TV Today Network

1.  Capital Commitments/Contingent Liabilities:
 
 (a) Estimated amounts of contract remaining to be executed on capital
 account, net of advances, not provided for Rs. 208,699,397 (Previous
 year Rs. 16,752,757)
 
 (b) (i) During the year, with respect to the disputed statement of
 claim dated 28th September, 2004 received from Prasar Bharti towards
 uplinking charges of Rs. 21,420,430 for the period February 1995 to
 March, 1998 plus 18% interest per annum thereon from March 1998
 onwards, the arbitrator has proceeded with the hearings wherein the
 Company has disputed the statement of claim filed by Prasar Bharti and
 as directed by Arbitrator during the course of proceedings has filed
 its statement contradicting the statement of Prasar Bharti. However,
 for the period April 1998 to March 2000 no arbitration proceedings have
 commenced with respect to the claim of Prasar Bharti towards uplinking
 charges by the Arbitrator.  Accordingly, no statement of claim for the
 latter has been filed with the arbitrator. In the opinion of the
 management, based on the facts of the case, the liability aggregating
 Rs. 10,643,605 made in these books in earlier years against the claim,
 is considered adequate.
 
 (ii) During the year, with respect to the disputed statement of claim
 dated March 2, 2001 received from Prasar Bharti towards telecast fee of
 Rs. 13,234,607 for the period up to March 30, 2001 plus 18% interest
 per annum thereon from March 2001 onwards, the arbitrator has proceeded
 with the hearings. In the course of the proceedings, an application for
 interim award was made during the year by Prasar Bharti. The Arbitrator
 gave his interim-award vide order dated 01.12.2008 for a sum of Rs.
 8,383,125 being the principal and interest calculated @ 18% p.a. from
 08.03.2001 till the date of interim-award aggregating to Rs. 20,048,415
 lacs in favour of Prasar Bharti and further interest @18% p.a. till the
 date of payment. An application has been filed before the Honble High
 Court of Delhi under the provisions of the Arbitration and Conciliation
 Act for setting aside the order of interim-award, which is pending
 before the Honble High Court. Thereafter hearings were held for the
 balance amount and further orders are awaited. In the opinion of the
 management, based on the facts of the case, the liability aggregating
 Rs. 21,357,004 made in the books against the claim, including interest,
 is considered adequate.
 
 (c) The Company has received legal notice of claim / lawsuit filed
 against it in respect of programmes aired on the Channels. In the
 opinion of the management, no liability is likely to arise on account
 of such claim / lawsuit.
 
 (d) The Company has received demand notices from Income Tax department
 amounting to Rs. 21,011,432 (Previous Year Rs. 21,011,432). The Company
 has contested the same and in the opinion of the management, no
 liability is likely to arise on account of such demand notices.
 
 2.  Employee Stock Option Plan - ESOP 2006
 
 The Company instituted the Employee Stock Option Plan - (TVTN ESOP
 2006), to grant equity - based incentives to its eligible employees.
 The TVTN ESOP 2006 had been approved by the board of directors in their
 meeting held on 21st August 2006 and by shareholders in their meeting
 held on 28th September 2006, for grant of 2,900,000 options
 representing one share for each option upon exercise by the employees
 of the Company at a exercise price determined by Board/Remuneration
 Committee. The equity shares covered under the scheme shall vest over a
 period of four years; vesting shall vary based on the meeting of the
 performance Criteria. The Optionee may exercise their vested options at
 any moment after the earliest applicable vesting date and prior to the
 completion of ten years from the grant date.
 
 Pursuant to the scheme, the Remuneration Committee on June 24, 2008
 granted 129,500 options to employees of the Company. 50% of options are
 granted at the market price and balance 50% of the options at a
 discount to the market price.  Discount shall very from Rs. 0 to Rs.
 30/- depending upon the meeting of the performance Criteria by the
 employee from year to year.
 
 Accordingly the Company under the intrinsic value method has recognized
 the excess of the market price over the exercise price of the option
 amounting to Rs. 1,593,825 as an expense during the year. Further, the
 liability Outstanding as at the March 31, 2009 in respect of Employees
 Stock Options Outstanding is Rs. 5,800,000. The balance deferred
 compensation expense Rs. 3,329,824 will be amortized over the remaining
 vesting period of Options.
 
 10. As identified and certified by the Company, Related Party
 Disclosures as per the requirement of Accounting Standard 18 issued by
 the Institute of Chartered Accountants of India:
 
 (I). Name of the related party and nature of related party relationship
 where control exists:
 
 (a) Key Management Personnel (KMP):
 
 - Mr. Aroon Purie (Chairman & Managing Director)
 
 (b) Entities Controlling the Company (Holding Companies):
 
 - World Media Private Limited A
 
 - Living Media India Limited
 
 (c) Subsidiary Companies :
 
 - T.V. Today Network (Business) Limited
 
 (d) Fellow Subsidiary Companies :
 
 - Thomson Press (India) Ltd.
 
 - Living Media International Ltd.
 
 - Radio Today Broadcasting Limited
 
 - Mail Today News Papers Ltd.*
 
 (e) Companies under common control:
 
 - Integrated Databases India Limited A
 
 (f) Others:
 
 - Vasant Valley School
 
 - became fellow subsidiary w.e.f 21st November 2007
 
 - there are no transactions during the year
 
 3. Segment Reporting:
 
 a) Primary Segment:
 
 The Company operates predominantly in only one business segment viz.
 News broadcasting operations and there are no significant reportable
 business segments.
 
 b) Secondary Segment:
 
 The Company caters to the predominantly to the needs of Indian market
 and there are no significant reportable geographical segments.
 
 4. Operating Leases
 
 The Company has cancelable lease arrangements mainly for leasing of
 office premises and Company leased accommodations for its employees.
 Terms of lease include terms of renewal, increase in rents in future
 periods and terms of cancellation. The operating lease payments
 recognized in the Profit & Loss account amount to Rs. 60,702,890
 (Previous Year: Rs. 61,291,664), net of sublease rental received Rs.
 4,494,528 (Previous Year Rs. 4,501,574).
 
 5. The company has bought back and extinguished 41,132 equity shares
 during the year, under its buy back scheme which commenced on March 16,
 2009
 
 6. As per the information available with the Company, during the year,
 there have been no transactions with the enterprises covered under the
 Micro, Small & Medium Enterprises Development Act, 2006.
 
 7. Investments include Rs. 11,000,000 being shares held of Radio Today
 Broadcasting Limited (RTBL), a fellow subsidiary.  Loans and Advances
 include Rs. 551,226,607 being loan given by the Company to RTBL,
 including interest charged thereon.  While, RTBL is incurring losses,
 based on an independent valuation carried out and a restructuring under
 examination, the Company is of the view that there is no permanent
 diminution in the carrying value of above investment and loan in RTBL
 and accordingly, no provisions therefor are considered necessary.
 
 8. Previous years figures have been regrouped/reclassified wherever
 necessary to make them comparable to current years figures.