a.  Revenue recognition:
 
 i. Revenue is recognised to the extent that it is probable that
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 ii. Revenue from sale of tickets of films is recognised as and when the
 film is exhibited. Amount of Entertainment tax collected on sale of
 theatre tickets has been shown as a reduction from the operating
 revenue.
 
 iii. Revenue in respect of realty development activities is recognised
 by applying the percentage of completion method and upon the transfer
 of significant risks and rewards to the buyer in terms of the
 underlying sale agreement / letter of allotment, provided it is not
 unreasonable to expect ultimate collection.
 
 iv. Revenue from sale of food and beverages is recognised upon delivery
 to customers, and is net of refund, discounts and complimentary.
 
 v. Advertisement revenue is recognised as and when advertisements are
 displayed at the cinema hall and are net of service tax and
 advertisement tax.
 
 vi. Interest revenue is recognised on a time proportionate basis,
 taking into account the amount outstanding and the rates applicable.
 
 vii.  Revenue from rent is recognised based upon the agreement, for the
 period the property has been let out.
 
 viii. Royalty Income is recognised when the right to receive payment is
 established based on terms of the agreement.
 
 b.  Fixed assets and Depreciation /Amortisation :
 
 i. Fixed assets, both tangible and intangible are stated at cost of
 acquisition / construction Cost includes taxes, duties, freight and
 other incidental expenses related to acquisition / construction.
 Interest on borrowings to finance acquisition of fixed assets during
 construction period is capitalised.
 
 ii. Leasehold improvements represent expenses incurred towards civil
 work and interior furnishings on the leased premises.
 
 iii. Depreciation on Fixed assets is provided on the straight-line
 method at the rates specified under Schedule XIV of the Companies Act,
 1956, except for leasehold improvements, furniture, fixtures and
 electrical fittings on a leasehold premise, which are depreciated over
 the unexpired primary period of lease.
 
 iv. Computer software are amortised over their respective individual
 useful lives on a straight line basis.
 
 v. Goodwill arising on account of the amalgamation is amortised over
 the period of five years.
 
 vi. Individual items of Fixed Assets capitalised during the year
 costing up to Rupees five thousand each are fully depreciated in the
 first year.
 
 c.  Impairment of Assets:
 
 In accordance with Accounting Standard (AS) 28 on Impairment of Assets''
 as notified by the Central Government under the Companies Act, 1956,
 the carrying amounts of the Company''s assets are reviewed at each
 balance sheet date to determine whether there is any impairment. The
 recoverable amount of the assets (or where applicable, that of the cash
 generating unit to which the asset belongs) is estimated as the higher
 of its net selling price and its value in use. An impairment loss is
 recognized whenever the carrying amount of an asset ora cash- generating
 unit exceeds its recoverable amount.  Impairment loss is recognized in
 the Profit and Loss Account or against revaluation surplus where
 applicable.
 
 d.  Investments:
 
 Investments are classified into long-term investments and current
 investments. Long-term investments are carried at cost. Provision for
 diminution in the value of long-term investments is not provided for
 unless it is considered other than temporary. Current investments are
 valued at lower of cost and net realisable value.
 
 e.  Inventories:
 
 Stock of food and beverages is valued at the lower of cost and net
 realisable value, arrived on first-in- first-out basis.
 
 f.  Borrowing Costs:
 
 Borrowing costs incurred on constructing or acquiring a qualifying
 asset are capitalised as cost of that asset/project until it is ready
 for its intended use or sale. A qualifying asset is an asset that
 necessarily takes a substantial period of time to get ready for its
 intended use or sale. All other borrowing costs are charged to revenue
 and recognised as an expense in the Profit and Loss Account.
 
 g.  Foreign Currency Transactions:
 
 i. Initial Recognition - Transactions denominated in foreign currencies
 are recorded at the rates of exchange prevailing on the date of the
 transaction.
 
 ii. Conversion - Monetary assets and liabilities denominated in foreign
 currency are converted at the rate of exchange prevailing on the date
 of the Balance Sheet.
 
 iii. Exchange Differences - All exchange differences arising on
 settlement/conversion on foreign currency transactions are included in
 the Profit and Loss Account in the year in which they arise.
 
 h.  Employee benefits:
 
 i. All short term employee benefits are accounted on undiscounted basis
 during the accounting period based on services rendered by employees.
 
 ii. The Company contributes to statutory provident fund in accordance
 with Employees Provident Fund and Miscellaneous Provisions Act, 1952
 that is a defined contribution plan and contribution paid or payable is
 recognised as an expense in the period in which the employee renders
 services.
 
 iii. The Company''s liability towards gratuity and compensated absences
 being defined benefit plans is accounted for on the basis of an
 independent actuarial valuation done at the year end and actuarial
 gains/losses are charged to the Profit and Loss Account.
 
 i.  Taxes on income
 
 Current Tax:
 
 Current tax is computed and provided for in accordance with the
 applicable provisions of the Income Tax Act, 1961.
 
 Deferred Tax:
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets are recognised only to the extent that there is a reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised. If the Company
 has unabsorbed depreciation or carry forward tax losses, deferred tax
 assets are recognised only if there is a virtual certainty supported by
 convincing evidence that such deferred tax assets can be realised
 against future taxable profits.
 
 At each balance sheet date the Company re- assesses unrecognised
 deferred tax assets. It recognizes unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realised
 
 j.  Leases:
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account.
 
 k.  Provisions and contingencies:
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 embodying economic benefits and a reliable estimate can be made of the
 amount of the obligation. A disclosure for a contingent liability is
 made when there is a possible obligation or a present obligation that
 may, but probably will not, require an outflow of resources. When there
 is a possible obligation or a present obligation in respect of which
 the likelihood of outflow of resources is remote, no provision or
 disclosure is made.
 
 l.  Service Tax:
 
 Service tax collected is considered as a liability against which
 service tax paid for eligible input services, to the extent claimable,
 is adjusted and the net liability is remitted to the appropriate
 authority as stipulated. Unutilized credits, if any, are carried
 forward under Advances recoverable in cash or kind, or for value to be
 received for adjustments in subsequent periods. Service tax paid for
 eligible input services not recoverable by way of credits, if any, are
 recognised in the revenue account as an expense.