Accounting Policies of P B Films Ltd. Company

Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (''Indian
GAAP’) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The
financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial
instruments which are measured at fair value.

b Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and
assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which the results are known / materialise.

c Employee benefits

The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting
Standards notified under the Companies Act, 1956. Accordingly, the Short- term employee benefits (i.e. benefits payable within
one year) are recognised as an expense at the undiscounted amount in the Profit & Loss Account of the year in which the related
service is rendered.

d Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses
incurred to bring the asset to its present location and condition.

Property, Plant and Equipment exclude computers and other assets individually costing Rs. 5000 or less which are not capitalised
except when they are part of a larger capital investment programme.

e Depreciation and amortization

Depreciation has been provided on the Fixed Asset on the SLM/WDV method and in accordance with the useful life of the Asset
as prescribed under Schedule II of the Companies Act, 2013.

The useful life of the Assets has been taken as below;

f Impairment of assets

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to
determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset''s net
selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the
asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market
assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the
statement of profit and loss.

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g Investment

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than
temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising
investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

h Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are
subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase,
to be cash equivalents.

i Revenue recognition

Revenue from the sale of equipment are recognised upon delivery, which is when title passes to the customer. Revenue is
reported net of discounts.

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time proportion basis
taking into account the amount outstanding and the rate applicable.

Other Income

Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

j Employee Benefits

Post-employment benefit plans

Contributions to defined contribution retirement benefit schemes are recognised as expense when employees have rendered
services entitling them to such benefits.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the statement of profit
and loss for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already
vested, or amortised on a straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation
as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this
calculation is limited to the present value of available refunds and reductions in future contributions to the scheme.

Other employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees is recognised during the period when the employee renders the service. These benefits include compensated absences
such as paid annual leave, overseas social security contributions and performance incentives.

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee
renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit
obligation at the balance sheet date.

k Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign
currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the
exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and
loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a non¬
integral foreign operation are accumulated in a foreign currency translation reserve.

I Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income taxpayable
in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations
is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the
form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will
pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset in the balance sheet when the
asset can be measured reliably and it is probable that the future economic benefit associated with it will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting
income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities
are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and
income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and
intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes
on income levied by the same governing taxation laws.

m Segment accounting

In terms of Accounting Standard -17 pertaining to "Segment Reporting" segment information has not been given as the
company''s activity falls within a single business segment.

n Earnings Per Shares

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by taking into
account the weighted average number of equity shares outstanding during the period and the weighted average number of
equity shares which would be issued on conversion of all dilutive potential equity shares into equity shares.