in the favour of the company, sufficient brought forward losses will be available to absorbe the taxable income of AY 2007-2008.

17. Disclosure under Clause 32 of the Listing Agreement: Rs. in lakhs

a) Loans and advances in the nature of loans to Subsidiary Company: NIL

b) Loans and advances in the nature of loans to Associate Company: NIL

c) Loans and advances in the nature of loans where there is:

1) No repayment schedule or repayment beyond seven years: NIL

2) No Interest or interest below Sec. 372A of Companies Act: NIL

d) Loans and advances in the nature of loans to firms/companies in which Directors are interested: NIL

e) Investments by the loanee in the shares of the parent company and subsidiary company, when the company has made a loan or advance in the nature of loan: NIL

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Mar 31, 2010

01. Nature of Activity:

The Company is engaged in providing comprehensive processing services such as colour scanning, colour separation, image processing, etc., for printing and publishing industry.

The nature of companys operations is such that there is no known physical measures or standard classification for its saleable products or services. The quantitative details of actual production, turnover, stock- in-trade and raw-material consumption are not given due to reasons of impossibility as the products are heterogenous in the type and quality.

02. Contingent Liabilities:

The Company is in receipt of sales tax demand notices towards sales tax payable for earlier yesrs for which appeal is being preferred and expecting no liability in this regard.

2009-2010 2008-2009

4,656,878 4,656,878

3. Related Party Transactions:

a) Names of related companies:

-APBC Printing Inks Private Limited, Jyothi Printing Inks Pvt Ltd and RGE Digital Imaging Solutions Private Limited

b) Names of other related parties:

-Reliance Graphic Enterprises and P R R Family Trust

c) Names of key management personnel:

-Mr. P. Ragahava Raju, Managing Director and Smt. P. Swarajya Lakshmi, Director

Note:

a) Related party relationship is identified by the company and relied up on by the auditors.

b) Previous year figures are given in brackets

4. Deferred Tax:

Since the company has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future and hence it is not considered necessary to create deferred tax in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by ICAI.

5. Leases:

The Companys significant leasing arrangements are in respect of operating leases for premises like operational units, offices, etc., These leases which are not non-cancellable are generally for more than 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent to profit and loss account.

6. Secured Loans:

a) Working Capital loan from Vijaya Bnak is secured by hypothecation of rawmaterials & finished goods, book debts and second charge on plant and machiney, other assets & personally guaranteed by two Directors of the Company.

b) Hire purchase loan is secured by Hypothecation of vehicle obtaimed under the scheme.

7. Segment Reporting:

The Company is engaged in providing comprehensive processing services such as colour scanning, colour separation, image processing, etc., for printing and publishing industry. These activities constitute the Primary Segment which is the only reportable segment.

8. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

The Management is currently in the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of Micro, Medium and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006. Accordingly the disclosure in respect of the amount payable to such medium and small enterprises as at 31-03- 2010 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

9. Share Capital:

Share Capital includes 4,54,130 (4,54,130) Equity Shares of Rs.10/- each alloted as fully paid up bonus shares by capitalisation of General Reserve.

10. Loans and advances include an amount given to P. Raghava Raju Family Trust, is unrecoverable as the Trust has no realisable assets, hence 100% provision has been made for Rs.91,71,883/-

11. Loans, advances, deposits, sundry debtors and creditors are subject to confirmation and reconciliation.

12. Previous year figures have been regrouped recast and reclassified wherever necessary to confirm with the current years classification.

13. The figures have been rounded off to the nearest rupee.

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Mar 31, 2009

1. Contingent Liabilities:

The Company is in receipt of sales tax demand notices towards sales tax payable for earlier years for which appeal is being preferred and expecting no liability in this regard. 4,656,878 4,656,878

2. Related Party Transactions:

a) Names of related companies: APBC Printing Inks Private Limited, Jyothi Printing Inks Pvt Ltd and RGE Digital Imaging Solutions Private Limited



b) Names of other related parties: Reliance Graphic Enterprises and P R R Family Trust

c) Names of key management personnel: Mr. P. Raghava Raju, Managing Director and Smt. P. Swarajya Lakshmi, Director

3. Provision for Tax:

During the year, the company has NIL tax liability as computed under the Provisions of Income Tax Act. However, only fringe Benefit Tax is provided for the year.

4. Deferred Tax:

Since the company has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future and hence it is not considered necessary to create deferred tax asset in accordance with the Accounting Standard - 22 on "Accounting for Taxes on Income" issued by ICAL

5. Leases:

The Companys significant leasing arrangements are in respect of operating leases for premises like operational units, offices, etc., These leases which are not non-cancellable are generally for more than 11 months, or for longer periods and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent to profit and loss account.

6. Serured Loans

a) Working Capital loan from Vijaya bank is secured by hypothecation of raw materials & finished goods, book debts and second charges on plant and machiney, other assets & personally guaranteed by two Directors of the Company.

b) Hire purchase loan is secured by Hypothecation of vehicle obtained under the scheme.

7. Segment Reporting:

The Company is engaged in providing comprehensive processing services such as colour scanning, colour separation, image processing, etc., for printing and publishing industry. These activities constitute the Primary Segment which is the only reportable segment

8. Disclosure under Micro, Small and Medium Enterprises Development Act. 2006:

The Management is currently in the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of Micro, Medium and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006. Accordingly the disclosure in respect of the amount payable to such medium and small enterprises as at 31-03-2009 has not been made in the financial statements. However, in view of the management, the impact of interest, if any that may be payable in accordance with the provisions of the Act, is not expected to be material.

9. Loans, advances, deposits, sundry debtors and creditors are subject to confirmation and reconciliation.

10. Previous year figures have been regrouped, recast and reclassified wherever necessary to confirm with the current years classification.

11. The figures have been rounded off to the nearest rupee.