Mar 31, 2023
Note 3 : Property, plant and equipment and Capital work in progress (contâd)
I. Capital work in progress (CWIP)
The capital work in progress as at March 31, 2023 and March 31, 2022 comprises mainly expenditure for Buildings & Plant and Machinery.
The Company accounts for capitalization of property, plant and equipment to the extent applicable through capital work in progress and therefore the movement in capital work-in-progress is the difference between closing and opening balance of capital work-in-progress as adjusted in additions to property, plant and equipment.
The management has determined that the investment properties consist of two classes of assets â residential and commercial-based on the nature, characteristics and risks of each property.
As at March 31, 2023 and March 31, 2022, the fair values of the properties are INR 12,026 Lakhs and INR 7,188 Lakhs respectively. These valuations are based on valuations performed by a registered independent valuer who is a specialist in valuing these types of investment properties. A valuation model in accordance with Ind AS 113 has been applied.
The Company has no restrictions on the realisability of its investment properties and there exist contractual obligations of INR 1,611 Lakhs (March 31, 2022: INR 1,217 Lakhs) to purchase the investment property whereas there are no contractual obligation to develop investment property or for repairs and enhancements.
Estimation of Fair Value
During the current year ended March 31, 2023 and the previous year ended March 31, 2022, the fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The valuation has been determined basis the market approach by reference to sales in the market of comparable properties. However, where such information is not available, current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences, has been considered to determine the valuation. All resulting fair value estimates for investment properties are included in Level II.
# In the year ended March 31, 2016; the Company had acquired Hindi Business Brand (i.e. Hindustan, Hindustan.in, Nandan, Kadambini, Hum Tum and other Hindi publication related trademarks from its parent company HT Media Limited. Management is of the opinion that, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the Brand is expected to generate net cash inflows for the Company. Hence, the Brand is regarded by Management as having an indefinite useful life.
For the purposes of impairment testing of Brand with indefinite life, the recoverable amount of Brand is based on its fair value. The fair value has been determined as per Royalty Relief method. The fair value is being compared with the Carrying amount of Brand as stated above. No impairment has been observed. Discount rate (14 % to 17%) and Royalty rate (4%) are the key assumptions considered in determining fair value. It is a Level III valuation. There has been no change in the valuation technique.
Note I:
Impairment of investments in HT Noida Company Limited (HTNL) amounting to INR 125 lakhs (Previous Year: INR 351 lakhs) has been made during the year on account of recoverable amount lower than the carrying amount. The recoverable amount is based on the fair value determined basis Net Assets Value. The same is being presented as Exceptional item.
Note II:
Impairment of investments in HT Content Studio LLP amounting to INR 634 lakhs has been made during the year on account of recoverable amount lower than the carrying amount. The recoverable amount is based on the fair value determined basis Net Assets Value. The same is being presented as Exceptional item.
External commercial borrowing of USD 100 Lakhs from Bank carries interest @USD 3 months Libor 0.65% spread p.a. The loan is repayable in 8 semi annual equal installments of USD 12.50 Lakhs starting from 29 November, 2019. The loan is secured by Pledge of Debt Mutual Funds investment of company. Refer note 38 for further details.
Note II- Cash credit/ overdraft from bank (Secured)
Outstanding Cash Credit/ Overdraft from Bank was drawn @ 7.60% p.a. and is payable on demand. The loan is secured by Lien on Fixed Deposits.
Outstanding STL/WCDL from Bank as on March 31, 2022 was drawn in various tranches from January 19, 2022 till March 28, 2022 @ average Interest Rate of 4.57% p.a. (Applicable MIBOR Margin / Fixed rate) and were duly repaid starting from April 4, 2022 till May 5, 2022. The loan was secured by Pledge of Debt Mutual Funds investment/ Current Assets of company.
Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.
Note IV- Buyerâs credit from Bank (Unsecured)
Outstanding Buyer''s Credit loan from Bank was drawn in various tranches from Dec 14, 2022 till January 25, 2023 @ average Interest Rate of 5.84% p.a. (Applicable LIBOR Margin / Fixed rate) and are due for repayment in FY 2023-24.
Note V- Short term foreign currency non- repatriable (FCNR) loan from banks (Unsecured)
-Outstanding short term FCNR loan from bank was drawn @6.25% p.a during quarter ended March 31, 2023 and are due for repayment during FY 23-24.
Note VI- Inter Company Loan (Unsecured)
- Inter-corporate deposit (ICD) was drawn in various tranches in year 2022-23 @ 8.97% p.a. and is repayable on 20th March 2024. The interest shall become due and payable along with principal.
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
Note 29 : Dividend
The Company has neither declared nor paid any dividend during the current and previous year as per the Section 123 of the Companies Act, 2013.
Note 30 : Capital management
For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves. The primary objective of the Company''s capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital and net debt. The Company includes within net debt, interest bearing loans and borrowings and interest accrued on borrowings.
The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of services gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service. The gratuity plan is managed through ''HMVL Editorial Employees Gratuity Fund Trust'' & ''HMVL Non Editorial and Other Employees Gratuity Fund Trust''. The funds maintained by ''HMVL Editorial Employees Gratuity Fund Trust'' & ''HMVL Non Editorial and Other Employees Gratuity Fund Trust'' represent plan assets for the Company.
The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:
In accordance with the Securities and Exchange Board of India (Share Based Employee benefits) Regulations, 2014 and Ind AS 102 Share-based Payment, the scheme detailed below is managed and administered, compensation benefits in respect of the scheme is assessed and accounted by the company . To have an understanding of the scheme, relevant disclosures are given below.
I. Employee Stock Options (ESOPs) granted by Hindustan Media Ventures Limited for eligible employees of the group.
The Hindustan Times Limited and HT Media Limited (the immediate Parent Company) has given loan to âHT Group company''s -Employee Stock Option Trustâ which in turn has purchased Equity Shares of HMVL for the purpose of granting Options under the ''HT Group company''s -Employee Stock Option Rules'' (âHT ESOPâ), to eligible employees of the group.
