1.1 Basis of accounting and preparation of financial statements
 
 The financial statements of the Company have been prepared in
 accordance with Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956.The financial statements
 have been prepared under the Historical Cost Convention on the
 Mercantile System of accounting and in accordance with the accounting
 standards referred to in Section 211(3C) of the Companies Act, 1956, to
 the extent applicable. The accounting policies adopted in the
 preparation of the financial statements are consistent with those
 followed in the previous year.
 
 1.2 Use of Estimates
 
 The preparation of the financial statements is in accordance with
 Generally Accepted Accounting Principles. It requires the management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities, disclosures relating to contingent liabilities
 as at the date of the financial statements and reported amounts of
 revenues and expenses during the year. Actual results could differ from
 these estimates and a revision to such accounting estimates is
 recognized in the accounting period in which such a revision takes
 place.
 
 1.3 Inventories
 
 Stock of Tapes, Cassettes, Discs and Electronic Devices
 
 Inventories of raw stock consists of tapes, cassettes, compact discs
 and other electronic devices which are valued at lower of cost or
 estimated net realizable value.  Cost is taken on First in First Out
 basis (FIFO).
 
 Inventories Related to Television Software and Programme Pilots
 
 The entire cost of the programme is charged to income when the
 programme is first exploited. The inventory thus comprises of
 unamortized cost of such programmes. In case of Programme Pilots, the
 cost is expensed-off on first telecast and after the review of
 readability.
 
 Inventories Related to Movies (Feature Films)
 
 Movies under production (WIP) - at actual unamortized cost or net
 realizable value whichever is lower. The company amortizes 75% of the
 cost of movie rights acquired or produced by it, on the first
 theatrical release of the movie. The said amortization is made
 proportionately on Domestic Theatrical Rights, International Theatrical
 Rights and Video Rights based on Management estimate of revenues from
 each of these rights. In case of aforesaid rights are not exploited
 along with or prior to the first theatrical release, proportionate
 appropriated cost of the said right is carried forward to be written
 off as and when such right is commercially exploited or at the end of
 one year from the date of first theatrical release, whichever occurs
 earlier. Balance 25% is amortised over the balance license period or
 based on management estimate of future revenue potential, as the case
 may be. Thus inventory comprises of unamortized cost of such movie
 rights.
 
 1.4 Cash and Cash Equivalents
 
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are highly liquid investments that are readily convertible
 into known amounts of cash and which are subject to insignificant risk
 of changes in value.
 
 1.5 Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non- cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 1.6 Depreciation
 
 Depreciation on fixed asset is provided on Written Down Value method at
 the rates and in the manner prescribed in Schedule XIV of the Companies
 Act, 1956.
 
 1.7 Revenue Recognition
 
 In respect of Commissioned programmes, revenue is recognized as and
 when the relevant Software programme is delivered to the customers.
 Production expenses are net of recoveries, if any.
 
 Interest is recognized using time proportion method and dividend income
 is recognized when the company''s right to receive dividend is
 established.
 
 Lease rental on equipment is recognized as revenue as per the terms of
 the lease agreement.
 
 In all other cases, revenue is recognized when no significant
 uncertainty as to its determination or realization exists.
 
 1.8 Other Income
 
 Interest income is accounted on accrual basis.
 
 1.9 Fixed Assets & Capital Work-in-Progress
 
 Tangible fixed assets
 
 The Fixed assets are stated at cost less accumulated depreciation and
 impairment. The cost of fixed assets includes interest on borrowings
 attributable to acquisition of qualifying fixed assets up to the date
 the asset is ready for its intended use and other incidental expenses
 incurred up to that date. Cost includes capital cost, freight,
 installation cost, duties and taxes and other incidental expenses
 incurred during the construction/ installation and attributable to
 bringing the asset to its intended use. Fixed assets are further
 adjusted by the amount of CENVAT credit available, wherever applicable.
 Subsequent expenditure relating to fixed assets is capitalized only if
 such expenditure results in an increase in the future benefits from
 such asset beyond its previously assessed standard of performance.
 
 Capital work-in-proaress
 
 Capital work in progress comprises of cost of fixed assets that are not
 yet ready for their intended use and outstanding advances paid to
 acquire fixed assets, at the balance sheet date.
 
 1.10 Intangible Fixed Assets
 
 The Intangible assets are stated at cost less accumulated depreciation
 and impairment. Cost includes capital cost, freight, installation cost,
 duties and taxes and other incidental expenses incurred during the
 construction/installation and attributable to bringing the asset to its
 intended use. Fixed assets are further adjusted by the amount of CENVAT
 credit available, wherever applicable.
 
 1.11 Foreign Currency Transactions
 
 As per Companies (Accounting Standard) Rules 2006, exchange difference
 arising on settlement or restatement of foreign currency denominated
 liabilities relating to the acquisition of fixed assets, which is in
 accordance with Accounting Standard-11 issued by the Institute of
 Chartered Accountants of India are recognized in the Profit & Loss
 account.
 
