Notes to Accounts of Picturehouse Media Ltd.

Mar 31, 2024

g) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized, when there is a present legal or constructive obligation as a
result of a past event, it is probable that an outflow of resources will be required to settle
the obligation, and when a reliable estimate of the amount of the obligation can be made.
If the effect of the time value of money is material, the provision is discounted using a pre¬
tax rate that reflects current market assessments of the time value of money and the risks

specific to the obligation and the unwinding of the discount is recognised as interest
expense.

Contingent liabilities are recognized only when there is a possible obligation arising from
past events, due to occurrence or non-occurrence of one or more uncertain future events,
not wholly within the control of the Company, or where any present obligation cannot be
measured in terms of future outflow of resources, or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis and only those
having a largely probable outflow of resources are provided for.

Contingent assets are not recognized in the financial statements.

h) Revenue Recognition

The company has applied Ind AS 115, Revenue from Contracts with Customers, which establishes
a comprehensive framework for determining whether, how much and when revenue is to be
recognised. The company has adopted Ind AS 115 using the cumulative effect method. The effect
of initially applying this standard is recognised at the date of initial application (i.e., 01^st April
2018).

1) Revenue is recognized, net of sales related taxes, when the agreement 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.

The following additional criteria apply in respect of various revenue streams within
filmed entertainment:

Theatrical — Contracted minimum guarantees are recognized on the theatrical release
date. The company''s share of box office receipts in excess of the minimum guarantee is
recognized at the point they are notified to the company.

Other rights - other rights such as satellite rights, overseas rights, music rights, video
rights, etc. is recognized on the date when the rights are made available to the assignee
for exploitation.

2) Interest income is accrued on time basis, by reference to the principle outstanding and at
the effective interest rate applicable.

3) Dividend from investments is accounted for as income when the right to receive dividend
is established.

i) Employee Benefits
Gratuity

Gratuity, which is a defined benefit plan, is accrued based on an independent actuarial valuation,
which is done based on projected unit credit method as at balance sheet date. The company
recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability.
Gains and losses through re-measurements of the net defined benefit liability/(asset) are
recognized in other comprehensive income. In accordance with Ind AS, re-measurement gains
and losses on defined benefit plans recognised in other comprehensive income are not to be
subsequently reclassified to profit or loss. As required by Schedule III to the Companies Act,
2013, the company transfers it immediately to retained earnings.

Compensated Absences

The company has a policy on compensated absences which are both accumulating and non¬
accumulating in nature. The expected cost of accumulating absences is determined by actuarial
valuation performed by an independent actuary at each balance sheet date using projected unit
credit method on the additional amount expected to be paid/availed as a result of the unused
entitlement that has accumulated at the balance sheet date. Expense on non-accumulating
compensated absences is recognised in the period in which the absences occur.

Other Benefit Plans

Contributions paid/payable under defined contributions plans are recognised in the statement
of Profit or Loss in each year. Contribution plans primarily consist of Provident Fund
administered and managed by the Government of India. The company makes monthly
contributions and has no further obligations under the plan beyond its contributions.

j) Taxes on Income

Income tax expense comprises current tax expense and the net change in the deferred tax
asset or liability during the year. Current and deferred tax are recognised in profit or loss,
except when they relate to items that are recognised in other comprehensive income or
directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity, respectively.

i) Current Income Tax

Current Income tax for the current and prior periods are measured at the amount expected
to be paid to the taxation authorities based on the taxable income for that period. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively
enacted by the balance sheet date.

ii) Deferred Tax Asset / Liability

Deferred Income tax is recognised using balance sheet approach. Deferred tax is recognised
on temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes, except when the
deferred income tax arises from the initial recognition of goodwill or 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 Income tax assets are recognised for all deducted temporary differences, carry
forward of unused tax credits and unused tax losses, 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 Balance Sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the deferred income tax asset to be utilised.

Deferred Income 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 balance sheet date.

k) Borrowing Costs

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 capitalized as part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.

Borrowing costs includes interest, amortization of ancillary costs incurred in connection with
the arrangement of borrowings and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the interest cost.

l) Earnings per Share

Basic earnings per share is computed by dividing the net profit attributable to the equity
shareholders for the period by the weighted average number of equity shares outstanding
during the period.

Diluted earnings per share is computed by dividing the net profit attributable to the equity
shareholders for the period by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number of equity shares
that could have been issued upon conversion of all dilutive potential equity shares. The
dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares
been actually issued at fair value (i.e., the average market value of the outstanding equity
shares).

Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are determined independently
for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted
retrospectively for all periods presented for any share splits and bonus shares issues including
for changes effected prior to the approval of the financial statements by the Board of
Directors.

m) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is given
effect to transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. Cash flow for the year are classified by operating, investing and
financing activities.

n) Exceptional Items

When items of income and expenses within profit or loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise
for the period, the nature and amount of such material items are disclosed separately as
exceptional items.

o) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker. The chief operating decision maker regularly monitors
and reviews the operating result of the whole Company as one segment of "Movie and Related
Activities". Thus, as defined in Ind AS 108 "Operating Segments", the Company''s entire
business falls under this one operational segment and hence the necessary information has
already been disclosed in the Balance Sheet and the Statement of Profit and Loss.

3. Critical accounting estimates and judgments

The preparation of financial statements requires the Board to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities, disclosures of contingent liabilities at the date of the financial statements and the
reported amounts of revenue and expenses for the years presented. Actual results may differ
from these estimates.

Estimates and underlying assumptions are continually evaluated. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future
periods affected.

In particular, information about significant areas of estimation, uncertainty and critical
judgements in applying accounting policies that have the most significant effect on the amounts
recognized in the financial statements pertain to:

• Accounting for the film content: Accounting for the film content requires management''s
judgment as it relates to total revenues to be received and costs to be incurred for each film.
The Company is required to identify and assess and determine income generated from
commercial exhibition of films. Judgment is also required in determining the charge to
statement of profit and loss as well as considering the recoverability or conversion of
advances made in respect of securing film content or the services of talent associated with
film production.

• Valuation of Investments in/Loans to subsidiaries: The company has performed
valuation for its investments in equity of subsidiaries for assessing whether there is any
impairment in the fair value. When the fair value of investment in subsidiaries cannot be
measured based on quoted prices in active markets, their fair value is measured using
appropriate valuation techniques including the discounted cash flow model. Similar
assessment is carried for exposure of the nature of loans thereon. The inputs to these models
are taken from observable markets where possible, but where is not feasible, a degree of
judgement is required in establishing fair values. Judgements include consideration of inputs
such as expected earnings in future years, liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of these investments.

• Income Taxes: Deferred tax assets are recognized to the extent that it is regarded as
probable that deductible temporary differences can be realized. The Company estimates
deferred tax assets and liabilities based on current tax laws and rates and in certain cases,
business plans, including management''s expectations regarding the manner and timing of

recovery of the related assets. Changes in these estimates may affect the amount of deferred
tax liabilities or the valuation of deferred tax assets and their tax charge in the statement of
profit or loss.

Provision for tax liabilities require judgements on the interpretation of tax legislation,
developments in case law and the potential outcomes of tax audits and appeals which may
be subject to significant uncertainty. Therefore, the actual results may vary from
expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash
tax settlements and therefore the tax charge in the statement of profit or loss.

• Useful lives of property, plant and equipment and intangible assets: The Company
has estimated useful life of each class of assets based on the nature of assets, the estimated
usage of the asset, the operating condition of the asset, past history of replacement,
anticipated technological changes, etc. The Company reviews the carrying amount of
property, plant and equipment at the Balance Sheet date. This reassessment may result in
change in depreciation expense in future periods.

• Impairment testing: Property, plant and equipment are tested for impairment when events
occur or changes in circumstances indicate that the recoverable amount of the cash
generating unit is less than its carrying value. The recoverable amount of cash generating
units is higher of value-in-use and fair value less cost to sell. The calculation involves use of
significant estimates and assumptions which includes turnover and earnings multiples,
growth rates and net margins used to calculate projected future cash flows, risk-adjusted
discount rate, future economic and market conditions.

• Defined benefit plans: The cost of the defined benefit plans and the present value of the
defined benefit obligation are based on actuarial valuation using the projected unit credit
method. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate,
future salary increases, etc. 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 Balance Sheet date.

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Mar 31, 2016

1. EMPLOYEE BENEFITS

The following table sets forth the status of the Gratuity Plan of the Company and the amounts recognized in the financial statements

Defined Contribution Plans

In respect of the defined contribution plans, an amount of Rs. 2,61,748/- (2015: Rs. 2,91,069) has been recognized in the Statement of Profit and Loss during the year.

2. The Company has entered into operating lease agreements for its office premises which can be cancelled at any point of time by giving necessary notice period. During the previous year, the Company also entered into a Hire purchase Agreement for purchase of Vehicles.

3. On a conservative basis, the Company has, provided for the entire amount of investments and advances to its subsidiary company m/s PVP Cinemas (P) Ltd and the management does not expect any further provision on these investments and advances.