Options granted are exercisable for a maximum period of 14 years after the scheduled grant date as per the Scheme.
HMVL has availed exemption under Ind AS 101 in respect of Share-based payments that had been vested before the transition date. HMVL has elected to avail this exemption and accordingly, vested options as on transition date have been measured at intrinsic value .
The employee compensation cost (accounting charge for the year) during the year calculated using the fair value of stock options is INR 2.8 Lakh (March 31, 2022: INR 6 lakhs).
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is INR NIL (March 31, 2022: INR NIL)
II. The fellow subsidiary, Firefly e-Ventures Limited (FEVL)# has given Employee Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited (HMVL).
The Company has availed exemption under Ind AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options as on transition date have been measured at intrinsic value .
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is INR NIL (March 31, 2022: INR NIL).
III. The Holding Company, HT Media Limited has given Employee Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited (HMVL).
A. Details of these plans are given below:
Employee stock options
A stock option gives an employee, the right to purchase equity shares of HT Media Limited at a fixed price within a specific period of time.
(b) Contingent liabilities A. Claims against the company not acknowledged as debts (INR Lakhs) |
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Particulars |
March 31, 2023 |
March 31, 2022 |
a) The Company has filed a petition before the Hon''ble Patna High Court against an initial claim for additional contribution of Rs. 73 lacs made by Employees State Insurance Corporation (ESIC) relating to the years 1989-90 to 1999-00. The Company has furnished a bank guarantee amounting to Rs. 13 lacs to ESIC. The Hon''ble High Court had initially stayed the matter and on 18th July 2012 disposed of the Petition with the Order of âNo Coercive Step shall be taken against HMVLâ with direction to move for ESI Court. Matter is still pending in Lower Court. There is no further progress in the matter during the year. The chances of our loosing in the said matters are remote. |
73 |
73 |
b) The Company has filed a petition before the Hon''ble Patna High Court against the demand of Rs.10 lacs (including interest) for short payment of ESI dues pertaining to the years from 2001 to 2005. The Hon''ble High Court had initially stayed the matter and on 18th July 2012 disposed of the Petition with the Order of âNo Coercive Step shall be taken against HMVLâ with direction to move for ESI Court. Matter is still pending in Lower Court. There is no further progress in the matter during the year. The chances of our loosing in the said matters are remote. |
10 |
10 |
B During the current year and as in the previous financial year, the Management has received few claims from employees who either retired, or were separated from the Company, regarding the benefits of Majhithia Wage Board recommendations. We have raised our objections on the maintainability of the Claim and the amount so claimed as due. The matters have been referred to respective Labour Courts for adjudication on the eligibility/maintainability/ liability of such claims. Based on management assessment and current status of the above matter, the management is confident that no additional provision is required in the financial statements as on March 31, 2023.
C. In respect of income tax demand under dispute INR 1,051 Lakhs (previous year INR 578 Lakhs) against the same the Company has paid tax under protest of INR 1,046 Lakhs (previous year INR 563 Lakhs). The tax demand are mainly on account of disallowances of expenses claimed by the Company under the Income Tax Act. The company is contesting the demands before the appropriate appellate authorities and the management believes that Company''s tax positions are likely to be upheld by such authorities. No tax expenses have been accrued in the financial statements for these tax demands.
ii) Transactions with related parties
Refer note 34 A
iii) Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash (other than Inter-Corporate Deposits) . There have been no guarantees provided or received for any related party receivables or payables.
Note 35 : Segment information
As per Ind AS 108 - Operating Segments, the Company has two reportable Operating Segments viz. Printing & Publishing of Newspaper & Periodicals and Digital. During the year ended March 31, 2023, ''Over-the-top (OTT) Play'' business has been presented as ''Digital Segment''. The financial information for these reportable segments along-with restatement of comparative period has been provided in Consolidated Financial statements as per Ind-AS 108 - Operating Segments.
The Chief Operating Decision Maker (CODM) of the Company monitors the operating results of the above-mentioned business unit for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the consolidated financial statements. Also, the Company''s financing (including finance costs and finance income) and income taxes are managed on a Company basis and are not allocated to operating segments.
Geographical revenue is allocated based on the location of the customers. The Company sells its products mostly within India with insignificant export income and does not have any operations in economic environments with different risks and returns and hence, it has been considered as to be operating in a single geographical location.
Information about major customers:
No single customer represents 10% or more of the Company''s total revenue during the year ended March 31, 2023 and March 31, 2022. Note 36 : Hedging activities and derivatives Derivatives not designated as hedging instruments
The Company uses foreign exchange forward contracts, call spread option, Seagull option, interest rate swaps (floating to fixed) to manage its foreign currency and interest rate risk exposures. These contracts are not designated as cash flow hedges other than ECB Loan. These contracts are not designated as cash flow hedges and are entered into for periods consistent with underlying transactions exposure.
Derivatives designated as hedging instruments
The Company has taken USD 100 Lakhs ECB Loan with floating rate of interest. The Company has taken Call Spread option to mitigate foreign currency risk in relation to repayment of principal amount of USD 100 Lakhs and Interest Rate Swap (Floating to Fixed) to mitigate interest rate risk. The Company designates (Cash Flow Hedge):
⢠Intrinsic Value of Call Spread option to hedge foreign currency risk for repayment of Principal Amount in relation to ECB Loan availed in USD.
⢠Interest Rate Swap (Floating to Fixed) to hedge interest rate risk in respect of Floating rate of interest in relation to ECB Loan.
Hedge Effectiveness
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument.
The Company enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item. The Company performs a qualitative assessment of effectiveness. As all critical terms matched during the year, the economic relationship was effective.
The management assessed that fair value of trade receivables, cash and cash equivalents, loans, other bank balances, other current non- derivative financial assets, short- term borrowings, trade payables, lease liabilities and other current non- derivative financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
- The fair values of Long term interest-bearing borrowings are determined by using Discounted Cash Flow(DCF) method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non performance risk was assessed to be insignificant.
