Accounting Policies of Perfect-Octave Media Projects Ltd. Company

Mar 31, 2024

Note no.1: SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of Preparation of financial statements:

The financial statements have been prepared to comply in all material respects with the
Indian Accounting Standards (“Ind AS”) as notified under Section 133 of the Companies Act,
2013 (''Act'') read with Companies (Indian Accounting Standards) Rules, 2015 (as amended)
and other relevant provisions of the Act and rules framed thereunder and guidelines issued
by the Securities and Exchange Board of India (SEBI). The accounting policies are applied
consistently to all the periods presented in the financial statements.

The standalone financial statements are presented in Rs. in lakhs and all values are rounded
to the nearest two decimals, except when otherwise indicated.

(ii) Basis of Measurement

These financial statements are prepared under the historical cost convention unless
otherwise indicated.

(iii) Key estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates
and assumptions in the application of accounting policies that affect the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Continuous evaluation is done on the estimation and judgments based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable. Information about critical judgments in applying accounting policies, as well as
estimates and assumptions that have the most significant effect to the carrying amounts of
assets and liabilities within the next financial year, are as follows:

- Determination of the estimated useful lives of tangible assets and the assessment as to
which component of the cost may be capitalized - Note 1 (iv) and (vii).

- Intangible assets - Note 1(v)

- Impairment of Property, Plant and Equipment''s - Note 1(iv) and (ix)

- Recognition of deferred tax assets - Note 1(xiii)

- Provisions and Contingent Liabilities - Note 1(xiv).

(iv) Property plant and Equipment (PPE).

PPE are initially recognized at cost. The initial cost of PPE comprises its purchase price,
including non-refundable duties and taxes net of any trade discounts and rebates. The cost of
PPE includes interest on borrowings (borrowing cost) directly attributable to acquisition,
construction or production of qualifying assets subsequent to initial recognition, PPE are
stated at cost less accumulated depreciation and impairment losses, if any.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced.
All other repairs and maintenance are charged to profit or loss during the reporting period in
which they are incurred.

Depreciation is provided on a pro-rata basis on Written Down value method based on
estimated useful life prescribed under Schedule II to the Companies Act, 2013.

Estimated useful lives by major class of assets are as follows:

Network equipment - 6 years

Computers incl. Hard disk - 3 years

Office Equipment - 5 years

(v) Intangible Assets

The company has policy to measure Intangible assets on initial recognition at cost
and subsequently are carried at cost less accumulated amortization and accumulated
impairment losses, if any. An intangible asset is derecognized on disposal, or when no
future economic benefits are expected from use or disposal. Gains or losses on
derecognition are determined by comparing proceeds with carrying amount.

However, Intangible assets consist of Copyrights of Contents created, purchased & developed
which are measured at cost as on the date of acquisition, as applicable, having indefinite life
and hence are not amortized.

(vi) Depreciation and Amortization.

Depreciation is recognized so as to write off the cost of assets less their residual values over
the useful lives, using the Written Down Value Method (“WDV”).

The carrying values of property, plant and equipment are reviewed for impairment when
events or changes in circumstances indicate that the carrying value may not be recoverable.

The residual values, useful life and depreciation method are reviewed at each financial year-
end to ensure that the amount, method and period of depreciation are consistent with
previous estimates and the expected pattern of consumption of the future economic benefits
embodied in the items of property, plant and equipment.

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on disposal or retirement of an item of property, plant and equipment is determined
as the difference between sales proceeds and the carrying amount of the asset and is
recognized in profit or loss. Fully depreciated assets still in use are retained in financial
statements at residual value.

(vii) Non-Current Investment

Non-current Investment being unquoted shares have been valued at cost, except that any
permanent diminution in the values has been provided for after ascertaining their carrying
amounts.

(viii) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible
into known amounts 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. Cash and cash equivalents consist of balances with banks which are unrestricted
for withdrawal and usage.

(ix) Impairments of Non-financial assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed
for impairment if any indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, impairment is
recognized for such excess amount. The impairment loss is recognized as an expense in the
Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any
impairment loss of the revalued asset is treated as a revaluation decrease to the extent a
revaluation reserve is available for that asset

When there is indication that an impairment loss recognized for an asset in earlier accounting
periods which no longer exists or may have decreased, such reversal of impairment loss is
recognized in the Statement of Profit and Loss, to the extent the amount was previously
charged to the Statement of Profit and Loss. However, company has not incurred any
impairment loss during the year.

