1.1. Basis for preparation of financial statements
The financial statements have been prepared in accordance with the
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 to the extent applicable. The accounts are
prepared under historical cost convention and ongoing concern basis,
with revenue recognized, expenses accounted on their accrual and in
accordance with Generally Accepted Accounting Principles in India. The
accounting policies have been consistently applied and followed by the
1.2. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities, at the date of the financial
statements and of the result of operations during the reporting period.
Although these estimates are based upon management''s best knowledge of
current events and actions, uncertainty about these assumptions and
estimates could result in the outcomes requiring a material adjustment
to the carrying amount of assets or liabilities in future periods.
Raw materials, stores, spares and& consumables useable in the printing
and publication of newspapers and periodicals are valued at cost on
FIFO basis. Cost includes applicable taxes, duties and transportation,
handling and interest cost. Inventories of Odyssey stores are valued at
the lower of cost and net realizable value. Cost is determined by the
weighted average cost method.
1.4. Fixed assets and depreciation
Fixed Assets are stated at cost of acquisition less accumulated
depreciation. Expenditure which are of capital in nature are
capitalized at cost, which comprises of purchase price (net of rebates
and discounts), import duties, levies and all other expenditure
directly attributable to cost of bringing the asset to its working
condition for its intended use. Financing costs relating to acquisition
of fixed assets are also included to the extent they relate to the
period till such assets are ready to put to use. Depreciation on fixed
assets is provided on the basis of Straight Line Method, at the rates
and in the manner prescribed in the Schedule XIV to the Companies Act,
1956. On additions and disposals, depreciation is provided for the
period of use during the period under report. Brand and Editorial
content property rights relating to Asian Age grouped under Intangibles
which we are acquired are amortized on straight line basis over period
1.5. Capital work in progress
Advances paid towards the acquisition of fixed assets and direct
expenses pertaining to the cost of those assets, not put to use before
the period end are disclosed under ''Capital work in progress''.
1.6. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically, the following basis is adopted.
Advertisements: Advertisement revenue is recognized, net of discount
and commission, as and when advertisement is published/sold. Further,
advertisement revenue earned, as per arrangement with BCCI, from sale
of media rights, ticket revenue from the viewer ship in stadium,
sponsorship and in-stadia advertisement etc., are recognized on accrual
/ intimation by BCCI.
Circulation Revenue: Circulation revenue is recognized, net of
commission, on dispatch of newspapers and periodicals.
Sale of merchandise: Revenue from sale of merchandise is recognized
when significant risks and rewards in respect of ownership of products
are transferred to the customer.
Other Operating Income: Sale of scrap is recognized upon passing of
title/sale invoice is made and interest income is recognized on time
1.7. Foreign currency transactions
Foreign exchange transactions are accounted at the rates prevailing on
the date of transactions. Monetary assets and liabilities relating to
foreign currency transactions unsettled at the end of the period are
translated at period end rates. The difference in translation of
monetary assets and liabilities and realized gains and losses on
foreign exchange transactions are recognized in the Statement of Profit
1.8. Retirement benefits
Retirement benefits in the form of Provident Fund are charged to the
Statement of Profit & Loss of the period when the contributions to the
respective funds are due and/or paid. Gratuity, which is a defined
benefit plan, is provided as per actuarial valuation, determined by an
independent actuary, as on balance sheet date.
1.9. Borrowing costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost of
such asset. A qualifying asset is one that requires substantial period
of time to get ready for its intended use. All other borrowing costs
are charged to Statement of Profit and Loss.
Assets taken on finance lease are capitalized at the inception of the
lease at the lower of the fair value or the present value of minimum
lease payments and a liability is created for an equivalent amount.
Each lease rental paid is allocated between the liability and interest
cost, so as to obtain a constant periodic rate of interest on
outstanding liability for each period. Operating leases in respect of
office and other equipment, house for employees, Office buildings are
cancelable/ renewable by mutual consent on agreed terms. Lease payments
under an operating lease are recognized as an expense in the Statement
of Profit and Loss.
1.11. Earnings per share
Basic and Diluted Earnings Per Share (EPS) is reported in accordance
with Accounting Standard 20 on Earning Per Share. EPS is computed by
dividing the net profit or loss after tax for the period by weighted
average number of Equity shares outstanding during the period. Diluted
EPS is computed by dividing the net profits or loss after tax for the
period by the weighted average number of equity shares outstanding
during the period as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti-dilutive.
Provision for Current tax is made based on the tax liability computed
in accordance with the relevant tax rates and provisions of Income Tax
Act, 1961. Deferred tax is measured based on the tax rates and tax laws
enacted or substantially enacted at the Balance Sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which deferred tax assets can be realized.
1.13. impairment of Fixed assets
An Asset is treated as impaired when the carrying value of assets
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit & Loss as an expense immediately, when the asset is
identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been a change in the
estimate of recoverable amount based on external and internal sources
1.14. Provisions, contingent liabilities and contingent assets
The Company recognizes a provision when there is a present obligation
as a result of past obligating event that probably requires an outflow
of resources 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 ore present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation ore present obligation that the likelihood of outflow of
resources is remote, no provision is made.
1.15. Cash Flow Statement
The Cash Flow Statement is prepared under the indirect method as per
Accounting Standard 3Cash Flow Statement.
1.16. Segment Reporting
The Company is primarily in the business of printing and publication of
newspapers and periodicals and related advertisement revenues. The
Company''s operations are geographically spread across India and do not
have any operations in economic environments with different risks and
returns. Accordingly, pursuant to the accounting standards, no segment
disclosure has been made in these financial statements, as the Company
has only one geographical segment.