1.  Share Warrants
 
 In terms of the approval of the Shareholders of the Company and as per
 the applicable statutory provisions including the Securities and
 Exchange Board of India (Disclosure & Investor Protection) Guidelines
 2000, the Company has issued and allotted on 22nd October,2007,
 36,40,000 Warrants to one of the Promoters entitling him to apply for
 equivalent number of fully paid up equity shares of Rs. 10/each of the
 Company at a price of Rs.310/ per equity share. The Company also
 received 10% of the total amount payable from the promoter. The Warrant
 Holder has a right to apply for Equity Shares within 18 months from the
 Date of Allotment of the Warrants. During the period the Warrant holder
 exercised option to convert 1485000 warrants into Shares @ Rs.310/ per
 share.And the application money received towards the balance Share
 Warrants, which was not converted, is being forfeited and the amount
 received for the same amounting to Rs.  6,98,34,668 is shown under
 miscellaneous Income.
 
 2. Secured Loans include
 
 Cash credit limits from Consortium of Bankers sanctioned against pari
 passu charge on Current Assets and personally guaranteed by the
 Promoter Directors.
 
 Term loans are secured against the assets purchased in question and
 personally guaranteed by the promoter Directors.
 
 Vehicle loans from Banks have been secured against the specific asset.
 
 3.  During the year under period there is no outstanding entertainment
 tax payable as of 30th June 2009. In Tamil Nadu, there is no tax for
 Tamil titled films and in Karnataka there is no tax on Kannada titled
 film. Hence general impact on entertainment tax during the year under
 review is negligible.
 
 4.  Figures relating to previous year have been re-grouped wherever
 found necessary to confirm to Current Periods classification and
 figures for the current period is for 15 months from 1-4-2008 to
 30-6-2009 and hence previous period figures are not comparable.
 
 5.  a) Income Tax Assessments are completed upto the accounting year
 (Previous year) ending 31s1 March 2006.
 
 b) For the Asst. Year 2008-09 the company originally filed a return of
 income admitting a tax liability of around Rs.26.59 crores.
 Subsequently, the company filed a revised return in 9th March 2009 and
 the tax refundable as per the revised return is Rs.2.16 Lacs.  However,
 the Income Tax department based on the Original return and without
 considering the valid revised return initiated recovery proceedings and
 attached all the bank accounts and receivables of the company. The
 company has objected to the said action and however the company has
 already provided the maximum sought tax by the department and hence no
 further provisioning is necessary.
 
 6.  Additional Information pursuant to the provisions of Schedule VI of
 the Companies Act, 1956.
 
 b, Furnishing of Quantitative details of Sales, Production, Stocks and
 Raw Materials, value of Imports, Consumption and Sales does not arise.
 As regards the furnishing of quantitative details regarding Food &
 Beverages, due to the diverse nature, in the opinion of the company it
 is not practicable to give the quantitative details. Allitems of food &
 beverages are indigenously procured.
 
 7.  In the opinion of the Board of Directors, the Current Assets, Loans
 and Advances have a value on realization in the ordinary course of
 business at least to the amount at which they are stated.
 
 8.  Based on the information available regarding the status of
 suppliers, there were no amounts outstanding to Micro, Small & Medium
 Enterprises and no amounts outstanding for a period exceeding 30 days
 to any Small Scale and/or ancillary Industrial Suppliers on account of
 Principal and/or Interest as at the close of the year.
 
 9.  Confirmation of balance from debtors, creditors, other parties and
 some of the banks as on 30-6-2009 were not obtained and consequently
 adjustment required on reconciliations, if any, will be carried out
 subsequently as and when reconciled/confirmed.
 
 10.  During the 15 months under review the company underwent a lot of
 externa! and internal turbulences and further due to the Income Tax
 Attachment has resulted in total break down of systems. The accounting
 and the internal control systems suffered serious erosion during the
 period under review. Due to lack of adequate staff and due to break
 down of systems and process machinery, the Daily collection Reports
 (DCRs) from Theatres from some of the locations are not received
 regularly on a day to day basis and in the absence of the said records
 the Income and Expenses were accounted on the basis of Memorandum
 Reports received from various regions and the company is in the process
 of collecting the DCRs from all regions.
 
 11.  The Audit of Subsidiary companies are in the process and not yet
 over and hence the Annual Accounts of the Subsidiaries are not
 available for attachment with the Companys Accounts and hence the
 Consolidated Financial Statements could not be prepared.
 