- The fair values of the investment in unquoted equity/preference/debt instruments have been estimated using a Discounted Cash Flow (DCF) model and/or comparable investment price such as last round of funding made in the investee Company. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted investments.
- The Company has investment in quoted mutual funds being valued at Net Asset value.
- Investments in quoted market linked debentures/ Perpetual Bonds being valued being valued basis fair valuation available in market/ public domain.
- Fixed bank deposits with more than 12 months maturity have been derived basis the interest accrued on fixed deposits upto the balance sheet date.
-The Company invests in quoted equity shares valued at closing price of stock on recognized stock exchange.
- The Company enters into derivative financial instruments such as foreign exchange forward contracts, call option spreads, interest rate swaps etc. being valued using valuation techniques, which employs the use of market observable inputs. The company uses Mark to Market valuation provided by Bank for valuation of these derivative contracts.
- The loans given/security deposits paid are evaluated by the company based on parameters such as interest rate, risk factors, risk characteristics and individual credit-worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2023 and March 31, 2022 are as shown below:
Note 38: Financial risk management objectives and policies
The company''s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade & other payables. The main purpose of these financial liabilities is to finance the company''s operations and to support its operations. The company''s principal financial assets, other than derivatives comprise investments, loans given, trade and other receivables and cash and cash equivalents that derive directly from its operations. The company also enters into foreign exchange derivative transactions.
The company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the mitigation of these risks. The company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the company''s policy that no trading in foreign exchange derivatives for speculative purposes will be undertaken. The policies for managing each of these risks, which are summarised below:-
1) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.
The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-employment obligations and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The companies exposure to the risk of changes in market interest rates relates primarily to the long-term ECB Borrowings with floating interest rates.
The Company manages interest rate risk by taking interest rate swap (floating to fixed). Refer note 36 for details.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company''s exposure to the risk of changes in foreign exchange rates relates primarily to the company''s operating activities (when revenue or expense is denominated in a foreign currency), investments & borrowing in foreign currency etc.
The company manages its foreign currency risk by hedging foreign currency transactions with forward covers and option/swap contracts, if required. These transactions generally relate to purchase of imported newsprint & borrowings in foreign currency.
When a derivative is entered into for the purpose of being a hedge, the company negotiates the terms of those derivatives to match the terms of the underlying exposure.
(iii) Equity/Preference price risk
The company''s listed and non-listed equity/preference securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity/preference price risk through diversification and by placing limits on individual and total equity/preference instruments. Reports on the equity/preference portfolio are submitted to the company''s senior management on a regular basis. The company''s Investment Committee approves all equity/ preference investment decisions.
2) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
Trade receivables and Other Financial Assets at amortised cost
An impairment analysis is performed at each reporting date on an individual basis for major clients. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10A and 6D. The Company does not hold collateral as security other than secured trade receivables (refer Note 10A)
The Company evaluates the concentration of risk with respect to trade receivables and contract assets as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the company''s policy. Investments of surplus funds are made as per guidelines and within limits approved by Board of Directors. Board of Directors/ Management reviews and update guidelines, time to time as per requirement. The guidelines are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.
Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity mechanism.
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of Bank loans & liquid MF Investments.
100% of the Company''s borrowings will mature in less than one year at March 31, 2023 (March 31, 2022: 92%) based on the carrying value of borrowings reflected in the financial statements.
The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding i.e. investments / Bank limits for Borrowing/ cash accrual from Operation and debt maturing within 12 months can be paid/ rolled over with existing lenders.
The Company has positive working capital position and positive Net Assets position as on 31 March, 2023. Accordingly, no liquidity risk is perceived. The Company has available undrawn borrowing facilities of INR 50,615 lakhs as at 31 March, 2023 (March 31, 2022: INR 39,707 lakhs).
Collateral
The Company has pledged part of its Investment in Mutual Funds in order to fulfill the collateral requirements for Borrowing. At March 31, 2023 and March 31, 2022, the invested values of the Investment in Mutual Funds pledged were INR 17,126 Lakhs Fair value [Original cost: INR 15,853 Lakhs] and INR 11,057 Lakhs Fair value [Original cost: INR 9,281 Lakhs] respectively. The counterparties have an obligation to return the securities to the company and the company has an obligation to repay the borrowing to the counterparties
upon maturity/ Due Date / mutual agreement. There are no other significant terms and conditions associated with the use of collateral securities except pledge given against outstanding Bank facilities (details are provided in borrowing note, refer note 15 A).
Note 39: Standards issued but not yet effective
On March 31, 2023, the Ministry of Corporate Affairs (MCA) issued certain amendments and annual improvements to Ind AS. These amendments are applicable for accounting periods beginning on or after April 01, 2023.
Amendment to Ind AS 12 and Ind AS 101
Now the Initial Recognition Exemption (IRE) does not apply to transactions that give rise to equal and offsetting temporary differences. Narrowed the scope of IRE (with regard to leases and decommissioning obligations). Accordingly, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions such as initial recognition of a lease and a decommissioning provision.
The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented.
The application of this amendment is not expected to have a material impact on the Company''s financial statements.
Amendment to Ind AS 1 and Ind AS 34 and Ind AS 107
Companies should now disclose material accounting policies rather than their significant accounting policies.
The application of this amendment is not expected to have a material impact on the Company''s financial statements.
Amendment to Ind AS 8
Definition of ''change in account estimate'' has been replaced by revised definition of ''accounting estimate''. As per revised definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty.
The application of this amendment is not expected to have a material impact on the Company''s financial statements.
Following amendments are clarificatory in nature-
Amendment to Ind AS 109
In Indian Accounting Standard (Ind AS) 109, in Appendix B, in paragraph B4.3.12, for item (b), the following item shall be substituted, namely:-
(b) âa combination of entities or businesses under common control as described in Appendix C of Ind AS 103; orâ;
The application of this amendment is not expected to have a material impact on the Company''s financial statements.