4. Long Term and Short Term Secured Loans are borrowed for the purpose of advancing film production/film finance. Bank loans are secured by charge on the film production rights undertaken by the company and collateral security of land given by promoters. Borrowings from banks and others are secured by way of charge on some of the advance to film production/ finance. All the loans are personally guaranteed by Mr.Prasad V Potluri, Managing Director and Mrs.Jhansi Sureddi wife of Managing Director.

5. Advance made for film finance are on the security of hypothecation of assets , mortgage of property, personal guarantee, assignment of rights, lien on film negative , undertaking to create security, etc.

6. EXPENDITURE IN FOREIGN EXCHANGE

During the year the Company has incurred expenditure in foreign exchange of Rs. 2,07,88,351/- towards Film Production Expenses and Travel expenditure. (2015-Rs.22,61,633)

7. The Company has not received any intimation from Suppliers, regarding their status under the Micro, Small Enterprises Development Act, 2006 and hence required disclosures such as amounts unpaid as at the year-end together with interest paid/payable have not been given.

8. The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

9. Contingent liabilities :

a. Company has given a corporate guarantee of Rs.100.00 Cr for its subsidiary companies PVP Capital Limited as security for availing working capital limits from the Bank. The subsidiary company has outstanding loan with bank of Rs. 101.16 Crs as of 31st March 2016.( Rs.99.41 Crs as of 31st March 2015)

b. Company has issued a Bank guarantee of Rs.5.00 lakhs to ''The Public Relation Officer, Southern Railway for the Production related activities in Railways and the same is pending as of 31st March 2016.

As per section 135 of companies act 2013, the company should have spent Rs. 8.22 lakhs, towards CSR activities during the year 2015-16, but could not effect payment before 31st March 2016 and the same will be expensed during the current financial year 2016-17.

10. The previous year''s figures have been regrouped/rearranged wherever necessary to make it comparable with the current year figures.

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Mar 31, 2015

1.1 The Company has entered into operating lease agreements for its office premises which can be cancelled at any point of time by giving necessary notice period. During the year, the Company also entered into a Hire purchase Agreement for purchase of Vehicles.

The lease rentals paid during the year and the future lease obligations including HP and EMI repayment for the agreement in vogue as at March 31, 2015 are as follows:

In respect of the defined contribution plans, an amount of Rs. 2,91,069/- (2014 : Rs. 1,86,661/-) has been recognized in the statement of profit and loss during the year.

1.2 On a conservative basis, the Company has, provided for the entire amount of investments and advances to its subsidiary company M/s PVP Cinema (P) Ltd and the management does not expect any further provision on these investments and advances.

1.3 Long Term and Short Term Secured Loans are borrowed for the purpose of advancing film production/film finance. Bank loans are secured by charge on the film production rights undertaken by the company and collateral security of land given by group companies. Borrowings from banks and others are secured by way of charge on some of the advance to film production/finance and also personally guaranteed by Mr.Prasad V Potluri, Managing Director.

1.4 Advance made for film finance are on the security of hypothecation of assets , mortgage of property, personal guarantee, assignment of rights, lien on film negative , undertaking to create security, etc.

1.5 Related party disclosures

List of related parties where control exists and related parties with whom transactions have taken place and relationships are as follows:

1.6 Expenditure in Foreign Exchange

During the year the Company has incurred expenditure in foreign exchange of Rs.22,61,633/- towards Film Production Expenses and Travel expenditure. (2014- Rs.69,90,298)

1.7 The Company has not received any intimation from Suppliers, regarding their status under the Micro, Small Enterprises Development Act, 2006 and hence required disclosures such as amounts unpaid as at the year-end together with interest paid/payable have not been given.

1.8 The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

1.9 Contingent liabilities

Company has given a corporate guarantee of Rs.100.00 Cr for its subsidiary compay ie PVP Capital Limited as security for availing working capital limits from the Bank. The subsidiary company has outstanding loan with bank of Rs. 99.41 Crs as of 31st March 2015. (Rs.61.67 Crs as of 31st March 2014)

1.10 Corporate Social Responsibility(CSR)

As per section 135 of companies act 2013, the company should have spent Rs. 20.11 lakhs, towards CSR activities during the year 2014-15. Management have formed the Committee and formulated the policy, but could not effect payment before 31st March 2015 and the same will be expensed during the current financial year 2015-16.

1.11 The previous year's figures have been regrouped/rearranged wherever necessary to make it comparable with the current year figures.

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Mar 31, 2014

1.1 Provision for Taxation and deferred tax

The provision for deferred tax asset/liability has been made in accordance with AS-22 on Accounting for

Taxes on Income.

Considering the principles of prudence, the above deferred tax asset has not been recognised as at 31.03.2014.

