Accounting Policies of Filmcity Media Ltd. Company

Mar 31, 2024

1. Significant Accounting Policies

1.1 Company Information

Filmcity Media Limited is a Public Limited Company ("The Company") having Registered Office at A/511,
Royal Sands Chs Ltd., Shastri Nagar, Andheri West, Mumbai - 400053. The Company is listed on the BSE
(Bombay Stock Exchange).

1.2 Basis for preparation of Accounts:

These Financial Statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133
of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The Financial Statements have been prepared on accrual and going concern basis. The accounting policies
are applied consistently to all the periods presented in the Financial Statements. All assets and liabilities
have been classified as current or non current as per the Company’s normal operating cycle and other
criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of
products and the time between acquisition of assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or
non-current classification of assets and liabilities.

The Financial Statements are presented in INR, the functional currency of the Company. Items included in
the Financial Statements of the Company are recorded using the currency of the primary economic
environment in which the Company operates (the ‘functional currency’). Transactions and balances with
values below the rounding off norm adopted by the Company have been reflected as “0” in the relevant
notes in these financial statements. The financial statements of the Company for the year ended 31st
March, 2024 were approved for issue in accordance with the resolution of the Board of Directors 14th May,
2024.

1.2 Summary of Significant Accounting Policies

a) Current vs Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset is treated as current when it is:

♦ Expected to be realized or intended to be sold or consumed in normal operating cycle

♦ Held primarily for the purpose of trading

♦ Expected to be realised within twelve months after reporting period, or

♦ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

♦ Expected to be settled in normal operating cycle.

♦ Held primarily for the purpose of trading

♦ Due to be settled within twelve months after reporting period, or

♦ There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred Tax Assets and Liabilities are classified as Non-current Assets and Liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in
Cash and Cash Equivalent. The Company has identified twelve months as its operating cycle.

b) Use of Estimates and Judgements

The estimates and judgments used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and
factors (including expectations of future events) that the Company believes to be reasonable under
the existing circumstances. Differences between actual results and estimates are recognised in the
period in which the results are known/materialised. The said estimates are based on the facts and
events, that existed as at the reporting date, or that occurred after that date but provide additional
evidence about conditions existing as at the reporting date.

c) Property, Plant & Equipment

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment recognized as at April 1, 2023, measured as per the previous GAAP,
and use that carrying value as the deemed cost of such property, plant and equipment. Property, plant
& equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses,
if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met, directly
attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts
and rebates are deducted in arriving at the purchase price. In case of assets acquired in exchange for
a non-monetary asset, the cost of such an item of property, plant and equipment is measured at fair
value unless (a) the exchange transaction lacks commercial substance or (b) the fair value of neither
the asset received nor the asset given up is reliably measurable. All other repair and maintenance
costs are recognised in profit or loss as incurred.

The Company identifies and determines cost of each component/ part of the asset separately, if the
component/ part has a cost which is significant to the total cost of the asset and has useful life that is
materially different from that of the remaining asset.

An item of Property, plant and equipment and any significant part initially recognised is de recognised
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or
loss arising on de recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the
asset is de recognised.

The residual values, useful lives and methods of depreciation of Property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

d) Depreciation on Property, Plant & Equipment

Depreciation on Property, Plant & Equipment is calculated on a written down value (WDV) basis using
the rates arrived at based on the useful lives estimated by the management which is as per the rates
specified in Schedule II to the Companies Act, 2013.

e) Inventories

Inventories are valued at the lower of cost or net realizable value.

f) Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of when the payment is being made. Revenue
is measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods
is measured at the fair value of the consideration received or receivable, net of returns and allowances,
trade discounts and volume rebates.

g) Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as
part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
of funds.

h) Employee Benefits

Short Term Benefits and post employment benefits are accounted in the period during which the
services have been rendered.

i) Taxation

Current Income 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 profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Current Tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity. 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.

Current Tax Assets and Liabilities are offset only if there is a legally enforceable right to set off the
recognized amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

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 are recognised for all taxable temporary differences.