 12.  During the period under review the company made the following
 write offs:
 
 a) Rs. 13.65 crores representing the companys Investment exposure in
 the Gaming subsidiary Aurona Technologies Inc was written off as the
 said subsidiary company underwent serious liquidity crisis and loss
 partially due to depreciation of pounds as compared to other currency,
 making operating losses.
 
 b) Rs. 8.5 crores out of the Proposed Investments made in the
 Subsidiary PSEL, USA, representing investment made in a DTH company
 through Pyramid Saimira Entertainment Ltd USA, was written off on
 account of losses incurred by the said DTH company.
 
 13.  As per Accounting Standard 11 the company has provided for a sum
 of Rs.71.10 Crores representing the notional Foreign Exchange
 Fluctuation Loss towards increase in liability of FCCB bonds
 represented in dollars.
 
 14.  Prior period item represents the loss on account of write off of
 reductions value of content invested during the prior period 2007-08
 through the subsidiary companies, which in the opinion of the company
 is not recoverable and hence written off during this period as prior
 period items.
 
 15.  Sundry Debtors includes a sum of Rs 38,05,26,614/-evenfhough
 considered doubtful, the company is hopeful of recovering the same and
 hence no provision is made in the accounts
 
 16, Deferred Revenue Expenditures
 
 The company made an Initial Public Offering(IPO) during December,2006
 And listed its shares in Bombay Stock Exchange and National Stock
 Exchange on 5th January,2007.The share issue expenses incurred during
 the earlier years are written off over a period of five years, and in
 respect of FCCB Issue expenses it is amortised over the period of Bond.
 
 17. PSTL Canteen Rights Charges
 
 The current assets include amounts paid for canteen rights in the
 theatres which is being amortized over the agreement period.
 
 18. Managerial Remuneration
 
 Managerial Remuneration under Section 198 of the Companies Act 1956 to
 the Managing & whole time Directors.
 
 The actuarial valuation report for the period, disclosing the various
 details as required under AS 15 is not available
 
 ii) Gratuity is administered through Group Gratuity Scheme with Life
 Insurance Corporation of India. The expected return on plan assets is
 based on market expectation at the beginning of the year, for the
 returns over the entire life of the related obligation.
 
 iii) During the year the Company has recognized the following amounts
 in the Profit & Loss
 
 19 Disclosure of interest of related parties pursuant to
 Accounting-Standard 18
 
 a) Name of the Related Parties:
 
 i) Key Management-Personnel:
 
 Mr.V.Natarajan      - Chairman Emirtus
 
 Mr. P.S. Saminathan - Managing Director
 
 Mr. N. Narayanan    - Chairman & Whole Time Director
 
 ii) Enterprise owned or significantly influenced by Key management
 personnel or their relatives
 
 a, Bharat digitals Limited
 
 b, Saimira Access Technologies Limited
 
 c, Saimira Realty Private Limited
 
 d, Saimira Premier Theatre Private Limited
 
 e, Saimira Holdings & Services Private Limited
 
 f, Pyramid Saimira Productions
 
 g, Pyramid Saimira Content Fund Management P Ltd h. Blend Saimira
 Financial Services P Ltd
 
 iii) Joint Ventures Overseas - Pyramid Saimira Theatre Chain Sdn Bhd,
 Malaysia iv) Subsidiaries:
 
 a) Pyramid Saimira Entertainment Limited
 
 b) Pyramid Saimira Entertainment America Inc.
 
 c) Pyramid Saimira Productions International Limited
 
 d) Pyramid Saimira Production Services Limited
 
 e) Pyramid Saimira Content Distribution Private Limited
 
 f) Dimple Cine Advertising Private Limited
 
 20. Estimated amount of Contracts remaining to be executed on
 
 a) Capital Account and are not provided for (net of advances) Rs NIL
 
 b) Contingent Liabilities not provided for in respect of:
 
 21. Lease payments for the current period under cancelable operating
 Leases amounting to Rs.1,83,30,460/- (Previous Year Rs. 46,67,611) have
 been recognized as an expense in the Profit & Loss Account. The Company
 has not entered into any non-cancelable leases and finance leases.
 
 22. Disclosure in respect of provisions pursuant to Accounting Standard
 Rs. NIL