(a) 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 amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon managements'' best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (b) Basis of Preparation
 
 The financial statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 accounting standards notified u/s 211 3(c) of the Companies Act 1956
 and the relevant provisions of the Companies Act 1956.
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on accrual basis and prepares its accounts on a
 Going Concern basis.
 
 (c) Deferred revenue expenditure on account of fee for increase in the
 Authorized capital and the GDR issue expenses are amortized over a
 period of 5 years.
 
 (d) Pre-operative expenditure is amortized over a period of five years
 in equal installments.
 
 (e) Accounting policies not specifically referred to herein above is in
 consistent with generally accepted accounting practices.
 
 (i) Disclosure of Accounting Policies (AS-1): -
 
 All significant accounting policies adopted in the Preparation and
 Presentation of financial statements have been disclosed in Part A of
 Schedule 16. Since the fundamental accounting assumptions, viz. Going
 Concern, Consistency and Accrual are being followed in financial
 statements, specific disclosure is not required.
 
 (ii) Inventories (AS-2): -
 
 (a) Inventories of Raw Materials, Work in Progress and Finished Goods
 are valued at lower of cost or estimated net realizable value.
 
 (b) Cost is taken on FIFO or specific identification basis.
 
 (c) Net realizable value of Raw Materials, Work in Progress and
 Finished Goods is taken as estimated by the management.
 
 (d) Any other item is valued strictly as per AS-2
 
 (iii) Cash Flow Statement (AS-3): -
 
 Cash Flow Statement is prepared under “indirect method” and the same is
 annexed. Cash and cash equivalents are defined as cash in hand, demand
 deposits and short-term, highly liquid investments readily convertible
 to known amounts of cash and subject to insignificant risk of changes
 in value. For the purpose of Cash Flow Statement, cash and cash
 equivalents includes bank overdrafts.
 
 (iv) Events occurring after the Balance Sheet date (AS-4): -
 
 There were no significant events occurred after the Balance Sheet date,
 which require adjustment in the figures as on the Balance Sheet date.
 
 (v) Net profit or loss for the period, prior period items and changes
 in accounting policies (AS-5): -
 
 An amount of Rs. 12391/- (previous year NIL) relating to prior period
 has been debited to Profit and Loss Account. Further there is no change
 in accounting policies during the year.
 
 (vi) Depreciation (AS-6): -
 
 Depreciation is provided on Written Down Value Method in the manner
 laid down in Schedule XIV to the Companies Act, 1956. The depreciation
 has been calculated on a pro-rata basis from the date on which the
 asset is purchased or put to use whichever is later. An amount of Rs.
 69.02 Million (Pr. Year 18.77) had been provided as deprecation during
 the year including Rs. 53.02 million (previous year NIL) on IPRs.
 
 (vii) Construction contracts (AS-7): -
 
 This Accounting Standard is not applicable.
 
 (viii) Research & Development (AS-8): -
 
 This Accounting Standard is withdrawn.
 
 (ix) Revenue Recognition (AS-9): -
 
 (a) Sale is recognized on dispatch of goods to customers.
 
 (b) For services revenue is recognized when the service is completed.
 
 (c) For advertisements, the commission is recognized when the related
 advertisement or commercial appears before the public i.e. on telecast.
 
 (d) Programmes/Modules production and acquisition costs are net of
 recoveries.
 
 (e) Revenue and Expenditure are accounted on a Going Concern basis.
 
 (x) Fixed Assets (AS-10): -
 
 (a) Fixed assets are stated at cost less depreciation. Cost comprises
 of capital costs and incidental expenses attributable to bringing the
 assets to working condition for its intended use.
 
 (b) All capital costs and incidental expenditure relating to pre
 operational period are shown as capital work in progress.
 
 (c) Where an indication of impairment exists, the carrying amount of
 the asset is assessed and written down immediately to its recoverable
 amount.
 
 (d) Gains and losses on disposals are determined by comparing proceeds
 with carrying amount and are included in profit/ (loss) from
 operations. On disposal of revalued assets, amounts in revaluations
 reserve relating to those assets are transferred to accumulated
 profits.
 
 The company owns fixed assets stated at cost Rs.192.40 million
 (previous year Rs. 186.27 Million) less accumulated depreciation Rs
 68.71 million (previous year Rs. 52.71 million) and any impairment
 loss.  Cost is inclusive of freight, duties, levies and any directly
 attributable cost of bringing the assets to their working condition for
 intended use.
 
