1.  Method of Accounting
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on an accrual basis. Financial Statements are
 prepared under historical cost convention, in accordance with the
 Generally Accepted Accounting Principles in India (GAAP) and comply in
 all material aspects, with mandatory accounting standards as notified
 by the Companies (Accounting Standards) Rules, 2006, relevant
 provisions of the Companies Act and statements issued by the Institute
 of Chartered Accountants of India. The significant accounting policies
 followed by the Company are set out below.
 
 2.  Fixed Assets
 
 a) Fixed assets are stated at cost of acquisition less accumulated
 depreciation. The Cost includes all expenses related to acquisition and
 installation of such assets. No revaluation has been made in any fixed
 assets.
 
 b) Intangible assets are stated at cost of acquisition less accumulated
 amortization/depletion. The costs and expenses attributable to the
 intangible assets are capitalized.
 
 3.  Depreciation
 
 Depreciation for the year is provided on Straight line Method at the
 rates specified in Schedule XIV to the Companies Act, 1956 for the
 assets in use for full year. On the assets added during the year, on
 pro –rata basis with reference to the date of addition.
 
 4.  Investments
 
 All investments are held as long term Investments, unless otherwise
 mentioned and 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.
 
 5.  Revenue Recognition
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate collection. Interest income is recognized
 on time proportion basis taking into account the amount outstanding and
 rate applicable. Income from entertainment division, distribution and
 exhibition of drama and film is recognized on accrual basis.
 
 6.  Provision for Current Tax and deferred Tax
 
 a) Tax expense comprises both current and deferred tax at the
 applicable enacted/substantively enacted rates. Current tax represents
 the amount of income tax payable in respect of the taxable income for
 the reporting period.
 
 b) Deferred tax represents the effect of timing differences between
 taxable income and accounting income for the reporting period that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred tax assets are recognized only to the
 extent there is reasonable certainty of realization in future. Such
 assets are reviewed as at each Balance Sheet date to reassess
 realization.
 
 7.  Provisions & Contingent Liabilities
 
 Provisions are recognized when the company has a legal and constructive
 present obligation as a result of a past event, for which it is
 probable that outflow of resources will be required and a reliable
 estimate can be made of the amount of the obligation. Contingent
 liabilities are disclosed when there is a possible obligation that may
 result in an outflow of resources. Contingent assets are neither
 recognized nor disclosed.  Contingent Liabilities not provided for: NIL
 Contingent Assets are neither recognized nor disclosed in the financial
 statements.