Notes to Accounts of Interworld Digital Ltd.

Mar 31, 2024

c. Terms /rights attached to equity shares

The company has only one class of equity shares having a face value of Re.1/- per share. Each holder of equity shares is entitled to one vote per share. The dividend declared, if any is payable in Indian rupees. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual General Meeting. The board has not proposed any dividend for current year and previous year.

In the event of liquidation of the company, the holders of equity shares will be entitiled to receive remaining assets of the company, after distribution of all preferential amounts including preference shares. The distribution will be in proportion to the number of equity shares held by the shareholders.

26	CONTINGENCIES AND COMMITMENTS
		As at	As at
		31st March, 2024	31st March, 2023
(A)	Contingent liabilities
I	Income Tax	Nil	Nil
II	Other Legal Cases	Nil	Nil
		-	-

(B) Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account, net of advances and not provided in the books are as follows:

	Particulars	As at 31st March, 2024	As at 31st March, 2023
	Property, plant and equipment	Nil	Nil

29. There is nothing to be disclosed under Ind-AS 108 - Segment Reporting since there is no business segment or geographical segment which is a reportable segment based on the definitions contained in the accounting standard.

Deferred Tax has been created as per IndAS-12 issued by Institute of Chartered Accountants of India.

In accordance with IND AS 12 - Income Taxes issued by ministry of corporate affairs, the company has accounted for the Deferred Tax. Major Components of Deferred Tax Assets and Liabilities are - NIL

30. The debit and credit balances standing in the name of parties are subject to confirmation from them.

31. In the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the value stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate in the opinion of board.

32. Employee Benefits

Provision of Gratuity, ESI, PF not applicable in the Company.

35. Title Deeds of immovable Property : The company does not have any immovable properties. Hence the question of title deeds of immovable properties are in the name of the Company does not arise.

36. Revaluation of Propepety, Plant and Equipment: During the financial year, the Company has not revalued any of its Property, Plant & Equipment.

37. Disclosure of loans/advances given to Directors/KMP/Related parties:-

Disclosure w.r.t loans and advances which are:-

a. repayable on demand or

b. without specifying any terms or period of repayment are as follows:

38. Capital-Work In Progress :There is no capital work in progress for tangible or intangible assets after impairment provision during the year.

39. Benami Properties :No proceedings has been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988.

40. Borrowings from Banks/FI on the basis of security of Current Assets: The Company does not have any working capital limit from bank. Hence the question of Quarterly Returns or Statements of Current Assets filed by the Company with Banks/FI, are in agreement with books of accounts does not arise.

41. The company has not been declared as willful defaulter by any bank of financial institution or any other lender.

42. Transactions with Struck-off Companies: The company has not entered into any transactions with struck off companies under section 248 of the Companies Act 2013 or Section 560 of Companies Act 1956.

43. Registration of Charges or Satisfaction: The company does not have any charges.

44. Compliance with layers of the companies:-

The company has no layers of companies prescribed under Clause 2(87) of the Act read with Companies (Restriction on number of Layers) Rules 2017.

45. Scheme or Arrangement: During the year, the company has not entered into any scheme or arrangement in terms of Section 230 to 237 of the Companies Act 2013

46. During the year no income was surrendered or disclosed as income in the tax Assessments.

47. The company has not dealt in Crypto Currency during the year.

48. The Company has not advanced or loaned or invested funds to any other person or entities with an understanding that the intermediary will invest or provide any guarantee, security or the like to or on behalf of ultimate beneficiaries.

49. The Company has not received any fund from any person (s) or entity(s), including foreign entities(Funding party)with the understanding that the company shall directly or indirectly investor provide any guarantee, security or the like to or on behalf of funding party.

50. Use of Borrowed Funds : The Company has not taken any borrowings from banks and Financial Institutions. Hence the question of its usage does not arise.

