Nature of Operations
 
 The Company was incorporated on June 24, 1999. The Company operates FM
 radio broadcasting stations in 32 Indian cities under the brand name
 ''Radio Mirchi''. The Company''s principal revenue stream is advertising.
 Advertising revenues are generated through the sale of air time in the
 Company''s FM radio broadcasting stations.
 
 1.  Contingent Liabilities
 
 a.  Guarantees issued by banks on behalf of the Company Rupees
 15,254,202 (Previous Year : Rupees 6,000,000).
 
 b.  Corporate Guarantee issued by the Company to HDfic Bank on behalf of
 Times Innovative Media Limited (an erstwhile subsidiary company) Rupees
 Nil (Previous Year : Rupees 200,000,000) and to HSBC Bank Rupees Nil
 (Previous Year : Rupees 500,000,000).
 
 2.  Capital Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account Rupees 933,966 (Previous Year : Rupees 5,094,910) net of
 advances of Rupees 10,922,919 (Previous Year : Rupees 10,800,000).
 
 * excludes contribution to gratuity and leave encashment which is based
 on actuarial valuations done at an overall company level.
 
 @ The current year''s managerial remuneration is for the period
 beginning from July 1, 2010 and ending March 31, 2011 paid to the
 Executive Director & Chief Executive Officer of the Company.
 
 # The Previous year''s managerial remuneration is for the six months
 period ended September 30, 2009 paid to the Managing Director of the
 Company.
 
 Approval for the appointment and payment of the above remuneration in
 the previous year to Mr. A. P. Parigi, Managing Director has been
 received from the Central Government of India, Ministry of Corporate
 Affairs vide their letter No. SRN/A/56429632/3/2009-CL.  VII dated
 October 26, 2009 and A70602552-CL-VII dated April 19, 2010.
 
 b.  Director''s Sitting Fees Rupees 910,000 (Previous Year : Rupees
 720,000)
 
 3.  One Time Entry Fee (OTEF) and Migration Fee
 
 As per the Frequency Module (FM) broadcasting policy, effective April
 1, 2005 the Company was given the option to migrate all its existing
 license from Phase I regime to Phase II regime on payment of migration
 fees. Migration fees for each station was equal to the average of all
 successful bids received for that city. The Company had exercised the
 option and had migrated its licenses for all the seven cities to Phase
 II regime by payment of migration fees aggregating Rupees 815,234,695.
 Migration Fees has remaining amortisation period of four years.
 
 Further, the Company had participated in second round of bidding and
 was awarded frequency at 25 locations. The payment made by the Company
 to acquire these frequencies (One Time Entry Fees) was Rupees
 1,301,000,000. The remaining amortisation period of OTEF ranges between
 four and seven years.
 
 Based on the opinion obtained from an independent firm of Chartered
 Accountants, both Migration Fees and One Time Entry Fees have been
 capitalised as Intangible Asset.
 
 11.  The Company has classifed the various employee benefits provided to
 employees as under : I) Defined Contribution Plans
 
 a.  Provident Fund
 
 b.  State Defined Contribution Plans - Employers'' Contribution to
 Employee''s Pension Scheme, 1995.
 
 III) The liability for leave encashment and compensated absenses as at
 the year end is Rupees 12,378,764 (Previous Year : Rupees 11,764,713).
 
 4.  Segment Information
 
 In accordance with Accounting Standard – 17, Segment Reporting issued
 by the Institute of Chartered Accountants of India, the Company''s
 business segment is radio broadcasting business and it has no other
 primary reportable segments. Accordingly, the segment revenue, segment
 results, total carrying amount of segment assets and segment
 liabilities, total cost incurred to acquire segment assets and total
 amount of charge for depreciation during the year, is as refected in
 the Financial Statements as of and for the year ended March 31, 2011.
 The Company caters to the needs of the domestic market and hence there
 are no reportable geographical segments.
 
