a) Basis of preparation of Financial Statements
 
 The financial statements are prepared on an accrual basis under the
 historical cost convention and are in accordance with the generally
 accepted accounting principles in India, the applicable accounting
 standards issued by the Companies Accounting Standards Rules, 2006 and
 the provisions of the Companies Act, 1956.
 
 b) Revenue Recognition
 
 Revenue is recognized on transfer of significant risk and reward in
 respect of ownership. Sale of goods is recognized on dispatch of goods
 to customer except consignment sales, which is recognized only when
 goods are sold to third party. Sales are exclusive of sales tax where
 applicable and net of returns, claims and discount etc. Service charges
 are recognized proportionately over the period in which services are
 rendered and exclusive of service tax where applicable. Commission
 Income is recognized on accrual basis. The dividend income from
 investment is recognized when the owner''s right to receive payment is
 established and interest income is accounted on time proportion basis.
 
 c) Fixed Assets
 
 (i) Fixed Assets are stated at historical cost less accumulated
 depreciation/amortization and impairment loss, if any. The cost is
 inclusive of freight, installation cost, duties, taxes, financing cost
 and other incidental expenses but net of Modvat/Cenvat.
 
 (ii) Capital Work in Progress is carried at cost, comprising of direct
 tax, attributable interest and related incidental expenditure. The
 advances given for acquiring fixed assets are shown under Capital Work
 in Progress.
 
 d) Depreciation
 
 Depreciation on all assets (except on Assets acquired on merger with
 Niulab Equipment Company Private Limited) are provided on written down
 value method and pro-rata in respect of acquisitions or disposals
 during the year at the rates prescribed in Schedule XIV of the
 Companies Act, 1956.  Depreciation on all assets acquired on merger of
 Niulab Equipment Company Private Limited are provided on straight line
 method and pro-rata in respect of acquisitions or disposals during the
 year at the rates prescribed in Schedule XIV of the Companies Act,
 1956.
 
 e) Amortization of Goodwill
 
 Goodwill raised on Amalgamation is amortized over a period of 5 years.
 
 f) Impairment
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An impairment loss is charged to the Profit and
 Loss Account in the year in which an asset is identified as impaired.
 The impairment loss recognized in prior accounting period is reversed
 if there has been change in the estimate of recoverable amount.
 
 g) Investments
 
 Current investments are carried at the lower of cost and quoted/fair
 value, computed category wise.  Long Term 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.
 
 h) Inventories
 
 Inventories are valued at Cost or Net Realisable Value, whichever is
 lower. Cost is arrived by using First-In First-Out (FIFO) formula and
 includes all cost of purchase, cost of conversion and other costs
 incurred in bringing them to their respective present location and
 condition. Inventories of under production film are valued at actual
 amount spent, which includes amount paid, bills settled and advances
 paid for which bill are awaited. The amount incurred during the year is
 capitalized by allocating into the various projects under production.
 
 i) Debtors and Creditors
 
 Debit and Credit balances of same parties are stated on Net basis
 
 j) Customs Duty
 
 Custom Duty on goods lying in the customs bonded warehouse are provided
 for and included in the valuation of inventory.
 
 k) Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as expenses in the period in
 which they are incurred.
 
 l) Retirement Benefits
 
 i) Contribution to Provident Fund and Family
 
 Pension Scheme is charged to Revenue.  
 
 ii) Payment of Gratuity and Leave Encashment are accounted for on cash
 basis.
 
 m) Leases
 
 Leases where the lesser effectively retains substantially all the risks
 and rewards of ownership of the leased term, are classified as
 operating leases. Operating lease rentals payable are charged as rent
 in profit and loss account.
 
 n) Tax Expenses
 
 Deferred tax assets and liabilities are recognized for future tax
 consequences attributable to timing differences between taxable income
 and accounting income that are capable of reversal in one or more
 subsequent periods and are measured using relevant enacted tax rates.
 The deferred tax asset is recognized and carried forward only to the
 extent that there is a reasonable certainty that the assets will be
 realized in future in accordance with Accounting Standard 22 on
 Accounting for Taxes on Income.  Provision is made for Income Tax as
 per the provisions of The Income Tax Act, 1961 and the rules made
 there under.
 
 o) Provision, Contingent Liabilities and Contingent Assets Provisions
 comprise liabilities of uncertain timing or amount. Provisions are
 recognized 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 disclosed by way of Notes to Accounts.