The financial statements are prepared under the historical cost
 convention on the accrual basis of accounting and in accordance with
 the Generally Accepted Accounting Principles (GAAP) in India and comply
 with the Accounting Standards prescribed by the Companies (Accounting
 Standards) Rules, 2006 to the extent applicable and in accordance with
 the provisions of the Companies Act, 1956 as adopted consistently by
 the Company.  The signifcant accounting policies adopted in
 presentation of the financial statements are:
 
 a.  Use of estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities on the
 date of the financial statements and the reporting amounts of income and
 expenses during the year. Examples of such estimates include provision
 for doubtful debts, future obligations under employee retirement beneft
 plans, income taxes, and useful life of fxed and intangible assets.
 Actual results could differ from these estimates. Any revision to
 accounting estimates is recognised prospectively in the current and
 future periods.
 
 b.  Revenue Recognition
 
 i.  Income from media operations includes:
 
 Advertisement revenue comprising:
 
 * Revenue from sale of advertising time, which is recognised on the
 accrual basis when advertisements are telecast in accordance with
 contractual obligations.
 
 * Revenue from sponsorship contracts, which is recognised
 proportionately over the term of the sponsorship.
 
 * Subscription revenue which is recognised on accrual basis in
 accordance with the terms of the contract with the distribution and
 collection agency, for the services rendered.
 
 * Program revenue which is accounted for on dispatch of programs to
 customers in accordance with contractual commitments.  ii.  Revenue
 from media related professional and consultancy services is recognised
 in accordance with contracts on rendering of services.  iii.  Equipment
 rental is accounted for on the accrual basis for the period of use of
 equipment by the customers.  iv.  Dividend income on investments is
 accounted for when the right to receive dividend income is established.
 v.  Interest income is recognised on time proportionate basis taking
 into account the amount outstanding and the rate applicable.
 
 c.  Fixed Assets
 
 Fixed assets are stated at their original cost of
 acquisition/installation less depreciation. All direct expenses
 attributable to acquisition/ installation of assets are capitalised.
 
 d.  Depreciation
 
 Depreciation on all assets other than improvement to leasehold
 properties, computer software and plant & machinery-distribution
 equipment is charged on straight line basis over the estimated useful
 lives using rates (including double/ triple shift depreciation
 rates wherever applicable) prescribed by Schedule XIV of the Companies
 Act, 1956.
 
 Cost of improvements to leasehold premises is being amortised over the
 remaining period of lease (including renewal options) of the premises. 
 Computer software and Plant & machinery-distribution equipment are 
 being depreciated over a period of 5 years and 8 years respectively. 
 These rates are higher than those prescribed in Schedule XIV of the 
 Companies Act, 1956.
 
 News archives are depreciated on straight line basis at the rate of
 4.75% per annum. Useful life of news archives is estimated to be
 more than 10 years as the contents of the same are continuously used in
 day to day programming and hence the economic benefts
 from the same arise for a period longer than 10 years.
 
 Depreciation on additions is charged proportionately from the date of
 acquisition/ installation. Assets costing Rs. 5,000 or less
 individually are fully depreciated in the year of purchase.
 
 e.  Impairment of Assets
 
 At each balance sheet date, the Company reviews the carrying amounts of
 its assets to determine whether there is any indication that those 
 assets suffered an impairment loss. If any such indication exists, the 
 recoverable amount of the assets is estimated in order to determine the 
 extent of impairment loss.
 
 Recoverable amount is the higher of an asset’s net selling price and
 value in use. In assessing value in use, the estimated future cash flows 
 expected from the continuing use of the asset and from its disposal 
 are discounted to their present value using a pre-tax discount rate 
 that refects the current market assessments of time value  of money 
 and the risks specifc to the asset.
 
 Reversal of impairment loss is recognised immediately as income in the
 proft and loss account.
 
 f.  Investments
 
 Long term investments are stated at cost less provision for other than
 temporary diminution in the carrying value of each investment.  Current
 investments are carried forward at lower of cost or fair value.
 
 g.  Inventory Valuation
 
 Inventories comprise stocks of used and unused tapes, compact discs,
 work-in-progress and completed pilot programmes and are stated at cost
 on frst in frst out basis. Stocks of tapes are written off over their
 useful life which is estimated to be three years.
 
 h.  Miscellaneous Expenditure
 
 i.  Preliminary expenses
 
 Preliminary expenses incurred till 31 March, 2003 are being amortised
 over a period of 10 years.  
 
 ii.  Premium on redemption of debentures
 
 Premium on redemption of debentures is written off over the term of the
 debentures. (Also see note 7 below)
 
 i.  Foreign Currency Transactions
 
 Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of the transaction. Exchange differences on
 foreign exchange transactions settled during the year are recognised in
 the proft and loss account.
 
 Monetary items denominated in foreign currency and outstanding at the
 balance sheet date are translated at the exchange rate prevailing at
 the date of balance sheet, the resultant exchange differences are
 recognised in the proft and loss account.  In case of forward exchange
 contracts, the premium or discount arising at the inception of such
 contract, is amortised as income or expense over the life of contract
 as well as exchange difference on such contracts i.e. difference
 between the exchange rate at the reporting/ settlement date and the
 exchange rate on the date of inception/ last reporting date, is
 recognised as income/ expense for the period. Any income or expenses on
 account of exchange difference either on settlement of the contract or
 on translation of unmatured foreign currency contract at the rate
 prevailing on the date of balance sheet is recognised in the proft and
 loss account.
 
 j.  Employee Benefts
 
 i. The Company’s employees’ provident fund scheme is a defned
 contribution plan. The Company’s contribution to the employees’
 provident fund is charged to the proft and loss account during the
 period in which the employee renders the related service.
 
 ii. Short term employee benefts (medical, leave travel allowance etc.)
 expected to be paid in exchange for the services rendered are
 recognised on undiscounted basis.
 
 iii. The Company provides for gratuity, a defned beneft retirement plan
 (the “Gratuity Plan”) covering eligible employees. In accordance with
 the Payment of Gratuity Act, 1972, the Gratuity Plan provides for a
 lump sum payment to vested employees at retirement, death,
 incapacitation or termination of employment, of an amount based on the
 respective employee’s salary and the tenure of employment.
 