The provision for income tax has been made as per the Income Tax Act, 1961.

2.2 Employee benefits

The following table sets forth the status of the Gratuity Plan of the Company and the amounts recognized in the financial statements

Defined contribution plans

In respect of the Defined contribution plans, an amount of Rs. 1,86,661/- (2013: Rs. 1,46,003) has been recognized in the Statement of Profit and Loss during the year.

2.3 The Company has entered into operating lease agreements for its ofce premises which can be cancelled at any point of time by giving necessary notice period. During the year, the Company also entered into a hire purchase Agreement for purchase of Vehicles.

2.4 On a conservative basis, the Company has, provided for the entire amount of investments and advances to its subsidiary company M/s PVP Cinema (P) Ltd and the management does not expect any further provision on these investments and advances.

2.5 Long Term and Short Term Secured Loans are borrowed for the purpose of advancing flm production/ flm finance. Bank loans are secured by charge on the flm production undertaken by the company and collateral security of land given by group companies. Borrowings from others are secured by way of charge on some of the advance to flm production/finance and also personally guaranteed by Mr. Prasad V Potluri, Managing Director.

2.6 Advance made for flm finance are on the security of hypothecation of assets , mortgage of property, personal guarantee, assignment of rights, lien on flm negative , undertaking to create security, etc.

2.7 Expenditure in Foreign Exchange

During the year the Company has incurred expenditure in foreign exchange of Rs.6,990,298/- towards film Production Expenses and Travel expenditure. (2013- Rs.55,568,139)

2.8 The Company has not received any intimation from Suppliers, regarding their status under the Micro, Small Enterprises Development Act, 2006 and hence required disclosures such as amounts unpaid as at the year- end together with interest paid/payable have not been given.

2.9 The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

2.10 Contingent liabilities :

1. Claims against the company not acknowledged as debts :- One of the Vendor of the company has fled a case in high court of Bombay for an amount of Rs.7.82 Crs and the same has been disputed for defciency of service and failure to adhere to time lines and a counter claim by the company has been fled for a sum of Rs.16.82 Crs. Pending hearing of the case , the court has ordered to deposit a sum of Rs.1 Cr to be deposited with the high court which was shown under other advances.

2. Company has given a corporate guarantee of Rs.100 Cr for its subsidiary compay ie PVP Capital Limited as security for availing working capital limits from the Bank. The subsidiary company has outstanding loan with bank of Rs. 61.67 Crs as of 31st March 2014.

2.11 The previous year''s figures have been regrouped/rearranged wherever necessary to make it comparable with the current year figures.

2.12 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated february 08, 2011 and february 21, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfllment of conditions stipulated in the circular. The Company has satisfed the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated financial Statements.

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Mar 31, 2013

1.1 The Company has entered into two operating lease agreements for its office premises and one of these agreements are binding on the Company upto May 17, 2013. In case the Company cancels the agreement any time before the end of the contracted period, security deposit of Rs. 10,52,000 shall not be refunded to the Company. The Other Lease agreement is binding for 11 months upto February 05, 2013 renewable after every 11 months till 33 months period. During the year, the Company also entered into a Hire purchase Agreement for purchase of a Vehicle.

1.2 On a conservative basis, the Company has, provided for the entire amount of investments and advances to its subsidiary company M/s PVP Cinema (P) Ltd and the management does not expect any further provision on these investments and advances.

1.3 Long Term and Short Term Secured Loans are borrowed for the purpose of advancing film production/film finance. All these borrowings are secured by way of charge on some of the advance to film production/finance and also personally guaranteed by Mr. Prasad V Potluri, Managing Director.

1.4 The Company has advanced loans on the security of hypothecation of assets, mortgage of property, personal guarantee, assignment of rights, lien on film negative, undertaking to create security, etc relating to media finance activities.

1.5 Expenditure in Foreign Exchange

During the year the Company has incurred expenditure in foreign exchange of Rs.5,55,68,139/- towards Film Production Expenses. (2012- Rs.52,74,227).

1.6 The Company has not received any intimation from Suppliers, regarding their status under the Micro, Small Enterprises Development Act, 2006 and hence required disclosures such as amounts unpaid as at the year-end together with interest paid/payable have not been given.

1.7 The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

1.8 The previous year''s figures have been regrouped/rearranged wherever necessary to make it comparable with the current year figures.