51. Debit and credit balances standing in the name of the parties are subject to confirmation from them.

52. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

53. Previous year figures have been regrouped/ reclassified wherever necessary.

54-A Financial instruments

(i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are classified into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The company’s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

Credit risk rating

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

A: Low B: Medium C: High

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

Trade receivables

Company''s trade receivables are considered of high quality and accordingly no life time expected credit losses are recognised on such receivables.

Other financial assets measured at amortised cost

Other financial assets measured at amortized cost includes advances to employees. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

C) Market riska) Interest rate risk

The Company is not exposed to changes in market interest rates.

b) Price risk Exposure

The Company’s exposure to price risk arises is nil

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Mar 31, 2015

1. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances as shown in the accounts are subject to confirmation and reconciliation However, in the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the values stated, if realizable in the ordinary course of business. The provisions for depreciation and all other known liabilities are adequate in the opinion of the Board.

In accordance with AS 22 issued by ICAI, the company has provided for deferred tax during the year.

2. No provision for the payment of gratuity has been made as none of the employees has put the qualifying period of service for entitlement of gratuity.

3. Allocation of Development expenses is pending to fixed assets.

4. Contingent Liabilities not provided for Bank Guarantees.

5. The company had not paid service tax and filed returns from financial year 2011-12 to 2014-15.

6. The company had not appointed chief financial officer in the company.

7. Adoption of Accounting Standard 28 on impairment of assets does not have any impact either on the profit for the year or on the net assets of the company as at the year end.

8. The company has only one reportable segment.

9. Related Party Disclosures:

Related party disclosures as required under Accounting Standard (AS) - 18 " Relate Party Disclosure" A. Related parties and nature of related party relationships where control exists

Name of the party Description of relationship

Mr. Man Mohan Gupta Key Management Personal

Mr. Kamal Kishore Sharma Key Management Personal

Mr. Ajay Sharma Key Management Personal Mrs. Anita Devi Key Management Personal

Mr. Narender Kumar Baid Key Management Personal

M/s Digicine Manoranjan Pvt. Ltd. Group Company

B. Related parties and nature of related party relationship with whom transactions have been taken place

Name of the party Description of relationship

Mr. Man Mohan Gupta Key Management Personnel

Mr. Narender Kumar Baid Key Management Personal

M/s Digicine Manoranjan Pvt .Ltd. Group Company

10. Previous year figures have been regrouped / rearranged / reconsidered, wherever considered necessary.

11. As per information available with the company, there are no outstanding dues to Small Scale Ancillary Industrial Undertakings as at 31.03.2015.

12. The Company has not appointed Chief Financial Office (CFO) as per the requirement of section 203 of the Companies Act, 2013.

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Mar 31, 2014

1. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances as shown in the accounts are subject to confirmation .and reconciliation However, in the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the values stated, if realizable in the ordinary course of business. The provisions for depreciation and all other known liabilities are adequate in the opinion of the Board.

2. No provision for the payment of gratuity has been made as none of the employees has put the qualifying period of service for entitlement of gratuity.

3. Allocation of Development expenses is pending to fixed assets.

4. Contingent Liabilities not provided for Bank Guarantees outstanding Rs. NIL (Rs. Nil).

5. Adoption of Accounting Standard 28 on impairment of assets does not have any impact either on the profit for the year or on the net assets of the company as at the year end.

6. Directors'' Remuneration Rs.30,00,000/- (Previous Year Rs. 30,00,000/-).

7. Segment Reporting: The company has only one reportable segment.

8. Related Party Disclosures:

Related party disclosures as required under Accounting Standard (AS) - 18 " Relate Party Disclosure"

A. Related parties and nature of related party relationships where control exists

Interworld Digital Limited 19th Annual General Meeting

Name of the party Description of relationship

Mr. Man Mohan Gupta Key Management Personal

Ms. Heena Jain Key Management Personal

B. Related parties and nature of related party relationship with whom transactions have been taken place

Name of the party Description of relationship Man Mohan Gupta Key Management Personnel Interworld Digital Cinema Pvt .Ltd. Enterprises over which Key Managerial Person are able to exercise significant influence

Transactions during the year with related parties:

Mr. Man Mohan Gupta Remuneration 30,00,000

Interworld Digital Cinema Pvt .Ltd Purchase/Services 2,71,62,955

B. Outstanding Balances with NIL NIL related parties

9. Previous year figures have been regrouped / rearranged / reconsidered, wherever considered necessary.

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Mar 31, 2013

1. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances as shown in the accounts are subject to confirmation .and reconciliation However, in the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the values stated, if realizable in the ordinary course of business. The provisions for depreciation and all other known liabilities are adequate in the opinion of the Board.