(x) Revenue recognition

Revenue is recognized, net of sales related taxes, when persuasive evidence of an
arrangement exists, the fees are fixed or determinable, the product is delivered or services
have been rendered and collectability is reasonably assured. The Company considers the
terms of each arrangement to determine the appropriate accounting treatment.

Revenue is measured based on the transaction price, which is the consideration, adjusted for
volume discount, price concessions and incentives, if any as specified in the contract with the
customer. Revenue excludes taxes collected from customers.

(xi) Employee benefits
Short-Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are
classified as short term employee benefits. Benefits such as salaries, performance incentives,
etc., are recognized as an expense at the undiscounted amount in the Statement of Profit and
Loss of the year in which the employee renders the related service

Terminal Benefits

All terminal benefits are recognized as an expense in the period in which they are incurred.

(xii) Borrowing costs

Borrowing costs are interest and other costs that the Company incurs in connection with the
borrowing of funds and is measured with reference to the effective interest rate applicable to
the respective borrowing. Borrowing costs that are directly attributable to the acquisition of
an asset that necessarily takes a substantial period of time to get ready for its intended use
are capitalized as part of the cost of that asset till the date it is put to use. However, the
company has not raised any loan for the acquisition of the asset during the year. Other
borrowing costs are recognized as an expense in the period in which they are incurred.

(xiii) Taxes on Income

Income tax expense comprises current and deferred tax and is considered in the preparation
of Statement of Profit and Loss.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss
for the year and any adjustment to the tax payable or receivable in respect of previous years.
It is measured using tax rates enacted or substantively enacted at the reporting date.

However, company has not recognized tax provision as it has huge carried forward income
tax losses from the preceding financial years.

Deferred Tax

Deferred Tax is recognized using the Balance Sheet approach. Deferred Tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between
the tax base of assets and liabilities and their carrying amount, except when the deferred
income tax arises from the initial recognition of an asset or liability in a transaction that is not
a business combination and affects neither accounting nor taxable profit or loss at the time of
the transaction.

Deferred tax assets are recognized only to the extent that it is probable that either future
taxable profits or reversal of deferred tax liabilities will be available, against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilized. However, as per conservative accounting policy followed by the
company, deferred Tax Assets has not been recognized in the Balance sheet during the year.

The carrying amount of a deferred tax asset shall be reviewed at the end of 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 T ax asset to be utilized.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have
been enacted or substantively enacted by the end of the reporting period and are expected to
apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets and liabilities are off set when there is a legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances relate to the same
taxation authority.

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Mar 31, 2014

(i) Basis of Preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises of mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Use Of Estimates:-

The presentation of financial statements in conformity with the generally accepted accounting principal requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized.

(iii) Fixed Assets:-

A. Tangible Assets:

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties (net of tax credits as applicable) levies and any directly attributable cost of bringing the assets to their working condition for their intended use.

B. Intangible Assets:

Intangible Assets are amortized over their respective individual estimated useful life as decided by the management, on a straight line basis commencing from the year the asset is available to the Company for its commercial use.

(iv) Depreciation:-

Depreciation is provided as per the written down value method at the rate prescribed in Companies Act, 1956. Fixed assets are capitalized at cost inclusive of expenses and interest wherever applicable.

(v) Investments:-

Long term investments are stated at cost. Provision for diminution in value of Long term investment is made only if such decline is other than temporary in the opinion of management. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

(vi) Inventories:-

Stocks of Finished goods are valued at lesser of Cost and Net Realisable Value.

(vii) Provision:-

A provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(viii) Treatment Of Contingent Liabilities:-

Contingent liabilities are disclosed by way of note on the balance sheet. Provision is made in the accounts for those liabilities which are likely to Materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end.

(ix) Taxation:-

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 prevailing for the relevant assessment year.

(x) Deferred Taxation:-

Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing difference are expected to crystallize as deferred tax charge/benefit in the Profit & Loss Accounts and deferred tax assets/liabilities in the balance sheet.

(xi) Retirement and other Employee Benefit:-

(a) There is no defined contribution scheme prevailing in the company.

(b) Provision in respect of leave encashment is recognized as an expense in Profit & Loss Account for the period in which the employee has rendered services.

(c) Expenses in respect of other short term benefit are recognized on the basis of the amount paid or payable for the year for which the services are rendered by the employee.