Deferred Tax Assets are recognised for all deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses. 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 utilised.

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 Assets and Liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised 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 profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred Tax items are recognised in correlation
to the underlying transaction either in OCI or directly in equity.

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.

j) Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of
an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal or its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or group of assets. When the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

Impairment losses, are recognised in the statement of profit and loss.

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Mar 31, 2014

FIXED ASSETS

Fixed Assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

DEPRECIATION

Depreciation is calculated on Fixed Assets on straight line method in accordance with schedule XIV of the Companies Act, 1956.

INVENTORIES

Stock is Valued at cost. The closing stock of film produced is valued at Actual Cost by allocating all direct expenses which are related to the production. The fixed expenses under which the allocation was necessary as per the management discretion is allocated to the respective projection to arrive at its Actual cost of production

The Work - in - Progress is valued accordingly as per the completion of the projection. All expenses which can be related directly are all Capitalized and added to the cost.

INVESTMENTS

Investments are valued at cost, any diminution in the value of investments, if considered permanent, is provided for.

INCOME FROM INVESTMENTS / DEPOSITS

Income from investments / Deposits is credited to revenue in the year in which it accrues expect Dividend which is accounted for on Cash basis.

RECOGNITION OF INCOME & EXPENDITURE

All income and expenditure are accounted for on accrual basis.

RETIREMENT BENEFITS

Provision for Payment of Gratuity Act, 1972 is not applicable and as such no provision is made. Leave Encashment, if any, would be accounted for as and when paid.

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Mar 31, 2013

FIXED ASSETS

Fixed Assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

DEPRECIATION

Depreciation is calculated on Fixed Assets on straight line method in accordance with schedule XIV of the Companies Act, 1956.

INVENTORIES

Stock is Valued at cost. The closing stock of film produced is valued at Actual Cost by allocating all direct expenses which are related to the production. The fixed expenses under which the allocation was necessary as per the management discretion is allocated to the respective projection to arrive at its Actual cost of production

The Work - in - Progress is valued accordingly as per the completion of the projection. All expanses which can be related directly are all Capitalised and added to the cost.

INVESTMENTS

Investments are valued at cost, any diminution in the value of investments, if considered permanent, is provided for.

INCOME FROM INVESTMENTS / DEPOSITS

Income from investments / Deposits is credited to revenue in the year in which it accrues expect Dividend which is accounted for on Cash basis.

RECOGNITION OF INCOME & EXPENDITURE

All income and expenditure are accounted for on accrual basis.

RETIRMENTSENEFITS

Provision for Payment of Gratuity Act, 1972 is not applicable and as such no provision is made-Leave Encashment, if any, would be accounted for as and when paid.

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Mar 31, 2012

1. System of accounting

a) The accounts are prepared under the historical cost convention in accordance with generally ac- cepted accounting principles and the provisions of the companies Act, 1956 are adopted consis- tently by the company.

b) The company generally follows the mercantile system of Accounting and recognises income and expenditure on accruel basis.

2 Use of Estimates

The preparation of financial statements in conformity w ith generally accepted accounting principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amount of revenue and expenses for the year.Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3 Fixed Assets & Depreciation

a) Fixed Assets have been stated at cost less depreciation.

b) Depreciation on Fixed Assets have been charged on straight line method at rates prescribed in Schedule XIV of the Companies Act. 1956 and in the manner so provided.

4 Impairment Of Assets

In accordance with AS 28 on impairment of Assets' issued by the Institute of Chartered Accountants of India .where there is an indication of impairment of the Companys's assets related to cash generating units .the carrying amounts of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is recognized whenever the carrying amounts of such assets exceeds its recoverable amount.and impairment loss is recognized in the profit and loss account.

5 Sales

The Company has accounted gross sales and there is no change.

