Background
 
 Zee News Limited (ZNL / the Company) was incorporated in the State
 of Maharashtra, India. The Company has been mainly in the business of
 broadcasting of news, current affairs and regional entertainment
 satellite television channels uplinked from India. Operation of Zee
 Tamil channel has been discontinued on March 31, 2011.
 
 1.  Restructuring:
 
 Pursuant to the Scheme of Arrangement under Section 391 to 394 and
 other applicable provisions of the Companies Act, 1 956 between Zee
 News Limited (ZNL) and Zee Entertainment Enterprises Limited (ZEEL) and
 their respective shareholders and creditors, sanctioned by the
 Honourable High Court at Mumbai on March 19, 201 0 and filed with the
 Registrar of Companies on March 29, 2010, the Regional General
 Entertainment Channel (RGEC) Business Undertaking of the Company,
 comprising of six television channels namely Zee Marathi, Zee Talkies,
 Zee Bangla, Zee Kannada, Zee Telugu and Zee Cinemalu, assets of Zee
 Gujrati, a discontinued television channel, has been transferred to and
 vested in ZEEL with effect from January 01, 201 0, on going concern
 basis. The Scheme has been given effect in the financial statements for
 the year ended March 31, 201 0. The excess of book value of the assets
 over the book value of liabilities transferred aggregating to Rs
 1,247,833,726 was adjusted against Capital Reserve.
 
 2.  Secured Loans:
 
 2.1 Short-term working capital loan of Rs Nil (Rs 1,1 80,546,808) from
 bank is secured by way of first hypothecation charge, on pari passu
 basis with other lenders, on the current assets as well as movable
 fixed assets of the Company, both present and future.
 
 2.2 Long-term corporate loan of Rs 500,000,000 (Rs Nil) from bank is
 secured by way of first hypothecation charge on entire movable fixed
 assets of the Company, except vehicles, both present and future.
 Repayable within a yearRs 150,000,000.
 
 2.3 Vehicle loans are secured against hypothecation of Vehicles [Due
 within one year Rs 9,109,81 6 (Rs 5,862,231)].
 
 3.  Programs/Film Rights etc. for broadcasting are intangible assets as
 defined in AS - 26 but considered and shown under current assets as are
 used for broadcasting in the ordinary course of business. The Company,
 for the current year, has recognized impairment loss of Rs 606,565 in
 respect to Programs/Film Rights and the loss is included in Operational
 Cost.
 
 4.  Investments:
 
 tThe Company has long term investment of Rs 60,900,000 (Rs 60,900,000)
 in Akash Bangla Private Limited (ABPL).  The Company has also advanced
 Share Application Money of Rs 105, 843,191 (Rs 70,593,191) to ABPL. As
 at Balance Sheet date, the networth of ABPL is eroded. The investment
 is strategic in nature considering Shareholding Agreement and having
 regard to the future business plan and projected profitability, the
 management perceives the erosion in the value of investment in ABPL as
 only temporary diminution in value. Hence, no provision for diminution
 in value is considered necessary in respect of Companys investment or
 of the Share Application Money to ABPL.
 
 5.  Fixed Deposits includes Rs 4,350,000 (Rs 4,350,000) lodged with Tax
 Authorities.
 
 6.  Leases:
 
 In respect of assets taken on operating lease:
 
 The Companys significant leasing arrangements are in respect of
 operating leases taken for offices premises and equipments. These
 leases are cancellable/non-cancellable, that are renewable on a
 periodic basis at the option of both the lessor and the lessee. The
 initial tenure of the lease period is for 11 to 1 08 months.
 
 11.  Other Disclosures:
 
 11.1 Previous years figures are regrouped, rearranged or recast
 wherever considered necessary to conform to this years classification.
 Current years figures are not comparable with previous years figures
 due to demerger of Regional General Entertainment Channels from the
 Appointed Date i.e. January 1, 2010 (Refer Note 1). Figures in bracket
 pertain to previous year.
 
 1 1.2 Sundry Creditors for Expenses and Other Liabilities includes
 cheques overdrawn of Rs Nil (Rs 51,221,586) and amount payable to
 subsidiary Rs 310,532 (Rs Nil)
 
 11.3 Capital Work-in-progress includes capital advance of Rs 2,230,291
 (Rs 32,636,466).
 
 1 1.4 Advances given includes:
 
 a) Share Application Money Rs 67,232,334 (Rs 67,232,334) and advance
 recoverable Rs Nil (Rs 2,475,288) from the subsidiary.
 
 b) Share Application Money paid Rs 105,843,191 (Rs 70,593,191) to
 others.
 
 c) Interest recoverable Rs 873,641 (Rs 128,487,866).
 