 5.  Related Party Disclosures
 
 a.  Parties where control exists
 
 Bennett, Coleman & Company Limited (BCCL) – Ultimate Holding Company
 Times Infotainment Media Limited (TIML) – Holding Company
 
 b.  Subsidiary Companies
 
 Alternate Brand Solutions (India) Limited (ABSL) – Subsidiary Company
 
 Times Innovative Media Limited (TIM) – Subsidiary Company up to
 December 29, 2010
 
 TIM Delhi Airport Advertising Private Limited (TIMDAA) – A Subsidiary
 Company of TIM (ceased to be a subsidiary from December
 29, 2010)
 
 c.  Fellow Subsidiary Companies
 
 Mirchi Movies (India) Limited (MML)
 
 Times Internet Limited (TIL)
 
 Times Global Broadcasting Company Limited (TGBCL)
 
 Times Business Solutions Limited (TBSL)
 
 Optimal Media Solutions Limited (OMSL)
 
 Times VPL Limited (TVL) [formerly Vijayanand Printers Limited (VAPL)]
 
 Vardhaman Publishers Limited (VPL)
 
 Artha Distribution Services Limited (ADSL)*
 
 Times Innovative Media Limited (TIM) – from December 30, 2010
 
 TIM Delhi Airport Advertising Private Limited (TIMDAA) – from December
 30, 2010
 
 d.  Other Related Party
 
 Aegon Religare Life Insurance Company (ARLIC)
 
 e.  Key Managerial Personnel Chairman
 
 Mr. Vineet Jain
 
 Managing Director
 
 Mr. A. P. Parigi – upto September 30, 2009
 
 Executive Director & Chief Executive Officer
 
 Mr. Prashant Panday- Executive Director from July 1, 2010
 
 Non-Executive Directors
 
 Mr. N. Kumar
 
 Mr. Deepak M. Satwalekar - up to March 30, 2011
 
 Mr. Ravindra Kulkarni
 
 Mr. Ravindra Dhariwal
 
 Mr. A. P. Parigi - from October 01, 2009
 
 Mr. Richard Saldanha - from November 23, 2010
 
 * There are no transactions during the year
 
 6.  Disclosures for Operating Leases
 
 Disclosures in respect of cancellable agreements for cars, transmission
 towers, office and residential premises taken on lease:
 
 a.  Lease payments recognised in the Profit and Loss Account Rupees
 136,769,643 (Previous Year : Rupees 136,974,009).
 
 b.  All the agreements provide for early termination by the Company by
 giving prior notice in writing.
 
 7. On December 29, 2010, the Company sold its entire stake in Times
 Innovative Media Limited (TIM) to Bennett, Coleman & Company Limited
 (BCCL). The profit from this sale amounting to Rupees 126,848,239 has
 been refected as exceptional items in the financial statements.
 
 8. The Company has a Media Collaboration Arrangement with Bennett,
 Coleman & Company Limited (BCCL), the ultimate holding company.  This
 arrangement seeks to expand the advertisement market and inter-alia
 helps the Company to gain access to certain clients who may not
 otherwise advertise in FM radio. The revenues generated from this
 arrangement were Rupees 167,865,293 (Previous Year : Rupees
 144,153,607) in the current year. Subsequently, in view of the
 uncertainties as to timing and the quantum of the ultimate collection,
 the Company has based on the principles of prudence, created a
 provision for doubtful debts to the extent of Rupees 111,829,272
 (Previous Year : Rupees 127,735,492) in respect of the sales made
 pursuant to this arrangement.
 
 9.  Provision for income tax has been made on the basis of Section
 115JB of the Income Tax Act, 1961 (Minimum Alternate Tax).
 
 10.  The Honourable Copyright Board (CRB) vide its final order dated
 August 25, 2010 ruled that radio broadcasters will be liable to set
 apart 2% of the net advertising earnings of each of their FM radio
 stations for royalty payment to all the music providers in proportion
 to usage. Following a writ petition by the Super Cassettes Industries
 Limited (SCIL), the Honourable Delhi High Court granted stay on
 implementation of the aforesaid CRB order against SCIL. Accordingly,
 w.e.f. August 25, 2010 the Company has accounted the music royalty for
 sound recordings provided by all music providers other than the SCIL on
 a revenue share basis. In the interim, the music royalty for sound
 recording provided by SCIL is accounted based on the needle hour rate
 indicated in the CRB order dated November 19, 2002.
 
 11.  Recoveries deducted from expenses are on account of sharing of
 common expenses with subsidiaries and Group Companies.
 
 12.  Information pursuant to other provisions of Part II of Schedule VI
 to The Act, is either nil or not applicable to the Company for the
 year.
 
 13.  Previous year''s figures have been regrouped where necessary.