p) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event and it is probable that the Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation.
Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognized
when it is virtually certain that reimbursement will be received if obligation is settled.
Contingent Liabilities are not recognised, but are disclosed in the notes to the Financial Statements.
Contingent assets are neither disclosed nor recognized.
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
30. Lease Obligation:
There are no non-cancellable lease agreements.
31. Arbitration proceeding with National Broadcaster (Doordarshan)
As per the order of Hon'ble arbitrator, the Company had paid an amount of ' 2,00,00,000/- to Prasar Bharti Broadcasting
Corporation of India (PBBCI). And also PBBCI/The Directorate General, Doordarshan had acquired programmes
from the existing library of the company for ' 1,34,78,831/-, representing cost of acquisition of programmes payable,
which had not been paid directly to CEL but had been adjusted / credited / treated as amount received in kind by
PBBCI / The Directorate General, Doordarshan on behalf of Creative Eye Limited. The said amounts are included in
Others Short Term Loans & Advances. Also, Trade Receivable includes '3,00,000/-, receivable from Prasar Bharati
Broadcasting Corporation of India. The final accounting / financial implication in the respective account shall be
reflected / adjusted at the time of final outcome of the arbitration proceedings.
37. Capital management
The Company's capital management objectives are:
- to ensure the company's ability to continue as a going concern
- to provide an adequate return to shareholders by pricing products and services commensurately with the level
of risk.
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as
presented on the face of the statement of financial position.
Financial Risk Management objectives
The Company's activities expose it to a variety of financial risks viz. credit risk, liquidity risk and market risk. In order
to manage the aforementioned risks, the Company operates a risk management policy and a program that performs
close monitoring of and responding to each risk factors.
1) Credit risk management
Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to
the Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial
loss from defaults. The Company uses publicly available financial information and its own trading records to rate
its major customers. The Company's exposure and credit ratings of its counterparties are regularly monitored
and the aggregate value of transactions concluded is spread amongst counterparties.
2) Liquidity risk management
The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate
liquidity risk management framework for the management of the Company's short, medium and long term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate
reserves, banking facilities by regularly monitoring forecast and actual cash flows.
3) Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and
other price risk such as equity price risk. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return. The Company is exposed to
equity price risks arising from equity investments. Equity investments are held for strategic rather than trading
purposes. The Company does not actively trade these investments.
42. Monthly Stock and Trade Receivable statement filed with the Bank as a security against Cash Credit Limit/Facility are
in agreement with the books of accounts.
43. With respects to the notification dated 24th March 2021 of Ministry of Corporate Affairs, New Delhi in exercise of
the powers conferred by sub - section (1) of section 467 of the Companies Act 2013, the central government have
made amendments in schedule III to the said act with effect from 01st April 2021. The said amendments have been
incorporated in the Financial Statements as and where required, subject to the applicability on the company.
44. No Transaction to report against the following disclosure requirement as notified by MCA pursuant to amended
schedule III:
a) Crypto currency and virtual currency
b) Benami Property held under Prohibition of Benami Transactions Act 1988 and rules made thereunder
c) Registration of charges or Satisfaction with registrar of Companies.
d) Relating to borrowed funds:
i) Willful defaulter
ii) Utilization of borrowed funds and share premium.
iii) Borrowing obtained on the basis of security of current assets
iv) Discrepancy in utilization of borrowings
v) Current maturity of Long-Term Funds.
45. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.
46. The Company uses an accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
software.
As per our report of even date attached For and on behalf of the Board
For NGS & Co. LLP Dheeraj Kumar Sunil Gupta Zuby Kochhar
Chartered Accountants Chairman & Executive Director Managing Director and CFO Executive Director
Firm Regn. No. 119850W/W100013 (DIN 00018094) (DIN 00278837) (DIN 00019868)
Ganesh Toshniwal Sarita Soni Matty V. Dutt Vipin Thakur
Partner Non-Executive Director Non-Executive Director Non-Executive Director
M. No. 046669 (DIN 08998686) (DIN 08004073) (DIN 07597681)
Khushbu Shah
Place: Mumbai Company Secretary
Date: 30th May, 2024 (M. No. A40202)
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