Amendment to Ind AS 115
In Indian Accounting Standard (Ind AS) 115, in Appendix 1,-
(i) in paragraph 2, for the words and figure âparagraph of 15â, the word and figure âparagraph 51â shall be substituted;
(ii) in paragraph 5, for the word and letter âAppendix Dâ the word and letter âAppendix Bâ shall be substituted.;
The application of this amendment is not expected to have a material impact on the Company''s financial statements. Amendment to Ind AS 103
In Indian Accounting Standard (Ind AS) 103, in Appendix C, in paragraph 13, for item (b), the following item shall be substituted, namely:-â(b) the date on which the transferee obtains control of the transferor;â;
The application of this amendment is not expected to have a material impact on the Company''s financial statements.
Amendment to Ind AS 102
In Indian Accounting Standard (Ind AS) 102, the footnote starting with the words âFor example, in caseâ and ending with the words ânot exercisedâ, appearing on the heading before paragraph 24 ''If the fair value of the equity instruments cannot be estimated reliably'' shall be deleted and the same shall be added at the end of paragraph 23 at the words âequity to anotherâ. The application of this amendment is not expected to have a material impact on the Company''s financial statements.
As at September 30, 2020, certain Land and Building was classified as âNon- current assets held for saleâ due to outsourcing of printing work at certain units. During the year ended March 31, 2023, the company is able to dispose of substantial Land and Building and the Company remains committed to its plan to sell the balance. These assets are being measured at the lower of its carrying amount and fair value less costs to sell. Impairment of INR 6 Lakhs is recognized under the head âLoss on sale of property, plant and equipment (includes impairment of property, plant and equipment)â
As at January 31, 2022, certain Plant and Machinery pertaining to unit where printing work has been outsourced, has been classified as âNon- current assets held for saleâ. During the year ended March 31, 2023, the company is able to dispose of identified Plant and Machinery and balance Plant and Machinery has been reclassified to Property Plant and Equipment on account of shifting to operational units. Reclassified portion is being measured at the lower of its carrying amount (adjusted for any depreciation that would have been recognised had the asset not been classified as held for sale) and recoverable amount. Impairment of INR 11 Lakhs is recognized under the head âLoss on sale of property, plant and equipment (includes impairment of property, plant and equipment)â
During the year ended March 31, 2023, certain Land and Building has been re-classified from âInvestment Propertyâ to âNon- current assets held for saleâ being held for sale. Disposal is expected within one year of classification as held for sale. These assets are being measured at the lower of its carrying amount and fair value less costs to sell. No impairment has got triggerred.
During the year ended March 31, 2023, certain Leasehold Land has been re-classified from âRight - of - use assetsâ to âNon- current assets held for saleâ being held for sale. Disposal is expected within one year of classification as held for sale. These assets are being measured at the lower of its carrying amount and fair value less costs to sell. No impairment has got triggerred.
âNon-current assets held for sale relating to property, plant and equipmentâ and âNon-current assets held for sale relating to Right-of-use assetâ are being presented as part of âPrinting and publishing of newspaper and periodicals segmentâ as part of Segment information in accordance with Ind AS 108 Operating Segments.
âNon-current assets held for sale relating to investment propertyâ are being presented as part of âUnallocated segmentâ as part of Segment information in accordance with Ind AS 108 Operating Segments.
Note 47: Other Statutory information
(i) No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.
(iii) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
(iv) There are no transaction which has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(v) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
(vi) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) There are no funds which have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
b) provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(viii) The Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have more than one CIC (the same is not required to be registered with RBI as not being Systemically Important CIC ).
(ix) The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(x) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(xi) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(xii) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year
Mar 31, 2018
1. CORPORATE INFORMATION
Hindustan Media Ventures Limited (âHMVLâ or âthe Companyâ) is a Public Limited Company domiciled in India & incorporated under the provision of the Companies Act, 1913. Its shares are listed on Bombay Stock Exchange (BSE) & National Stock Exchange (NSE).
HT Media Limited (âHolding Companyâ) holds 74.30% of Equity Share Capital of the Company. The Company is engaged in the business of publishing âHindustanâ, a Hindi Daily, and two monthly Hindi magazines âNandanâ and âKadambaniâ. The registered office of the Company is located at Budh Marg, Patna- 800001.
Information on other related party relationships of the Company is provided in Note 34.
The financial statements of the Company for the year ended March 31, 2018 are authorised for issue in accordance with a resolution of the Board of Directors on May 1, 2018.
2. SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY COMPANY
2.1 Basis of preparation
The standalone financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (âInd ASâ) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Companies Act 2013 (the âaccounting principles generally accepted in Indiaâ).
The accounting policies are applied consistently to all the periods presented in the financial statements.
The standalone financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:
- Derivative financial instruments
- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments)
- Defined benefit plans - plan assets measured at fair value;
The standalone financial statements are presented in Indian Rupees (INR), which is also the Companyâs functional currency.
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lacs as per the requirement of Schedule III, unless otherwise stated. Rounding of errors has been ignored.
2.2. Significant accounting judgements, estimates & assumptions
The preparation of the Companyâs financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The areas involving critical estimates or Judgement are as below: Property, Plant and Equipment
The Company, based on technical assessment and management estimate, depreciates certain assets over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management has estimated, supported by technical assessment, the useful lives of certain plant and machinery as 16 to 21 years. These useful lives are higher than those indicated in schedule II. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
Intangible asset - âHindi Hindustanâ Brand
In year ended March 31, 2016, the Company had acquired Hindi Business Brand (i.e. Hindustan, Hindustan.in, Nandan, Kadambini, Hum Tum and other Hindi publication related trademarks) from its parent Company, HT Media Limited. Management is of the opinion that, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the trademark is expected to generate net cash inflows for the Company. Hence, the Brand is regarded by Management as having an indefinite useful life.
Contingent Liability and commitments
The Company is involved in various litigations. The management of the Company has used its judgement while determining the litigations outcome of which are considered probable and in respect of which provision needs to be created.