 1 1.5 Micro, Small and Medium Enterprises:
 
 The Company has no dues to Micro, Small and Medium Enterprises during
 the year ended March 31, 2011, on the basis of information provided by
 the parties and available on record.
 
 1 1.6 Foreign Exchange Difference:
 
 a) The foreign exchange gain (net) Rs 536,417 (Rs 2,954,478) on
 settlement or realignment of foreign exchange transactions has been
 adjusted in respective heads of the Profit and Loss Account.
 
 b) As at Balance Sheet date, the Company has foreign currency payable
 and receivable amounting to Rs 36,227,81 6 (Rs 7,740,922) and Rs
 35,154,067 (Rs 29,453,407) respectively which are not hedged by a
 derivative instrument or otherwise.
 
 c) Derivative Contracts (Forward Contracts for hedging puposes) entered
 into by the Company and outstanding at March 31, 2011 is Rs Nil (Nil).
 
 1 1.7 Contingent Liabilities not provided for:-
 
 Amount (Rs)
 
 Particulars                                 2011                   2010
 
 Claims against the Company not 
 acknowledged as debts                  2,130,006               2,130,006
 
 Custom Duty on Pending Export
 Obligations                           18,183,059              18,183,059
 
 Bank Guarantee Outstanding             7,528,394                    - 
 
 Disputed Direct Taxes                  3,818,080               3,585,088
 
 Legal cases against the Company    Unascertained           Unascertained
 
 The Company has received legal notices of claims/law suits filed
 against it relating to alleged infringement of copy rights and
 defamation in relation to programs telecasted by it. In the opinion of
 the Management no material liability is likely to arise.
 
 12.  Capital Commitments:
 
 Estimated amount of contracts remaining to be executed on capital
 account, not provided for (net of advances) is Rs 32,657,810 (Rs
 8,940,660).
 
 13.  Related Party Transactions:
 
 (i) List of Parties where control exists: Subsidiary Company:
 
 Zee Akaash News Private Limited (extent of holding 60%)
 
 (ii) Other Related Parties with whom transactions have taken place
 during the year and balance outstanding as on the last day of the year:
 
 Agrani Convergence Limited, Asia Today Limited, Asia TV Limited,
 Continental Drugs Company Private Limited, Cyquator Media Services
 Private Limited, Dakshin Communication Private Limited, Diligent Media
 Corporation Limited, Dish TV India Limited, E-City Bioscope
 Entertainment Private Limited, E-City Projects Construction Private
 Limited, E-City Entertainment Network Limited, E-City Property
 Management Services Private Limited, Essel Corporate Resources Private
 Limited, Essel Shyam Communication Limited, Himgiri Navh
 Vishwavidyalaya, Interactive Tradex India Private Limited, Intrex Trade
 Exchange Limited, Pan India Network Limited, Pan India Network
 Infravest Private Limited, Pan India Paryatan Private Limited, Prime
 Publishing Limited, Procall Private Limited, Rama Associates Limited,
 Real Media FZ LLC, RKJ Woods Plantations Private Limited, Smart
 Wireless Private Limited, Wire and Wireless (India) Limited, Wire and
 Wireless Tisai Satellite Limited, Veena Investments Private Limited,
 Zee Entertainment Enterprises Limited, Zee Learn Limited, Zee Telefilms
 Middle East FZ LLC, Zee Turner Limited, Zee Sports Limited.
 
 Key Management Personnel
 
 Shri Subhash Chandra, Shri Punit Goenka, Shri Laxmi Narain Goel (upto
 September 30, 2010), Shri Naresh Kumar Bajaj, Shri K.U. Rao, Shri Vinod
 Bakshi
 
 15.  Segment Reporting:
 
 The Company is engaged in the business of production and broadcasting
 of television software which in the context of AS 17 Segment
 Reporting is considered as the only reportable business segment. The
 geographical segment is not relevant as exports are insignificant.
 
 16.  Additional Information:
 
 Other Additional Information required to be given pursuant to Part II
 of Schedule VI to the Companies Act, 1 956, are as under:
 
 16.1 The Company is in the business of producing television programs
 and is not subject to any license hence there is no licensed capacity.
 Further the nature of business of the Company is such that the
 installed capacity is not quantifiable.
 
 1 6.2 The details of opening stock, acquisitions/productions, sales and
 closing stock of programs and film rights are as under:
 
 Notes:
 
 1. Previous years figures are regrouped, rearranged or recast wherever
 considered necessary to conform to this years classification. Current
 years figures are not comparable with previous years figures due to
 demerger of Regional General Entertainment Channels from the Appointed
 Date i.e. January 1, 201 0 (Refer Note