Notes

SCHEDULE 15

NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AND THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31^ST MARCH 2006.

1.                  Significant Accounting Polices:

Basis of Accounting:

I.                   The financial statements are prepared under historical cost convention and on a cash basis except in respect of items state below to have been accounted on an accrual basis.

Fixed Assets and Depreciation:

II.                 Fixed Assets acquired in earlier year and are brought forward at their opening written down values. Assets acquired during the stated at cost of acquisition including any cost attributable the assets to the working condition for its intended use.

Fixed Assets acquired for Kala Academy by Govt of Goa during the International Film Festival of India have not been accounted, since the bills, details etc are not handed over by Goa State Infrastructure Development Corporation, who was the implementing agency appointed by Govt of Goa.

Depreciation on addition is charged for the whole year irrespective of the date on which the assets was commissioned. No depreciation is provided on assets deleted during the year. During the current financial year depreciation is charged as per the rate provided Appendix I of Income Tax Act.

III.              a) Government grants related to specific assets are accounted on receipt basis and are treated as deferred revenue income which is recognized in the income and expenditure account in proportion of the depreciation charges relating to the corresponding assets.

b) Government grants relating to revenue are recognized in          the year receipts.

c) In the past, Govt of Goa re-furbished Kala Academy Complex by installing new equipments and upgrading existing facilities. The same have not been accounted in the books of accounts in absence of details and value thereof. Hence no depreciation has been provided on the same in the past year and current year.

IV.      Retirement benefits:

a.      Provident fund – The Academy funds its liabilities towards provident fund dues by way of investment in savings bank accounts and term deposits with banks . The charges are made to the income and expenditure account in the year in which the investment is made.

b.      Gratuity – The Academy funds, its accrued liability towards a fund administered by the life insurance corporation of India (LIC).Contributions to the fund (based on the demands made by the LIC) are accounted for in the year of payment.

c.      Leave encashment on retirement – Expenditure on leave encashment or retirement is charged to the income and expenditure account in the year of payment.

V.      Recognition of revenue from other sources: - Revenue from other sources is recognized on receipt.

VII.            Investment: - Investment are stated at cost.

VIII.          Hire Income: - Revenue from hire income is recognized on accrual basis.

2.                  As the accounts of the Academy are maintained on cash basis hence determining and recording of outstanding expenses and prepaid expenses does not arise.

3.                  Contingent Liability:

Claims against the academy not acknowledged as debts Rs:   26,43,462-00

(previous year Rs 67,15,641-30 ). The breakup is as follows:-

The contingent liabilities in respect of Mr Talashilkar of Rs 2,72,179-30 have been paid during the year while in case of claim towards EPF on contract staff amounting to Rs 38,00,000-00 have been dropped by Commissioner of Provident Fund, hence it is no longer contingent liability.

4.                  List of amounts outstanding for the more than one year are disclosed in Annexure I

5.                  The figures have been regrouped wherever necessary.  

Signatures to schedules 1 to 15 forming part of the accounts.

For KALA ACADEMY

Pratapsingh Rane                                   Jitendra Deshprabhu

Chairman                                              Vice Chairman

Dr. P. R. Phaldesai                                  S.V.S Bhat

Member Secretary                                  Asst. Accounts officer

Panaji Goa 20 th July 2006