Assessment of lease contracts
Significant judgement is required to apply lease accounting rules under Appendix C to INDAS 17: determining whether an Arrangement contains a Lease. In assessing the applicability to arrangements entered into by the Company, management has exercised judgement to evaluate the right to use the underlying assets, substance of the transaction including legally enforced arrangements and other significant terms and conditions of the arrangement to conclude whether the arrangements meet the criteria under Appendix C to INDAS 17.
Fair value measurements
When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility.
Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax assessments and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the Companies.
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
Further details on taxes are disclosed in Note 14.
Share Based Payment
The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 32.
Defined benefit plans
The cost of the defined benefit gratuity plan and other postemployment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.
Further details about gratuity obligations are given in Note 31.
I. Capital work in progress (CWIP)
The capital work in progress as at March 31, 2018 and March 31, 2017 comprises mainly expenditure for Plant and Machinery.
As at March 31, 2018 and March 31, 2017, the fair values of the properties are INR 727 lacs and INR 633 lacs respectively. These valuations are based on valuations performed by an accredited independent valuer who are specialist in valuing these types of investment properties. A valuation model in accordance with Ind AS 113 has been applied.
The company has no restrictions on the realisability of its investment properties and there exists contractual obligations of INR 19 lacs (March 31, 2017: INR 19 lacs) to purchase the investment property whereas there are no contractual obligation to develop investment property or for repairs and enhancements.
Estimation of Fair Value
The valuation has been determined basis current prices for similar properties in an active market (Level II) . However, where such information is not available, current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences, has been considered to determine the valuation.
# In the year ended March 31, 2016; the Company had acquired Hindi Business Brand (i.e. Hindustan, Hindustan.in, Nandan, Kadambini, Hum Tum and other Hindi publication) related trademarks from its parent company HT Media Limited. Management is of the opinion that, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the Brand is expected to generate net cash inflows for the Company. Hence, the Brand is regarded by Management as having an indefinite useful life.
Intangible assets with indefinite useful life are tested for impairment annually, or more frequently if the events and circumstances indicate that the carrying value may be impaired. The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable.
The management is of the view that Brand does not have a finite life cycle and accordingly the Brand has been determined to have an indefinite useful life and is not amortised. The Company tests the intangible asset annually for impairment or more frequently if there are indications that intangible asset might be impaired.
The calculations of value in use are most sensitive to the following assumptions:
a. Weighted Average Cost of Capital (WACC) of 14.05%
b. For arriving at the terminal value, management has considered a growth rate of 3%.
The Board of Directors of the Company at its meeting held on August 24, 2017, approved the sale of Companyâs entire investment in HT Digital Streams Limited (Associate Company) to Digicontent Limited (formerly HT Digital Ventures Limited), a fellow subsidiary company. The aforesaid transaction was consummated on December 28, 2017. Therefore, HT Digital Streams Limited has ceased to be an Associate of the Company w.e.f. December 28, 2017.
# The name of Birla Sun Life has been changed to Aditya Birla Sun Life *Pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17
**57.07 Lac units of IDFC Dynamic Bond Fund Growth with a face value of INR 10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17
***23.25 Lac units and 69.86 Lac units of Aditya Birla Sun Life Dynamic Bond Fund Retail Growth with a face value of INR 10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 and FY 16-17 respectively.
****99.44 Lac units of IDFC Corporate Bond Fund Growth with a face value of INR 10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17
Derivative instruments at fair value through profit and loss reflect the positive change in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected purchases.
# Included in Other receivables above is receivable from related parties INR 916 Lacs (Previous year March 31, 2017: INR 557 Lacs)
Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for the company. The carrying value may be affected by changes in the credit risk of the counterparties.
Terms/ rights attached to equity shares
The Company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
NOTE 3 : INCOME TAX
The major components of income tax expense for the year ended March 31, 2018 and March 31, 2017 are :
The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
During the year ended March 31, 2018 and March 31, 2017, the company has paid dividend to its shareholders. This has resulted in payment of Dividend Distribution Tax to the taxation authorities. The company believes that Dividend Distribution Tax represents additional payment to taxation authority on behalf of the shareholders. Hence Dividend Distribution Tax paid is charged to equity.
Note I- Buyerâs credit from Yes Bank (Secured)
Outstanding Buyerâs Credit loan from Yes Bank (Secured) was drawn in various tranches from 4-August-2017 till 16-October-2017 @ average Interest Rate of 2.43% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from 30-April-2018 till 13-July-2018. This facility is secured by first Pari Passu charge on all current assets (both present & future).
Note II- Buyerâs credit from DBS Bank (Unsecured)
Outstanding Buyerâs Credit loan from DBS Bank (Unsecured) was drawn in various tranches from 25-July-2017 till 28-December-2017 @ average Interest Rate of 2.63% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from 20-April-2018 till 21-September-2018.
Note III- Buyerâs credit from Bank of Tokyo- Mitsubishi (Unsecured)
Outstanding Buyerâs Credit loan from BOTM Bank (Unsecured) was drawn in various tranches from 5-March-2018 till 26-March-2018 @ average Interest Rate of 3.27% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from 30-November-2018 till 19-December-2018.
Loan covenants
The company has complied with all the loan covenants.
NOTE 4 : EARNINGS PER SHARE (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
NOTE 5 : CAPITAL MANAGEMENT
For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Companyâs capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital and net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service. The Company has formed a Gratuity Trust to which contribution is made based on actuarial valuation done by independent valuer.
The following tables summarises the components of net benefit expense recognised in the Statement of Profit or Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans:
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
Leave Encashment (unfunded)
The Company recognises the leave encashment expenses in the Statement of Profit and Loss based on actuarial valuation.
The expenses recognised in the Statement of Profit and Loss and the Leave encashment liability at the beginning and at the end of the year :
NOTE 6 : SHARE-BASED PAYMENTS
In accordance with the Securities and Exchange Board of India (Share Based Employee benefits) Regulations, 2014 and Ind AS 102 Share-based Payment, the scheme detailed below is managed and administered, compensation benefits in respect of the scheme is assessed and accounted by the Company . To have an understanding of the scheme, relevant disclosures are given below.
