1.  Basis of Accounting
 
 The Financial statements have been prepared under the historical Cost
 Convention and on accrual basis in accordance with the accounting
 standards referred to in section 211 (3C) of the Companies act, 1956.
 
 2.  Use of Estimates
 
 The preparation of financial statements requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, as of the date of the financial statements and the
 reported amount of revenue and expenses of the year. actual results
 could differ from these estimates. any revision to estimates is
 recognized prospectively in current and future periods.
 
 3.  Fixed Assets
 
 a) Fixed assets are stated at original cost of acquisition/
 installation net of accumulated depreciation, amortization and
 impairment losses. The cost of fixed assets includes taxes, duties,
 freight and other incidental expenses related to the acquisition and
 installation of the respective assets.
 
 b) Capital Work in progress is stated at the amount expended upto the
 date of Balance sheet including advances for capital expenditure.
 
 c) Computer software including implementation expenses (intangible
 asset) is capitalized as an intangible asset in the year in which
 related software is implemented.
 
 4.  Borrowing Costs
 
 Borrowing Costs attributable to the acquisition or construction of
 qualifying assets are capitalized as a part of the cost of such assets.
 all other borrowing costs are charged to revenue.
 
 5.  Impairment of Assets
 
 at each Balance sheet date, the Company reviews the carrying amount of
 fixed assets to determine whether there is an indication that those
 assets have suffered impairment loss. If any such indication exists,
 the recoverable amount of assets is estimated in order to determine the
 extent of impairment loss. The recoverable amount is higher of the net
 selling price and value in use, determined by discounting the estimated
 future cash flows expected from the continuing use of the asset to
 their present value.
 
 6.  Depreciation/Amortization
 
 a) depreciation on fixed assets is provided on straight Line Method at
 the rate specified in schedule XIV to the Companies act, 1956.
 
 b) premium on Leasehold Land and Leasehold Improvements are amortized
 over the period of Lease.
 
 c) Computer software (intangible assets) is amortized on straight line
 basis over a period of 36 months from the date of its implementation
 based on the management estimate of useful life.
 
 7.  Investments
 
 a) Long Term Investments are carried at cost. provision is made for
 diminution in value of these investments other than temporary, wherever
 required.
 
 b) Current Investments are carried at cost or fair value, whichever is
 lower.
 
 8.  Transaction in Foreign Currencies
 
 a) Foreign currency transactions are accounted at the exchange rates
 prevailing on the date of such transactions.
 
 b) Foreign currency monetary assets and liabilities at the Balance
 sheet date are translated at the closing rate. Gain and losses
 resulting on settlement/translation of monetary assets and liabilities
 are recognized in the profit and Loss account.
 
 c) non-monetary items denominated in foreign currency are carried at
 cost.
 
 d) In respect of forward exchange contracts assigned to the foreign
 currency assets/ liabilities, the difference due to change in exchange
 rate between the inception of forward contract and date of the Balance
 sheet is recognized in the profit and Loss account. any profit or loss
 resulting on settlement/ cancellation of forward contract is recognized
 as income or as expense in the year it arises.
 
 9.  Revenue Recognition
 
 a) Broadcasting revenue - advertisement revenue (net of agency
 commission) is recognized when the related advertisement or commercial
 appears before the public i.e. on telecast. subscription revenue is
 recognized on completion of service.
 
 b) sales (includes licensing of programs, Movies and rights) are
 recognized when the delivery is completed.
 
 c) services
 
 i.  Commission-space selling is recognized when the related
 advertisement or commercial appears before the public i.e. on telecast.
 
 ii.  Theatrical revenue from movies is recognized on receipt of related
 sale reports.
 
 d) dividend is recognized when the right to receive the dividend is
 unconditional.
 
 e) sMs revenue is recognized on the basis of the counts generated by
 the computer software.
 
 10.  Inventories:
 
 a) Programs ,Movie and Rights :
 
 Programs ,Movie and rights are carried at lower of unamortized cost or
 realizable value. Where the realizable value on the basis of its useful
 economic life is less than its carrying amount, the difference is
 expensed as impairment.
 
 i.  Cost of reality shows / chat shows / events/ game shows and sports
 rights etc. are fully expensed on telecast.
 
 ii.  Cost of programs (other than (i) above) are amortized over three
 financial years from the year of telecast as per management estimates
 of future revenue potential.
 
 iii.  Cost of Movie rights are charged on a straight-line basis over
 the license period or 60 months from the date of acquisition, whichever
 is shorter.
 
 b) Movie produced and acquired for distribution:
 
 Cost is allocated to each rights based on management estimates of
 revenues from each of these rights and amortization of costs of rights
 of domestic theatrical, International theatrical rights, television
 rights, music rights, video rights and others are made when sold and
 movies carried at lower of unamortized cost or net realizable value.
 
 i.  Theatrical rights: - 70% cost is allocated and amortized over three
 months of theatrical release of movie and balance 30% in subsequent
 three quarters.
 
 ii.  allocated cost of satellite rights, Music rights, home Video
 rights etc are expensed on sale.
 
 iii.  In case of negative rights of movies 90% of cost is amortized as
 per b(i) above and 10% allocated to Ipr is amortized over subsequent
 nine years.
 
 c) Work- in – progress- programs and movies under production are stated
 at cost. Cost comprises of material cost, cost of services and other
 expenses incurred upto the date of balance sheet.
 
 d) raw stock – Tapes are valued at lower of cost or estimated net
 realizable value. Cost is taken on First in First out (FIFO) basis.
 
 e) education Materials/ equipments are valued at lower of cost or
 estimated net realizable value. Cost means average cost
 
 11.  Retirement Benefits
 
 a) short-term employee benefits are expensed at the undiscounted amount
 in the profit and loss account in the year employee renders the
 service.
 
 b) post employment and other long term employee benefits are expensed
 in the profit and loss account in the year the employee render the
 service. The expense is recognized at the present value of the amount
 payable determined using actuarial valuation techniques. actuarial
 gains and losses in respect of post employment and other long term
 benefits are charged to the profit and loss account.
 
 12.  Accounting for Taxes on Income
 
 a) Current Tax is determined as the amount of tax payable in respect of
 taxable income for the year as per the provisions of the Income Tax
 act, 1961.
 
 b) deferred tax is recognized, subject to consideration of prudence in
 respect of deferred tax asset, on timing difference, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods and measured using tax rates and laws enacted.
 
 13.  Leases
 
 a) Finance Lease assets acquired under Finance Lease are capitalized
 and the corresponding lease liability is recorded at an amount equal to
 the fair value of the leased asset at the inception of the lease.
 Initial costs directly attributable to lease are recognized with asset
 under lease.
 
 b) Operating Lease
 
 Lease of assets under which all the risk and rewards of ownership are
 effectively retained by the lessor are classified as operating leases.
 Lease payments/revenue under operating leases are recognized as
 expense/income on accrual basis in accordance with the respective lease
 agreements.
 
 14.  Miscellaneous Expenditure preliminary expenses are amortized over
 a period of ten years.
 
 15.  Earnings per Share
 
 Basic earnings per share is computed and disclosed using the weighted
 average number of common shares outstanding during the year. dilutive
 earnings per share is computed and disclosed using the weighted average
 number of common and dilutive common equivalent shares outstanding
 during the year, except when the results would be anti-dilutive.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets
 
 provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes to accounts. Contingent assets are neither recognized nor
 disclosed in the financial statements.