1 Background
 
 Shree Ashtavinayak Cine Vision Limited (SACVL or the Company1) was
 incorporated in 2001 as a private limited Company. In 2004, the Company
 was converted into a public limited Company. The Company is listed on
 Bombay Stock Exchange Limited and National Stock Exchange of India
 Limited SACVL is engaged in production and distribution/exhibition of
 motion picture films.
 
 These accounts are made up for six months from 1ST October 2010 to 31ST
 March 31, 2011. Any reference to term year in these financial
 statements with reference to March 2011 may be construed as period
 accordingly.
 
 Since these are accounts for six months, the figures of the previous
 period (18 months) are not strictly comparable with that of the figures
 of the current period
 
 2 Basis of preparation
 
 These financial statements are prepared and presented under the
 historical cost convention on the accrual basis of accounting, in
 accordance with the applicable requirements of the Companies Act, 1956
 (the ''Act'') and comply in all material aspects with the Accounting
 Standards prescribed by the Central Government, in accordance with the
 Companies (Accounting Standards) Rules, 2006, to the extent applicable.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous period.
 
 3 Use of estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities on the date of the
 financial statements. Management believes that the estimates made in
 the preparation of financial statement are prudent and reasonable. The
 key estimates made by the Company in preparing these financial
 statements comprise provision for expenses, retirement benefits,
 provision for doubtful debts and income taxes. Actual results could
 differ from those estimates. Any revisions to accounting estimates are
 recognised in tho period in which such revisions are made.
 
 4 Significant accounting policies
 
 4.1 Fixed assets and depreciation
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment loss, if any. The cost includes purchase cost and all
 incidental expenses to bring the assets to their present location and
 condition.
 
 Depreciation on fixed assets other than film productions and film
 distribution rights is provided on straight line method at the rates
 and in the manner specified under Schedule XIV to the Companies Act,
 1956.
 
 Depreciation on fixed assets added/ disposed off/discarded during the
 year has been provided on pro-rata basis with reference to the date of
 addition/ disposal/ discarding.
 
 Fixed assets having value lower than  5,000 are depreciated fully in
 the year of purchase.
 
 4. 2 Intangible assets and amortisation
 
 Intangible assets comprising motion pictures produced and motion
 picture rights which have been acquired and are controlled through
 custody or legal rights are capitalised at cost, where thev 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
 economic useful life and period of the leqal rights.
 
 Where an assignment of rights is for a fixed fee or non refundable
 guaranteed fee under a non cancellable contract which permits the
 licensee to exploit those rights freely and the Company has no
 remaining obligation to perform, the cost capitalised is fully
 amortised in the year of sale of such rights.
 
 At the expiry of the term of the distribution rights in motion pictures
 the intangible asset related to the particular agreement is
 derecognised.
 
 4. 3 Borrowing cost
 
 Borrowing costs directly attributable to production of movies, and the
 acquisition or construction of qualifying assets, which are assets that
 necessarily take a substantial period of time to get ready for their
 intended use or sale, are added to the cost of those assets, until such
 time as the assets are substantially ready for their intended use or
 sale
 
 4. 4 Impairment of Assets
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/ external
 factors. An asset is treated as impaired when the carrying cost of
 assets exceeds its recoverable value. An impairment loss if any is
 charged to Profit and Loss Account in the year in which an asset is
 identified as impaired. Reversal of impairment losses recognised in
 prior years is recorded when there is an indication that the impairment
 losses recognised for the assets no longer exist or have decreases.
 
 4.5 Revenues
 
 a) Revenue is recognised to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured.
 
 b) In case of distribution rights of films:
 
 (i) produced or rights acquired, revenue is recognised on accrual basis
 on receipt of business statements from theatres / subdistributors etc
 
 (ii) in case of sale of such distribution rights of films, revenue is
 recognised on the date of sale of such rights.
 
 c) In respect of films produced by the Company and distributed by
 others, overflow of excess collection over minimum guarantee, net of
 eligible expenses/ write off is recognised on intimation by distributor
 
 d) Revenue from sale of:
 
 ft) film''s satellite rights and video rights are recognised when it
 arise, based on payment/del i very/telecast milestones specified in the
 agreements/ arrangements entered with concerned parties.
 
