Preparation of financial statements in accordance with Indian generally
 accepted accounting principles, the applicable accounting standards
 issued by the Institute of Chartered Accountants of India and the
 relevant provisions of the Companies Act, require our management to
 make judgments, estimates and assumptions regarding uncertainties that
 affect the reported amounts of our assets and liabilities, disclosures
 of contingent liabilities and the reported amounts of revenues and
 expenses. Certain of our accounting policies are particularly important
 to the portrayal of our financial position and results of operations
 and require the application of significant assumptions and estimates of
 our management. While we believe that all aspects of our financial
 statements should be studied and understood in assessing our current
 and expected financial condition and results, the following significant
 accounting policies warrant additional attention:
 
 General
 
 The financial statements are prepared under the historical cost
 convention and are in accordance with applicable mandatory Accounting
 Standards issued by the Institute of Chartered Accountants of India and
 the provisions of the Companies Act, 1956.
 
 Income and Expenses are accounted on accrual basis
 
 Revenue Recognition
 
 As per Accounting Standarad-9 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. Amount of entertainment tax,
 sales tax collected on generating operating revenue has been shown as a
 reduction from the operating revenue or where the screens were on show
 hire, revenue is recognized only net of taxes.
 
 Sale of Tickets of Films
 
 Revenue from sale of tickets of films is recognised as and when the
 film is exhibited. The revenue is credited net of tax. Where the
 COMPANY itself exhibits the film in its own theatres, then exhibitors
 share of the film is taken as revenue from exhibition.
 
 Sale of Food and Beverages
 
 Revenue from sale of food and beverages is recognised upon passage of
 title to customers which coincides with their delivery.  Sharing of
 Revenue
 
 Income from Revenue Sharing is recognised in accordance with the terms
 of agreement with a party to operate and manage.
 
 Advertisement Revenue
 
 Advertisement revenue is recognised as and when advertisement is
 displayed at the cinema halls.
 
 Fixed Assets
 
 As per Accounting Standard-10 (Fixed Assets) with reference to
 Accounting Standard-6 (Depreciation Accounting) and Accounting
 Standard- 28 (Impairment of Assets) Fixed Assets are stated at Cost
 less accumulated depreciation and impairment losses, if any. Cost
 comprises the purchase price and any directly attributable cost of
 bringing the asset in its working condition for its intended use. As
 per Accounting Standarad-16 (Borrowing Costs) Financing costs relating
 to acquisition of qualifying Fixed Assets are also included to the
 extent they relate to the period till such assets are ready for their
 intended use.
 
 Impairment of Assets
 
 As per Accounting Standard-28 (Impairment of Assets) The Company
 assesses at each balance sheet date whether there is any indication
 that any asset may be impaired. If any such indication exists, the
 carrying value of such assets is reduced to recoverable amount and the
 impairment loss is charged to profit and loss account. If at the
 Balance sheet date there is any deduction that a previously assessed
 impairment loss no longer exists then such loss is reversed and the
 asset is restated to that effect.
 
 Depreciation
 
 As per Accounting Standard-6 (Depreciation Accounting) Depreciation on
 all the fixed assets is provided on W D V Method at the rates computed
 based on estimated useful lives of the assets, which are equal to the
 corresponding rates prescribed in Schedule XIV to the Companies Act,
 1956.
 
 Leasehold improvements are amortized over the estimated useful lives or
 unexpired period of lease (whichever is lower) on a straight line
 basis.
 
 Investments
 
 Long Term Investments are stated at Cost. Provision for diminution in
 the value of long-term investments is made only if such a decline is
 other than temporary. Current Investments are carried at the lower of
 cost or quoted / fair value, computed category wise.
 
 Inventories
 
 As per Accounting Standard-2 (Valuation of Inventories) Inventories are
 valued as follows:
 
 Food (Raw Stock) and beverages are valued at lower of cost or net
 realizable value. Cost is determined on First in First out basis.
 Stores and spares are valued at lower of cost or net realizable value.
 Cost is determined on First in First out basis. Net realizable value is
 the estimated selling price in the ordinary course of business, less
 estimated cost to make the sale. Perishable stocks are purchased on
 sale or returnable basis being such Inventory is NIL.
 
 Expenditure on project expansion
 
 The companys main line of activity includes agglomeration of theatres
 across the country on a joint venture basis with the theatre owners
 Post acquisition of theatres , Company stress to improve the physical
 infrastructure and converts the theatre into digital exhibition media.
 
 The Digital Exhibition equipment basically consist of Plant & Machinery
 and is converted as fixed assets of the company when the project is
 fully integrated. Until such time, Plant & Machinery are categorized as
 capital work-in-progress. Improvements in physical infrastructure is
 capitalized and amortised over the active period of agreement. As
 regards indirect expenditure, till the company has started generating
 revenue from the exhibition side the expenditure is being capitalized,
 under Capital work-in-progress and the expenditure subsequent to the
 date of generation of revenue is treated as deferred revenue
 expenditure and is amortised over the period of agreement on pro rata
 basis.
 
 BORROWING COSTS
 
 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 takes necessarily
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 Foreign Currency Transaction
 
 Investments Foreign Currency Transactions are recorded at the exchange
 rates revailing on the date of transactions.
 
 Monetary Assets and Monetary Liabilities relating to foreign exchange
 transactions remaining unsettled at the end of the year are translated
 at the prevailing year end rates and the resultant gain or loss is
 dealt with in the Profit and Loss Account.
 
 Provisions. Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 events and it is probable that there will be an outflow of resources. A
 disclosure is made for possible or present obligations that may but
 probably will not require outflow of resources or where a reliable
 estimate cannot be made, as a contingent liability in the financial
 statements.
 
 Earnings Per Share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding for the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 Taxation
 
 Current tax provision is made in accordance with Income Tax Laws and
 Rules prevailing at the time of relevant Assessment Year.
 
 Deferred Tax provision is made on the basis of timing difference
 arising on account of income/expenses between the regular books as
 against memo of income computed for Income tax purposes.
 
 Provision for fringe benefit tax has been made on the basis of the
 harmonious contextual interpretation of the provisions of the Income
 Tax Act, 1961.
 
 Employee Benefits
 
 a) Short Term Employee Benefit obligations are estimated and provided
 for.
 
 b) Post Employment Benefits and other long term employee benefits:
 Defined Contribution Plans:
 
 Companys contribution to provident fund, superannuation fund, employee
 state insurance and other funds are determined under the relevant
 schemes and/or statue and charged to revenue.  Defined benefit plans
 and compensated absences:
 
 Companys liability towards gratuity, other retirement benefits and
 compensated absences are recognized at the present value of the amount
 payable determined using actuarial valuation techniques. Actuarial
 Gains and losses in respect of post employment and other long term
 benefits are charged to the Profit and Loss Account.
 
 Amortisation of Deferred Expenditure
 
 Expenditure incurred on issue of shares are amortised over a period of
 5 years and on debentures/raising loans is amortised over the period of
 such borrowings: