1.  Basis of Accounting
 
 The Financial Statements have been prepared under the Historical Cost
 Convention and on accrual basis in accordance with the accounting
 standards referred to in Section 211 (3C) of the Companies Act, 1956.
 
 2.  Use of Estimates
 
 The preparation of financial statements requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, as of the date of the financial statements and the
 reported amount of revenue and expenses of the year. Actual results
 could differ from these estimates. Any revision to estimates is
 recognized prospectively in current and future periods.
 
 3.  Fixed Assets
 
 a) Fixed assets are stated at original cost of acquisition/installation
 net of accumulated depreciation, amortization and impairment losses.
 The cost of fixed assets includes taxes, duties, freight and other
 incidental expenses related to the acquisition and installation of the
 respective assets.
 
 b) Trademark, Knowledge based content, Copyright and Software are
 capitalised as an intangible asset in the year it is put to use.
 
 c) Cost incurred on development/improvement of leasehold assets is
 capitalised.
 
 d) Capital Work-in-progress is stated to the extent of expenditure
 incurred upto the date of Balance sheet including advances for capital
 expenditure.
 
 4.  Borrowing Costs
 
 Borrowing Costs attributable to the acquisition or construction of
 qualifying assets are capitalized as a part of the cost of such assets.
 All other borrowing costs are charged to revenue.
 
 5.  Impairment of Assets
 
 At each Balance Sheet date, the Company reviews the carrying amount of
 fixed assets to determine whether there is an indication that those
 assets have suffered impairment loss. If any such indication exists,
 the recoverable amount of assets is estimated in order to determine the
 extent of impairment loss. The recoverable amount is higher of the net
 selling price and value in use, determined by discounting the estimated
 future cash flows expected from the continuing use of the asset to
 their present value.
 
 6.  Depreciation/Amortization
 
 a) Depreciation on fixed assets is provided on Straight Line Method at
 the rate specified in Schedule XIV to the Companies Act, 1956.
 
 b) Leasehold Improvements are amortized over the period of Lease.
 
 c) (i) Costs of Trademarks are amortized over a period of ten years.
 
 (ii) Copyrights are amortized on straight-line basis over the license
 period.
 
 (iii) Other intangible assets are amortized over a period of three
 years based on managements estimate of useful life.
 
 7.  Investments
 
 a) Investments intended to be held for more than one year, from the
 date of acquisition, are classified as long-term and are carried at
 cost. Provision for diminution in value of these investments is made,
 to recognize a decline other than temporary.
 
 b) Current Investments are carried at cost or fair value, whichever is
 lower.
 
 8.  Revenue Recognition
 
 a) Broadcasting Revenue
 
 Advertisement revenue (net of agency commission) is recognized when the
 related advertisement appears before the public i.e. on telecast.
 
 b) Educational Services
 
 i) Course fees and Royalty income is recognized over the duration of
 the course.
 
 ii) Franchise fees is recognized as and when due.
 
 c) For other services, revenue is recognized when the service is
 completed.
 
 d) Sale is recognized when the risk and rewards of ownership are passed
 onto the customers, which is generally on dispatch of goods.
 
 e) Dividend Income is recognized when the right to receive the dividend
 is unconditional.
 
 9.  Inventories
 
 a) Educational Materials/Equipments are valued at lower of cost or
 estimated net realizable value. Cost means average cost.
 
 b) Raw Tapes are valued at lower of cost or estimated net realizable
 value. Cost is determined on First In First Out (FIFO) basis.
 
 10.  Program Rights
 
 Program rights are stated at lower of net cost (cost minus accumulated
 amortization/impairment) or realizable value. Where the realizable
 value on the basis of its useful economic life is less than its
 carrying amount, the difference is expensed as impairment. Program
 Rights for broadcasting are intangible assets as defined in AS-26 but
 considered and shown under current assets as are used for broadcasting
 in the ordinary course of business.
 
 a) Program Costs (with no repeat value) are fully expensed on telecast.
 
 b) Program Costs (with repeat value) are amortized over three financial
 years from the year of telecast.
 
 11.  Retirement Benefits
 
 a) Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 b) Post employment and other long-term employee benefits are recognized
 as an expense in the profit and loss account for the year in which the
 employee has rendered services. The expense is recognized at the
 present value of the amount payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long-term benefits are charged to the profit and
 loss account.
 
 12.  Accounting for Taxes on Income
 
 a) Current Tax is determined as the amount of tax payable in respect of
 taxable income for the year as per the provisions of the Income Tax
 Act, 1961.
 
 b) Deferred tax is recognized, subject to consideration of prudence, on
 timing difference, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods and measured using relevant
 enacted tax rates.
 
 13.  Operating Lease
 
 Lease of assets under which all the risk and rewards of ownership are
 effectively retained by the lessor are classified as operating leases.
 Lease payments under operating leases are recognized as expense on
 accrual basis in accordance with the respective lease agreements.
 
 14.  Transactions in Foreign Currency
 
 a) Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of such transaction.
 
 b) Foreign Currency monetary assets and liabilities are reported using
 the closing rate. Gains and losses arising on account difference in
 foreign exchange rates on settlement/translation of monetary assets and
 liabilities on the closing date are recognized in the Profit and Loss
 account.
 
 15.  Earnings per Share
 
 Basic earnings per share is computed and disclosed using the weighted
 average number of common shares outstanding during the year. Dilutive
 earnings per share is computed and disclosed using the weighted average
 number of common and dilutive common equivalent shares outstanding
 during the year, except when the results would be anti-dilutive.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes to accounts. Contingent Assets are neither recognized nor
 disclosed in the financial statements.