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. |