Accounting Policies of Trilogic Digital Media Ltd. Company

Mar 31, 2014

1.01 Basis of Preparation

The financial statements are prepared on an accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 (the Act) and comply in material aspects with the accounting standards notified under Section 211 (3C) of the Act, read with Companies (Accounting Standards) Rules, 2006 read with the Gineral Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of the section 133 of The Companies Act, 2013.

1 .02 Use Of Estimate

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures of contingent liabilities as on date of the financial statements and reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates is recognised in the period in which the results are known / materialized.

1.03 Fixed Assets

Gross block of fixed assets are stated at historical cost. Cost comprises of the purchase price and attributable cost of bringing the assets to working condition for its intended use. Pre-operative expenditures are proportionately capitalized to the respective assets.

Depreciation on fixed assets is provided on straight-line method at the rate as specified in schedule XIV of the companies Act, 1956.

Leasehold land is amortised over the period of lease.

1. 04 Inventories

Inventories related to films under production are stated at acquisition and production cost plus relevant overhead cost.

1. 05 Investments

Long-term investments are carried at cost less provision for diminution other than temporary, if any, in the value of such investments. Current investments are carried at lower of cost and fair value.

1. 06 Revenue Recognition

Revenue is recognised when there is a reasonable certanity of its ultimate realization / collection. Sales (including Programs, Film Rights) is recognised, when the significant risks and rewards have been transferred to the customers. Advertisement revenue generated from broadcasting rights (net of discount and volume rebates) is recognised when the related advertisement or commercial appears before the public i.e. on telecast.

1. 07 Accounting for Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future. However, in respect of unabsorbed depreciation or carry forward loss, the deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the assets will be realised in future.

1.08 Foreign Exchange Transaction

Transactions in foreign currencies are accounted at exchange rates prevalent on the date of the transaction. Foreign currency monetary assets and liabilities at the period end are translated using the exchange rates prevailing at the end of the period. All exchange differences are recognized in the statement of Profit and Loss.

Non-Monetary items denominated in foreign currency are stated at the rate prevailing on the date of the transaction.

1.09 Impairment of Assets

The company assesses at each balance sheet date whether, there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the assets. If the carrying amount of fixed assets/cash generating unit exceeds the recoverable amount on the reporting date, the carryingN amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

1.10 Provisions and Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes to accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.11 Earning Per Share

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except when the results would be anti-dilutive. Dilutive earnings per share include the dilutive effect of potential equity shares under Stock options.

1.12 Events Occuring after the Balance Sheet Date

Events occurring after the Balance Sheet Date have been considered in the preparation of financial statements.

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Mar 31, 2013

A. BASIS OF ACCOUNTIG

i) The company adopts the accrual basis of accounting in the preparation of accounts.

ii) Sales are accounted for inclusive of excise duty and net of returns, claims and discount allowed

B. FIXED ASSETS AND DEPRECIATION/AMORTISATION

i) All fixed assets are stated at historical cost. Cost comprises of the purchase price and attributable cost of

bringing the assets to working condition for its intended use. Pre-operative expenditures are proportionately capitalized to the respective assets.

ii) Depreciation on fixed assets is provide on straight-line method at the rate as specified in schedule XIV of the companies Act, 1956.

iii) Leasehold land is amortised over the period of lease.

C. INVESTMENT

i) Investments if any are stated at cost.

D. INVENTORIES

i) Inventories are valued as under:

a. Raw Materials - at lower of cost or realizable value

b. Finished Goods - at net realizable value

c. Stores, Spares, Parts, Fuel, Packing Material, Components etc - at lower of cost or realizable value.

E. ACCOUNTING FOR TAXES ON INCOME

i) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii) Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

F. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes to accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

G. EARNINGS PER SHARE

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the period, except when the results would be anti-dilutive. Dilutive earnings per share include the dilutive effect of potential equity shares under Stock options.

H. OTHER INCOME

Other Income is accounted on accrual basis.

I. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

Events occurring after the Balance Sheet Date have benne considered in the preparation of financial statements.

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Mar 31, 2010

A. BASIS OF ACCOUNTIG

1) The company adopts the accrual basis of accounting in the preparation of accounts.

2) Sales are accounted for inclusive of excise duty and net of returns, claims and discount allowed

B. FIXED ASSETS AND DEPRECIATION/AMORTISATION

1) All fixed assets are stated at historical cost. Cost comprises of the purchase price and attributable cost of bringing the assets to working condition for its intended use. Pre-operative expenditures are proportionately capitalized to the respective assets.

2) Depreciation on fixed assets is provide on straight-line method at the rate as specified in schedule XIV of the companies Act, 1956.

3) Leasehold land is amortised over the period of lease.

C. INVESTMENT

Investments if any are stated at cost.

D. INVENTORIES

Inventories are valued as under:

i) Raw Materials - at lower of cost or realizable value

ii) Finished Goods - at net realizable value

iii) Stores, Spares, Parts, Fuel, Packing Material, Components etc - at lower of cost or realizable value.

E. PRELIMINARY AND SHARE ISSUE EXPENSES

The preliminary and share issue expenses are written off over a period of 10 years in equal installments.

F. RETIREMENT BENEFITS

i) The companys contribution to provident fund & other fund is charged against revenue.

ii) Expenses on leave Encashment and Gratuity are accounted for on Cash basis.