Rights, preferences, restrictions of equity shares
The Company has only one class of equity shares having par value of Rs.2/- per share. Every shareholder is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors and approved by the Shareholders in the Annual General Meeting is paid in Indian rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Summary of Significant Accounting Policies Corporate Information
Colorchips New Media Limited (the 'Company') was incorporated in India, under the Companies Act, 1956. The Company is a global player within the Indian media and entertainment industry and is primarily engaged in the business of film production, exploitation and distribution. It operates on a vertically integrated studio model controlling content as well as distribution and exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication. Its shares are listed on leading stock exchanges in India (BSE Scrip Code: 540023).
These financial statements were authorized for issue in accordance with a resolution of the Directors on 27/05/2023.
Statement of Compliance
These financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as Ind AS") as prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules as amended from time to time
Basis of preparation
The financial statements have been prepared on accrual basis of accounting using historical cost basis, except certain investments.
All assets and liabilities have been classified as current or noncurrent as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Act. The Company considers 12 months to be its normal operating cycle.
All values are rounded to the nearest rupees in lakhs, except where otherwise indicated. Amount in zero represent amount below one lakh rupees.
1. Significant accounting policiesa. Revenue recognition
Revenue is recognized, net of sales related taxes, when persuasive evidence of an arrangement exists, the fees are fixed or determinable, the product is delivered or services have been rendered and collectability is reasonably assured. The Company considers the terms of each arrangement to determine the appropriate accounting treatment.
The following additional criteria apply in respect of various revenue streams within filmed entertainment:
DVD, CD and video distribution revenue is recognized on the date the product is delivered or if licensed in line with the revenue recognition criteria. Provision is made for physical returns where applicable. Digital and ancillary media revenues are recognized at the earlier of when the content is accessed or declared. Visual effects, production and other fees for services rendered by the Company and overhead recharges are recognized in the period in which they are earned and in certain cases, the stage of production is used to determine the proportion recognized in the period.
Other income
Dividend income is recognized when the Company's right to receive the
payment is established, which is generally when shareholders approve the dividend.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the effective interest rate applicable.
b. Property, plant and equipment and depreciation
Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises of purchase price inclusive of taxes etc. up to the date the asset is ready for its intended use. Depreciation is provided under straight line method at the rates and in the manner prescribed under Schedule II to the Companies Act, 2013. Residual value of property, plant and equipment is considered as nil for calculation of depreciation.
c. Intangible assets
Intangible assets acquired by the Company are stated at cost less accumulated amortization less impairment loss, if any.
Other intangible assets, which comprise internally generated and acquired software used within the Entity's digital, home entertainment and internal accounting activities, are stated at cost less amortization less provision for impairment. The average life of the assets is the lesser of 5 years or the remaining life of the asset. The amortization charge is
d. Impairment of non-financial assets
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). As a result, some assets are tested individually for impairment and some are tested at the cash generating unit level. All individual assets or cash generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on external or internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their 'value in use'.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share
Based on the information available with the Company, there is no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises development Act, 2006. This information has been relied upon by the statutory auditors of the Company.
Post reporting date events
No adjusting or significant non-adjusting events have occurred between 31st March, 2023, and the date of authorization of these standalone financial statements.
31. Authorization of financial statements
The financial statements for the year ended 31st March, 2023 (including comparatives) were approved by the board of directors on 27.05.2023.
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