 (xi) Accounting for effects of changes in foreign exchange rates
 (AS-11):- Transactions in foreign currencies are recognized at rate of
 overseas currency ruling on the date of transaction. Gain/Loss arising
 on account of rise or fall in overseas currencies vis a vis reporting
 currency between the date of transaction and that of payment is charged
 to Profit and Loss Account.
 
 Receivables/payables {Excluding for fixed assets} in foreign currencies
 are translated at the exchange rate ruling at the year ended date and
 resultant gain or loss is accounted for in the Profit and Loss Account.
 
 Increase/decrease in foreign currency loan on account of exchange
 fluctuation is debited or credited to the Profit and Loss Account.
 Impact of Exchange fluctuation is separately disclosed in notes to
 accounts.
 
 Gain / Loss on translation of financial statements of non-integral
 foreign operations as on Balance Sheet date is recognized in “Foreign
 Currency Translation Reserve {FCTR} account” till the disposal of
 foreign operations.
 
 During the year an amount of Rs. 17.90 Million (Pr. Year 120.49
 million) has been written back from the Foreign Currency Translation
 Reserve. At the year-end Foreign Currency Translation Reserve stood at
 Rs.  92.86 Million (Pr. Year 110.76 million). Rate of exchange
 prevailing at the year-end is US$ 1=INR 44.65, US$ 1=AED 3.67, AED
 1=INR 12.17
 
 (xii) Accounting for Government Grants (AS-12): - The Company has never
 received any grants.
 
 (xiii) Accounting for Investments (AS-13): -
 
 Current Investments are held at lower of cost and NAV/market value.
 Long term investments are held at
 
 cost less diminution, if any, in the carrying cost of investment other
 than temporary in nature. Loss, if any,
 
 sustained by any subsidiary is not recognized.
 
 -Investments made during the year – INR 12.71 Million
 
 -During the year the Company has realized its investment to the tune of
 INR 63.53 Million {US$ 1.6 Million}
 
 in Kohinoor Broadcasting Corporation FZE, a wholly owned subsidiary
 Company, registered at Hamriyah
 
 Free Trade Zone, Sharjah - UAE.
 
 The total value of the Investment stood at INR 853.23 Million at the
 close of the financial year.
 
 (xiv) Accounting for amalgamations(AS-14): -
 
 During the year there was no amalgamation.
 
 (xv) Accounting for Employees Benefits (AS-15): -
 
 Liabilities in respect of retirement benefits to employees are provided
 for as follows:- -Contribution to Provident Fund and other recognized
 Funds are charged to Profit & Loss Account.  -The Gratuity liability is
 paid by the Company out of own funds. The Provision for the gratuity is
 made on the basis of Actuarial Valuation. The provision for gratuity is
 recomputed at the end of each financial year.  During the current
 financial year an amount of Rs. 0.68 lacs has been reversed on account
 of excess provision in respect of Gratuity provision. The estimated
 Liability at the end of the financial year is INR 0.89 lacs. The
 Actuarial Valuation has been carried out on the following assumptions:-
 -Discount Rate @ 8%, Salary Escalation rate 5%, Average Age 40 Years.
 The estimates of future salary increases, considered in Actuarial
 Valuation, takes account of inflation, seniority, promotion and other
 relevant factors.
 
 (xvi) Borrowing cost (AS-16): -
 
 The Company does not hold any borrowed funds.
 
 (xvii) Segment Reporting (AS-17): -
 
 The Company operates in only one segment viz., Media & entertainment.
 Further, the Company is operating from only from a single geographical
 location. As such, there is no reportable Segment.
 
 (xviii) Related party disclosure (AS-18): -
 
 For the purpose of the financial statements, parties are considered to
 be related to the Company if the Company has the ability, directly or
 indirectly, to control the party or exercise significant influence over
 the party in making financial and operating, decisions, or vice versa,
 or where the Company and the party are subject to common control or
 common significant influence. Related parties include related
 corporations and associates. Related parties may be individuals or
 other entities. The Disclosure has been made as per the requirement of
 the standard by way of note (d) in part C of Schedule 16.
 
 (xix) Accounting for Leases (AS-19): -
 
 The Company does not hold any Lease Rights.
 
 (xx) Earnings per Share (AS-20): -
 
 Disclosure is made in the Profit & Loss Account as per the requirements
 of the standard. For the purpose of calculation of EPS (Basic and
 Diluted) the net profit as per Profit and Loss Account is taken. The
 weighted number of shares are considered for the purposed of
 calculation of basic and diluted EPS. The details have been given by
 way of Notes.
 
