a) basis for Preparation of financial statements:
 
 The financial statements have been prepared under the historical cost
 convention on accrual basis in accordance with Generally Accepted
 Accounting Principles, Accounting Standards notified under section
 211(3C) of the Companies Act, 1956 and the relevant provisions thereof.
 
 b) use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amount of assets and
 liabilities and disclosures of contingent liabilities as at the date of
 financial statements. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 c) fixed assets:
 
 Fixed assets are stated at cost, less accumulated depreciation /
 amortization and impairment if any. Costs include all expenses incurred
 to bring the assets to its present location and condition.
 
 Distribution rights represent the cost incurred on acquisition
 /development of animation contents for exploitation.
 
 Capital work-in-progress comprises outstanding advances paid to acquire
 fixed assets and the cost of fixed asset (including expenditure during
 construction) that are not yet ready for their intended use before the
 balance sheet date.
 
 Capital work-in-progress also includes Direct or indirect expenses
 incurred on the Development of Projects in order to create Intellectual
 Property or Content, which are exploited on any form of media, as an
 intangible asset under development in accordance with AS 26 (intangible
 assets). In the event, the project is not scheduled for production
 within three years, or project is abandoned, the carrying value of the
 Development Rights would be expensed in the year in which such project
 is discontinued or abandoned.
 
 d) depreciation and amortization:
 
 Depreciation on fixed assets other than leasehold improvements is
 provided on straight-line method at rates which are as follows:
 
 Hardware & Software (CGI*) 30.00%
 
 Hardware & Software (Others) 16.21%
 
 Generators 16.21%
 
 Office Equipment 10.00%
 
 Furniture & Fixtures 10.00%
 
 Vehicles 25.00%
 
 *Computer Generated Imagery
 
 Individual assets costing less than Rs.5,000 are fully depreciated in
 the period of purchase. Where the aggregate actual cost of individual
 items of Plant and Machinery costing Rs.5,000 or less constitutes more
 than 10% of the total actual cost of Plant and Machinery, depreciation
 is provided at normal rates stated above.
 
 Leasehold improvements are amortized over the primary period of lease.
 
 Distribution Rights are amortized over the period of the rights or ten
 years whichever is lower.
 
 e) Investment:
 
 Long-term investments are stated at cost, less provision for other than
 temporary diminution in value. Current investments are stated at the
 lower of cost and fair value.
 
 f) Revenue Recognition (i) Production Revenue :
 
 Revenue represents amounts receivable for production and is recognised
 in the profit and loss account in proportion to the stage of completion
 of the transaction at the date of the balance sheet. The stage of
 completion can be measured reliably and is assessed by reference to
 work completed as of the date of the balance sheet. The company uses
 the services performed to date as a percentage of total services to be
 performed as the method for determining the stage of completion. Where
 services are in progress and where the amounts invoiced exceed the
 revenue recognised, the excess is shown as advance from customers.
 
 Where the revenue recognized exceeds the invoiced amount, the amounts
 are classified as unbilled revenue.
 
 The stage of completion for each episode is estimated by the management
 at the onset of the series by breaking each episode into specific
 activities and estimating the efforts required for the completion of
 each activity. Revenue is then allocated to each activity based on the
 proportion of efforts required to complete the activity in relation to
 the overall estimated efforts. Management''s estimates of the efforts
 required in relation to the stage of completion, determined at the
 onset of the series, are revisited at the date of the balance sheet and
 any material deviations from the initial estimate are recognised in the
 profit and loss account.  The company''s services are performed by a
 determinable number of acts over the duration of the project and hence
 revenue is not recognised on a straight-line basis. Contract costs that
 are not probable of being recovered are recognised as an expense
 immediately.
 
 (ii) Distribution Revenue:
 
 Revenue from the licensing of distribution rights where there is an
 ongoing performance obligation is recognised on a straight line basis
 over the term of the licensing agreement and in the case of the license
 fee from co-production rights on the date declared by the licensee.
 Revenue from the licensing of distribution rights under a
 non-cancellable contract, which permits the licensee to freely exploit
 those rights and where the Company has no remaining obligations to
 perform, is recognised at the time of sale.
 
 (iii) Training Revenue :
 
 Training Revenue is recognized over the period of instruction.
 
 No revenue is recognised if there are significant uncertainties
 regarding recovery of the consideration due.
 
 (iv) Dividends and Interest income:
 
 Dividends are recorded when the right to receive payment is
 established. Interest income is recognised on time proportion basis
 taking into account the amount outstanding and the rate applicable.
 
 g) foreign Currency Transactions:
 
 Foreign Currency Transactions (FCT) and Forward Exchange Contracts
 (FEC) used to hedge FCT (including firm commitments and forecast
 transactions) are initially recognized on the spot rate on the date of
 the transaction / Contract.
 
