1.  Basis of Preparation
 
 The financial statements are prepared and presented under the
 historical cost convention on the accrual basis of accounting and in
 accordance with the Accounting Standards (''AS'') as prescribed under the
 Companies (Accounting Standards) Rules, 2006, and the relevant
 provisions of the Companies Act, 1956 (''the Act''), to the extent
 applicable
 
 2.  Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (''GAAP'') in India requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosures of contingent liabilities on
 the date of the financial statements. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods,
 
 3.  Fixed Assets and Depreciation/ Amortisation
 
 a.  Tangible Assets
 
 Tangible fixed assets are stated at cost less accumulated depreciation
 and any provision for impairment. Cost includes freight, duties, taxes
 (other than those recoverable from tax authorities) and other expenses
 related directly/indirectly to the acquisition / construction and
 installation of the fixed assets for bringing the asset to its working
 condition for its intended use
 
 Depreciation on fixed assets is provided on the straight line method,
 at following rates which, in management''s opinion, reflects the
 estimated useful lives of those fixed assets
 
 Particulars of Fixed Assets         Rate of Depreciation
 
 Plant and Machinery excluding 
 Bus Queue Shelters                         10%
 
 Furniture and Fixture                      10%
 
 Office Equipments for Radio Division       10%
 
 Office Equipments for OOH Division         20%
 
 Data Processing Equipments                 20%
 
 Motor Car                                  20%
 
 Display Vans                             11.31%
 
 Leasehold improvements are depreciated over the lower of the useful
 life of the asset and the lease term, on a straight line basis.
 
 Bus Queue Shelters under BOT Schemes are depreciated over the useful
 life being the contract period on uniform basis.
 
 Individual assets costing up to Rs. 5,000 are depreciated fully in the
 year of acquisition
 
 b.  Intangible Assets
 
 Intangible assets, all of which have been acquired and are controlled
 through custody or legal rights, are capitalised at cost, where they
 can be reliably measured. Where capitalised, intangible assets are
 regarded as having a limited useful economic life and the cost is
 amortised over the lower of useful life and 1 0 years
 
 Application software purchased, which is not an integral part of the
 related hardware, is shown as intangible assets and amortised on a
 straight line basis over its useful life, not exceeding ten years, as
 determined by management.
 
 One Time Entry Fees paid for acquiring FM radio broadcasting licenses
 has been capitalised as an asset and is amortised over a period of ten
 years, being the period of the license, from the date of
 operationalisation of the station
 
 4.  Impairment
 
 In accordance with AS 28 - ''Impairment of Assets'', where there is an
 indication of impairment of the Company''s assets, the carrying amounts
 of the Company''s assets are reviewed at each balance sheet date to
 determine whether there is any impairment. The recoverable amount of
 the asset (or where applicable, that of the cash generating unit to
 which the asset belongs) is estimated as the higher of its net selling
 price and its value in use An impairment loss is recognised whenever
 the carrying amount of an asset or a cash generating unit exceeds its
 recoverable amount.  Impairment loss is recognised in the profit and
 loss account.
 
 Value in use is present value of estimated future cash flows expected
 to arise from the continuing use of the asset and from its disposal at
 the end of its useful life
 
 5.  Investments
 
 Investments are classif ed as long term or current based on intention
 of the management at the time of purchase
 
 Current investments are valued, scrip wise, at cost or fair value ,
 whichever is lower.
 
 Long-term investments are carried at carrying cost less diminution in
 value which is other than temporary, determined separately for each
 individual investment,
 
 6 Inventories
 
 Inventories are stated at lower of cost and net realisable value
 
 Cost of Event / Content which does not create any rights are charged to
 the profit and loss account on exploitation
 
 Event / Content cost covers the cost of acquisition/ execution of the
 award, function / concerts, cost of content like sports events, video
 albums etc
 
 Amortisation Policy for Event / Content Cost - In case rights are
 available in perpetuity
 
 Costs of Annual Award/Concerts are amortised at 80percent in the year
 of event execution and 20 percent in the subsequent year.
 
 Costs of Other Content are amortised at 60 percent in the year of
 commercial exploitation and 40 percent over the subsequent two years
 equally,
 
 7 Share Issue Expenses
 
 Share Issue expenses are adjusted against securities premium account,
 
 8 Employee Benefits
 
 Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered
 
 The Company''s contribution to provident fund, which is a defined
 contribution scheme, is charged to the profit and loss account as
 incurred
 
 Post employment and other long term employee benefits are recognised as
 an expense in the profit and loss account for the year in which the
 employee has rendered services
 
 The expense is recognised at the present value of the amount payable
 determined using actuarial valuation carried out by an independent
 actuary at the balance sheet date using Projected Unit Credit Method
 
 9 Employee Stock Option Scheme (ESOS)
 
 The Employees Stock Option Scheme (the Scheme) provides for grant of
 equity shares of the Company to Directors (including whole time) and
 employees of the Company and its subsidiaries.The Scheme provides that
 employees are granted an option to acquire equity shares of the Company
 that vests in a graded manner. The options may be exercised within a
 specif ed period. The Company follows the intrinsic value method to
 account for its stock- based employee compensation plans. Compensation
 cost is measured as the excess, if any, of the fair market price of the
 underlying stock over the exercise price on the grant date and is
 amortised over the vesting period of the option on a Straight Line
 Basis,
 
 The fair market price is the latest closing price, immediately prior to
 the date of the Board of Directors meeting in which the options are
 granted, on the stock exchange on which the shares of the Company are
 listed. If the shares are listed on more than one stock exchange, then
 the stock exchange where there is highest trading volume on the said
 date is considered
 
 10 Revenue Recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured. The amount recognised as revenue is net of trade
 discounts and service tax.
 