 (ii) other rights of films such as music rights and ring tone rights
 are recognised from effective date of exploitation of
 
 e) Sale of film produced by the Company is recognised as under:
 
 ft) upon receipt of theatrical release certificate in respect of self
 release, and
 
 (ii) upon delivery of exploitation riqhts in other cases.
 
 f) Interest income is recoanised on a time proportion basis.
 
 4.6 Leases
 
 Rental income or expense on operating leases is recognised on a
 straight-line basis over the term of the relevant
 
 4.7 Investments
 
 Long term investments are stated 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 stated at lower of cost or fair
 market value. Cost of investments, includes original cost of
 acquisition, including brokerage and stamp duty.
 
 4.8 Foreign currert cv transactions
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transaction. Any income or
 expense on account of exchange differences either on settlement or on
 translation of transactions is recognised in the Profit and Loss
 Account. Monetary items denominated in foreign currencies at the
 period-end are translated at the exchange rates prevailing on the date
 of the Balance Sheet. Non-monetary items denominated in foreign
 currencies are earned at historical value. Exchange differences arising
 on the settlement of monetary items at rates different from those at
 which they were initially recorded during the period, or reported in
 previous financial statements, are be recognized as income or as
 expenses in the period in which they arise.  Exchange differences
 arising on a monetary item that, in substance, forms part of Company''s
 net investment in a non- inteoralforeion operation are accumulated in
 aforeion currency translation reserve until the disposal of the net 
 
 4.  9 Employee benefits
 
 All short term employee benefits are accounted on undiscounted basis
 during the accounting period based on services rendered by employees.
 
 Defined contribution plan:
 
 In accordance with the provisions of the employees provident fund
 regulations, eligible employees of the Company are entitled to receive
 benefits with respect to provident fund, a defined contribution plan in
 which both the Company and the employee contribute monthly at a
 determined rate (currently 12% of employee''s basic salary). The
 Company''s contribution to provident fund is charged to the Profit &
 Loss Account.
 
 Defined benefit plan:
 
 Benefits payable to eligible employees of the Company with respect to
 gratuity, a defined benefit plan is accounted for on the basis of an
 actuarial valuation as at the balance sheet date. In accordance with
 local regulations, the plan provides for lump sum payments to vested
 employees on retirement, death while in service or on termination of
 employment in an amount equivalent to 15 days basic salary for each
 completed year of service. Vesting occurs upon completion of five years
 of service The expense is recognised at the present value of the amount
 payable determined using actuarial valuation carried out by an
 independent actuary at the balance sheet date using Projected Unit
 Credit Method.  There is no defined policy enabling the employees to
 avail encashment of leave.
 
 4.10 Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For calculating diluted earnings per share, the net profit or loss for
 the year attributable to equity shareholders and the weighted average
 number of shares outstanding during the year are adjusted for the
 effects of all dilutive potential equity shares.
 
 4.11 Provisions and contingent liabilities
 
 The Company creates a provision when there is present obligation as a
 result of a past event and it is probable that an outflow of resources
 embodying economic benefits will be required, and a reliable estimate
 can be made of the amount required to settle the obligation. 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.
 
 4.12 Income taxes
 
 Income tax expense comprises current income tax and deferred tax.
 
 Current taxes
 
 Provision for current income-tax is recognised in accordance with the
 provisions of (Indian) Income Tax Act, 1961, and is made annually based
 on the tax liability after taking credit for tax allowances and
 exemptions.
 
 Deferred taxes
 
 Deferred tax assets and liabilities are recognised for the future tax
 consequences attributable to timing differences that result between the
 profits offered for income taxes and the profits as per the financial
 statements. Deferred tax assets and liabilities are measured using the
 tax rates and the tax laws that have been enacted or substantively
 enacted at the balance sheet date. The effect of a change in tax rates
 on deferred tax assets and liabilities is recognised in the year that
 includes the enactment date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in the future,
 however, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is virtual certainty, supported by convincing evidence of recognition
 of such assets. Deferred tax assets are reassessed for the
 appropriateness of their respective carrying values at each balance
 sheet date
 
 4.13 Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby the net
 profit before tax is adjusted for the effects of transactions of a
 non-cash nature and any deferrals or accruals of the past or future
 cash receipts or payments. The cash flows from regular revenue
 generating, investing & financing activities of the company are
 segregated.