(xii) Revenue Recognition:-

(a) Broadcasting revenue - Advertisement revenue (net of agency commission), sale of time slot is recognized when the related advertisement or commercial appears before the public i.e. on telecast. Subscription revenue is recognized on completion of service.

(b) Sales (includes licensing of Programs, Films/Movie Rights) are recognized, when the delivery is completed.

(c) Dividend income is recognized when the Company''s right to receive dividend is established.

(d) Interest income is recognized on a time proportion basis taking into account outstanding and the applicable interest rate.

(e) Revenue from other services are recognised as and when such services are completed / performed.

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Mar 31, 2013

(i) Basis of Preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises of mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Use Of Estimates:- The presentation of financial statements in conformity with the generally accepted accounting principal requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

(iii) Fixed Assets:- Tangible Assets:

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties (net of tax credits as applicable) levies and any directly attributable cost of bringing the assets to their working condition for their intended use.

The company has incurred expenses towards shooting content , such expenses are capitalized and shown under the head capital WIP. The company will frame policy of amortizing the same based on the concurrence of economic benefit.

Intangible Assets:

Intangible Assets are amortized over their respective individual estimated useful life as decided by the management, on a straight line basis commencing from the year the asset is available to the Company for its commercial use.

(iv) Depreciation & Amortisation:- Depreciation is provided as per the written down value method at the rate prescribed by Income Tax Act, 1961. Fixed assets are capitalized at cost inclusive of expenses and interest wherever applicable.

(v) Investments:- Long term investments are stated at cost. Provision for diminution in value of Long term investment is made only if such decline is other than temporary in the opinion of management.

(vi) Inventories:- Stocks of Raw Materials & Finished goods are valued at lesser of Cost and Net Realisable Value. Accordingly Inventories are valued at cost.

(vii) Provision:- A provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(viii) Treatment Of Contingent Liabilities-

Contingent liabilities are disclosed by way of note on the balance sheet. Provision is made in the accounts for those liabilities which are likely to Materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end

(ix) Taxation:-

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 prevailing for the relevant assessment year.

(x) Deferred Taxation:-

Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing difference are expected to crystallize as deferred tax charge/benefit in the Profit & Loss Accounts and deferred tax assets/liabilities in the balance sheet.

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Mar 31, 2012

(i) Basis of Preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guide lines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Revenue Recognition:

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis except when no significant uncertainty as to determination or realization exists.

(iii) Fixed assets and depreciation:

Fixed Assets are stated at cost less depreciation. Depreciation is claimed on the basis of rates specified in Companies Act, 1956.

(iv)Taxation

Income Tax expenses is accrued in accordance with AS22 ''Accounting for Taxes on income'' which includes current taxes and deferred taxes. Deferred income taxes reflects the impact of current year timing difference between taxable income and accounting income for the year. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available.

(v) Contingent Liability:

Contingent Liabilities are not provided for and are disclosed separately by way of notes.

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Mar 31, 2011

1. Basis of preparation of financial statements:

The financial statements have been prepared under historical cost convention on an accrual basis.

2. Fixed assets and depreciation:

Fixed Assets are stated at cost less depreciation. Depreciation is claimed on the basis of rates specified in Companies Act, 1956.

3. Revenue Recognition:

Revenue is recognized on accrual basis.

4. Taxes on income:

a. Provision for current tax, if any is computed in accordance with the relevant tax regulations.

b. Deferred tax is recognized for all timing differences between accounting income and taxable income and is quantified using enacted/substantially enacted tax rates as at the balance sheet date.

c. Deferred Tax Asset and Provision for MAT Credit is not recognized as matter of prudence.

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Mar 31, 2010

1. Basis of preparation of financial statements:

The financial statements have been prepared under historical cost convention on an accrual basis.

2. Use of Estimates:

The presentation of financial statements is in conformity with Indian GAAP, which requires estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and ihe reported amount ( of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the year in which the results are known/ materialized.

3. Fixed assets and depreciation:

There is no Fixed Assets in the company.

4. Revenue Recognition:

Revenue is recognized on accrual basis.

5. Taxes on income:

a. Provision for current tax, if any is computed in accordance with the relevant tax regulations.

b. Deferred tax is recognized for all timing differences between accounting income and taxable income and is quantified using enacted/substantially enacted tax rates as at the balance sheet date.

c. Deferred Tax Asset and Provision for MAT Credit is not recognized as matter of prudence.