1. The financial results of the Company for the year ended March 31, 2009 have been reviewed by the audit committee, approved by the Board of Directors at the meeting held on June 30, 2009 and have been audited by the Statutory auditors of the Company. The above financials pertain to the Adlabs Films Ltd as a standalone entity.

2. The Company has opted to publish consolidated financial results from the quarter ending June 30, 2008.

3. Hitherto it was the policy of the Company to charge depreciation as per the Written Down value method for the Film Services, Production & Distribution and other unallocated assets as per rates specified in Schedule XIV of the Companies Act, 1956. During the current year the Company has changed its policy to charge depreciation as per the
Straight Line method as per rates specified in Schedule XIV of the Companies Act, 1956. This change in policy has resulted in reduction in depreciation charge for the current year by Rs.1,943.48 lakhs (including Rs. 834.31 lakhs in respect of prior periods) as compared to the amount of depreciation that would have been charged had there been no change in the method of providing for depreciation.

4. The Government of India, Ministry of Information & Broadcasting, have notified modifications in the Licensing Agreement for operation of Radio Stations and have permitted companies to, inter alia, demerge the Radio Business subject to compliance with various conditions set out in the notification. In the light of the amendments, the Board of the Company, at its meeting held on 25 October 2008, has decided to revive the proposal for the demerger of the Radio business of the Company to its wholly owned subsidiary Reliance Unicom Ltd and have further decided that such demerger should be effective from April 01, 2008, i.e. the beginning of the current financial year of the Company. The
Company has obtained the approval of the Stock Exchanges, its members in a court convened meeting held on 22 January 2009 and the High Court of Judicature at Bombay vide its order dated April 04, 2009. The Company has further obtained approval of the Ministry of Information and Broadcasting for vesting of Radio licenses to the demerged Company i.e. Reliance Unicom Limited. The order of the High Court sanctioning the demerger has become effective on filing with the Registrar of Companies on 30 June 2009.The above results of the Company are after giving the effect of the demerger of Radio Division of the Company. As per the provisions of the scheme the Company has debited an amount of Rs. 16,708 lacs to Securities Premium account, being the excess of assets over the liabilities transferred to Radio Division.

5. The Company has merged its wholly owned subsidiaries Adlabs Multiplex Ltd, Adlabs Multiplex and Theatres Ltd, Rave Entertainment Private Ltd and Mahimna Entertainment Private Ltd with the Company with effect from April 01, 2008. The scheme for merger of the said Companies with the Company become effective on filing with the Registar of Companies on 29 May 2009. Hence, the above results of the Company include the results of the wholly owned subsidiaries. The Company has credited a net amount of Rs. 5,826.22 lacs to Capital Reserve after adjusting the investment in these Subsidiary
Companies against the net assets of the subsidiaries and revaluation of the assets of the Company.

6. During the previous financial period ended March 31, 2008, the Company re-classified the liability towards Foreign Currency Convertible Bonds (´FCCB´) as non–monetary liability inter-alia on the basis of the trend of earnings, movement of the Company´s share prices and conversion option exercised by the FCCB holders. The Company continues to
classify the liability towards FCCB as a non–monetary liability as in its view the current fall in the market price of the Company’s share price and non-conversion by bond holders is a temporary aberration. Consequently, the foreign exchange fluctuation loss for the year ended March 31, 2009 aggregating to Rs 1,130.07 lacs (2008: Rs. 1,752.66 lacs) has not been recognised by management. Cumulative loss not recognized due to classification of FCCB as a non-monetary liability is Rs. 2,990.43 lacs in respect of outstanding FCCB´s.Unrecognized losses on FCCB´s which were converted into equity shares in earlier periods is Rs. 2,199.50 lacs.

7. The figures for the previous financial period (9 Months) are strictly not comparable to those of the current financial year, which are after giving an effect of the schemes as mentioned above. Figures for the previous period have been regrouped / rearranged to Conform to current period´s presentation.