 (xxi) Consolidated financial statements (AS-21): -
 
 Consolidated financial statement of the Company and its subsidiary
 drawn as per Accounting Standard (AS-21) are enclosed.
 
 (xxii) Accounting for Taxes on Income (AS-22): -
 
 Income tax expense is determined on the taxable profits under Income
 Tax Act after setting off of unabsorbed losses and unabsorbed
 depreciation. Provision for MAT is made if current tax on taxable
 profits is less than the MAT applicable.
 
 Deferred tax assets and liabilities are measured using the tax rates
 expected to apply to taxable income in the years in which those
 temporary differences are expected to be recovered or settled based on
 tax rates enacted or substantively enacted at the Balance Sheet date.
 
 Deferred tax liabilities are recognized for all taxable temporary
 differences. Deferred tax assets are recognized for all deductible
 temporary differences, carry forward of unused tax assets and unused
 tax losses, to the extent that it is probable that taxable profit will
 be available which the deductible temporary differences, carry forward
 of unused tax assets and unused tax losses can be utilized.
 
 The carrying amount of deferred tax assets is reviewed at each Balance
 Sheet date and reduced to the extent that it is no longer probable that
 sufficient taxable profit will be available to allow all or part of the
 deferred tax assets to be utilized. At the Year end the Company has
 recognized its net deferred tax asset of INR 6.54 Million {Previous
 Year Deferred Tax Liability of INR 3.99 Million}. Please refer Schedule
 3 forming part of the accounts for further details.
 
 (xxiii) Accounting for investment in associates in consolidated
 financial statements (AS-23): - The Company does not have any Associate
 concern.
 
 (xxiv) Discontinuing operations (AS-24): -
 
 During the year the Company has not discontinued any of its operations
 nor has planned any discontinuation.
 
 (xxv) Interim financial reporting (AS-25): -
 
 The Company is publishing the un-audited quarterly financial results as
 per clause 41 of the Listing Agreement with BSE and the same have been
 duly limited reviewed by the statutory auditors.
 
 (xxvi) Accounting for intangible assets (AS-26): -
 
 Film and Program and Broadcasting Rights (“Satellite Rights”) Acquired
 Satellite Rights for the broadcasting of feature films and other
 purchasing such as multi-episode television serials are stated at cost.
 
 All expenditure on Satellite Rights is recognized as intangible assets,
 till they become available for telecast on television. Satellite Rights
 disclosed under intangible assets represent rights, which are available
 for use as at the date of Balance Sheet.
 
 Expected benefits from use or sale of satellite rights are estimated by
 the management. These are amortized over pattern of economic benefits
 as per best estimates by the management. While estimating economic
 benefits management consider variety of factors such as the level of
 market acceptance of television products, programming viewership,
 advertisement rates etc.
 
 Film Production costs, distribution and related rights
 
 Upon the theatrical release of a content, the cost of
 production/acquisition of all the rights related to each such content
 is amortized in the ratio that current period revenue for the content
 bears to the management''s estimate of the remaining unrecognized
 revenue for all the rights arising from the content, as per the
 individual-film-forecast method. The estimates for remaining
 unrecognized revenue for each of the content is reviewed periodically
 and revised if necessary.
 
 Expenditure incurred towards production of content not complete as at
 the date of Balance Sheet and amounts paid under contractual terms for
 acquiring distribution rights and related rights of content not
 released in theatres as the date of Balance Sheet are classified as
 intangible assets under development.
 
 As at the close of the year the company was carrying IPRs amounting to
 INR 42.92 million (Pr. Year INR 45.49 million)
 
 (xxvii) Financial reporting of interest in joint venture (AS-27): - The
 Company does not have any Joint Venture.
 
 (xxviii) Impairment of assets (AS-28): -
 
 The carrying amounts of the Company''s assets, other than inventories,
 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 exceeds its
 recoverable amount. Impairment loss is charged to the Profit and Loss
 Account unless it reverses a previous revaluation, credited to
 reserves, in which case it is charged to reserves. The company has nil
 figures (Pr. Year Nil) in respect of the impairment of assets.
 
 (xxix) Provisions, contingent liabilities and contingent assets
 (AS-29): -
 
 (a) Provisions: A provision is recognized when an enterprise 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, in
 respect of which a reliable estimate can be made. These are reviewed at
 each Balance Date and adjusted to reflect the management''s current
 estimates. The amount of provisions has been disclosed by way of
 Schedule 10 forming part of Accounts.
 
 (b) Contingent Liabilities: The amount for which the Company is
 contingently liable is disclosed by way of Notes.
 
 (c) The Company does not have any contested liability.