1 Share Capital
Rights, Preferences and Restrictions attached to equity shares:
i) Right to receive dividend as may be approved by the Board/ Annual
ii) The equity shares are not repayable except in the case of a buy
back, reduction of capital or winding up in terms of the provisions of
the Companies Act, 1956.
iii) Every member of the Company holding equity shares has a right to
attend the General Meeting of the company and has a right to speak and
on a show of hands, has one vote if he is present and on a poll shall
have the right to vote in proportion to his share of the paid-up
capital of the company.
1 Contingent liabilities in respect of: ( Rs. In Lacs)
Sr. Particulars As at As at
No. 31.03.2012 31.03.2011
i. Counter Guarantee provided by the - 100.00
Company for guarantee given by
IndusInd Bank Limited to IndusInd
Media and Communications Limited, a
ii. Corporate Guarantee provided by the 4,500.00 -
company for loan taken by IDL
Speciality Chemicals Limited, a
wholly owned subsidiary of the
iii. Corporate Guarantee provided by the 3,000.00 -
company for loan taken by IN
Entertainment (India) Limited, an
associate of the company.
iv. Income Tax matters against which the 17,784.30 16,138.87
Company has fled appeals/
objections. (Refer Note 1 below).
v. Summary Suit has been fled by 867.12 867.12
Nishkalp Investments and Trading
Company Limited with regard to the
dispute for buyback of shares of Plus
Paper Foodpac Limited (PPFL) vide an
agreement dated 25th November, 1997.
The Management is of the opinion that
the Company has a good case and the
summary suit is not sustainable.
1. Includes an amount of Rs. 16,662.50 (in Lacs) [Previous Year - Rs.
15,390.48 (in Lacs)] being disputed income tax liabilities pertaining
to IT/ ITES business, which is reimbursable from Hinduja Global
Solutions Limited, pursuant to the Scheme of Arrangement and
Reconstruction for demerger of IT/ ITES business sanctioned by High
Court of Judicature of Bombay and made effective on 7th March, 2007. In
respect of the aforesaid disputed dues, an amount of Rs. 4,397.12 (in
Lacs) [Previous Year - Rs. 3,797.12 (in Lacs)] has been deposited by
the Company with income tax authorities under protest. The Company has
received Rs. 3,750.00 (in Lacs) [Previous Year - Rs. 3,150.00 (in
Lacs)] upto 31st March, 2012 from Hinduja Global Solutions Limited to
discharge part payment of disputed income tax liabilities pertaining to
IT/ ITES business, which is netted from advance tax and tax deducted at
source (Net of Provisions).
2. With respect to the above, the Company does not expect any outflow
of cash/ resources.
2 Details of Traded Goods under broad heads:
1. Figures in brackets represent previous year figures.
2. Sale of Stock/Index Futures includes Rs. 800.00 (in Lacs)
representing Mark to Market valuation on open position in Nifty Futures
Index as on 31st March, 2012.
3. Sales include amortisation of cost of film rights exploited during
3 Operating Leases
a) Where the Company is a lessee:
The operating lease arrangement relating to office premises extend upto
a maximum of five years from the respective date of inception and are
renewable on mutual consent. In addition, the Company has entered into
cancellable leasing arrangements for office premises and towards which
the lease rental of Rs. 90.39 (in Lacs) [Previous Year - Rs. 56.98
(in Lacs)] has been included in ‘Rent’ - Refer Note 24 of the financial
b) Where the Company is a lessor:
The Company has given Optical Fibre Cable under operating lease. These
are generally cancellable and are renewable by mutual consent on
mutually agreeable terms. The lease income recognised in the Profit and
Loss Account under Lease Income - Optical Fibre Cable of Rs. 583.07
(in Lacs) [Previous Year - Rs. 548.72 (in Lacs)] - Refer Note 18 of
the financial statements.
4 Inter-Corporate Deposits
Inter Corporate Deposit aggregating Rs. 9,700.00 (in Lacs) [Previous
Year - Rs. 8,200.00 (in Lacs)] is secured by way of pledge of equity
shares held by a borrower in a company.
5 MAT Credits:
The Company has recognised Minimum Alternate Tax (MAT) credit as per
the provisions of section 115JAA of the Income tax act, 1961 in the
current year, which can be carried forward for a period of ten years
and set-off against the tax payable when the Company will fall under
the normal tax rate. The convincing evidence of obtaining tax credit is
supported by subsequent performance of the Company and subsisting
business, which will ensure availability of sufficient future taxable
income against which the above MAT credit will be adjusted.
