Kohinoor Broadcast Corporation

(a) Use of Estimates
 
 The preparation of Financial Statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (b) Basis of Preparation
 
 The financial statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 accounting standards notified U/s 211 3(C) of the companies Act. 1956
 and the relevant provisions of the Companies Act 1956.
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on accrual basis and prepares its accounts on a
 going concern basis.
 
 (c) Deferred revenue expenditure on account of fee for increase in the
 Authorized capital and the GDR issue expenses are amortized over a
 period of 5 years.
 
 (d) Pre-operative expenditure is amortized over a period of five years
 in equal installments.
 
 (e) Accounting policies not specifically referred to here in above is
 in consistent with generally accepted accounting practices.
 
 
 (a) Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. These are reviewed at each
 balance Date and adjusted to reflect the managements current
 estimates.
 
 (b) Contingent Liabilities
 
 The amount for which the company is contingently liable is disclosed by
 way of Notes.
 
 (c) The Company does not have any contested Liability.
 
 1.  STATEMENT OF SIGNIFICANT FINANCIAL NOTES
 
 (a) The foreign currency fluctuations loss/gain has been recognized as
 follows:
 
 Gain on account of translation of receivables in foreign currencies INR
 201.18 Million
 
 Loss realized on account of foreign currency transactions INR 5.46
 Million
 
 Rate of exchange prevailing at the year end is US$ 1=INR 50.95, US$
 1=AED 3.67, AED UINR 13.88
 
 (b) Investments
 
 -Made During the year - INR 183.44 Million {UD$ 4.51 Million) in
 Kohinoor Broadcasting Corporation FZE, a wholly owned subsidiary
 company, registered at Hamriyah Free Trade Zone, Sharjah - UAE.  -The
 total value of the Investment- INR 106152 Million (US$ 20.84 Million)
 till the close of the financial year.  -Investments realized during the
 year:-NIL
 
 (c) Accounting for Employees Benefits
 
 During the current financial year an amount of Rs. 1.08 Lac has been
 provided in respect of Gratuity provision.  The estimated Liability at
 the end of the financial year is INR 15.76 Lac. The actuarial valuation
 has been carried out on the following assumptions:-
 
 -Discount Rate @ 8%, Salary Escalation rate 5%, Average Age 42 Years.
 The estimates of future salary increases, considered in actuarial
 valuation, takes account of inflation, seniority, promotion and other
 relevant factors.
 
 (e) Earnings per share
 
 For the purpose of calculation of EPS (Basic and Diluted) the net
 profit has been taken at INR 197.25 Million (Previous Year
 11.02Million) which is as per the profit and loss account. The weighted
 number of shares for the purposed of calculation of basic and diluted
 EPS has been taken as 110205700 {Previous Year 39355700).
 
 (f) During the year the company has recognized a net deferred tax
 liability of INR 6.82 Million {Previous Year 11.58 Million). Please
 refer Schedule 3 forming part of the accounts.
 
 (g) The maximum amount invested in non scheduled bank at any time
 during the year is NIL {Previous Year INR
 715.22 Million (US$ 18.19 Million)).
 
 (h) Trade and other receivables are stated at their original invoice
 amount less allowance for doubtful debts based on a review of all
 outstanding amounts at year end. An allowance for doubtful debts is
 made when there is objective evidence that the company will not be able
 to collect all amounts due according to original terms of receivables.
 Bad debts are written off when identified.
 
 (i) Trade and other payables are stated at cost
 
 (j) As per the information available with the company, no amount is due
 to Small Scale Ancillary Industrial Undertakings as at 31st March 2009.
 
 (k) Contingent Liabilities -NIL {Previous Year-NIL)
 
 (1) Contingent Liabilities not provided for on account of capital
 commitments towards capital expenditure (Net of AdvancesHNR 110 Million
 (Previous Year 85 Million)
 
 (m) Tax deducted at source on interest income is NIL (Previous Year
 0.34 Lac)
 
 (n) Audit Fee Comprises
 
 - As Statutory Auditors INR 1.25 Lacs (Previous Year INR 2.50 Lac)
 
 - Certification Matters INR 0.20 Lacs (Previous Year INR 0.20 Lacs)
 
 - Reimbursement of Expenses. INR 0.05 Lacs (Previous Year INR 0.08
 Lacs)
 
 (o) Disclosure in terms of Clause 32 of Listing Agreement with Stock
 Exchange.
 
 - The Company has not given any Loans and advances for which disclosure
 is required.
 
 - During the year the Company has further invested as sum of INR 183.44
 Million in Kohinoor Broadcasting Corporation FZE, a wholly owned
 subsidiary company, registered at Hamriyah Free Trade Zone, Sharjah,
 UAE.
 
 - The Company does not have any holding Company.
 
 (p) Remuneration to Directors INR 8.56 Lacs (Previous Year INR 9.56
 Lacs)
 
 (q) Additional information required to be given pursuant to Part II of
 Schedule VI to the Companies Act, 1956 is as follows:
 
 - The Company is not engaged in to any manufacturing activity. The
 company is in the business of producing television content, which is
 not subject to any license. Hence licensed capacity is not given.
 Further the nature of business of company is such that the installed
 capacity is not quantifiable.
 
 - The Company is not engaged in to any manufacturing activity.
 Therefore the additional information with respect to Raw Material,
 Production, Sale and quantity details thereof has not been given.
 
 - CIF Value of Imports NIL (Previous Year NIL)
 
 - Other Expenditure in Foreign Currency-
 
 Consultancy Fee -US$ 127000/- (Previous Year US$ 129456/-)
 
 - Securities US$ 33836- (Previous Year 40667)
 
 * Investment in wholly owned subsidiary US$ 4.51 Million (Previous Year
 16.21 Million)
 
 - Earning in Foreign Exchange (FOB value of Exports)- NIL (Previous
 Year NIL)
 
 - Receipts in Foreign Exchange-NIL (Previous Year 25.37 Million)
 
 (r) Previous years figures are regrouped, rearranged, or recast
 wherever necessary to conform to this years classification.