Foot Notes Summary Report
PVR Limited is a public limited Company domiciled in India and incorporated under the provisions of the Indian Companies Act and its equity shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. The Group is engaged in the business of Movie exhibition, distribution & production and also earns revenue from in-house advertisement, sale of food & beverages, gaming and restaurant business.
The company’s other income includes Government Grants, Interest earned on bank deposits and NSC investments. Interest income on financial assets is measured using Effective Interest Rate (EIR). It also included exchange differences, Profit on sale of Movie on demand (Vkaoo) platform and other non operating income.
The direct cost of the company includes movie exhibition, distribution cost, consumption of food and beverages. The company recognises cost when incurred and classify it accordingly.
Benefits Expense –
Employee Benefits includes salaries, wages, allowances and bonus. It also comprises of post-employment benefit plans in the form of Contribution to Provident Fund, Employee Stock Option Scheme, Gratuity funds, compensated absences and staff welfare expenses.
Finance Cost includes interest on borrowings from debentures, term loans, banks, other financial charges and interest on finance lease obligation.
& Amortisation –
The company follows Straight-line method for depreciating its items of property, plant and equipment and amortise intangible assets over the useful life of the respective asset. The estimated useful life of the assets are generally in line with the useful lives. However, in case of few assets management estimates different useful life to depreciate an asset where management believes that estimated useful lives are realistic and reflect fair approximation of the period. 0>
Operating Expenses –
Other operating expenses mainly includes rent, common area maintenance, electricity, legal and professional fees, travel expenses, repairs and maintenance and other expenses.
Exceptional Item includes loss incurred on sale of investment in PVR BluO Entertainment Limited and business acquisitions related cost accounted as per Ind AS 103 ‘Business Combination’.
Per share –
The company presents basic and diluted earning per share data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares unless the effect is anti-dilutive.
- Tax Expense –
Income Tax Expense comprises of Current and Deferred Taxes. Current income-tax is measured at amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred Tax arises due to differences in WDV block under Income Tax and Books of Accounts, carry forward of losses and unabsorbed depreciation and adjustment on account of sale of Investment.
Plant & Equipment –
PPE are stated at cost less accumulated depreciation and impairment losses. Borrowing cost relating to PPE which takes substantial period of time to get ready for intended use is also capitalised. Cost of PPE not ready for intended use as at the reporting date is disclosed as Capital work-in-progress.
- Goodwill –
Goodwill is initially measured at cost which is represented by excess of consideration paid over the net assets acquired on business combination. Goodwill is tested for impairment annually and is further carried at cost less accumulated impairment losses, if any.
Intangible assets –
Other Intangible assets includes Software, Trademarks and Copyrights and film right’s initially recognised at cost and subsequently carried at cost less accumulated amortisation, if any. Further, any subsequent expenditure is capitalised when it is probable that future economic benefit flow to the enterprise.
accounted investees –
Comprises of investment in joint ventures accounted for using the Equity method. They are initially recognised at cost and subsequently includes the Group’s share of profit or loss and OCI of equity-accounted investees.
- Investments –
Includes non-current and current investments consisting of Quoted equity shares valued at Fair Value through Other Comprehensive Income because company intends to hold it for long term and Unquoted Government securities valued at amortised cost in the form of National Savings Certificate deposited with various state authorities respectively.
- Other Financial
Includes government grant receivable, revenue earned but not billed, security deposit, non-current bank balances and interest accrued on fixed deposits and NSC’s recognised initially at fair value, subsequently measured at amortised cost or FVTPL or FVTOCI depending upon the conditions to be met for debt instrument.
Tax Assets –
Deferred Tax assets includes MAT credit entitlement arising due to impact of expenditure charged to statement of profit and loss but allowable for tax purposes on payment basis, allowance for doubtful debts and advances.
non current assets –
Other non current assets includes capital advances, prepaid expenses, deferred rent, advance income tax and balances with statutory authorities.
- Inventories –
The company values inventories at lower of cost and net realisable value, where cost for food and beverages is determined on weighted average basis and cost of stores and spares is determined on First in First Out (FIFO) basis.
Trade Receivables are derived from revenue earned from customers which are unsecured. It also includes receivables from Debit/Credit card companies and online movies ticketing partners which are realisable within a period of 1 to 3 working days. The company impairs its trade receivables on the basis of past experience and trend.
- Loans –
The company has lent amount to employees and other body corporate in the form of unsecured loan.
Share Capital –
The company has only one class of Equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company has also provided stock options to its employees. The company’s authorised share capital also includes 0.001% non-cumulative convertible preference shares of Rs. 341.52 per share.
Other equity includes securities premium, share option outstanding account on equity settled share based payment transaction with employees, debenture redemption reserve, capital reserve created under the scheme of business combination, general reserve and retained earnings.
Controlling Interest –
Are measured at their proportionate share of the acquiree’s net identifiable assets at the date of acquisition. The non controlling interest is contributed by Zea Maize Private Limited where the parent holds 70 percent shareholding as on 31st March’ 18.
- Borrowings –
Interest-bearing loans and borrowings are initially recognised at fair value and subsequently measured at amortised cost using the Effective interest rate method.
- Provisions –
Includes provision for gratuity and leave benefits. The provisions are determined based on best management estimate and are not discounted to their present value.
Are recognised initially at their fair value and subsequently measured at amortised cost using effective interest method.