6 Inventories

a) Stock has been valued at Lower of Net Realizable Value and Cost.

b) Inventory taken as valued and certified by the management.During the year management has revalued the stock Significantly resulting in losses in Profit & Loss Account and Special resolution in EGM held on 27/03/2012 has been passed to adjust these accumulated losses in Profit & Loss Account, through reduction in capital and High Court has also sanctioned the scheme of capital reduction by their order dated 27/07/2012.

c) Nature of business of the company is such that quantitywise details is not possible but Valuewise details are given in above.

7 Employee benefits

Directors remuneration Rs. 150000/- is within the limit specified in Schedule XIII of the Companies Act. 1956.

Gratuity

No provision made for Gratuity during the year.

8 Miscellaneous Expenditure

a) Preliminery and Public issue expenses have been amortised over a period oflO years.

b) Channel License fees will be Amortized over a period of 10 years.

c) Pre operative Expenses of Rs.833568/-have been written off and shown in the Profit & Loss A/c under exceptional item.

9 Income Tax

No provision for income tax is made during the year due to losses. Deferred tax Assets is not recognised due to uncertainty of future profits, as per Accounting Standard-22 .

10 SCHEME OF AMALGAMATION (of FilmCity Communication Technologies Limited (FCTL) with the Company [scheme])

i Pursuant to the Shareholders approval at the meeting held on 12/02/2009 which was convened as per the Orders of the Hon'ble High Court of Judicature at Bombay (Court) and its Order in Com- pany Petition Nos 150 on 16/02/2009 sanctioning the Scheme, the assets and liabilities of FCTL whose principal business was Production /Trading of TV Softwares were transferred to and vested in the company with effect from the appointed date 31 07/2008 in accordance with the Scheme so sanctioned. The Scheme has. accordingly, been given effect to in the Accounts.

ii The amalgamation has been accounted for under the Pooling of Interest Method of Accounting as prescribed by Accounting Standard 14 (AS-14) book issued by the Institute of Chartered Accoun- tants of India. The assets and liabilities of the erstwhile FCTL as at 31/07/2008 have been taken over at their book values.

iii Pursuant to the Scheme as approved by the Hon'ble High Court of Judicature at Bombay, referred to in (a) above, the company has allotted necessary 200.000,000.Equity shares of Rs 1 /- each fully paid to the shareholders of the erstwhile FCTL on 16/05/2009 after the receipt of sanction order from the Court.

iv The difference between the value of the net assets acquired on amalgamation and the amount of shares issued to the shareholders of the amalgamation and the amount of shares issued to the share- holders of the amalgamating company FCTL resulting in excess shares issued Rs 120.000.000/- crores which has been accounted for as follows (AS-14.)

11 REDUCTION OF CAPITAL OF THE COMPANY

i Pursuant to the shareholder's approval at the meeting held on 27/03/2012 and approval of the hon'ble High Court at Bombay by it's order dated 27th July 2012,sanctioning the schetne.the accu- mulated losses of Rs.24.73.46,940 - in the Profit & Loss account adjusted against the share capital of the company by reduction of share capital of the company.The scheme has accordingly been given effect to in the accounts.

ii Pursuant to the scheme as approved by the Hon'ble High Court ofjudicature at Bombay, The company has reduced it's paid up capital by Rs.24,73,46,940/- i.e. from Rs.27.79.17.909 - to Rs.3.05,70,969 - and simultaneously the company has reduced it's accumulated losses by Rs.24.73,46,940/-

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Mar 31, 2011

1. System of accounting:

a) The accounts are prepared under the historical cost convention in accordance with generally accepted accounting principles and the provisions of the companies Act, 1956 are adopted consistently by the company.

b) The company generally follows the mercantile system of Accounting and recognises income and expenditure on accruel basis.

2. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amount of revenue and expenses for the year.Actual result could differ from these estimates.Any revision to accounting estimates is recognized prospectively in current and future periods.

3. Fixed Assets & Depreciation:

a) Fixed Assets have been stated at cost less depreciation.

b) Depreciation on Fixed Assets have been charged on straight line method at rates prescribed in Schedule XIV of the Companies Act, 1956 and in the manner so provided.

