Balaji Telefilms

As at         As at
                                             31st March,   31st March,
                                                    2009          2008
 
 1. Estimated amount of contracts remaining to be
 executed on capital account and not provided for: 75.00      2,525.00
 
 2. The Company has applied to the Office fo the Commissioner fo Sales-
 tax, Mumbai, to ascertain whether the Companys sales are liable to
 tax under the Sales-tax laws. The matter is still pending before the
 Sales-tax authority.
 
 3. Contigent liabilities in respect of Claim against the
 Company not acknowledged as debts                495.00        495.00
 
 This represents demand raised by a Prasar Bharti Broadcasting
 Corporation of India. The Company is of the view that the claim is not
 valid. Legal proceedings have been initiated for quashing the said
 demand. The amount disclosed is the minimum liability on this count
 excluding interest thereon which is presently not quantifiable.
 
 
 4.  The Company follows the policy of depreciating studios and sets @
 33.33%. During the year, a set constructed exclusively for a serial
 which went off air is not expected to be used for any other purpose. In
 view thereof, the cost of the set (net of the estimated residual value)
 has been entirely depreciated. This treatment has the effect of
 increasing the depreciation charge for the year by Rs.953.12 lacs and
 reducing the profit before tax by the like amount.
 
 5.  During the year, the Company liquidated its subsidiary Balaji
 Telefilms FZE. Surplus on liquidation of subsidiary represents excess
 of net assets of the subsidiary realized over the Companys investment
 in the subsidiary.
 
 6.  During the year, the Company has entered into agreement with Star
 Croup and the promoters of the Company, whereby the parties have agreed
 to terminate various agreement into between the parties inter-se in
 August 2004 in relation to the acquisition by the Star Croup of a total
 of 25.99% of the share capital in the Company and the Agreement entered
 in April 2007, relatingto the regional languages joint venture.
 
 7.  The Company received a notice for termination of its program
 Kyunki Saas Bhi Kabhi Bahu Thi fromEntertainment Limited (Part of
 Star Croup) with effect from 10th November, 2008. The Company has
 initiated arbitration proceedings against the same.