Pyramid Saimira Theatre

a) Share Warrants
 
 In terms of the approval of the Shareholders of the Company and as per
 the applicable statutory provisions including the Securities and
 Exchange Board of India (Disclosure & Investor Protection) Guidelines
 2000, the Company on has issued and allotted on 22nd October,2007,
 36,40,000 Warrants to one of the Promoters entitling him to apply for
 equivalent number of fully paid up equity shares of Rs.10/ each of the
 Company at a price of Rs.310/ per equity share. The Warrant Holder has
 a right to apply for Equity Shares within 18 months from the Date of
 Allotment of the Warrants. Amounts received against the Warrants are
 shown as Equity Share Warrants in the Balance Sheet, pending exercise
 thereof.
 
 b) During the year under review there is no outstanding entertainment
 tax payable as of 31st March 2008. In Tamil Nadu, there is no tax for
 Tamil titled films and in Karnataka there is no tax on Kannada titled
 film. Hence general impact on entertainment tax during the year under
 review is negligible.
 
 c) The valuation in respect of provision for gratuity is given below
 
 i) Transitional obligation on account of adoption of Accounting
 Standard 15. Effective April 1, 2007, the Company has adopted the
 Accounting Standard 15 (revised 2005) on ‘Employee Benefts’ issued by
 the Institute of Chartered Accountants of India. Pursuant to the
 adoption, the transitional obligation of the Company on account of the
 defined contribution plans and the defined benefit plans are not
 material.
 
 ii) Defined benefit plans.
 
 The following table sets forth the status of the Gratuity Plan of the
 Company and the amounts recognized in the Balance Sheet and Profit and
 Loss Account.
 
 iii) Gratuity is administered through Group Gratuity Scheme with Life
 Insurance Corporation of India. The expected return on plan assets is
 based on market expectation at the beginning of the year, for the
 returns over the entire life of the related obligation.
 
 iv) During the year the Company has recognized the following amounts in
 the Profit & Loss Account in Schedule No.14:
 
 - Contribution to Provident and other Funds : Rs.60.80 Lakhs
 
 - Contribution to Gratuity Fund : As detailed herein above
 
 - Compensated absences : Rs. 5.61 Lakhs
 
 Note: This being the first year of disclosure, previous year figures
 have not been furnished.
 
 d) 1. Figures relating to previous year have been re-grouped wherever
 found necessary to confirm to Current years classification.
 
 2.  Income Tax Assessments are completed upto the accounting
 year(Previous year) ending 31st March 2005
 
 3. Additional Information pursuant to the provisions of Schedule VI of
 the Companies Act, 1956.
 
 (A) Installed Capacity - 765 No. of Screens - 486215 No. of Seats -
 Lakhs
 
 (B) Furnishing of Quantitative details of Sales, Production, Stocks and
 Raw Materials, value of Imports, Consumption and Sales does not arise.
 
 4.  In the opinion of the Board of Directors, the Current Assets, Loans
 and Advances have a value on realization in the ordinary course of
 business at least to the amount at which they are stated.
 
 5.  Based on the information available regarding the status of
 suppliers, there were no amounts outstanding to Micro, Small & Medium
 Enterprises and no amounts outstanding for a period exceeding 30 days
 to any Small Scale and/or ancillary Industrial Suppliers on account of
 Principal and/or Interest as at the close of the year.
 
 6.  Confirmation of balance from debtors/creditors have been obtained
 in most of the ases.
 
 7. Deferred Revenue Expenditures
 
 a) The company made an Initial Public Offering(IPO) during
 December,2006 And listed its shares in Bombay Stock Exchange and
 National Stock Exchange on 5thJanuary,2007.The share expenses incurred
 during the last year amounting to Rs.7,96,71,758/- are written off over
 a period of five years and during the current year ending 31-3-2008
 share issue expenses incurred amounting to Rs.19,60,789 is also
 amortised off over a period of Five years.
 
 8. PSTL Canteen Rights Charges
 
 The current assets include amounts paid for canteen rights in the
 theatres which is being amortized over the agreement period.
 
 9. Disclosure of interest of related parties pursuant to Accounting
 Standard 18
 
 a) Name of the Related Parties:
 
 i) Key Management Personnel:  
 
 Mr.V.Natarajan-Whole Time Director & Chairman
 Mr. PS. Saminathan- Managing Director
 Mr. N. Narayanan -Whole Time Director
 
 ii) Enterprise owned or significantly influenced by Key management
 personnel - or their relatives
 
 a) Bharat Digitals Limited
 
 b) Saimira Access Technologies Limited
 
 c) Saimira Realty Private Limited
 
 d) Saimira Premier Theatres Private Limited
 
 e) Saimira Holdings & Services Private Limited.
 
 f) Pyramid Saimira Productions
 
 iii) Joint Venture Overseas - Pyramid Saimira Theatre Chain Sdn Bhd,
 Malaysia 
 
 iv) Subsidiaries & Associates:
 
 a) Pyramid Saimira Entertainment Limited
 
 b) Pyramid Saimira Entertainment America Inc.
 
 c) Pyramid Saimira Productions International Limited
 
 d) Pyramid Saimira Production Services Limited
 
 e) Aurona Technologies Limited
 
 f) Dimple Cine Advertising Private Limited
 
 g) Aurona Technologies Private Limited
 
 10. Segmental Reporting
 
 The company operates materially in one business segment -
 Entertainment.
 
 11.  Estimated amount of Contracts remaining to be executed on
 
 a) Capital Account and are not provided for (net of advances) Rs NIL
 
 b) Contingent Liabilities not provided for - NIL
 
 12.  Lease payments for the current period under cancelable operating
 Leases amounting to Rs. 46,67,611 (Previous Year Rs. NIL ) have been
 recognized as an expense in the Proft & Loss Account. The Company has
 not entered into any non-cancellable leases and fnance leases.
 
 13.  Disclosure in respect of provisions pursuant to Accounting
 Standard 29 Rs. NIL