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Moneycontrol.com India | Accounting Policy > Media & Entertainment > Accounting Policy followed by Creative Eye - BSE: 532392, NSE: CREATIVEYE
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Creative Eye

BSE: 532392|NSE: CREATIVEYE|ISIN: INE230B01021|SECTOR: Media & Entertainment
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Jun 25, 16:00
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VOLUME 200
Mar 14
Accounting Policy Year : Mar '15
1.  Basis of Presentation:
 
 a.  The Company maintains its accounts on accrual basis following the
 historical cost convention, in accordance with the Generally Accepted
 Accounting Policies (GAAP) and in compliance with the Accounting
 Standards referred to in Section 133 and other provisions of the
 Companies Act, 2013.
 
 b.  The preparation of accounts under GAAP requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosures of contingent liabilities as at the
 date of the financial statements and the reported amounts of revenues
 and expenses during the year. Examples of such estimates include the
 useful lives of fixed assets and intangible assets, provision for
 doubtful debts/advances, future obligation in respect of retirement
 benefit plans, etc. Actual result could differ from these estimates.
 Any revisions to accounting estimates are recognized prospectively in
 the current and future periods.
 
 2.  Fixed Assets:
 
 a.  Fixed Assets are stated at the cost net of tax/duty credit availed,
 if any.
 
 b.  Fixed Assets are stated at cost less accumulated depreciation. The
 cost of assets includes direct/ indirect and incidental cost incurred
 to bring the assets to its use.
 
 3.  Investments:
 
 Investments are stated at cost. Dividend on Investments is accounted on
 cash basis.
 
 4.  Inventories:
 
 Stock in Trade include work in progress, completed T. V. content valued
 at cost and usage value of rights of Hindi feature films and residual
 right of films, as certified by the management. However, Net Realisable
 value cannot be estimated.
 
 5.  Foreign Currency Transactions, Forward contracts & Derivatives:
 
 a.  The reporting currency of the Company is Indian Rupee.
 
 b.  Foreign currency transactions are recorded on initial recognition
 in the reporting currency, using the exchange rate at the date of
 transaction. Exchange differences that arise on settlement of monetary
 items are: -
 
 i.  Adjusted in the cost of fixed assets specifically financed by the
 borrowings to which the exchange differences relate.
 
 ii.  Recognized as income or expense in the period in which they arise
 in other cases.
 
 The above treatment is in accordance with AS - 11 (Revised) issued by
 ICAI.
 
 6.  Retirement Benefits:
 
 a. Short Term Employee Benefits:
 
 Short Term Employee Benefits include salaries, wages, bonus, exgratia,
 leave salary etc., and the same are recognized as an expenses at the
 undiscounted amount in the profit & loss account of the year in which
 the relevant service is rendered.
 
 b. Post Employment Benefits:
 
 i.  Defined Contribution Plan:-
 
 In accordance with the provisions of Employees Provident Funds and
 Miscellaneous Provisions Act, 1952, eligible employees of the Company
 are entitled to receive benefits with respect to provident fund. The
 Company contribution towards Provident Fund and Family Pension Fund is
 charged to Profit & Loss Account.
 
 ii.  Defined Benefits Plan:-
 
 Gratuity liability has been provided on the basis of Actuarial
 Valuation done by the independent actuary.
 
 7.  Depreciation:
 
 The useful lives of fixed assets have been reassessed and depreciation
 has been provided as per schedule II of the Companies Act, 2013 except
 on office flat. Depreciation on additions to assets during the year is
 provided on pro-rata basis. Brands had been amortized over a period of
 10 years.
 
 8.  Revenue Recognition:
 
 a.  Sales and Services are stated at net of agency commission, if any.
 
 b.  In respect of sponsored programs, revenue is recognized as on date
 of telecast, if any.
 
 c.  In respect of commissioned programs, revenue is recognized as on
 date of delivery.
 
 d.  Interest income is accounted on accrual basis.
 
 The above treatment is in accordance with AS - 9 issued by ICAI.
 
 9.  Taxes on Income:
 
 a.  Tax on income for the current period is determined on the basis of
 estimated taxable income and tax credits computed in accordance with
 the provisions of the Income Tax Act, 1961 and based on the expected
 outcome of assessments/appeals.
 
 b.  Deferred tax is recognized, subject to the consideration of
 prudence in respect of deferred tax assets, on timing differences,
 being the difference between taxable income & accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods.
 
 c.  Deferred tax assets are recognized & carried forward only to the
 extent that there is reasonable certainty supported by convincing
 evidence that sufficient future taxable income will be available
 against which such deferred tax assets can be realized.
 
 d.  Deferred tax is qualified using the tax rates and laws enacted or
 substantively enacted as on balance sheet date.
 
 The above treatment is in accordance with AS - 22 issued by ICAI.
 
 10.  Events occurring after the balance sheet date :
 
 Events occurring after the date of balance sheet, where material, are
 considered up to the date of approval of the accounts by the Board of
 Directors.
 
 11.  Provisions, Contingent liabilities & Contingent assets:
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if
 
 a. the company has a present obligation as a result of past event:
 
 (1) a probable outflow of resources is expected to settle the
 obligation: and
 
 (2) the amount of the obligation can be reliably estimated:
 
 i.  Reimbursements by another party, expected in respect of expenditure
 required to settle a provision, is recognized when it is virtually
 certain that reimbursement will be received if obligation is settled.
 
 ii.  Contingent liability is disclosed in the case of :-
 
 a.  a present obligation arising from a past event, when it is not
 possible that an outflow of resources will be required to settle the
 obligation;
 
 b.  a possible obligation, unless the probability of outflow of
 resources is remote.
 
 (3) Contingent assets are neither disclosed nor recognized.
 
 (4) Provisions, contingent liabilities and contingent assets are
 reviewed at each balance sheet date.
 
 12.  Borrowing Cost :
 
 Interest and other cost in connection with borrowing of funds to the
 extent related/attributed to the acquisition/construction of qualifying
 fixed asset are capitalized up to the date when such assets are ready
 for its intended use and other borrowing cost are charged to profit and
 loss account
Source : Dion Global Solutions Limited
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