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Mar 31, 2012

(A) Pursuant to the approval of the shareholders and the FIPB, the Company allotted 47,50,000 warrants of Rs. 10 each to Sparrow Asia Diversified Opportunities Fund (earlier known as Sparrow India Diversified Opportunities Fund I), a sub-accounj of an FN. Each of the warrants were convertible, within 12 months, into One (1) equity share of 110 per share each in terms of SEBIICDR Pricing guidelines. On February 25, 2012, the Company converted 2,59,97,722 Zero Percent Compulsorily Convertible Preference Shares and 1,07,56,490 Convertible Warrants and allotted 3,67,54,212 equity shares of Rs. 10/- each to the respective holders. Post such allotment, the Issued, subscribed and paid-up share capital of the Company increased to Rs. 52,25,00,000/- divided into 5,22,50,000 equity shares of Rs. 10 each fully paid up in cash.

1.1 Provision for Taxation and deferred tax

The provision for deferred tax asset/liability for the year ended March 31,2012 has been made in accordance with AS-22 on Accounting for Taxes on Income. The deferred tax liability on amount of depreciation is Rs. 1,12,614 (2011: Rs. 23,084/-) and the deferred tax liabilities on account of timing differences with regard to gratuity and leave encashment provisions is Rs. 8,43,275 (2011: Rs.12,1 3,772/-). On a conservative basis, the net deferred tax asset of Rs. 2,34,799 (2011:Rs. 11,90,688/-) has not been recognised as on March 31, 2012. .

The provision for income tax has been made as per the Income Tax Act, 1961.

1.2 Employee Benefits

The following table sets forth the status of the Gratuity Plan of the Company and the amounts recognized in the financial statements

Defined contribution plans

In respect of the defined contribution plans, an amount of Rs. 1,07,206 (2011: Rs. 1,48,761) has been recognized in the Statement of Profit and Loss during the year.

1.3 The Company has entered into two operating lease agreements for its office premises and one of these agreements are binding on the Company upto May 17,2013. In case the Company cancels the agreement any time before the end of the contracted period, security deposit of Rs. 10,52,000 shall not be refunded to the Company. The Other Lease agreement is binding for 11 months upto February 05,2013 renewable after every 11 months till 33 months period. During the year, the Company also entered into a Hire purchase Agreement for purchase of a Vehicle.

1.4 On a conservative basis, the Company has, in earlier years, provided for the entire amount of investments and advances to its subsidiary company and the management does not expect any further provision on these investments and advances.

1.5 Related party disclosures

List of related parties where control exists and related parties with whom transactions have taken place and relationships are as follows:

Names of related party Relation

PVP Cinema Private Limited (PCPL)_100% Subsidiary company

Mr. Prasad V Potluri Key Managerial Personnel

1.6 Expenditure in Foreign Exchange

During the year the Company has incurred expenditure in foreign exchange of Rs. 52,74,227/- towards Film Production Expenses. (2011 - Nil)

1.7 The Company has not received any intimation from Suppliers, regarding their status under the Micro, Small Enterprises Development Act, 2006 and hence required disclosures such as amounts unpaid as at the year- end together with interest paid/payable have not been given.

1.8 The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

1.9 The financial statements for the year ended March 31,2012 have been prepared as per revised Schedule- VI of the Companies Act, 1956. Accordingly, the previous quarters/years figures have been regrouped/ rearranged wherever necessary to make it comparable with the current quarter/year.

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Mar 31, 2010

1. Contingent Liabilities:

The estimated amount of contracts remaining to be executed on capital account as at March 31, 2010 is Rs. Nil (Previous year Rs. Nil)

2. Quantitative details:

The quantitative details as required under paragraphs 4(D) (III) of part II of schedule VI to the Companies Act, 1956 are not applicable

3. Imports (Value on CIF basis) [on payment basis] - NIL (Previous year - NIL)

4. Expenditure in Foreign Exchange:

During the year the Company has incurred an expenditure of Rs.75,064/- (Previous Year - Rs. 140,372)

5. Provision for taxation:

No tax provision is made for the period, as the Company does not have any taxable profit. The provisions of Section 115 JB of the Income Tax act, 1961 is not applicable for the current year, as the Company does not have any book profits as defined under that Section.

6. The Company has not received any intimation from Suppliers, regarding their status under Micro, Small Enterprises Development Act, 2006 and hence disclosure of any relating to amounts unpaid as at the period end together with interest paid/payable as required under the said Act have not been given.

7. Name of Telephoto International Pte Limited, Singapore, (TIPL) 100% subsidiary of the Company was struck off from the records of the Accounting and Corporate Regulatory Authority, Singapore, w.e.f. January 15, 2010 and hence TIPL ceased to be in existence effective from this date.

8. The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

9. The Company does not have a Managing Director or whole time director as there are no operations in the company at present. However, once the future endeavours of the management starts bearing results, the Company would make suitable appointment(s).