1. The Directors recommended payment of Dividend for the year @10% per share (Re.1. each) on equity shares.

2. The scheme of amalgamation entailing merger of Sunrise Infotainment Private Ltd, a subsidiary company with PVR Ltd with effect from April 01, 2008 is pending before the Hon’ble Delhi High Court.

3. Out of balance proceeds of public issue, the Company has, during the year, utilized the proceeds of IPO issue filly.

4. Since the warrant holder has not exercised its option for conversion of warrants into equity shares by March 17, 2009, the Company has forfeited the entire amount of upfront payment of Rs 258 lacs and has transferred the same to Capital reserve.

5. The Consolidated accounts comprise of the Parent Company (PVR Ltd) and its subsidiaries, PVR Pictures Ltd, CE. Retail. Malls (India) Private Ltd, Sunrise Infotainment Private Ltd and PVR bluO Entertainment Ltd.

6. The Company has till date funded its subsidiaries for Rs. 5,737 lacs by way of equity / preference share capital (including Rs. 587 lacs funded during the year ended March 31, 2009) and Rs 3,923 lacs by way of loan (including Rs. 1,439 lacs (net of refunds) funded during the year ended March. 31., 2009.

7. Pursuant to the clarification by Central Board of Excise and Customs (CBEC) vide Circular No File No. 137/72/2008-CX dated November 21, 2008, that the accumulated CENVAT/Service Tax Credit upto March 31, 2008 can be utilized by the Company for payment of output service tax without any restriction of time limit. The Company has recognised such CENVAT/Service Tax credit amounting to Rs.268 lacs by crediting to the accounts of rent expenses by Rs. 207 lacs and income from revenue sharing by Rs. 62 lacs.

8. The Company is entitled to exemption from payment of entertainment tax in respect of some of its multiplexes in accordance with the schemes of the respective state governments. In the Assessment Order for the assessment year 2006-07, the Company’s contention that the amount of entertainment tax is a capital receipt, has been accepted during the year. Based on this, the Company has recomputed its current income tax and deferred tax liability for the year ended March 31, 2006, 2007, 2008 and 2009 This has however, no impact on the operating results of the Company.

9. The Company has provided stock options schemes to its employees to be granted at market price of Rs 88 on fair value method and granted options equivalent to 500,000 equity shares to the employees.

10. The ‘Honorable High Court of Delhi vide judgment dated April 18, 2009 in the ease of Home Solution Retail India Ltd and others Vs Union of India, has held that renting of immovable property by itself is not, a service and accordingly the levy of service ‘tax on activity of renting immovable property is “ultra vires” the Finance Act, ‘1994. In view of this judgment, the service tax on renting of immovable property to the extent amount not paid to the landlords aggregating to Rs 336 lacs has not been provided during the year.

11. The above results reviewed by the Audit Committee were approved by the Board of Directors the meeting held on May 29, 2009.

12. Corresponding figures for previous year have been regrouped/recasted wherever necessary to correspond to current year’s classification.

Ajay Bijli
Chairman & Managing Director