6 Segment Reporting
In accordance with Accounting Standard 17 - Segment Reporting, the
Management has identified its business segments based on the nature of
services, nature of risks and returns as applicable to each segment and
the internal financial reporting systems, so far as they relate to the
specific groups included in the segments, which are as under:
I. Media and Communications - consists of various media /
communication related activities spearheaded by the Corporate Group.
This segment also includes all activities relating to increase in
shareholders value in subsidiaries belonging to the Company in this
II. Real Estate - The Company has real estate activities in the form
of property development. The segment also identifies potential
investment opportunities in real estate properties either itself or
through participation in the form of shares or securities of real
III. Treasury - This segment consists of activities relating to
i. Deployment of surplus funds;
ii. Existing stock in trade/ investments in shares and securities,
other than subsidiaries.
Revenue and expenses have been accounted for on the basis of their
relationship to the operating activities of the segment. Expenses,
which relate to the enterprise as a whole and are not allocable to
segments on a reasonable basis, have been included under “Unallocable
Expenses”. Assets and Liabilities, which relate to the enterprise as a
whole and are not allocable to segments on a reasonable basis, have
been included under “Unallocable Assets/ Liabilities”.
There is no Reportable Geographical Segment.
7 Related Party Disclosures (as identified by the Management)
I. Individual having control with relatives and associates
Mr. Ashok P. Hinduja, Executive Chairman
A) Direct Subsidiaries
1. IndusInd Media and Communications Limited
2. Grant Investrade Limited
3. IDL Speciality Chemicals Limited
4. HTMT Telecom Private Limited (upto 31st December, 2010)
B) Indirect Subsidiaries
1. USN Networks Private Limited
2. Gold Star Noida Network Private Limited
3. Seven Star Information Technology Private Limited
4. Bhima Riddhi Infotainment Private Limited
5. United Mysore Network Private Limited
6. Apna Incable Broadband Services Private Limited
7. Sangli Media Services Private Limited
8. Sainath In Entertainment Private Limited
9. Sunny Infotainment Private Limited
10. Goldstar Infotainment Private Limited
11. Ajanta Sky Darshan Private Limited
12. V4U Entertainment Private Limited
13. Darpita Trading Company Private Limited
14. RBL Digital Cable Network Private Limited
15. Vistaar Telecommunication and Infrastructure Private Limited
16. Jagsumi Perspectives Private Limited (effective 1st October, 2011)
1. Planet E-Shop Holdings India Limited
2. IN Entertainment (India) Limited
IV. Key Management Personnel
Mr. Dilip Panjwani, Director and Company Secretary (Whole Time Director
effective 10th May, 2011)
V. Enterprises where common control exists
1. Aasia Management and Consultancy Private Limited
2. Hinduja Group India Limited
3. Hinduja Realty Ventures Limited
4. Hinduja Global Solutions Limited
5. APDL Estates Limited
6. Hinduja National Power Corporation Limited
7. Hinduja Energy India Limited
8 Disclosure in accordance with Accounting Standard 15 (Revised 2005)
The Company has classified various benefits provided to employees as
I Defined Contribution Plans
a) Provident Fund
b) State Defined Contribution Plans
i) Employer''s Contribution to Employees'' State Insurance
ii) Employer''s Contribution to Employees'' Pension Scheme 1995
9 Loans and Advances in the nature of loans to subsidiaries and
associates (pursuant to Clause 32 of the Listing Agreement with Stock
- Loans and Advances, in the nature of Loans to Subsidiaries and
Associates as shown above are repayable on demand.
- There are no other loans and advances in the nature of loans where
there is no repayment schedule.
- All loans and advances in the nature of loans are given on terms and
within the limits specified under Section 372A of the Act.
- Loans and Advances to employees and investment by such employees in
the shares of the company, if any are excluded from the above
10 As a part of its Real Estate activity the company acquired
approximately 47 acres of land in Bangalore from party in terms of an
agreement to sell. However in view of the fact that the said party
though in receipt of sales consideration has not fulfiled his part of
obligation by transferring the title of the said land in the name of
the Company. The Company has file a suit in a civil court in Bangalore
for specific performance of the Agreement of Sale so as to have proper
conveyance to the said property in favour of the Company.
11 The Company had obtained registration as a sub-broker for National
Stock Exchange of India Limited and Bombay Stock Exchange Limited from
Securities and Exchange Board of India. The Company is engaged in the
activity of sub-broking during the year. In the opinion of the
Management and based on a legal opinion, the Company is not considered
as a Non-Banking Financial Company as per the guidelines issued by
Reserve Bank of India.
12 The Revised Schedule VI has become effective from 1st April, 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year’s figures have been regrouped / reclassified
wherever necessary to correspond with the current year''s classification