Basis of preparation of financial statements
 
 The financial statements are prepared under the historical cost
 convention on accrual basis of accounting and in accordance with
 generally accepted accounting principles in India, the Accounting
 Standard notified under the Companies (Accounting Standard) Rules, 2006
 and relevant provisions of the Companies Act, 1956
 
 Use of Estimates
 
 The preparation of financial statements, in conformity with generally
 accepted accounting principles, requires estimates and assumptions to
 be made that affect the reported amounts of assets and liabilities on
 the date of the financial statements and the reported amounts of the
 revenue and expenses during the reported year. Differences between the
 actual results and the estimates are recognized in the year in which
 the results are known / materialized
 
 Fixed assets
 
 Fixed assets are stated at cost of acquisition or construction. They
 are stated at historical cost less accumulated
 depreciation/amortization and impairment loss, if any.
 
 Depreciation /Amortization
 
 Depreciation on fixed assets is provided on straight line basis in
 accordance with provisions of the Companies Act, 1956 at the rates and
 in the manner specified in schedule XIV of this Act except for the
 following fixed assets which are depreciated as per management
 estimates of their useful life which are as under:
 
 Studios and sets® 33.33%
 
 Leasehold improvements are amortized over the period of lease
 
 Impairment loss
 
 Impairment loss is provided to the extent the carrying amount of assets
 exceeds their recoverable amounts. Recoverable amount is the higher of
 an asset''s net selling price and its value in use. Value in use is the
 present value of estimated future cash flows expected to arise from the
 continuing use of the asset and from its disposal at the end of its
 useful life. Net selling price is the amount obtainable from sale of
 the asset in an arm''s length transaction between knowledgeable, willing
 parties, less the costs of disposal.
 
 Investments
 
 Current investments are carried at lower of cost and fair value. Long
 term investments are carried at cost. However, when there is a decline,
 other than temporary, the carrying amount is reduced to recognize the
 decline
 
 Inventories
 
 Items of inventory are valued at lower of cost and net realizable
 value. Cost is determined on the following basis:
 
 Tapes                   :      First In First Out
 
 Television serials      :      Average cost
 
 Unamortized cost of 
 content                 :      The cost of content is amortized in the
                                ratio of current revenue to expected 
                                total revenue. At the end of each 
                                accounting period, balance unamortized 
                                cost is compared with net expected 
                                revenue. If net expected revenue is less
                                than unamortized cost, the same is 
                                written down to net expected revenue.
 
 Revenue recognition
 
 a) In respect of sponsored programmes, revenue is recognized as and
 when the relevant episodes of the programmes are telecast
 
 b) In respect of commissioned programmes, revenue is recognized as and
 when the relevant episodes of the programmes are delivered to the
 channels
 
 In all other cases, revenue (income) is recognized when no significant
 uncertainty as to its determination or realization exists
 
 Employee benefits
 
 a) Post employment benefits and other long term benefits
 
 i) Defined Contribution Plans
 
 The Company contributes towards Provident Fund and Family Pension Fund.
 Liability in respect thereof is determined on the basis of contribution
 as required under the Statute / Rules
 
 i) Defined Benefit Plans:
 
 The Trustees of Balaji Telefilms Limited Employees Group Gratuity
 Scheme have taken a Group Gratuity cum Life Assurance Policy from the
 Life Insurance Corporation of India (LIC).
 
 Contributions are made to LIC in respect of gratuity based upon
 actuarial valuation done at the end of every financial year using
 ''Projected Unit Credit Method'' Major drivers in actuarial assumptions,
 typically, are years of service and employee compensation Gains and
 losses on changes in actuarial assumptions are accounted in the Profit
 and Loss Account
 
 b) Short Term Employee Benefits:
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related service is rendered
 
 Foreign currency transactions
 
 Transactions in foreign currency are recorded at the original rates of
 exchange in force at the time the transactions are effected. At the
 year end, monetary items denominated in foreign currency are reported
 using the closing rates of exchange. Exchange differences arising
 thereon and on realisation / payment of foreign exchange are accounted
 in the relevant year as income or expense
 
 Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production 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. All other
 borrowing costs are charged to revenue
 
 Operating leases
 
 Assets taken on lease under which, all the risks and rewards of the
 ownership are effectively retained by the lessor are classified as
 operating lease. Lease payments under operating leases are recognised
 as expenses in accordance with the respective lease agreements
 
 Taxes on income
 
 Tax expense comprises of current tax and deferred tax
 
 Current tax is measured at the amount expected to be paid to /
 recovered from the tax authorities, using the applicable tax rates
 
 Deferred income tax reflect the current period timing differences
 between taxable income and accounting income for the period and
 reversal of timing differences of earlier years/period. Deferred tax
 assets are recognised only to the extent that there is reasonable
 certainty that sufficient future income will be available except that
 the deferred tax assets, in case there are unabsorbed depreciation and
 losses, are recognised if there is a virtual certainty that sufficient
 future taxable income will be available to realise the same. (Refer
 note 11 below)
 
 Provisions and Contingencies
 
 Provisions are recognised when the Company has a legal and constructive
 obligation as a result of a past event, for which it is probable that
 cash outflow will be required and a reliable estimate can be made of
 the amount of the obligation. Contingent liabilities are disclosed when
 the Company has a possible or present obligation where it is not
 probable that an outflow of resources will be required to settle it.
 Contingent assets are neither recognised nor disclosed