 Revenue from sale of airtime
 
 Revenue from Radio broadcasting is recognised on an accrual basis on
 the airing of the customers commercials
 
 Revenue from sale of telecast rights
 
 Revenue from sale of telecast rights of event and content is recognized
 on the date when the rights are made available to the assignee for
 exploitation
 
 Out of Home Media
 
 Advertising space revenue, net of taxes, rebate and discount is
 recognised on the display of advertisements over the period of the
 contract.
 
 Revenue from Experiential Marketing
 
 Revenue from experiential marketing which includes event management and
 activations are recognised on the completion of the event and on the
 basis of related services performed, as per the contracted terms
 
 Interactive Revenue
 
 Revenue from short code, short messaging service (''SMS'') is recognised
 on acceptance of the hits by telecom operators.
 
 Interest Income
 
 Interest income is recognised on a time proportion basis
 
 11 License Fees
 
 As per the new Frequency Module (FM) broadcasting policy, effective 1
 April, 2005 license fees are charged to revenue at the rate of 4
 percent of gross revenue for the period or 1 0 percent of Reserve One
 Time Entry Fee (ROTEF) for the concerned city, whichever is higher.
 Gross Revenue for this purpose shall mean revenue on the basis of
 billing rates without deduction of taxes and agency commission and net
 of discounts to advertisers. Barter advertising contracts shall also be
 included in the gross revenue on the basis of relevant billing rates.
 ROTEF means 25 percent of highest valid bid in the city,
 
 12 Foreign Currency Transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rate prevailing on the date of the transactions.  Exchange
 differences arising on foreign exchange transactions settled during the
 year are recognised in the profit and loss account of the year.
 
 Monetary items are restated at the period ended rates. The exchange
 differences between the rate prevailing on the date of transaction and
 on settlement/restatement (other than those relating to acquisition of
 fixed assets) is recognised as income or expense, as the case may be.
 Non-monetary items which are carried at historical costs denominated in
 foreign currency are reported using the exchange rate at the date of
 the transaction
 
 In respect of integral foreign operations of the Company, fixed assets
 are translated at the rates on the date of acquisition monetary assets
 and monetary liabilities are translated at the rate on the date of the
 balance sheet and income and expenditure are translated at the average
 of weekly average rates during the year,
 
 13 Earning Per Share
 
 In determining earning per share, the company considers the net result
 after tax and includes the post tax effect of any extraordinary /
 exceptional item. The number of shares used in computing basic earning
 per share is the weighted average number of shares outstanding during
 the year. The number of shares used in computing diluted earning per
 share comprises the weighted average shares considered for deriving
 basic earnings per share and also the weighted average number of shares
 that could have been issued on the conversion of all dilutive potential
 equity shares unless the results would be anti-dilutive Dilutive
 potential equity shares are deemed converted as of the beginning of the
 year, unless issued at a later date
 
 14 Taxation
 
 Tax expense comprises current tax expense computed in accordance with
 the relevant provisions of the Income Tax Act, 1 961 and deferred tax
 charge or credit.
 
 Current tax provision is made based on the tax liability computed after
 considering tax allowances and exemptions, in accordance with the
 Income Tax Act, 1 961. Deferred tax charge or credit and the
 corresponding deferred tax liability or asset is recognised for timing
 differences between the profits/ losses offered for income taxes and
 profits/ losses as per the financial statements Deferred tax assets and
 liabilities are measured using the tax rates and tax laws that have
 been enacted or substantively enacted at the balance sheet date
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realized in future However,
 where there is unabsorbed depreciation or carried forward loss under
 taxation laws, deferred tax assets are recognised only if there is a
 virtual certainty of realisation of such assets. Deferred tax assets
 are reviewed as at each balance sheet date and written down/up to
 reflect the amount that is reasonably/virtually certain (as the case
 may be) to be realized
 
 15 Provisions and Contingencies
 
 Provisions comprise liabilities of uncertain timing or amount.
 Provisions are recognised when the Company recognizes it has a present
 obligation as a result of past events, it is more likely than not that
 an outflow of resources will be required to settle the obligation and
 the amount can be reasonably estimated
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not require an outflow of resources. When there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no provision or disclosure is made
 
 Loss contingencies arising from claims, litigation, assessment, fines,
 penalties, etc. are recorded when it is probable that a liability has
 been incurred and the amount can be reasonably estimated
 
 16 Leases
 
 The Company has various operating leases, principally for radio
 stations, office space and equipments with various renewal options.
 Substantially all operating leases are cancelable as well as renewable
 on expiry of lease term. Rental expense in agreements with scheduled
 rent increases is recorded on a straight-line basis as applicable over
 the lease term
 
 17 Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its ntended use. All other
 borrowing costs are charged to revenue