I. The Hindustan Times Limited and HT Media Limited (the immediate Parent Company) has given loan to âHT Group companyâs - Employee Stock Option Trustâ which in turn has purchased Equity Shares of INR 10/- each of the Company for the purpose of granting Options under the âHT Group companyâs -Employee Stock Option Rulesâ (âHT ESOPâ), to eligible employees of the group.
C. The details of exercise price for stock options outstanding at the end of the year ended March 31, 2018 are:
A stock option gives an employee, the right to purchase equity shares of the Company at a fixed price within a specific period of time. The details of exercise price for stock options outstanding at the end of the year are as under:
Options granted are exercisiable for a minimum period of 14 years after the scheduled vesting date as per the scheme
The Company has availed exemption under Ind AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options as on transition date have been measured at intrinsic value .
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is INR NIL (March 31, 2017: INR NIL)
II. Pursuant to purchase of Hindi Business, certain employees of HT Media Limited (the parent company) have become employees of the Company on continued service basis under HT ESOS -Plan A (Plan A) and HT ESOS - Plan C (Plan C). These employees continue to hold the Employee Stock Options (ESOPs) of parent company which were granted to them during their employment with the parent company.
Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares of HMVL at a fixed price within a specific period of time.
Weighted average fair value of the options outstanding is:
Plan A - INR 50.05 Plan C - INR 68.90
The Company has availed exemption under Ind AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options as on transition date have been measured at intrinsic value .
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is INR NIL (March 31, 2017: INR NIL).
III. The fellow subsidiary, Firefly e-Ventures Limited has given Employee Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited (HMVL).
A. Details of these plans are given below: Employee Stock Options
A stock option gives an employee, the right to purchase equity shares of Firefly e-Ventures Limited at a fixed price within a specific period of time. The grant price (or strike price) for options granted during the financial year 2009-10 shall be Rs10 each per option.
Weighted average fair value of the options outstanding is INR 4.82 per option. Since no options have been exercised during the period, thus weighted average share price has not been disclosed.
The Company has availed exemption under Ind AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options as on transition date have been measured at intrinsic value .
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is INR NIL (March 31, 2017: INR NIL).
NOTE 7 : COMMITMENTS AND CONTINGENCIES
(a) Leases Operating lease commitments - Company as lessee
The company has taken various residential, office and godown premises under operating lease agreements. These are generally cancellable leases and are renewable by mutual consent on mutually agreed terms with or without rental escalations.
The company has paid INR 755 lacs (March 31, 2017: INR 643 lacs) during the year towards minimum lease payment and infrastructure charges and the same is disclosed as Rent under Note 26.
The Company has entered into certain printing agreements which are in substance in the nature of operating lease. Currently, the Company has booked such expenses in the Income Statement under the head printing charges. The total of such expenses booked under printing charges amounts to INR 996 Lacs (previous year INR 1,000 Lacs).
B. During the current year and as in the previous financial year, the management has received several claims substantially from employees in UP, Jharkhand and Bihar who are either retired or separated from the Company regarding the benefits of Majithia Wage Board recommendations. However, all such claims/ recovery order(s) issued by ALC/ DLC office are generally either stayed by the respective Honâble High Court(s) or are pending before ALC/ DLC.
Based on management assessment and current status of the above matters, the management is confident that no provision is required in the financial statements as on March 31, 2018
C. Demand of INR 25 lacs received from Collector (Stamp) regarding stamp duty payable on land in Aligarh, which has been paid by the Company under protest.
D. Income- tax authorities have raised additional demands for INR 91 lacs (March 31 2017: Nil) for various financial years. The tax demands are mainly on account of disallowances of expenses claimed by the Company under the Income Tax Act. The matters are pending before various authorities. The company is contesting the demands and the management believes that its position will likely to be upheld. No tax expenses have been accrued in the financial statements for these tax demands.
# The Hindustan Times Limited (HTL) does not hold any direct investment in the Company. However, HTLs subsidiary HT Media Limited holds shares in the Company.
## Earthstone Holding (Two) Private Limited (formerly known as Earthstone Holding (Two) Limited) is the holding Company of The Hindustan Times Limited.
ii) Transactions with related parties
Refer Note 34 A
iii) Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.
NOTE 8 : SEGMENT INFORMATION
The Companyâs operations comprise of only one segment i.e. âPrinting and Publishing of Newspaperâ. The management also reviews and measure the operating results taking the whole business as one segment and accordingly make decision about the resources allocation. In view of the same separate segment information is not required to be given as per the requirement of Ind 108 on âOperating Segmentsâ.
The analysis of geographical segment is based on the geographical location of the customers. The Company sells its products mostly within India with insignificant export income and does not have any operations in economic environments with different risks and returns and hence, it has been considered as to be operating in a single geographical segment.
NOTE 9 : HEDGING ACTIVITIES AND DERIVATIVES
Derivatives not designated as hedging instruments
The company uses foreign exchange forward contracts, to manage its foreign currency exposures. These contracts are not designated as cash flow hedges and are entered into for periods consistent with underlying transactions exposure.
NOTE 10:FAIR VALUES
Set out below, is a comparison by class of the carrying amounts and fair value of the Companyâs financial instruments:
The management assessed that cash and cash equivalents, trade receivables, trade payables, current borrowings, other current financial assets and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
- The Company has investment in quoted mutual funds being valued at Net Asset value.
-The Company invests in quoted equity shares valued at closing price of stock on recognized stock exchange.
- The Company enters into derivative financial instruments such as foreign exchange forward contracts being valued using valuation techniques, which employs the use of market observable inputs. The company uses Mark to Market valuation provided by Bank for valuation of these derivative contracts.
- The loans and investment in bonds are evaluated by the Company based on parameters such as interest rate, risk factors, risk characteristics and individual credit-worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses.
NOTE 11 A : FAIR VALUE HIERARCHY
The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
-Level 1: Quoted prices for identical instruments in an active market;
-Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and -Level 3: Inputs which are not based on observable market data.