 The Company makes contributions to funds administered and managed by
 the insurance companies for the amount notifed by the said insurance
 companies. The present value of the obligation under such defned beneft
 plan is determined based on actuarial valuation using the projected
 unit credit method, which recognises each period of service as giving
 rise to additional unit of employee beneft entitlement and measures
 each unit separately to build up the fnal obligation. The obligation is
 measured at the present value of the estimated future cash fows. The
 discount rate used for determining the present value of the obligation
 is based on the market yields on government securities as at the
 balance sheet date. Actuarial gains/losses are recognised immediately
 in the proft and loss account.
 
 The liability with respect to the Gratuity Plan is determined based on
 actuarial valuation done by an independent actuary at the year end and
 any differential between the fund amount as per the insurer and the
 actuarial valuation is charged to revenue.
 
 iv. Benefts comprising long term compensated absences constitute other
 long term employee benefts. The liability for compensated absences is
 provided on the basis of an actuarial valuation done by an independent
 actuary at the year end. Actuarial gains and losses are recognised
 immediately in the proft and loss account.
 
 k.  Income Tax
 
 Income tax comprises current tax, deferred tax and fringe beneft tax.
 Current tax is determined in accordance with the provisions of
 Income Tax Act, 1961. Advance taxes and provisions for current taxes
 are presented in the balance sheet after off - setting advance taxes 
 paid and income tax provisions.
 
 Deferred tax charge or credit is recognised on timing differences being
 the difference between taxable income and accounting income that originate 
 in one period and are capable of reversal, subject to consideration of 
 prudence, in one or more subsequent periods. Deferred tax assets and 
 liabilities are measured using the tax rates and tax laws that have been 
 enacted or substantively enacted by the balance sheet date.
 
 Deferred tax assets on unabsorbed depreciation and carry forward of
 losses are not recognised unless there is a virtual certainty
 that there will be suffcient future taxable income available to realise
 such assets.
 
 Minimum alternate tax (MAT) paid in accordance with Income Tax Act,
 1961, which gives rise to future economic beneft in the form
 of adjustment from income tax liability, is recognised when it is
 reasonably certain that the Company will be able to set off the same
 and adjust it from the current tax charge for that year.
 
 Provision for fringe beneft tax (FBT) is made on the basis of the
 applicable FBT on the taxable value of eligible expenses of the Company 
 as prescribed under the Income Tax Act, 1961.
 
 l.  Earnings Per Share
 
 The Company reports basic and diluted earnings per equity share in
 accordance with Accounting Standard 20, Earnings Per Share.  Basic
 earnings per equity share is computed by dividing net proft after tax
 by the weighted average number of equity shares outstanding during the
 year. Diluted earnings per equity share is computed using the weighted
 average number of equity shares and dilutive potential equity shares
 outstanding during the year except where the result would be
 anti-dilutive.
 
 m. Accounting for Employee Share Based Payments
 
 Measurement and disclosure of the employee share based payment plans is
 done in accordance with the Guidance Note on Accounting for Employee
 Share-based Payments, issued by the Institute of Chartered Accountants
 of India (ICAI). The Company measures compensation cost relating to
 employee stock options using the intrinsic value method. Compensation
 expense is amortised on a straight line basis/graded basis over the
 vesting period of the stock option/award. Modifcations to stock option/
 award schemes are effected in line with the Guidance Note on Accounting
 for Employee Share-based Payments, issued by ICAI.
 
 n.  Provisions and Contingencies
 
 A provision is recognised when the Company has a present obligation as
 a result of a past event, when it is probable that an outfow of
 resources embodying economic benefts will be required to settle the
 obligation and reliable estimate can be made of the amount of the
 obligation. A contingent liability is recognised where there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outfow of resources.
 
 o.  Leases
 
 i.  Operating Lease
 
 Leases where the lessor effectively retains substantially all the risks
 and benefts of ownership of the leased asset are classifed as operating
 leases. Operating lease charges are recognised as an expense in the
 proft and loss account on a straight-line basis over the lease term.
 
 ii.  Finance Lease
 
 Leases under which the Company assumes substantially all the risks and
 rewards of ownership are classifed as fnance leases. The lower of fair
 value of assets and present value of minimum lease rentals is
 capitalised as fxed assets with the corresponding amount shown as lease
 liability. The principal component in the lease rentals is adjusted
 against the lease liability and the interest component is charged to
 the proft and loss account.
 
 p.  Segment Information 
 
 i.  Business Segments
 
 Based on similarity of activities, risks and reward structure,
 organisation structure and internal reporting systems, the Company
 operates in the media business segment mainly comprising media and
 related operations. This includes television, internet and print media
 including publishing.  
 
 ii.  Geographic Segments
 
 Secondary segmental reporting is performed on the basis of the
 geographical location of customers i.e. within India and
 
 overseas.
 
 q.  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.
 
 r.  Derivative Instruments
 
 As per the Institute of Chartered Accountants of India announcement on
 derivative accounting, accounting for derivative contracts other than
 those covered under Accounting Standard 11 (AS-11) – The Effects of
 Changes in Foreign Exchange Rates, are marked to market on a portfolio
 basis and the net loss after considering the offsetting impact on the
 underlying hedged item is charged to the proft and loss account. Net
 gains are ignored.