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
 recognised 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 advance for capital expenditure.
 
 c) Computer software is capitalized as an intangible asset in the year
 it is put to use.
 
 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.  Depreciation/Amortization:
 
 a) Depreciation on fixed assets is provided on Straight-Line Method at
 the rate specified in Schedule XIV of the Companies Act, 1 956.
 
 b) Leasehold Improvements are amortized over the period of Lease.
 
 c) Computer software is amortised over a period of three years based on
 managements estimate of useful life.
 
 6.  Investments:
 
 Investments intended to be held for more than one year, from the date
 of acquisition, are classified as long term investments and are carried
 at cost. Provision for diminution in value of these investments is made
 to recognize a decline other than temporary. Current investments are
 carried at lower of cost or fair value.
 
 7.  Programs/Film Rights and Inventories:
 
 a) Programs/Film Rights.
 
 Programs/Film Rights are stated at the lower of net cost (cost minus
 accumulated amortization/impairment) 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 news/ current affairs/ chat shows/ events etc. are fully
 expensed.
 
 ii.  Programs [other than (i) above] are amortized over three financial
 years from the year the related program is telecast, as per management
 estimate of future revenue potential.
 
 iii.  Film rights are amortized on a straight-line basis over the
 license period or 60 months from the date of purchase whichever is
 shorter.
 
 b) Inventory of Raw Stock - Tapes are valued at lower of cost or
 estimated net realizable value. Cost is taken on First-In-First-Out
 (FIFO) basis.
 
 8.  Retirement Benefits:
 
 a) Short term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related service is rendered.
 
 b) Post employment and other long term employee benefits are recognized
 as an expense in the Profit and Loss Account for the year in which the
 employee has rendered services. The expense is recognized at the
 present value of the amount payable determined at Balance Sheet date
 using acturial valuation techniques. Acturial gains and losses in
 respect of post employment and other long-term benefits are charged to
 the Profit and Loss Account.
 
 9.  Transactions in Foreign Currencies:
 
 a) Transactions in foreign currency are accounted at the exchange rate
 prevailing on the date of transaction.
 
 b) Monetary assets and liabilities as at the Balance Sheet date are
 translated at the rates of exchange prevailing on the date of Balance
 Sheet. Gains and losses arising on account of settlement/translation of
 monetary assets and liabilities are recognized in the Profit and Loss
 Account. Non-monetary items are reported using exchange rate prevailing
 on the date of transaction.
 
 10.  Revenue Recognition:
 
 a) Broadcasting Revenues: 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 (Programs/Film Rights) are recognized when the risk and
 rewards of ownership are passed onto the customers, which is generally
 on dispatch of goods.
 
 c) Income from services is recognised proportionately over the period
 of service.
 
 d) Dividend is recognised when the right to receive the dividend is
 unconditional.
 
 11.  Taxes on Income:
 
 a) Current tax is determined as the amount of tax payable in respect of
 taxable income for the year under the Income Tax Act, 1961.
 
 b) Deferred tax is recognized, subject to consideration of prudence, 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 relevant
 enacted tax rates.
 
 12.  Operating Lease:
 
 Lease of assets under which all the risks and rewards of ownership are
 effectively retained by the lessor are classified as operating leases.
 Lease payments under operating leases are recognized as an expense on
 accrual basis in accordance with the respective lease agreements.
 
 13.  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.
 
 14.  Earnings Per Share:
 
 Basic earnings per share is computed and disclosed using the weighted
 average number of common shares outstanding during the year. Diluted
 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.
 
 15.  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.