Mid Day Multimedia

1.  Business Transfer of Print and Publishing Business
 
 The members of the company by way of Postal Ballot have approved
 transfer of Printing and Publishing business of the Company by way of
 slump sale together with all its properties, assets, rights,
 liabilities/obligations of whatsoever nature and kind and its employees
 on a going concern basis to a New Wholly Owned Subsidiary Midday
 Infomedia Ltd, through Business Transfer Agreement pursuant to Section
 293 (1)(a) of the Companies Act, 1956.This is effective from July
 1,2008.The resultant loss of Rs.917 lacs (net of deferred tax
 adjustment of Rs.370 Lacs has been reported as extra-ordinary item.
 
 Cash credit and term loan facilities forming part of the Newsmedia
 division which is being transferred by way of slump sale are secured by
 pari passu charge on present & future movable and immovable assets of
 the company and also secured by personal guarantee of Chairman &
 Managing Director.
 
 Pursuant to the BTA, the following assets and liabilities are in the
 process of being transferred in the name of the purchaser company
 Midday Infomedia Ltd.
 
 Assets :
 
 Leasehold land & factory premises              1,796 lacs
 Bank balances                                     18 lacs
 Liabilities:
 Secured loans                                  2,249 lacs
 
 Exceptional items include (a) Write-off of Bad Debts of Outdoor & TV
 divisions, which have been discontinued in earlier years of Rs 86 lacs
 (b) Write-off of Loan to Mid-DAY Radio North (India) Limited Rs. 202
 lacs (c) Writing off balance unamortized cost of Black Friday movie of
 Rs. 329 lacs, (net of deferred tax adjustments of Rs.169 lacs), (d)
 Provision for diminution in the value of Investment in Mid-DAY Radio
 North (India) Limited Rs 5 lacs and (e) Provision for diminution in the
 value of Investment in Mid-Day Broadcasting South (India) Pvt.Ltd. Rs 1
 lac.
 
 2.  Contingent Liability
 
 a) Income-tax assessment has been completed upto financial year 31st
 March 2006 for which the Department has raised a demand of NIL (NIL).
 
 b) Capital commitments to the extend not provided for or paid NIL (Rs.
 57 lacs)
 
 c) In respect of guarantees issued by Companys bankers to MSRDC and
 other authorities for Rs. 3 lacs (Rs 3 lacs).
 
 d) In respect of corporate guarantee issued for Radio Mid Day West
 (India) Ltd. against term loan Rs. 15 Lacs (75 Lacs), CC limit Rs. 140
 Lacs (140 Lacs) & Bank Guarantee issued to Ministry of Information &
 Broadcasting Rs. 332 Lacs (332 lacs) in respect of counter guarantee
 issued for Radio Mid-Day West (India) Ltd. against term loan of Rs.
 4,000 Lacs (5,000 Lacs) and in respect of corporate guarantee issued
 for Midday Infomedia Ltd. against loan of Rs. 1,250 Lacs (NIL).
 
 e) Claims against the company in respect of various defamation suits
 and claims of employees, amount not ascertainable (Previous year
 Unascertainable)
 
 3.  Employees Benefit
 
 The Company has classified the various benefits provided to employees
 as under:
 
 II.  Defined Benefit Plans
 
 Contribution to Gratuity Fund (Funded Scheme)
 
 In accordance with the Accounting Standard (AS 15) (Revised 2005),
 actuarial valuation was performed in respect of the aforesaid defined
 benefit plans based on the following assumptions:
 
 The current year information in the following tables represents the
 figure for employees retained after the slump sale of news print
 division and is not comparable with previous years information.
 
 Discount Rate (per annum) 8%
 
 Rate of increase in compensation levels (per annum) 4%
 
 Rate of return on Plan Assets (for Funded Scheme) NIL
 
 4.  Current liabilities include overdue amounts of Rs. Nil (Previous
 year Rs. Nil) including interest of Rs. Nil (Previous year Rs. Nil)
 payable to Micro Small and Medium Enterprises. Total outstanding dues
 to Micro Small and Medium Enterprises have been determined to the
 extent such parties have been identified on the basis of information
 available with the company.
 
 5.  Previous years figures have been re-grouped / re-arranged
 wherever necessary.  Figures in bracket indicate previous years
 figures.