 As per Schedule-VI of the Companies Act, 1956 exchange differences
 arising on foreign currency denominated liabilities relating to the
 Capital work in progress/Capital advance forms part of the Capital Work
 in progress/Capital Advance. 
 
 1.12 Government grants, subsidies and export incentives
 
 No Government grants, subsidies and export incentives received during
 the financial year 2011-12.
 
 1.13 Investments
 
 Current investments are stated at cost or fair value whichever is
 lower. Long term investments are stated at cost. Provision for
 diminution in value of long term investment is made, if the diminution
 is other than temporary.
 
 1.14 Employee Benefits
 
 The Company has contributed to employee''s provident fund as per
 provisions of the Employee''s Provident Fund Act, 1952 and is charged to
 Profit and Loss Account.
 
 The Company has contributed to employee''s state insurance fund as per
 provisions of the ESI Act, 1948 and is charged to Profit and Loss
 Account.
 
 As per the Company''s policy, the gratuity is payable as per the
 provisions of the Gratuity Act. Liability in respect of Gratuity is
 provided for on the basis of an actuarial valuation as at the date of
 Balance Sheet.
 
 Bonus is paid and charged to Profit and Loss Account as per the
 provisions of The Payment of Bonus Act, 1965. 
 
 1.15 Borrowing Cost
 
 Borrowing cost that is attributable to the acquisition or construction
 of a qualifying asset is capitalized as part of the cost of that asset
 when first put to use. Other borrowing costs are recognized as an
 expense in the period in which they are incurred.
 
 1.16 Segmental Reporting
 
 Primary segments: The company has three primary reportable business
 segments i.e. audio-video production, movies and leasing of property
 and broadcasting equipments.
 
 Secondary segments: The Company caters to the needs of Indian market
 representing singular economic environments with similar risks and
 rewards and hence there are no reportable geographical segments.
 
 Identifiable expenses are accounted for directly in respective
 segments. Overheads are apportioned pro- rata on revenues.
 
 1.17 Operating Lease
 
 The Company has. given broadcasting equipments under operating leases.
 These lease agreements are normally renewable on expiry. The rental
 income on operating leases is credited to profit and losses account
 
 1.18 Earnings Per Share (EPS)
 
 The Company reports basic earning per equity share in accordance with
 tfie Accounting Standard-20 issued by the Institute of Chartered
 Accountants of India. Basic Earnings per equity share has been computed
 by dividing the net profit after tax by the weighted average number of
 equity shares outstanding during the year.
 
 The number of shares used in computing the diluted earning per shue
 comprises of the weighted average shares considered for deriving basic
 earnings per share, and also the weighted average number of equity
 shares that could have been issued on the conversion of all dilutive
 potential equity shares.
 
 1.19 Taxation
 
 Tax expenses for the period comprises of both, current tax and deferred
 tax at the applicable enacted or substantively enacted rates. Current
 tax represents the amount of income tax payable in respect of the
 taxable income for the reporting period. Deferred tax resulting from
 timing difference between taxable and accounting income is accounted
 for using the tax rates and laws that are enacted or substantively
 enacted as on the balance sheet date. The deferred tax asset is
 recognized and carried forward only to the extent that there is a
 virtual certainty that the asset will be realized in future.
 
 1.20 Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication of impairment of carrying amount of the company''s assets.
 The recoverable amount of such assets are estimated, if any, indication
 exists, and impairment loss is recognized wherever the carrying amount
 of the assets exceeds its recoverable amount.
 
 1.21 Provisions, Contingent Liabilities and Contingent Assets
 Provisions involving substantial degree of estimation in measurement
 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 not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 1.22 Service Tax Input Credit
 
 Service tax input credit is accounted for in the books in the period in
 which the underlying service received is accounted and when there is no
 uncertainty in availing / utilizing the credits.
 
 1.23 Miscellaneous Expenditure
 
 A.  Preliminary Expenses
 
 Preliminary expenses are amortized over a period of ten years from the
 year of commencement of commercial operations.
 
 B.  Deferred Revenue Expenditure Deferred Revenue Expenditures are
 those expenditures which have been incurred in an accounting period and
 they do not create any assets but their benefit is spread in more than
 one accounting period.
 
 Deferred Employee Compensation : 5 Years from the grant of the option
 
 Expenditure incurred up to the date of commencement of commercial
 operations, not directly attributable to fixed assets are charged to
 the profit and loss account during the year as per Accounting
 Standard-26 issued by the Institute of Chartered Accountants of India.
 
 1.24 Employees Stock Option Scheme (ESOS)
 
 The Company calculates the employee stock compensation expense based on
 the intrinsic value method wherein the excess of market price of
 underlying equity shares as on the date of the grant of options over
 the exercise price of the options given to employees under the BAG
 ESOP Scheme of the Company, is recognized as Deferred Employee
 Compensation expense and is amortized over the vesting period on the
 basis of generally accepting accounting principles in accordance with
 the guidelines of Securities and Exchange Board of India and guidance
 note issued by the Institute of Chartered Accountants of India.
 Accordingly, the excess of market price over the issue price of shares
 is recognized as employee compensation and is charged to the profit and
 loss account.