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Deccan Chronicle Holdings
BSE: 532608|NSE: DCHL|ISIN: INE137G01027|SECTOR: Media & Entertainment
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Explore DeccanChronicle connections « Mar 10
Notes to Accounts Year End : Mar '11
1.1. Contingent Liabilities not provided for
 
 The outstanding amount in Guarantees given by Banks towards performance
 and contractual commitments is Rs. 56.77 lakhs (Previous year: Nil) and
 Letter of Credit is Rs. 107.54 lakhs (Previous Year: Rs. 91.26 lakhs).
 
 1.2. Dues to micro and small enterprises
 
 The management has initiated the process of identifying enterprises
 which have provided goods and service to the Company and which qualify
 under the definition of micro and small enterprises, as defined under
 Micro, small and Medium Enterprises Development Act, 2006. Based on
 information received and available with the company no amount is
 payable to such enterprises as at March 31, 2011. The company has not
 received any claim for interest from any supplier under the said Act.
 
 1.3. Gratuity
 
 Gratuity, which is a defined benefit plan, is provided as per actuarial
 valuation, determined by an independent actuary, as on the balance
 sheet date. The total amount of gratuity accrued as per the actuarial
 valuation is Rs.115 lakhs.
 
 1.4.  Earning Per Share (EPS)
 
 Basic and diluted earning per share is Rs. 6.68, computed using the
 profit after tax attributable to shareholders of Rs.16,258.30 lakhs for
 the year as numerator and weighted average number of equity shares
 outstanding for the period i.e. 2,434.72 lakhs as denominator.
 
 1.5. Foreign Currency Convertible Bonds
 
 During the year, Foreign Currency Convertible Bonds holders opted for
 conversion, accordingly were allotted 12,49,435 equity shares of Rs. 2/-
 each. All the bonds issued have been converted and the outstanding
 bonds at the end of the year are Nil.
 
 1.6. Impairment of assets
 
 In the opinion of the management, there are no impaired assets
 requiring provision for impairment loss as per the accounting standard
 on Impairment of assets.
 
 1.7. Franchise rights of Deccan Chargers
 
 The Company is the owner of the Hyderabad Franchise of the Indian
 Premier League (IPL) Deccan Chargers, created by the Board of Control
 for Cricket in India (BCCI). This is an indefinite right and the
 company can operate the franchise as long as the IPL tournament is
 conducted. The consideration for acquiring the franchise rights of Rs.
 428.04 Crores is payable to BCCI over a period of 10 years in equal
 installments commencing from Year 2008.
 
 A wholly owned subsidiary Company Deccan Chargers Sporting Ventures
 Limited (DCSVL) which was operating the franchise, capitalized the
 franchise rights as intangible asset and recognized an equal amount as
 liability payable to BCCI. The economic useful life of the asset was
 estimated at 25 years and amortized accordingly.
 
 On amalgamation of DCSVL with the Company, the Company reviewed the
 aforesaid policy and decided to write off the fee paid to BCCI in the
 year of incurrence i.e. over a period of 10 year period itself.
 Accordingly the amount of Rs. 5,136.48 lakhs represents the difference
 between the amount paid to participate in IPL 1 & 2 and the amount
 amortized for the year 2008 & 2009. In view of the above, recognition
 of asset and corresponding liability does not arise.
 
 2.  Segment Reporting
 
 The Company is primarily in the businesses of Printing and publication
 of newspapers and periodicals and other businesses are below the
 required reportable levels as per the Accounting standard. The
 Company''s operations are geographically spread across India and do not
 have any operations in economic environments with different risks and
 returns. Accordingly, pursuant to the accounting standards, no segment
 disclosure has been made in these financial statements, as the Company
 has only one geographical segment.
 
 3.  Financial Statements of the current year includes the financials of
 Netlink Technologies Ltd, Odyssey India Ltd and Deccan Chargers
 Sporting Ventures Ltd, pursuant to the schemes of amalgamation with
 Deccan Chronicle Holdings Limited. All the current year figures are
 therefore not directly comparable.
 
 4.  Previous year figures have been recast/ restated wherever
 necessary.
 
 5.  Schedules A to M are an integral part of accounts.
Source : Dion Global Solutions Limited
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