Untitled - Domain-b

Schedule 18 : Significant Accounting Policies and Notes to Accounts
Background
Zee Telefilms Limited (“ZTL” / “the Company”) was incorporated in the state of Maharashtra, India. The Company has
been mainly in the following businesses during the year :
a) Broadcasting of Satellite Television Channels uplinked from India.
b) Sale of programs, including films mainly to its subsidiaries for broadcasting on satellite television channels (for
beaming to Asia including India, USA, Europe, South Africa, Canada etc.) and to other parties;
c) Booking of Advertisement Space on television channels;
d) Distributor of Pay Television channels.
e) Production and Distribution of ilms.
f) Audio titles acquisition and distribution through its brand “Zee Records”;
Due to uplinking of main television channels from India, during the year the main business of the Company now is
Broadcaster of TV channels hence activities under (b), (c) and (d) above are considerably reduced by the year-end.
Use of Estimates
The preparation of the financial statements in accordance with the Generally Accepted Accounting Principles, requires
that the management to make estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent liabilities as at the date of the financial statements and the reported amount of revenue and
expenses of the year. Actual results could differ from those estimates.
A. Significant Accounting Policies
1. Accounting Convention
a) The financial statements have been prepared under Historical Cost Convention and in accordance with the
accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.
b) The Company generally follows mercantile system of accounting and recognizes income and expenditure on
accrual basis except those with significant uncertainties.
2. ixed Assets
a) ixed assets are stated at cost. Cost includes capital cost, freight, installation cost, duties and taxes and other
incidental expenses incurred during the construction / installation stage attributable to bringing the asset to
working condition for its intended use.
b) All capital costs and incidental expenditure during the pre operational period are shown as capital work in
progress.
3. Borrowing Costs
Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of the
cost of such assets. All other borrowing costs are charged to revenue.
4. Depreciation/Amortization
a) Depreciation on fixed assets (including on fixed assets acquired under finance lease) is provided on Straight
Line Method at the rate specified in Schedule XIV to the Companies Act, 1956.
b) Leasehold Land and Leasehold Improvements are amortized over the period of Lease.
c) Goodwill is amortized over a period of 10 years.
5. Investments
a) Long-term investments are stated at cost. Provision for diminution in value of long-term investment is made,
if the diminution is other than temporary.
b) Current investments are stated at cost or fair value whichever is lower.
6. Transaction in oreign Currencies
a) The transactions in foreign currency are accounted at the equivalent rupee value on the date of the transaction.
b) oreign currency assets and liabilities not covered by forward contracts at the year-end are realigned at the
exchange rate prevailing at the year-end and difference on realignment and realization is adjusted in the
respective revenue or capital head.
ZEE TELEILMS LIMITED