4. Impairment of Assets:

In accordance with AS 28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the Companys's assets related to cash generating units ,the carrying amounts of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is recognized whenever the carrying amounts of such assets exceeds its recoverable amount,and impairment loss is recognized in the profit and loss account.

5. Sales:

The Company has accounted gross sales and there is no change.

6. Inventories:

a) Stock has been valued at Lower of Net Realizable Value and Cost.

b) The cost of manufacturing of the T.V. Software has been accounted as work in progress, as these software will generate sales (receipts) during the subsequent years.

7. Gratuity:

No provision made for Gratuity during the year.

8. Miscellaneous Expenditure:

a) Preliminery and Public issue expenses have been amortised over a period of 10 years.

b) Channel License fees will be Amortized over a period of 10 years.

9. Directors remuneration is within the limit specified in Schedule XIII of the Companies Act, 1956.

10. Income Tax:

No provision for income tax is made during the year due to losses. Deferred tax Assets is not recognised due to uncertainty of future profits, as per Accounting Standard-22 .

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Mar 31, 2010

1 System of accounting :

a) The accounts are prepared under the historical cost convention in accordance with generally accepted accounting principles and the provisions of the companies Act, 1956 are adopted consistently by the company.

b) The company generally follows the mercantile system of Accounting and recognises income and expenditure on accrual basis.

2 Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amount of revenue and expenses for the year. Actual result could differ from these estimates Any revision to accounting estimates is recognized prospectively in current and future periods.

3 Fixed Assets & Depreciation :

a) Fixed Assets have been stated at cost less depreciation.

b) Depreciation on Fixed Assets have been charged on straight line method at rates prescribed in Schedule XIV of the Companies Act, 1956 and in the manner so provided.

4 Impairment Of Assets :

In accordance with AS 28 on ‘Impairment of Assets issued by the Institute of Chartered Accountants of India ,where there is an indication of impairment of the Companys assets related to cash generating units ,the carrying amounts of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is recognized whenever the carrying amounts of such assets exceeds its recoverable amount, and impairment loss is recognized in the profit and loss account.

5 Sales :

The Company has accounted gross sales and there is no change.

6 Inventories :

a) Stock has been valued at Lower of Net Realizable Value and Cost.

b) The cost of manufacturing of the T.V. Software has been accounted as work in progress, as these software will generate sales (receipts) during the subsequent years.

7 Gratuity :

No provision made for Gratuity during the year.

8 Miscellaneous Expenditure :

a) Preliminary and Public issue expenses have been amortized over a period of 10 years.

b) Channel License fees will be amortized over a period of 10 years.

9 Directors remuneration is within the limit specified in Schedule XIII of the Companies Act, 1956.

10 Income Tax :

No provision for income tax is made during the year due to b/f losses. Deferred tax provision has been made amounting to Rs. 23,19,848/- as per Accounting Standard-22.

SCHEME OF AMALGAMATION (of Filmcity Communication Technologies Limited (FCTL) with the Company [scheme])

11 Pursuant to the Shareholders approval at the meeting held on 12/02/2009 which was convened as per the Orders of the Honble High Court of Judicature at Bombay (Court) and its Order in Company Petition Nos 150 on 16/02/2009 sanctioning the Scheme, the assets and liabilities of FCTL whose principal business was Production /Trading of TV Softwares were transferred to and vested in the company with effect from the appointed date 31/07/2008 in accordance with the Scheme so sanctioned. The Scheme has, accordingly, been given effect to in the Accounts.

12 The amalgamation has been accounted for under the Pooling of Interest Method of Accounting as prescribed by Accounting Standard 14 (AS-14) book issued by the Institute of Chartered Accountants of India. The assets and liabilities of the erstwhile FCTL as at 31/07/2008 have been taken over at their book values.

13 Pursuant to the Scheme as approved by the Honble High Court of Judicature at Bombay, referred to in (a) above, the company has allotted necessary 200,000,000.Equity shares of Rs1/- each fully paid to the shareholders of the erstwhile FCTL on 16/05/2009 after the receipt of sanction order from the Court.

15 Contingent liabilities not provided for - NIL