Accompanying notes to the financial statements for the year ended March 31, 2015

SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of Preparation of financial statements:

The financial statements have been brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards notified under section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Companies Act, 2013 and guide lines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use or different accounting policy is required by statute.

(ii) Use Of Estimates:-

The brsentation of financial statements in conformity with the generally accepted accounting principal requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized.

(iii) Fixed Assets:-

A. Tangible Assets:

Fixed Assets are stated at cost less accumulated debrciation. Cost is inclusive of freight, duties (net of tax credits as applicable) levies and any directly attributable cost of bringing the assets to their working condition for their intended use.

B. Intangible Assets:

Intangible Assets are amortized over their respective individual estimated useful life as decided by the management, on a straight line basis commencing from the year the asset is available to the Company for its commercial use.

(iv) Debrciation & Amortisation:-

Debrciation on fixed assets is provided on Written Down Value Method (WDV) on pro-rata basis as per the useful life brscribed in the Schedule II of the Companies Act, 2013.

(v) Investments:-

Long term investments are stated at cost. Provision for diminution in value of Long term investment is made only if such decline is other than temporary in the opinion of management. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

(vi) Inventories:-

Stocks of Finished goods are valued at lesser of Cost and Net Realisable Value.

(vii) Provision:-

A provision is recognized when an enterprise has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

 (viii) Treatment Of Contingent Liabilities:-

Contingent liabilities are disclosed by way of note on the balance sheet. Provision is made in the accounts for those liabilities which are likely to Materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end

(ix) Taxation:-

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 brvailing for the relevant assessment year.

(x) Deferred Taxation:-

Deferred Tax resulting from timing differences between book and tax profit is accounted for under the liability method, at the current rate of tax, to the extent that the timing difference are expected to crystallize as deferred tax charge/benefit in the Profit & Loss Accounts and deferred tax assets/liabilities in the balance sheet.

(xi) Retirement and other Employee Benefit:-

(a) There is no defined contribution scheme brvailing in the company.

(b) Provision in respect of leave encashment is recognized as an expense in Profit & Loss Account for the period in which the employee has rendered services.

(c) Expenses in respect of other short term benefit are recognized on the basis of the amount paid or payable for the year for which the services are rendered by the employee.

(xii) Revenue Recognition:-

(a) Sales (includes licensing of Programs, Films / Movie Rights) are recognized, when the delivery is completed

(b) Interest income is recognized on a time proportion basis taking into account outstanding and the applicable interest rate

(xiii) Impairment of Assets:-

The Company assess whether there is any indication that any assets may be impaired at the balance sheet date. If any indication exists, the company estimates the recoverable amount and an impairment loss is recognized in the accounts, to the extent the carrying amount exceeds the recoverable amount.

As per our report Of Even Date

For N. K. JALAN & CO.

Firm Reg No : 104019 W

Chartered Accountants

sd/-CA N K JALAN

PROPRIETOR

Mem. No. 11878

PERFECT-OCTAVE MEDIA PROJECTS LIMITED

Ratish Tagde

Managing Director

Mahesh Tagde

Director

sd/- Komal Deshmukh-Samant

Company Secretary

Place: Mumbai

Date: May 30, 2015