2. No provision for the payment of gratuity has been made as none of the employees has put the qualifying period of service for entitlement of gratuity.

3. Preferential Allotment

During 2012-13, the Company has allotted 40,00,00,000 equity shares pursuant to conversion of equal number of convertible warrants issued at a premium of Rs. 1.55 per equity share (Face Value).

4. Allocation of Development expenses is pending to fixed assets.

5. Contingent Liabilities not provided for Bank Guarantees outstanding Rs. NIL (Rs. Nil).

6. Adoption of Accounting Standard 28 on impairment of assets does not have any impact either on the profit for the year or on the net assets of the company as at the year end.

7. Directors'' Remuneration Rs.30,00,000/- (Previous Year Rs. 15,20,000/-).

8. Segment Reporting: The company has only one reportable segment.

9. Related Party Disclosures:

A. List of related parties with whom the company has transacted:

i. Key Managerial Personnel

Mr. Man Mohan Gupta Mr. Peeyush Kumar Aggarwal Mr. S. N. Sharma Mr. Sanjay Gupta

10. Previous year figures have been regrouped / rearranged / reconsidered, wherever considered necessary.

11. As per information available with the company, there are no outstanding dues to Small Scale Ancillary Industrial Undertakings as at 31.03.2013.

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Mar 31, 2011

1. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances as shown in the accounts are

subject to confirmation .and reconciliation However, in the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the values stated, if realizable in the ordinary course of business. The provisions for depreciation and all other known liabilities are adequate in the opinion of the Board.

In accordance with AS 22 issued by ICAI, the company has provided for deferred tax during the year.

2. No provision for the payment of gratuity has been made as none of the employees has put the qualifying period of service for entitlement of gratuity.

3. Preferential Allotment

(a) In terms of the resolution passed under section 81 (1A) of the Companies Act, 1956 at the Extra Ordinary General Meeting of the Company held on 07.09.2010 and the in-principle approval received from BSE, the Board has allotted 400000000 convertible warrants to be converted into equal number of equity shares of Re. 1/- each at a premium of Rs. 1.55/- per warrant, in the Board meeting held on 09.11.2010 on preferential basis to promoters and non-promoters category. Pursuant to allotment of Convertible warrants, the Company, during the financial year 2010-11, has received monies aggregating to Rs. 25.50 crores out of Rs. 102 Crores.

(b) The company has allotted 4,96,38,600 convertible warrants with an option to convert such warrants into equal number of equity shares of Re. 1/- each on preferential basis in 2009-10. Out of the total warrants so issued, 1,85,49,799 were converted into equal number of equity shares at a premium of Rs. 1.18/- per equity share as at March 31,2010. Further 34,00,000 convertible warrants were converted into equal number of equity shares at a premium of Rs. 0.66/ per equity shares (Face Value Re. 1/-) and 1450201 convertible share warrant were converted into equal number of equity share at a premium of Rs. 1.18/- per equity shares (F.V Re. 1/- per share) during the financial year 2010-2011.

4. Allocation of Development expenses is pending to fixed assets.

5. Contingent Liabilities not provided for Bank Guarantees outstanding Rs. NIL (Rs. Nil ).

6. Adoption of Accounting Standard 28 on impairment of assets does not have any impact either on the profit for the year or on the net assets of the company as at the year end.