There were no significant changes in the classification and no significant movements between the fair value hierarchy classifications of assets and liabilities during FY 2017-18 and FY 2016-17.
The Company enters into derivative financial instruments such as foreign exchange forward contracts being valued using valuation techniques, which employs the use of market observable inputs. The company uses Mark to Market provided by Bank for valuation of these derivative contracts.
NOTE 12: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, . The main purpose of these financial liabilities is to finance the Companyâs operations and to support its operations. The Companyâs principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also enters into foreign exchange derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the mitigation of these risks. The Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Companyâs policy that no trading in foreign exchange derivatives for speculative purposes will be undertaken. The policies for managing each of these risks, are summarised below:-
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.
The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at March 31, 2018.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs current debt obligations with fixed interest rates.
The Company manages its interest rate risk for short term borrowings by majorly raising funds at a fixed rate. These exposures are reviewed by appropriate levels of management as and when required.
* Interest rate sensitivity for floating borrowing
The table below illustrates the impact of a 0.5% to 1.50% movement in interest rates on interest expense on loans and borrowings. The risk estimate provided assumes that the changes occur at the reporting date and has been calculated based on risk exposure outstanding as of date. The year end balances are not necessarily representative of the average debt outstanding during the year. This analysis also assumes that all other variables, in particular foreign currency rates, remain constant.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities (when revenue or expense is denominated in a foreign currency), investments & borrowing in foreign currency etc.
The Company manages its foreign currency risk by hedging foreign currency transactions with forward covers and option contracts. These transactions generally relates to purchase of imported newsprint & borrowings in foreign currency.
When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the underlying exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase of newsprint and therefore require a continuous supply of newsprint. Due to the volatility of the price of the newsprint, the Company also entered into various purchase contracts .
Equity price risk
The Companyâs listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Companyâs senior management on a regular basis. The Companyâs Investment Committee approves all equity investment decisions.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for major clients. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10A.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made as per guidelines and within limits approved by Board of Directors. Board of Directors/ Management reviews and update guidelines, time to time as per requirement. The guidelines are set to minimize the concentration of risks and therefore mitigate financial loss through counterpartyâs potential failure to make payments.
Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of Bank overdrafts, Bank loans. 100% of the Companyâs debt will mature in less than one year at March 31, 2018 (March 31, 2017: 100%) based on the carrying value of borrowings reflected in the financial statements.
The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding i.e. investments / Bank limits for Borrowing/ cash accrual from Operation and debt maturing within 12 months can be paid/ rolled over with existing lenders.
The Company had available undrawn committed borrowing facilities of INR 44,735 lacs (March 31, 2017: INR 42,022 lacs).
Collateral
The Company has pledged part of its Investment in Mutual Funds in order to fulfil the collateral requirements for Borrowing. At March 31, 2018 and March 31, 2017, the invested values of the Investment in Mutual Funds pledged were INR 5,800 lacs and INR 8,300 lacs respectively. The counterparties have an obligation to return the securities to the Company and the Company has an obligation to repay the borrowing to the counterparties upon maturity/ Due Date / mutual agreement. There are no other significant terms and conditions associated with the use of collateral. Securities except pledge given against outstanding Bank facilities details is provided in borrowing note.
NOTE 13 : STANDARDS ISSUED BUT NOT YET EFFECTIVE Ind AS 115 Revenue from Contracts with Customers
Ind AS 115 was issued on March 18, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Ind AS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This Standard is effective for accounting periods beginning on or after April 1, 2018.
Either a so called full retrospective application or a modified retrospective application is required for annual periods beginning on or after April 1,2018.
During 2017-18, the Company performed a preliminary assessment of Ind AS 115. The initial application of Ind AS 115 is not expected to have material impact on the Companyâs financial statements.
Amendments to Ind AS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses
The amendments clarify that an entity needs to consider whether tax law restrict the sources of taxable profits against which it may make deductions on the reversal of deductible temporary difference related to unrealized losses. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. This amendment is applicable retrospectively for annual periods beginning on or after April 1, 2018.
During 2017-18, the Company performed a preliminary assessment of this amendment. The application of this amendment is not expected to have a material impact on the Companyâs financial statements.
Ind AS 28 Investments in Associates and Joint Ventures - Clarification that measuring investees at fair value through profit or loss is an investment-by-investment choice
When an investment in an associate or joint venture is held by, or is held indirectly through, a venture capital organisation, or a mutual fund, unit trust and similar entities including investment-linked insurance funds, the entity may elect, in accordance with Ind AS 28, to measure that investment at fair value through profit or loss.
However, it was not clear whether the entity is able to choose between applying the equity method or measuring the investment at fair value for each investment, or whether instead the entity applies the same accounting to all of its investments in associates and joint ventures.
Ind AS 28 has been amended to clarify that a venture capital organisation, or a mutual fund, unit trust and similar entities may elect, at initial recognition, to measure investments in an associate or joint venture at fair value through profit or loss separately for each associate or joint venture.
In addition, Ind AS 28 permits an entity that is not an investment entity to retain the fair value measurement applied by its associates and joint ventures (that are investment entities) when applying the equity method. Therefore, this choice is available, at initial recognition, for each investment entity associate or joint venture.
The amendments are applicable retrospectively for annual periods beginning on or after April 1, 2018.
These amendments are not applicable to the Company
Ind AS 21 Foreign Currency Transactions and Advance Consideration
The amendment clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.
The amendment is applicable for accounting periods beginning on or after April 1, 2018 (retrospective application is permitted).
Since the Companyâs current practice is in line with the amendment, the Company does not expect any effect on its financial statements.
Ind AS 40 Investment Property
The amendment lays down the principle regarding when a Company should transfer asset to, or from, investment property. However, it was not clear whether the evidence of a change in use should be the one specifically provided in the standard. Accordingly, the amendment clarifies that a transfer is made when and only when:
a) There is an actual change of use i.e. an asset meets or ceases to meet the definition of investment property
b) There is evidence of the change in use.
The amendments are applicable for annual periods beginning on or after April 1, 2018.
