a) Basis of Accounting :
 
 The financial statements are prepared under the historical cost
 convention and are in accordance with applicable mandatory Accounting
 Standards notified by the Companies (Accounting Standard) Rules, 2006
 and the relevant provisions of the Companies Act, 1956.
 
 b) Revenue Recognition :
 
 Income from Box Office and Film Distribution is recognized as and when
 the movie is exhibited. Income from Sale of Food & Beverages is
 accounted at the point of sale. Income is net of refunds and
 complimentary. Conducting fees are in respect of charges received from
 parties to conduct business from the Company''s Multiplexes and
 recognized on accrual basis as per the contractual arrangements. Income
 from sale of power is recognized on the basis of actual units generated
 and transmitted to the purchaser.
 
 c) Fixed Assets :
 
 Fixed assets are carried at cost of acquisition or cost of
 construction, as reduced by accumulated depreciation/ amortization,
 except freehold land, which is carried at cost. Project pre-operative
 expenses and expenditure incurred during construction period of
 Multiplexes are capitalized to various eligible assets in respective
 Multiplexes. Such expenses in respect of the Multiplexes under
 construction are carried forward for being capitalised at the time of
 completion.
 
 d) Amortization and Depreciation of Fixed Assets :
 
 Cost of leasehold land is amortized over the period of lease. On other
 fixed assets, excluding freehold land, depreciation is provided on
 straight-line basis as under:
 
 On Leasehold Improvements, electrical installations & air
 conditioners in leased premises, over the period of useful life on the
 basis of the respective agreements or the useful life as per Schedule
 XIV of the Companies Act, 1956, whichever is shorter.
 
 II On other fixed assets, at the rates and in the manner specified in
 Schedule XIV to the Companies Act, 1956.
 
 Individual items of Fixed Assets added during the period, costing Rs
 5,000 or less, are fully depreciated in the first year.  Based on
 technical opinion Windmill is considered as a continuous process plant
 and depreciation is provided at the rate applicable thereto.
 
 e) Amortization of Film Distribution Rights and Prints Cost (intangible
 assets) :
 
 Cost of film distribution rights acquired and prints cost is amortized
 over a period of one year from the date of release of the movie as
 under:
 
 50%, 30%, 10% and 10% of the costs in the first, second, third and
 fourth quarter respectively and in a quarter, pro- rata for the
 completed weeks.
 
 f) Impairment of assets :
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s asset. An impairment loss is recognized wherever the carrying
 amount of an asset exceeds its recoverable amount.
 
 g) Investments :
 
 Long-term investments are carried at cost. Provision for diminution is
 made to recognize the decline, other than temporary, in the values of
 these investments. Current Investments are carried at lower of the cost
 and fair value.  Income from investments is accounted for on accrual
 basis.
 
 h) Inventories :
 
 Inventories are valued at lower of the cost and net realisable value.
 Cost is determined using FIFO method.
 
 i) Employee Benefits :
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account in the year in which
 related services are rendered. Company''s contribution towards provident
 fund paid / payable during the year are charged to the Profit and Loss
 Account. Post employment benefits in the form of Gratuity and Leave
 Encashment are recognized as an expense in the Profit and Loss Account
 at the present value of the amounts payable, determined on the basis of
 actuarial valuation techniques, using the projected unit credit method.
 Actuarial gains and losses are recognized in the Profit and Loss
 Account.
 
 j) Borrowing Cost :
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 k) Taxes on Income :
 
 Income tax expense comprises of current tax and deferred tax charge.
 Deferred tax is recognised, subject to consideration of prudence, on
 timing differences, being the difference between taxable income and
 accounting income that originates in one period and are capable of
 reversal in one or more subsequent periods. The deferred tax in respect
 of timing differences which reverse during the tax holiday period is
 not recognised to the extent the Company''s gross total income is
 subject to the deduction during the tax holiday period. Minimum
 Alternate Tax (MAT) paid on the book profits, which gives rise to
 future economic benefits in the form of tax credit against future
 income-tax liability, is recognized as an asset in the Balance Sheet if
 there is convincing evidence that the Company will pay normal tax
 within the period specified for utilization of such credit.
 
 l) Foreign Currency Transactions :
 
 Transactions in foreign currency are recorded in rupees by applying the
 exchange rate at the date of the transaction.  Gains or losses on
 settlement of the transactions are recognized in the Profit and Loss
 Account. At the Balance Sheet date, monetary assets and liabilities in
 foreign currency are restated by applying the closing rate, and the
 difference arising out of such conversion is recognized in the Profit
 and Loss Account.
 
 m) Provisions :
 
 A provision is recognized when the Company has a present obligation as
 a result of past event and it is probable that an outflow of resources
 will be required to settle the obligation and in respect of which a
 reliable estimate can be made.