a) Basis of preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 aspects with the Accounting Standards issued by the Institute of
 Chartered Accountants of India (ICAI), in accordance with Indian
 Generally Accepted Accounting Principles and as per the provision of
 the Companies Act, 1956. The financial statements are prepared under
 the historical cost convention on accrual and going concern basis.
 
 b) Use of estimates
 
 The preparation of financial statements requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities on the date of financial statements, the reported
 amount of revenues and expenses and the disclosures relating to
 contingent liabilities as on the date of financial statements. Actual
 results could differ from those of estimates. Any revision in
 accounting estimates is recognized in accordance with the respective
 accounting standard.
 
 c) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Revenue from sale of goods is recognized when the significant risks and
 rewards of ownership of the goods have passed to the buyer.
 
 Revenue from services is recognized on accrual basis over the period of
 services.
 
 d) Fixed Assets and Depreciation
 
 Fixed Assets are stated at cost of acquisition/construction less
 accumulated depreciation and impairment loss.  Cost includes direct
 expenses as well as clearly identifiable indirect expenses incurred to
 bring the assets to their working condition for its intended use, net
 of CENVAT/Service Tax recoverable.
 
 Capital work in progress includes assets that are under
 construction/development and not yet ready to use.
 
 Fixed Assets are depreciated on a straight-line basis at the rates
 specified in Schedule XIV of Companies Act, 1956 except a few items of
 Fixed Assets which are depreciated on a written down value basis.
 Proportionate depreciation is charged for addition / deletion during
 the year. Individual assets of value less than Rs.5, 000 are
 depreciated in the year of purchase.
 
 e) Intangible Assets
 
 Project development Expenses
 
 Expenditure related to the development of IPTV project are treated as
 Project Development Expenses and classified as Intangible Assets to
 be amortized over a period of 5 years.
 
 Content Rights
 
 The Company purchases movie/film rights, software rights, copyrights
 and trademarks related to IPTV Project. Expenditure related to the
 acquisition of content rights for IPTV is classified as Intangible
 Assets to be amortized over a period of 5 years or license period,
 whichever is lower.
 
 Others
 
 Other Intangible assets are amortized over a period of 5 years.
 
 f) Investments
 
 Investments are classified into current and long-term investments.
 Current investments are stated at lower of cost or market value.
 Long-term investments are classified at cost less provisions, if any,
 for permanent diminution in the value of such investments.
 
 g) Inventories
 
 Inventories are valued at the lower of cost or net realizable value.
 Cost is determined on a weighted average basis. Inventories include
 other costs incurred in bringing the inventories to their present
 location and condition.
 
 h) Employee Benefits
 
 Provident fund is a defined contribution scheme and is charged to
 Profit and Loss Account on accrual basis.
 
 The Company''s liabilities towards gratuity are considered as defined
 benefit plans. The present value of obligation towards gratuity is
 determined on actuarial valuation basis.
 
 The Company''s liabilities towards leave encashment benefits is
 accounted for on the basis of actuarial valuation and the resultant
 actuarial gains and losses are charged to profit & loss account.
 
 i) Operating Leases
 
 Lease Income:
 
 Lease rentals in respect of Operating Lease arrangements are recognized
 in Profit & Loss Account in accordance with AS-19 Leases. Costs,
 including depreciation, incurred in earning the lease income are
 recognized as expenses.
 
 Lease Expense:
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item are classified as
 Operating Leases. Operating Lease payments are recognised as an expense
 in the Profit & Loss Account on a straight line basis over the lease
 period.
 
 j) Finance Leases
 
 Assets acquired under finance leases are capitalized at the inception
 of the lease and depreciated on straight line basis over the useful
 life in accordance with the Company''s depreciation policy. The amount
 outstanding towards these liabilities is shown as borrowings in the
 balance sheet.
 
 k) Earnings Per Share
 
 The Company reports basic and diluted earnings per share in accordance
 with AS-20 Earnings Per Share. Basic earnings per share are computed
 by dividing the net profit or loss for the year by the weighted average
 number of Equity Shares outstanding during the year. Diluted earnings
 per share is computed by dividing the net profit or loss for the year
 by the weighted average number of Equity Shares outstanding during the
 year as adjusted for the effects of all dilutive potential equity
 shares.
 
 l) Taxation
 
 Tax expenses comprise current income tax, deferred tax, & fringe
 benefit tax. Income tax & fringe benefit tax comprises the amount of
 tax for the period determined in accordance with the Income Tax Act,
 1961.
 
 Fringe Benefit Tax (FBT):
 
 FBT payable under the provisions of Section 115WC of the Income Tax
 Act, 1961 is in accordance with the Guidance Note on Accounting for
 Fringe Benefits Tax issued by the ICAI regarded as an additional Income
 Tax and considered in determination of the profit / (losses) for the
 year.
 
 Deferred Tax
 
 The Company provides for deferred tax using the liability method, based
 on the timing difference resulting from the recognition of items in the
 financial statements / and in estimating its current income tax
 provision.  Deferred Tax Assets arising from temporary timing
 difference are recognized to the extent, there is reasonable certainty
 that the assets can be realized in future. Deferred tax assets are
 recognized only if there is a virtual certainty backed by convincing
 evidence of realization of such assets. Deferred tax assets and
 liabilities are reviewed as at each balance sheet date and are
 appropriately adjusted, to the extent considered necessary, to reflect
 the amount that is reasonably or virtually certain to be realized.
 
 m) Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the carrying value of such asset is reduced to its recoverable
 amount and the impairment loss is charged to Profit and Loss Account.
 If at the Balance Sheet date there is an indication that an impairment
 loss recognized in prior periods no longer exists or has decreased,
 then the assets are restated to that effect.
 
 n) Provisions, Contingent Liabilities and Contingent Assets
 
 Contingent Liabilities as defined in AS - 29 on Provisions, Contingent
 Liabilities and Contingent Assets are disclosed by way of Notes to
 Accounts. Provision is made if it becomes probable that an outflow of
 future economic benefits will be required for an item previously dealt
 with as a contingent liability.