1.1.  Basis of preparation
 
 These financial statements are prepared and presented under the
 historical cost convention on the accrual basis of accounting except
 for revaluation of certain fixed assets and in accordance with the
 Accounting Standards (''AS'') notified in the Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1 956 (''the Act''), to the extent applicable. The financial
 statements are presented in Rs. in million except per share data and
 where mentioned otherwise.
 
 1.2.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (''GAAP'') in India requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities, the disclosures of contingent liabilities on
 the date of the financial statements and the reported amount of income
 and expenses during the reported period. The estimates and assumptions
 used in the accompanying financial statements are based upon
 management''s evaluation of relevant facts and circumstances as at the
 date of the financial statements, which in its opinion are prudent and
 reasonable. Actual results could differ from those estimates. Any
 revision to accounting estimates is recognised prospectively in current
 and future periods.
 
 1.3.  Fixed assets and depreciation / amortisation
 
 a.  Tangible assets
 
 Tangible fixed assets are stated at cost and / or revalued amount in
 accordance with scheme of amalgamation less accumulated depreciation
 and any provision for impairment. Cost includes freight, duties, taxes
 (other than those recoverable from tax authorities) and other expenses
 related directly / indirectly to the acquisition / construction and
 installation of the fixed assets for bringing the asset to its working
 condition for its intended use.
 
 Depreciation on fixed assets is provided on the straight line method,
 at the rates prescribed in Schedule XIV to the Act, which, in
 management''s opinion, reflects the estimated useful lives of those
 fixed assets, except in case of following assets of theatrical
 exhibition segment wherein depreciation is provided at following rates:
 
 Particulars of fixed assets Rate of depreciation
 
 Plant and machinery 10%
 
 Furniture and fixture 1 0%
 
 Computers 20%
 
 Vehicles 10%
 
 Leasehold improvements / buildings are depreciated over the lower of
 useful life of the asset and lease term, on a straight line basis.
 
 Individual assets costing up to Rs. 0.005 are depreciated fully in the
 year of acquisition.
 
 b.  Intangible assets
 
 Intangible assets, all of which have been acquired / created and are
 controlled through custody or legal rights, are capitalised at cost,
 where they can be reliably measured. Where capitalised, intangible
 assets are regarded as having a limited useful economic life and the
 cost is amortised over the lower of useful life and ten years.
 
 Application software purchased, which is not an integral part of the
 related hardware, is shown as intangible assets and amortised on a
 straight line basis over its useful life, not exceeding five / ten
 years, as determined by management.
 
 Film rights comprise negative rights and distribution rights in films
 and are for a contractually specified mode of exploitation, period and
 territory and are stated at cost less accumulated amortisation. Cost of
 film rights comprises original purchase price / minimum guarantee. Cost
 is ascertained on specific identification basis where possible. In case
 multiple films / rights are acquired for a consolidated amount, cost is
 allocated to each film / right based on management''s best estimates.
 
 The individual film forecast method is used to amortise the cost of
 film rights acquired. Under this method, costs are amortised in the
 proportion that gross revenues realised bear to management''s estimate
 of the total gross revenues expected to be received. If estimates of
 the total revenues and other events or changes in circumstances
 indicate that the realisable value of a right is less than its
 unamortised cost, a loss is recognised for the excess of unamortised
 cost over the film right''s realisable value.
 
 In respect of unreleased films, payments towards film rights are
 classified under capital advances as the amounts are refundable in the
 event of non-release of the film.
 
 Purchased goodwill is recognised by the Company on the basis of excess
 of purchase consideration paid over the value of the assets acquired at
 the time of acquisition and is amortised over its estimated useful life
 not exceeding ten years.
 
 1.4.  Impairment
 
 In accordance with AS 28 - ''Impairment of Assets'', where there is an
 indication of impairment of the Company''s asset, the carrying amounts
 of the Company''s assets are reviewed at each Balance sheet date to
 determine whether there is any impairment. The recoverable amount of
 the asset (or where applicable, that of the cash generating unit to
 which the asset belongs) is estimated as the higher of its net selling
 price and its value in use. An impairment loss is recognised whenever
 the carrying amount of an asset or a cash generating unit exceeds its
 recoverable amount.  Impairment loss is recognised in the profit and
 loss account.
 
 If at the balance sheet date there is an indicator that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is reflected at the recoverable amount subject
 to a maximum of the depreciated historical cost.
 
