1.  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 notifed under section 211(3C) of the Companies
 Act, 1956 and the relevant provisions of the Companies Act, 1956.
 
 The Company follows the mercantile system of accounting and recognises
 income and expenditure on accrual and prepares its accounts on a going
 concern basis. (Refer Note B-24).
 
 2.  Use of Estimates
 
 In the preparation of the financial statements, the management of the
 Company makes estimates and assumptions in conformity with the
 applicable accounting principles in India that affect the reported
 balances of assets and liabilities and disclosures relating to
 contingent assets and liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the
 period. Examples of such estimates include provisions for doubtful
 debts, future obligations under employee retirement benefit plans,
 income taxes, and the useful lives of fixed assets and intangible
 assets.
 
 A provision is recognised when there is a present obligation as a
 result of a past event in respect of which it is probable that outfow
 of resources will be required to settle the obligation and in respect
 of which a reliable estimate can be made.
 
 Contingencies are recorded when it is possible that a liability will be
 incurred, and the amount can be reasonably estimated. Where no reliable
 estimate can be made, a disclosure is made as contingent liability.
 
 3.  Tangible Fixed Assets
 
 Tangible Fixed assets except in the cases mentioned below are stated at
 the cost of acquisition, which includes taxes, duties, freight,
 insurance and other incidental expenses incurred for bringing the
 assets to the working condition required for their intended use, less
 depreciation and impairment.
 
 Fixed assets purchased under barter arrangements are stated at the fair
 market value as at the date of purchase.
 
 Land and buildings have been stated at an amount inclusive of
 appreciation arising on revaluation carried out by an independent
 valuer as at March 31, 2009.The methods adopted for revaluation of the
 assets were as under:
 
 a) Land: Prevailing market rate of land as on the date of revaluation.
 
 b) Buildings: Based on rates available for Direct Comparison/Comparable
 Sale Method.
 
 4.  Intangibles
 
 Intangible assets are recognised if they are separately identifable and
 the Company controls the future economic benefits arising out of them.
 All other expenses on intangible items are charged to the profit and
 loss account.  Intangible assets are stated at cost less accumulated
 amortization and impairment.
 
 5.  Depreciation/Amortisation
 
 Depreciation on fixed assets including intangibles is provided using the
 Straight Line Method based on the useful lives as estimated by the
 management. Depreciation is charged on a pro-rata basis for assets
 purchased/sold during the year. Individual assets costing less than Rs.
 5,000 are depreciated at the rate of 100% on a pro-rata basis. The
 managements estimates of useful lives for various fixed assets are
 given below:
 
 6.  Impairment of Assets
 
 The management periodically assesses using external and internal
 sources, whether there is an indication that an asset may be impaired.
 Impairment occurs where the carrying value exceeds the present value of
 future cash flows expected to arise from the continuing use of the asset
 and its eventual disposal. The impairment loss to be expensed is
 determined as the excess of the carrying amount over the higher of the
 assets net sales price or present value as determined above.
 
 7.  Leases
 
 Assets taken under leases, where the Company assumes substantially all
 the risks and rewards of ownership are classifed as Finance leases.
 Such assets are capitalised at the inception of the lease at the lower
 of fair value or the present value of minimum lease payments and a
 liability is created for an equivalent amount. Each lease rental paid
 is allocated between the liability and the interest cost, so as to
 obtain a constant periodic rate of interest on outstanding liability
 for each period.
 
 Assets taken on leases where significant risks and rewards of ownership
 are retained by the lessor are classifed as operating leases. Lease
 rentals are charged to the profit and Loss Account on a straight line
 basis over the lease term.
 
 8.  Revenue Recognition
 
 Advertisement revenue from broadcasting is recognised net of agency
 commissions when the advertisements are displayed.
 
 Revenue from services provided is recognised when persuasive evidence
 of an arrangement exists; the consideration is fixed or determinable;
 and it is reasonable to expect ultimate collection. Such revenues are
 recognised as the services are provided.
 
 Subscription Revenue from direct-to-home satellite operators and other
 distributors for the right to distribute the channels is recognised
 when the service has been provided as per the terms of the contract.
 
 Interest Income is recognised on a proportion of time basis taking into
 account the principal outstanding and the rate applicable.
 
 Revenues from production arrangements are recognised when the contract
 period begins and the programming is available for telecast pursuant to
 the terms of the agreement. Typically the milestone is reached when the
 fnished product has been delivered to or made available and accepted by
 the customer. Revenue from equipment given out on lease is accounted
 for on accrual basis over the period of use of equipment.
 
 9.  Inventories
 
 Stores and Spares
 
 Stores and spares consist of blank videotapes and equipment spare parts
 and are valued at the lower of cost or net realisable value. Cost is
 measured on a First In First Out (FIFO) basis.
 
 VHS Tapes
 
 VHS tapes, other than Betacam and DVC videotapes, are charged off as
 expense in the books at the time of their purchase. Betacam and DVC
 videotapes are charged off on issue to production.
 
