Moneycontrol Be a Pro
Get App
SENSEX NIFTY India | Notes to Account > Media & Entertainment > Notes to Account from Landmarc Leisure Corporation - BSE: 532275, NSE: N.A

Landmarc Leisure Corporation

BSE: 532275|ISIN: INE394C01023|SECTOR: Media & Entertainment
Oct 15, 15:40
-0.01 (-2.63%)
VOLUME 3,430
Landmarc Leisure Corporation is not listed on NSE
Dec 14
Notes to Accounts Year End : Mar '18

Notes on Accounts:

1. Contingent Liabilities:

a. Disputed income tax liabilities -Rs. 16.74 Lacs (Previous Year -Rs. 20.93 lacs) and Service Tax 93.03 Lacs.

b. Contingent Liabilities as may arise due to delayed/non-compliance of certain fiscal statutes -Amount Unascertainable (Previous year-Amount Unascertainable).

2. The Management of the Company has decided to reduce its focus of Wellness activities and concentrate on Films, Media and TV Channel business. Accordingly, it has been decided to terminate the Company''s agreements with two parties to whom security deposits have been given and utilize the resources so realized for Entertainment business Accordingly, the Company is in discussions with both the parties for the refund of the said security deposit along with interest after necessary adjustments if any as agreed mutually. On the said grounds, the Company has requested SEBI to withdraw forensic audit & also uplift the restriction on promoters as well as directors to not to transfer or sell the shares held by them, though our promoter do not intend to sell any share. The Company however has not recognised interest income amounting to Rs 3634.40 lakhs on the security deposit given as the Company on conservative approach would recognize it on receipt basis, as one of the Company to whom security deposit has gone into liquidation and provisional liquidator has been appointed and in-respect of the other Company, only principal recovery is currently being done. Further, the Company also contemplates certain adjustments from the said Companies which is currently under discussion.

3. a. Read together with Note 31 above the Company in the earlier years, the Company had given an interest-free Security Deposit of Rs 1,500 Lakhs to Shree Ram Urban Infrastructure Ltd (SRUIL) as per Memorandum of Understanding (MoU) for establishment and running of wellness centre in the upcoming project of SRUIL, as per the terms of which the Company is entitled to share revenue with SRUIL/society for a specific period. However the Company was in advanced discussion with the said party for refund of deposit but now the Company has gone into liquidation and provisional liquidator has been appointed.

b. Read together with Note 31 above the Company based on a revenue sharing agreement entered into between the Company and SKM Real Infra Limited (formerly SKM Fabrics (Andheri) Ltd.) (SKM) the Company has given an interest free deposit of Rs. 25.03 Crores (Previous year -Rs. 23.13 Crores) in relation to the Wellness Academy and other allied activities being set up in the portion of commercial premises developed by SKM. However now the Company is recovering principal portion of the said deposit.

4. In the opinion of the Board, Current & Non-current Assets and Loans and Advances have a value on realization in the ordinary course of business, at least equal to the amounts at which they are stated and adequate provision has been made for all known liabilities.

5. Certain balances appearing under certain heads of Loans & Advances and Non-current Liabilities, are as per books of accounts and as such are subject to consequential adjustments, which may arise on receipt of confirmations and/or completion of reconciliations.

6. (a). Provision for current tax has been made as per the law stated in the Income Tax Act, 1961.

(b). No Deferred Tax Assets have been recognised in the accounts by the Company in respect of brought forward losses under the Income Tax Act, 1961, keeping in view the prudence aspect.

Carrying value of all the above financial assets and financial liabilities as at March 31, 2018, March 31, 2017 and April 1, 2016 approximate the fair value because of their short-term nature. Difference between carrying amounts ad fair values of the said assets and liabilities subsequently measured at amortized cost is not significant in each of the years presented.

(b) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

© Valuation technique used to determine fair values

The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to Difference between carrying amounts ad fair values of the said assets and liabilities subsequently measured at amortized cost is not significant in each of the years presented.

The fair value of security deposits and borrowings has been considered same as carrying value since there have not been any material changes in the prevailing interest rates. Impact on account of changes in interest rates, if any has been considered immaterial.


Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities which are included in level.

There were no transfers between any levels during the year.

7. Financial risk management

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk.

(a) Credit risk

The company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the company. Credit risk arises from cash and cash equivalents and financial assets carried at amortised cost Credit risk management

Credit risk is managed at company level depending on the policy surrounding credit risk management. For banks and financial institutions, only high rated banks/institutions are accepted. Generally all policies surrounding credit risk have been managed at company level.

(b) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operation of the company in accordance with practice and limits set by the company.

Maturities of financial liabilities

The amounts disclosed in the below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

8. Capital Management

(a) Risk Management

The company''s objectives when managing capital are to safeguard the company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital on basis of total equity on a periodic basis. Equity comprises all components of equity includes the fair value impact. The following table summarizes the capital of the Company:

9. Outstanding amounts payable to Micro, Small and Medium Enterprises included under Current Liabilities, as per the information available with the Company and relied upon by the Auditors - Nil (Previous year-Nil).

10. The Company had issued 2,54,000 0% Redeemable Cumulative Preference Shares of Rs. 100/each fully paid up amounting to Rs. 254.00 Lakhs which was due for redemption on 30thJanuary 2018. The said Preference Shares were not redeemed as per the provisions of the Companies Act, 2013. However the Company is in the process of further extending the redemption for five years and has taken this for approval of members in this AGM.

11. During the previous years, the Company had incurred Publicity and Promotion expenses including Satellite rights, in respect of a feature film amounting to Rs. 740.28 Lakhs, of which, the management was of the view that Rs. 400.00 Lakhs would represent the future economic benefit of the satellite rights and had accordingly capitalised the same under Intangible assets. However in the current quarter, the Company has valued the same at fair value and the difference is treated under exceptional items.

12. Travelling expenses include Directors'' travelling expenses (foreign & domestic) of Rs. 0.22 Lakhs (Previous Year - Rs. 0.24 Lakhs).

13. The Company in the current year deals in only one segment i.e Film Production and Presentation and hence there are no reportable segments during the year.

14. During the financial year 2017-18, the Company had been identified as a suspected shell company vide Ministry of Corporate Affairs Letter & Bombay Stock Exchange Notice dated August, 7, 2017. The Company had been placed under Stage VI of Graded Surveillance Measure (GSM) by SEBI and the trading in the equity shares of the Company was suspended. The Company had made an appeal before the Securities Appellate Tribunal (SAT) and subsequently SEBI had passed an interim order on 6th October, resuming the trading in equity shares of the Company with effect from 9th October, 2017, except trading in equity shares by the Promoters and Directors. The Management of the Company have confirmed that no trading was done by the Promoters and Directors during the period of trading restrictions.

15. During the financial year 2017-18, the Bombay Stock Exchange had issued a notice dated December 22, 2017 to the Company for conducting Forensic Audit on shell companies identified by SEBI. The Forensic Audit has been withheld for now by the Stock Exchange. The Company has not received any directions for the same and that the Company is in the process to file an appeal to the SAT in this regard.

16. Previous year''s figures have been regrouped /rearranged wherever considered necessary.

Source : Dion Global Solutions Limited
Quick Links for landmarcleisurecorporation
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of is prohibited.