 Value in use is the present value of estimated future cash flows
 expected to arise from the continuing use of the asset and from its
 disposal at the end of its useful life.
 
 1.5.  Investments
 
 Long-term investments are carried at cost. A provision for diminution
 is made to recognise a decline, other than temporary, in the value of
 long-term investments and is determined separately for each individual
 investment.
 
 Current investments are carried at lower of cost and fair value.
 
 1.6.  Inventories
 
 Inventories (comprising of food and beverage items, chemicals, negative
 film rolls, xenon lamps and stores and spares related to theatrical
 exhibition / film production services business etc.) are stated at the
 lower of cost and net realisable value. Cost is determined on the
 first-in first out (FIFO) basis.
 
 1.7.  Employee benefits
 
 Short term employee benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits. The
 undiscounted amount of short term employee benefits expected to be paid
 in exchange for the services rendered by employees are recognised as an
 expense during the year.
 
 Long term employee benefits:
 
 Provident fund and other schemes
 
 The Company''s state governed provident fund scheme, employee state
 insurance scheme and labour welfare fund are defined contribution
 plans. The contribution paid / payable under the schemes is recognised
 during the year in which the employee renders the related service.
 
 Gratuity Plan
 
 The Company''s gratuity benefit scheme is a defined benefit plan. The
 Company''s net obligation in respect of the gratuity benefit scheme is
 calculated by estimating the amount of future benefit that employees
 have earned in return for their service in the current and prior year;
 that benefit is discounted to determine its present value and the fair
 value of any plan assets is deducted.
 
 The present value of the obligation under such defined benefit plan is
 determined based on actuarial valuation using the Projected unit credit
 method.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plan, are based on the market
 yields on Government securities as at the Balance sheet date.
 
 Actuarial gains and losses are recognised immediately in the profit and
 loss account.
 
 Other Long term employment benefits:
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the year in which the employee renders the
 related services are recognised as a liability at the present value of
 the defined benefit obligation at the Balance sheet date, determined
 based on actuarial valuation using Projected unit credit method.  The
 discount rates used for determining the present value of the obligation
 under defined benefit plan, are based on the market yields on
 Government securities as at the Balance sheet date.
 
 1.8.  Revenue recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured. The amount recognised as revenue is exclusive of
 value added tax and service tax and net of trade discounts.
 
 Amount of entertainment tax is shown as a reduction from revenue.
 
 Film production services
 
 Revenue from processing/ printing of cinematographic films is
 recognised upon completion of the related processing / printing.
 
 Revenue from processing of digital content is recognised using the
 proportionate completion method. Use of the proportionate completion
 method requires the Company to estimate the efforts expended to date as
 a proportion of the total efforts to be expended. Efforts expended have
 been used to measure progress towards completion, as there is a direct
 relationship between efforts expended and contracted output.
 
 Sale of traded goods is recognised when the risks and rewards of
 ownership are passed on to the customer, which generally coincides with
 the dispatch of goods.
 
 Income from equipment / facility rental is recognised over the period
 of the relevant agreement / arrangement.
 
 Theatrical exhibition and related income
 
 Sale of tickets
 
 Revenue from theatrical exhibition is recognised on the date of the
 exhibition of the films and comprises proceeds from sale of tickets,
 gross of entertainment tax. As the Company is the primary obligor with
 respect to exhibition activities, the share of distributors in these
 proceeds is separately disclosed as distributors'' share.
 
 Amount of entertainment tax is shown as a reduction from revenue
 
 Sale of food and beverages
 
 Revenue from sale of food and beverages is recognised upon sale and
 delivery at the counter.
 
 Advertisement / sponsorship revenue
 
 Revenue from advertisements, sponsorship and events is recognised on
 the date of the exhibition of the advertisement / event, over the
 period of the contract or on completion of the Company''s obligations,
 as applicable.
 
 Film production, distribution and related income
 
 Film production and related income
 
 Revenue from sale of content / motion pictures is accounted for on the
 date of agreement to assign / sell the rights in the concerned motion
 picture / content or on the date of release of the content / motion
 pictures, whichever is later.
 
 Income from film distribution activity
 
 In case of distribution rights of motion picture / content, revenue is
 recognised on the date of release / exhibition.
 
 Revenue from other rights such as satellite rights, overseas rights,
 music rights, video rights, etc. is recognised on the date when the
 rights are made available to the assignee for exploitation.
 