 Programmes under production and fnished programmes
 
 Inventories related to television software (programmes completed, in
 process of production, available for sale or purchased programmes) are
 stated at the lower of cost (which includes direct production costs,
 story costs, acquisition of footage and allocable production overheads)
 or net realisable value. The cost of purchased programmes is amortised
 over the initial license period. The Company charges to the profit and
 loss account the costs incurred on non-news programmes produced by
 themselves based on the estimated revenues generated by the frst and
 the subsequent telecasts.
 
 10.  Employment benefits
 
 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.
 
 Post employment and other long term employee benefits: The Companys
 contribution to State Provident Fund is charged to the profit and Loss
 Account. The Company provides for long term defned benefit schemes of
 gratuity on the basis of actuarial valuation on the Balance Sheet date
 based on the Projected Unit Credit Method. In respect of gratuity, the
 Company funds the benefits through annual contributions to Life
 Insurance Corporation of India (LIC). Under this scheme, LIC assumes
 the obligation to settle the gratuity payment to the employees to the
 extent of the funding including accumulated interest. The actuarial
 valuation of the liability towards the Gratuity Retirement benefits of
 the employees is made on the basis of assumptions with respect to the
 variable elements affecting the computations including estimation of
 interest rate of earnings on contributions to LIC, discount rate,
 future salary increases. The Company recognises the actuarial gains and
 losses in the profit & Loss Account as income and expense in the period
 in which they occur.
 
 The Company recognises termination benefits as a liability and an
 expense when the enterprise has a present obligation as a result of a
 past event; it is probable that an outfow of resources embodying
 economic benefits will be required to settle the obligation; and a
 reliable estimate can be made of the amount of the obligation.
 
 11.  Employee Stock Based Compensation
 
 The Company calculates the employee stock compensation expense based on
 the intrinsic value method wherein the excess of market price of
 underlying equity shares as on the date of the grant of options/shares
 over the exercise price of the options/shares given to employees under
 the Employee Stock Option Scheme/ Employee Stock Purchase Scheme of the
 Company, is recognized as deferred stock compensation expense and is
 amortised over the vesting period on the basis of generally accepted
 accounting principles in accordance with the guidelines of Securities
 and Exchange Board of India.
 
 12.  Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the rates of exchange
 in force at the time the transactions are effected. All monetary assets
 and liabilities denominated in foreign currency are restated at the
 year-end exchange rate. All non-monetary assets and liabilities are
 stated at the rates prevailing on the date of the transaction.
 
 Gains / (losses) arising out of fuctuations in the exchange rates are
 recognized as income/expense in the period in which they arise.
 
 13.  Taxes on Income
 
 Tax on income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act, 1961, and based on the expected
 outcome of the assessment.
 
 Deferred tax is recognized on timing differences between the accounting
 income and the taxable income for the year and quantifed using the tax
 rates and laws substantially enacted as on the balance sheet date.
 
 Deferred tax assets in respect of unabsorbed depreciation/brought
 forward losses are recognized to the extent there is virtual certainty
 that suffcient future taxable income will be available against which
 such deferred tax assets can be realised.
 
 Other deferred tax assets are recognized and carried forward to the
 extent that there is a reasonable certainty that suffcient future
 taxable income will be available against which such deferred tax assets
 can be realised.
 
 14.  Earnings Per Share (EPS)
 
 Basic EPS
 
 The earnings considered in ascertaining the Companys basic EPS
 comprise the net profit/ (loss) after tax. The number of shares used in
 computing basic EPS is the weighted average number of shares
 outstanding during the year.
 
 Diluted EPS
 
 The net profit/ (loss) after tax and the weighted average number of
 shares outstanding during the year are adjusted for all the effects of
 dilutive potential equity shares for calculating the diluted EPS.
 
 15.  Dividend
 
 Dividends on equity shares and the related dividend tax thereon are
 recorded as a liability on proposal by the Board.
 
 16.  Investments
 
 Current investments are valued at cost or fair value whichever is
 lower.
 
 Long term investments are stated at cost of acquisition. However,
 permanent diminutions, if any, are adjusted against the value of
 investments.
 
 17.  Barter Transactions
 
 Barter transactions are recognised at the fair value of consideration
 receivable or payable. When the fair value of the transactions cannot
 be measured reliably, the revenue/expense is measured at the fair value
 of the goods/services provided/received adjusted by the amount of cash
 or cash equivalent transferred.
 
 In the normal course of business, the Company enters into a transaction
 in which it purchases an asset for business purposes or a service
 and/or makes an investment in a customer and at the same time
 negotiates a contract for sale of advertising to the seller of the
 assets or service, as the case may be. Arrangements though negotiated
 contemporaneously, may be documented in one or more contracts. The
 Companys policy for accounting for each transaction negotiated
 contemporaneously is to record each element of the transaction based on
 the respective estimated fair values of the assets or services
 purchased or investments made and the airtime sold. Assets which are
 acquired in the form of investments are recorded as Investments and
 accounted for accordingly. In determining their fair value, the Company
 refers to independent appraisals (where available), historical
 transactions or comparable cash transactions.
 
 18.  Borrowing Costs
 
 Borrowing costs attributable to the acquisition, construction or
 production of a qualifying asset is capitalised as part of the asset.
 Other borrowing costs are recognised as an expense in the period in
 which they are incurred.