 Monetary assets and liabilities relating to FCT and FEC remaining
 unsettled at the end of the year are translated at the exchange rate
 prevailing as on the date of balance sheet.
 
 The difference in translation and realized gains and losses on Foreign
 Exchange Transactions (including option Contracts) are recognized in
 Profit and Loss Account. Further, in respect of transactions covered by
 FEC, the difference between contract rate and spot rate on the date of
 the transaction is charged to Profit and Loss Account over the period
 of the contract.
 
 h) employee benefits
 
 i) Post-employment benefit plans
 
 Post-employment benefits are recognised as an expense in the Profit and
 Loss Account for the year in which the employee has rendered services.
 
 For defined benefit schemes, the cost of providing benefits is
 determined using the Projected Unit Credit Method, with actuarial
 valuations being carried out at each balance sheet date. Actuarial
 gains and losses are recognised in full in the profit and loss account
 for the period in which they occur.
 
 ii) Short-term employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employee renders the service. These benefits
 include compensated absences such as paid annual leave.
 
 iii) Long-term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognized as a liability at the present value of
 the defined benefit obligation at the balance sheet date.
 
 i) Public Issue related expenses
 
 Public issue related expenses are recognised as an expense in the
 profit and loss account in the year in which the expenses are incurred.
 
 j) Taxation
 
 i) Provision for Income Tax is made on the assessable income, at the
 applicable tax rates, in accordance with the provisions of the
 Income-tax Act, 1961. Income derived from the animation division and
 related services are exempt under section 10A of the Income-tax Act,
 1961 upto 31st March 2011. The Company has provided tax on its other
 taxable income earned during the year.
 
 ii) Minimum Alternate Tax (MAT) paid in accordance to the tax laws,
 which gives rise to future economic benefits in the form of adjustment
 of future income tax liability, is considered as an asset if there is
 convincing evidence that the Company will pay normal income tax after
 the tax holiday period. Accordingly, MAT is recognized as an asset in
 the balance sheet when it is probable that the future economic benefit
 associated with it will flow to the Company and the asset can be
 measured reliably.
 
 iii) Deferred tax expense or benefit is recognised on timing
 differences being the difference between taxable income and accounting
 income that originate in one period and are capable of reversal in one
 or more subsequent periods. Deferred tax assets and liabilities are
 measured using the tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date.
 
 In the event of unabsorbed depreciation and carry forward of losses,
 deferred tax assets are recognised only to the extent that there is
 virtual certainty that sufficient taxable income will be available to
 realise such assets. In other situations, deferred tax assets are
 recognised only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available to realise these
 assets.
 
 k) Provision for retakes
 
 Provisions for retakes are recognised wherever they are considered to
 be material. Retakes include creative changes to the final product
 delivered to the customer, performed on the specific request of the
 customer at the Company''s own cost. Requests for retakes from customers
 are expected to be received by the Company within a period of three
 months from the final delivery.
 
 l) Leases
 
 Lease payments for assets taken on Operating Lease are recognized in
 the Profit and Loss Account over the lease term in accordance with the
 Accounting Standard 19 – Leases.
 
 m) earnings Per share
 
 The Company reports basic and diluted Earnings per Share (EPS) in
 accordance with Accounting Standard 20 – EPS.
 
 - Basic Earnings per Equity Share has been computed by dividing Net
 Profit for the year by the weighted average number of Equity Shares
 outstanding for the period.
 
 - Diluted Earnings per Equity Share has been computed using the
 Weighted average number of Equity Shares and dilutive potential Equity
 Shares outstanding during the period except where the results are anti
 dilutive.
 
 n) 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 possible 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.
 
 o) Impairment
 
 The carrying amounts of the Company''s assets, other than Unbilled
 Revenue and deferred tax assets, are reviewed at each Balance Sheet
 date to determine whether there is any indication of impairment. If any
 such indication exists, the asset''s recoverable amount is estimated. An
 impairment loss is recognized whenever the carrying amount of an asset
 or its cash-generating unit exceeds its recoverable amount. Impairment
 losses are recognized in the profit and loss account. A cash-generating
 unit is the smallest identifiable group of assets that generates cash
 inflows that are largely independent of the cash inflows from other
 assets or groups of assets. Impairment losses recognized in respect of
 cash-generating units are allocated to reduce the carrying amount of
 assets in the unit on a pro rata basis.