 Revenue from sale of VCDs / DVDs, etc is recognised when the risks and
 rewards of ownership are passed on to the customer, which generally
 coincides with the dispatch of the products.
 
 Interest income / income from film financing
 
 Interest income, including from film / content related production
 financing, is recognised on a time proportion basis at the rate
 implicit in the transaction.
 
 Dividend income
 
 Dividend income is recognised when the right to receive dividend is
 unconditional at the Balance sheet date.
 
 Marketing rights
 
 Amounts received in lieu of future marketing rights sale are recognised
 as income in the year of entering into the contract.
 
 1.9.  Foreign currency transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rate prevailing on the date of the transactions. Exchange
 differences arising on foreign exchange transactions settled during the
 year are recognised in the profit and loss account of the year.
 Monetary assets and liabilities denominated in foreign currencies as at
 the Balance sheet date are translated at the closing exchange rates on
 that date; the resultant exchange differences are recognised in the
 profit and loss account except in case of exchange differences arising
 on translation of monetary items which form part of Company''s net
 investment in a non-integral foreign operation which is accumulated in
 a Foreign currency translation reserve'' until its disposal.
 
 Non-monetary items which are carried at historical cost denominated in
 a foreign currency are reported using the exchange rate at the date of
 the transaction.
 
 Forward contracts are entered into to hedge the foreign currency risk
 of the underlying transaction. The premium or discount on all such
 contracts arising at the inception of each contract is amortised as
 income or expense over the life of the contract. Exchange difference on
 forward contracts are recognised as income or expense in the profit and
 loss account of the year. Any profit or loss arising on the
 cancellation and renewal of forward contract is recognised as income or
 expense for the year.
 
 1.10.  Earnings per share
 
 In determining earning per share, the Company considers the net result
 after tax and includes the post tax effect of any extraordinary /
 exceptional item. The number of shares used in computing basic earning
 per share is the weighted average number of shares outstanding during
 the year. The number of shares used in computing diluted earning per
 share comprises the weighted average number of shares considered for
 deriving basic earnings per share and also the weighted average number
 of shares that could have been issued on the conversion of all dilutive
 potential equity shares unless the results would be anti - dilutive.
 Dilutive potential equity shares are deemed converted as of the
 beginning of the year, unless issued at a later date.
 
 1.11.  Taxation
 
 Income-tax expense comprises current tax expense computed in accordance
 with the relevant provisions of the Income tax Act, 1 961 and deferred
 tax charge or credit.
 
 Current tax provision is made based on the tax liability computed after
 considering tax allowances and exemptions, in accordance with the
 Income tax Act, 1 961. Deferred tax charge or credit and the
 corresponding deferred tax liability or asset is recognised for timing
 differences between the profits / losses offered for income tax and
 profits / losses as per the financial statements. Deferred tax assets
 and liabilities are measured using the tax rates and tax laws that have
 been enacted or substantively enacted at the Balance sheet date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future.
 However, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each Balance sheet date and written down / up
 to reflect the amount that is reasonably / virtually certain (as the
 case may be) to be realised.
 
 1.1 2. Share issue / Foreign Currency Convertible Bonds (FCCB) issue
 expenses and premium on redemption.
 
 Share / FCCB issue expenses incurred and premium payable on FCCB are
 adjusted in the year of issue against the Securities premium account.
 
 1.13.  Provisions and contingencies
 
 Provisions comprise liabilities of uncertain timing or amount.
 Provisions are recognised when the Company recognises it has a present
 obligation as a result of past events, it is more likely than not that
 an outflow of resources will be required to settle the obligation and
 the amount can be reasonably estimated.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not require an outflow of resources. When there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no provision or disclosure is made.
 
 Loss contingencies arising from claims, litigation, assessment, fines,
 penalties, etc. are recorded when it is probable that a liability has
 been incurred and the amount can be reasonably estimated.
 
 1.14.  Leases
 
 Rental expenses in non-cancellable arrangements / agreements with
 scheduled rent increases are recorded on a straight line basis over the
 lease term.
 
 1.1 5. Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 1.16. Commercial papers
 
 Commercial papers are recognised as a liability, at the amount of cash
 received at the time of issuance ie. discounted value. The discount is
 amortised as interest cost over the period of the commercial paper at
 the rate implicit in the transaction.