Accounting Policies of Universal Arts Ltd. Company

Mar 31, 2024

2 Summary of Significant Accounting Policies

(a) Basis of Preparation & Presentation

The financial statements are prepared on the accrual basis of accounting and in accordance with the
Indian Accounting Standards (hereinafter referred to as the Ind AS) as prescribed under Section 133 of
the Companies Act, 2013 (the Act) (as amended) and other relevant provisions of the Act.

The Financial statements have been prepared as a going concern under the historical cost convention.
The Financial statements are presented in Indian Rupees (“INR”) and all values are rounded to the
nearest Thousand, except otherwise stated as per the requirement of Schedule III.

(b) Classification of Current and Non-Current

The Company presents assets and liabilities in the Balance Sheet based on Current/ Non-Current
classification.

An asset is treated as current when it is:

i) Expected to be realized or intended to be sold or consumed in normal operating cycle,

ii) Held primarily for the purpose of trading,

iii) Expected to be realized within twelve months after the reporting period, or

iv) Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i) It is expected to be settled in normal operating cycle,

ii) It is held primarily for the purpose of trading,

iii) It is due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to determine the settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non - current.

(c) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits.

(d) Taxes on Income
Current Tax

Income tax expense represents the sum of current tax and deferred tax and includes any adjustments
related to past periods in current and /or deferred tax adjustments that may become necessary due to
certain developments or reviews during the relevant year. Current income tax is based on the taxable
income and calculated using the applicable tax rates.

Deferred Tax

Deferred tax is provided using the Balance sheet method on temporary differences between the tax bases
of assets and liabilities and their carrying amounts for the financial reporting purposes at the reporting
date. The carrying amount of deferred tax assets is reviewed at the end of 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 tax asset to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
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 reporting date. Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss in correlation to the underlying transaction either in OCI
or directly in equity.

Deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

(e) Revenue Recognition.

In Case of Sale of rights, the company recongnizes the income When all the following criteria are met:

1) A license agreement is signed by both the parties.

2) The Licensee is able to freely exploit the rights granted.

3) Effective date of grant of rights to the licensee has commenced as per the agreement or complete
payment with respect to the rights has been recieved,whichever is earlier.

4) The Enterprise has no remaining performance obligations.

5) The arrangement is fixed and determinable.

6) Collection of fee is reasonably assured.”

Other Stream of income

In all other cases, revenue is recognized when the company has the undisputable right to receive the
income.

(f) Purchase of Movie rights

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

• A license agreement is signed by both the parties.

• The Enterprise is able to freely exploit the rights granted.

• Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete
payment for the same has been made, whichever is earlier.

• The Seller has no remaining performance obligations.

• The arrangement is fixed and determinable.

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Mar 31, 2015

1. Basis of preparation of Financial Statements

a) These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 2013 and the RBI guidelines/regulations to the extent applicable.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Till year ended 30th June, 2014, depreciation rates as prescribed under Schedule XIV were taken for the purpose of charging depreciation on fixed assets. As per the newly amended Companies Act, 2013 company is now required to charge Depreciation on fixed assets on the basis of useful life of assets and as per Schedule II of the said Act. Further as per guidance note issued by ICAI, depreciation rate is calculated for existing assets considering its residual value and remaining useful life and depreciation on such assets is charged on written down value method.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in' the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Tapes and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition.

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

* A license agreement is signed by both the parties;

* The licensee is able to freely exploit the rights granted;

* Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

* The Enterprise has no remaining performance obligations;

* The arrangement is fixed and determinable;

* Collection of the fee is reasonably assured;

* All the essential deliverables to the licensee as per the agreement are completed.

Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

* A license agreement is signed by both the parties;

* The Enterprise is able to freely exploit the rights granted;

* Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

* The Seller has no remaining performance obligations;

* The arrangement is fixed and determinable;

* All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any.

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2014

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Depreciation on fixed assets provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

* A license agreement is signed by both the parties;

* The licensee is able to freely exploit the rights granted;

* Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

* The Enterprise has no remaining performance obligations;

* The arrangement is fixed and determinable;

* Collection of the fee is reasonably assured;

* All the essential deliverables to the licensee as per the agreement are completed.

Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

* A license agreement is signed by both the parties;

* The Enterprise is able to freely exploit the rights granted;

* Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

* The Seller has no remaining performance obligations;

* The arrangement is fixed and determinable;

* All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2013

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Depreciation on fixed assets provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories and films include raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower.

6. Revenue Recognition

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment. ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

- A license agreement is signed by both the parties;

- The licensee is able to freely exploit the rights granted;

- Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

- The Enterprise has no remaining performance obligations;

- The arrangement is fixed and determinable;

- Collection of the fee is reasonably assured;

- All the essential deliverables to the licensee as per the agreement are completed. Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when all the below mentioned criteria are met:

- A license agreement is signed by both the parties;

- The Enterprise is able to freely exploit the rights granted;

- Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete payment for the same has been made, whichever is earlier;

- The Seller has no remaining performance obligations;

- The arrangement is fixed and determinable;

- All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

9. Contingent Liabilities

Contingent liabilities are not provided for and are disclosed by way of notes, if any.

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2012

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles.

c) The preparation of financial statements requires estimates and assumption to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assets are stated at cost less accumulated depreciation.

b) Depreciation on fixed assets provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date. .

4. Investments

The Investments are.stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories include Raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production and are valued at cost or net realizable value, whichever is lower. The inventory of film have been valued at cost.

6. Revenue Recognition. .

i) In the case of movies telecasted on Doordarshan, the revenue is recognized in the year in which Doordarshan sanctions the payment.

ii) In case of sale of other rights, the Company recognizes the income when all the following criteria are met:

- A license agreement is signed by both the parties;

- The licensee is able to freely exploit the rights granted;

- Effective date of grant of rights to the licensee has commenced as per the agreement or complete payment with respect to the rights has been received, whichever is earlier;

- The Enterprise has no remaining performance obligations;

0 The arrangement is fixed and determinable; -

- Collection of the fee is reasonably assured;

- All the essential deliverables to the licensee as per the agreement are completed.

Other streams of income

In all other cases, revenue is recognized when the Company has the undisputable right to receive the income.

Company has restated its accounting policies considering the nature of business. However such restatement does not affect the statement of profit & loss account and balance sheet of the Company.

7. Purchase of Movie rights.

The Enterprise recognizes purchase of movie rights when the all the below mentioned criteria are met:

- A license agreement is signed by both the parties; -

- The Enterprise is able to freely exploit the rights granted;

- Effective date of grant of rights to the Enterprise has commenced as per the agreement or complete, payment for the same has been made, whichever is earlier;

- The Seller has no remaining performance obligations;

- The arrangement is fixed and determinable;

- All essential deliverables to the Enterprise as per the agreement are completed.

8. Employees Retirement and other benefits

The Company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

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

10. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the books.

11. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to statement of Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss ' ' recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

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Jun 30, 2010

1. Basis of preparation of Financial Statements

a) The financial statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956 and the applicable accounting standards issued by Institute of Chartered Accountants of India.

b) Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.

c) The preparation of financial statements requires estimates and assumption to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period .The Difference between the actual and estimate are recognized in the period in which results are known/materialized.

2. Fixed Assets and Depreciation

a) Fixed assess stated at cost less accumulated depreciation.

b) Portal & content rights has been capitalized and has been amortized over the estimated economical life of the content.

c) Depreciation on fixed assets provided on straight-line method at the; rates prescribed by Schedule XIV of the Companies Act, 1956.

d) Portal & contents rights are amortized over the period of three years.

3. Foreign Exchange Transaction

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Outstanding balances are valued at the rate prevailing on the Balance Sheet date.

4. Investments

The Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories

The inventories include Raw stock (Taps and cassettes etc.) TV programmers/ Episodes of TV serials under production are valued at cost or net realizable value, whichever is lower. The inventory of film have been valued at cost.

6. Revenue

Revenue/ Income are accounted as and when the relevant episode of the program is or film is delivered to the . channel. Cost/Expenditure are generally accounted for on accrual baisis as they are incurred.

7. Employees Retirement and other benefits

The company does not fulfill the criteria of minimum number of Employee employed and therefore no provision is required to be made for Gratuity and provident fund.

8. Contingent Liabilities

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

9. Provisions for Current and Deferred Tax

Provision for current tax is made after taking into consideration benofits admissible under the provisions of the Income-tax Act, 1961. Company has not provided deferred tax in the; books.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.