7. Directors' Remuneration Rs. 7,80,000/- (Previous Year Rs. 3,00,000).

8. Segment Reporting: The company has only one reportable segment.

9. Related Party Disclosures: List of related parties with whom the company has transacted:

10. Previous year figures have been regrouped / rearranged / reconsidered, wherever considered necessary.

11. As per information available with the company, there are no outstanding dues to Small Scale Ancillary Industrial Undertakings as at 31.03.2011.

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Mar 31, 2010

1. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances as shown in the accounts are subject to confirmation. However, in the opinion of the Board of Directors, the current assets, loans & advances are fully realisable at the values stated, if realisable in the ordinary course of business. The provisions for depreciation and all other known liabilities are adequate in the opinion of the Board.

2. No provision for the payment of gratuity has been made as none of the employees has put the qualifying period of service for entitlement of gratuity.

3. Allocation of Development expenses is pending to fixed assets.

4. Contingent Liabilities not provided for Bank Guarantees outstanding Rs. NIL (Rs. Nil ).

5. Adoption of Accounting Standard 28 on impairment of assets does not have any impact either on the profit for the year or on the net assets of the company as at the year end.

6. Directors Remuneration Rs. 3,00,000/- (Previous Year Rs. 3,00,000).

7. Segment Reporting: The company has only one reportable segment.

8. During the year the company has made reduction of capital by Rs. 2,00,00,000 (2,00,00,000 Equity shares of Re. 1 each) pursuant to orders of Hon’ble High Court at New Delhi dated 27th October, 2009. Further, during the year, the company has allotted 4,96,38,600 convertible warrants with an option to convert such warrants into equity number of equity shares of Re. 1/- each on preferential basis. Out of the total warrants so issued, 1,85,49,799 were converted into equal number of equity shares at a premium of Rs. 1.18/- per equity share. As at March 31, 2010, 1,30,90,380 warrants are yet to be converted into equal number of equity shares.

9. Previous year figures have been regrouped / rearranged / reconsidered, wherever considered necessary.

10. As per information available with the company, there are no outstanding dues to Small Scale Ancillary Industrial Undertakings as at 31.03.2010.

ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PART – II OF SCHEDULE VI OF THE COMPANIES ACT, 1956

Being a Service Company Quantitative Information / Clause is not applicable.

1. Raw Materials Consumed : Nil

2. Value of imported and indigenous

Materials consumed : Nil

3. CIF value of imports : Nil

4. Expenditure in foreign currency : Nil

5. Earnings in foreign currency : Nil

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Mar 31, 2009

1. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances as shown in the accounts are subject to confirmation. However, in the opinion of the Board of Directors, the current assets, loans & advances are fully realisable at the values stated, if realisable in the ordinary course of business. The provisions for depreciation and all other known liabilities are adequate in the opinion of the Board.

2. No provision for the payment of gratuity has been made as none of the employees has put the qualifying period of service for entitlement of gratuity.

3. Allocation of Development expenses is pending to fixed assets.

4. Contingent Liabilities not provided for Bank Guarantees outstanding Rs. NIL (Rs. Nil).

5. Adoption of Accounting Standard 28 on impairment of assets does not have any impact either on the profit for the year or on the net assets of the company as at the year end.

6. Directors Remuneration Rs. 3,00,000/-(Previous Year Rs. NIL).

7. The company had received an income tax demand of Rs. 13,353/- during March, 2000 in respect of assessment year 1997-98. However, the same has not been paid in view of the request made by the company to the Income tax Authorities for adjusting this demand against the refund due as per return of income for the assessment year 2001-02 & Income tax Rs. 791215/-& FBT Rs 5861II- related for the A.Y 2008-09 has not been paid by the company till date.

8. Segment Reporting: The company has only one reportable segment.

9. Related Party Disclosures:

List of related parties with whom the company has transacted:

a. Key Managerial Personnel

1. Mr. Man Mohan Gupta

2. Mr. Peeyush Kumar Aggarwal

3. Mr.S.N.Sharma

4. Mr. Sanjay Gupta

10. Previous year figures have been regrouped / rearranged / reconsidered, wherever considered necessary.