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Gradiente Infotainment

BSE: 590126|ISIN: INE361K01017|SECTOR: Media & Entertainment
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Gradiente Infotainment is not listed on NSE
Mar 12
Accounting Policy Year : Mar '15
Nature of Operations
 
 The Company was incorporated on June 22, 1992 in the name of VR Mathur
 Mass Communications Ltd. and subsequently the name has been changed to
 Gradient Infotainment Ltd.( w.e.f 09-01-2003). The Company''s revenue
 is generated mainly from advertisement, in Print Media & Electronic
 Media and TV Serial production for other production houses and own
 production.
 
 i)Basis of Accounting
 
 These financial statements are prepared under the historical cost
 convention and comply in all material aspects with the applicable
 accounting principles in India, the applicable accounting standards
 notified under section 211(3C) of the Companies Act, 2013 (The Act)
 and the relevant provisions of the Act.
 
 ii)Use of Estimates
 
 The preparation of financial statements in accordance with the
 generally accepted accounting principles requires the Management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities as of the date of financial statements and the
 reported amount of expenses of the year. Actual results could differ
 from these estimates. Any revision to such accounting estimates is
 recognized in the accounting period in which such revision takes place
 
 iii)Revenue Recognition
 
 Revenue from Advertisement in Print Media & Electronic Media and TV
 Serial Production is recognized on an accrual basis on fulfilling the
 terms of contract & publicity of client''s commercial, net of service
 tax.
 
 iv)Fixed assets and Depreciation
 
 a. Tangible assets
 
 Tangible fixed assets are stated at cost less accumulated depreciation.
 
 Depreciation on tangible fixed assets is provided on written down value
 method at the rates and in the manner specified in Schedule II to the
 Act. The cost of leasehold improvements is amortized over the primary
 period of lease of the property. Tangible assets individually costing
 less than Rupees 5,000 are depreciated @ 100% in the year of purchase.
 
 v)Software
 
 Software obtained initially together with hardware is capitalized along
 with the cost of hardware and depreciated in the same manner as the
 hardware. All subsequent purchases of software are treated as revenue
 expenditure and charged in the year of purchase.
 
 vi)Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transaction. Gains and losses arising out
 of subsequent fluctuations are accounted for on actual payment or
 realization. Monetary items denominated in foreign currency as at the
 Balance Sheet Date are converted at the exchange rates prevailing on
 that day. Exchange differences are recognized in the Profit and Loss
 account.
 
 vii)Investments
 
 Long term investments are stated at cost. Provision is made for
 permanent diminution in value, if any.  Current investments are stated
 at lower of cost and market value / repurchase price.
 
 vi)Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transaction. Gains and losses arising out
 of subsequent fluctuations are accounted for on actual payment or
 realization. Monetary items denominated in foreign currency as at the
 Balance Sheet Date are converted at the exchange rates prevailing on
 that day. Exchange differences are recognized in the Profit and Loss
 account.
 
 vii)Investments
 
 Long term investments are stated at cost. Provision is made for
 permanent diminution in value, if any.  Current investments are stated
 at lower of cost and market value / repurchase price.
 
 viii)Retirement Benefits
 
 a. Gratuity
 
 In accordance with payment of Gratuity Act 1972, company has provided
 for gratuity, covering the employees of the company who have rendered
 service for a continuous period of service of not less than five years.
 The Gratuity plan provides a lump-sum payment to vested employees at
 the time of retirement, death, incapacitation or termination of
 employment, of an amount based on the respective employee''s salary and
 tenure of employment with the Company. Liabilities with regard to
 gratuity plan are determined based on estimates at the Balance Sheet
 date. The company is yet to frame a scheme for making annual
 contributions to the Employees group for qualifying employees.
 
 b. Provident Fund
 
 Provident fund contribution is not applicable to the company as the
 number of employed persons in the company is less than the limit
 prescribed i.e. 20 persons.
 
 ix)Borrowing Cost
 
 Borrowing cost attributable to the acquisition or construction of a
 qualifying asset is capitalized as part of cost of the asset. Other
 borrowing costs are recognized as an expense in the period in which
 they are incurred.
 
 x)Taxation
 
 Provision for income tax is to be made at the current tax rates based
 on assessable income or on the basis of Section 115JB of the Income Tax
 Act, 1961. However, in view of sizable accumulated/un-absorbed business
 losses of the Company subsisting as on 01.04.2014 that are eligible for
 carry forward and set off, no tax liability/obligation is reported.
 
 Deferred tax is recognized, subject to the consideration of prudence,
 on timing differences, being the difference between taxable incomes and
 accounting income 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 that there is
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 
 xi)Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired.  If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the Profit and Loss Account.
 
 xii)Provisions and Contingent Liabilities
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. Provisions are not discounted to its present date value and
 are determined based on best estimates of the amount required to settle
 the obligation at the balance sheet date. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 
 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. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
Source : Dion Global Solutions Limited
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