1. EMPLOYEE BENEFITS

The following table sets forth the status of the Gratuity Plan of the Company and the amounts recognized in the financial statements

Defined Contribution Plans

In respect of the defined contribution plans, an amount of Rs. 2,61,748/- (2015: Rs. 2,91,069) has been recognized in the Statement of Profit and Loss during the year.

2. The Company has entered into operating lease agreements for its office premises which can be cancelled at any point of time by giving necessary notice period. During the previous year, the Company also entered into a Hire purchase Agreement for purchase of Vehicles.

3. On a conservative basis, the Company has, provided for the entire amount of investments and advances to its subsidiary company m/s PVP Cinemas (P) Ltd and the management does not expect any further provision on these investments and advances.

4. Long Term and Short Term Secured Loans are borrowed for the purpose of advancing film production/film finance. Bank loans are secured by charge on the film production rights undertaken by the company and collateral security of land given by promoters. Borrowings from banks and others are secured by way of charge on some of the advance to film production/ finance. All the loans are personally guaranteed by Mr.Prasad V Potluri, Managing Director and Mrs.Jhansi Sureddi wife of Managing Director.

5. Advance made for film finance are on the security of hypothecation of assets , mortgage of property, personal guarantee, assignment of rights, lien on film negative , undertaking to create security, etc.

6. EXPENDITURE IN FOREIGN EXCHANGE

During the year the Company has incurred expenditure in foreign exchange of Rs. 2,07,88,351/- towards Film Production Expenses and Travel expenditure. (2015-Rs.22,61,633)

7. The Company has not received any intimation from Suppliers, regarding their status under the Micro, Small Enterprises Development Act, 2006 and hence required disclosures such as amounts unpaid as at the year-end together with interest paid/payable have not been given.

8. The Company has not entered into any Derivative transactions during the year. There are no outstanding foreign currency exposures.

9. Contingent liabilities :

a. Company has given a corporate guarantee of Rs.100.00 Cr for its subsidiary companies PVP Capital Limited as security for availing working capital limits from the Bank. The subsidiary company has outstanding loan with bank of Rs. 101.16 Crs as of 31st March 2016.( Rs.99.41 Crs as of 31st March 2015)

b. Company has issued a Bank guarantee of Rs.5.00 lakhs to 'The Public Relation Officer, Southern Railway for the Production related activities in Railways and the same is pending as of 31st March 2016.

As per section 135 of companies act 2013, the company should have spent Rs. 8.22 lakhs, towards CSR activities during the year 2015-16, but could not effect payment before 31st March 2016 and the same will be expensed during the current financial year 2016-17.

10. The previous year's figures have been regrouped/rearranged wherever necessary to make it comparable with the current year figures.