This amendment is not applicable to the Company.
NOTE 14 : CAPITALIZED EXPENDITURE
During the year, the Company has capitalized the following expenses of revenue nature to the cost of fixed asset/capital work in progress (CWIP). Consequently, expenses disclosed under the respective notes are net of amounts capitalized by the Company.
NOTE 15: SPECIFIED BANK NOTES (SBNS)
Ministry Of Corporate Affairs issued an amendment to Schedule III of the Companies Act, 2013, regarding general instructions for preparation of Balance Sheet, to disclose the details of Specified Bank Notes (SBN) held and transacted during the period 08/1 1/2016 to 30/12/2016.
There has been no movement in the below disclosure for the year ended March 31, 2018
Post demonetization, the management had directed all employees not to accept/ pay using the SBNâs.
Explanation: For the purposes of this clause, the term âSpecified Bank Notesâ(SBN) shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November, 2016.
The aforesaid disclosures of SBNâs have been compiled taking the management stated policy, direct bank confirmation and compilation of pay in slips.
NOTE:- 16 DETAILS OF CSR EXPENDITURE
Pursuant to the applicability of CSR (Corporate Social Responsibility) provisions of the Companies Act, 2013 the Company has made the requisite expenditure towards CSR as per details below :
(a) Gross amount required to be spent by the Company during the year is INR 465 Lacs ( Previous Year INR 395 lacs).
(b) Details of amount spent during the year ended March 31, 2018:
* Included in Donations/ Contribution expenses ** Included in Advertisement and sales promotion expenses
The shortfall in amount spent is related to Swachch Bharat initiative to promote sanitation and the development of the Kund in the Integrated and transformational village development project. The projects are under implementation and would be completed in FY 2018-19
(c) Details of amount spent during the year ended March 31, 2017:
* Included in Donations/ Contribution expenses ** Included in Advertisement and sales promotion expenses
Note 17: The Board of Directors of the Company at its meeting held on October 16, 2017 approved a Scheme of Arrangement u/s 230 to 232 and other applicable provisions of the Companies Act, 2013 between the Company and India Education Services Private Limited (âIESPLâ) (fellow subsidiary Company) and their respective shareholders which provides for demerger of IESPLs business in relation to the educational services to retail consumers i.e. B2C business and transfer and vesting thereof into the Company (Scheme), subject to requisite approval(s). Pending requisite approval(s), the impact of the Scheme is not considered in the financials.
For further details of loans and advances provided to related parties, refer note 34A
NOTE 18.
Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year classification.
Mar 31, 2017
1. Significant accounting judgments, estimates & assumptions
The preparation of the Companyâs financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The areas involving critical estimates or judgements are below: Property, Plant and Equipment
The Company, based on technical assessment and management estimate, depreciates certain assets over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management has estimated, supported by technical assessment, the useful lives of certain plant and machinery as 16 to 21.06 years. These useful lives are higher than those indicated in Schedule II. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
Intangible asset - âHindi Hindustanâ Brand
In the previous year ended March 31, 2016, the Company had acquired Hindi Business Brand (i.e. Hindustan, Hindustan.in, Nandan, Kadambini, Hum Tum and other Hindi publication related trademarks) from its parent company, HT Media Limited. Management is of the
opinion that, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the trademark is expected to generate net cash inflows for the Company. Hence, the Brand is regarded by Management as having an indefinite useful life.
Contingent Liability and commitments
The Company is involved in various litigations. The management of the Company has used its judgment while determining the litigations outcome of which are considered probable and in respect of which provision needs to be created.
Assessment of lease contracts
Significant judgment is required to apply lease accounting rules under Appendix C to Ind-AS 17: determining whether an Arrangement contains a Lease. In assessing the applicability to arrangements entered into by the Company, management has exercised judgment to evaluate the right to use the underlying assets, substance of the transaction including legally enforced arrangements and other significant terms and conditions of the arrangement to conclude whether the arrangements meet the criteria under Appendix C to Ind-AS 17.
Fair value measurements
When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as liquidity risk, credit risk and volatility.
Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax assessments and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the Companies.
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
Further details on taxes are disclosed in Note 14.
Share Based Payment
The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 32.
Defined benefit plans
The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.
Further details about gratuity obligations are given in Note 31.
For Investment Property existing as on April 1, 2015 i.e its date of transition to Ind-AS, the company has used Indian GAAP carrying value as deemed costs.
As at March 31, 2017, March 31, 2016 and April 1, 2015 the fair values of the properties are Rs, 633.00 lacs, Rs, 296.00 lacs and Rs, 36.00 lacs respectively. These valuations are based on valuations performed by an accredited independent valuer. They are specialist in valuing these types of investment properties. A valuation model in accordance with Ind-AS 113 has been applied.
The company has no restrictions on the reliability of its investment properties and there exists contractual obligations of Rs, 19.13 lacs (March 31, 2016 Rs, 12.70 lacs and April 1, 2015-NIL) to purchase the investment property whereas there are no contractual obligation to develop investment property or for repairs and enhancements.
Estimation of Fair Value
The valuation has been determined basis current prices for similar properties in an active market (Level II) . However, where such information is not available, current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences, has been considered to determine the valuation.
I) In the year ended March 31, 2016; the Company had acquired Hindi Business Brand (i.e. Hindustan, Hindustan.in, Nandan, Kadambini, Hum Tum and other Hindi publication related trademarks from its parent company HT Media Limited. Management is of the opinion that, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the Brand is expected to generate net cash inflows for the Company. Hence, the Brand is regarded by Management as having an indefinite useful life.
Intangible assets with indefinite useful lives are tested for impairment annually, or more frequently if the events and circumstances indicate that the carrying value may be impaired. The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable.
The management is of the view that Brand does not have a finite life cycle and accordingly the Brand has been determined to have an indefinite useful life and is not amortized . The Company tests the intangible asset annually for impairment or more frequently if there are indications that intangible asset might be impaired.
The calculations of value in use are most sensitive to the following assumptions:
a. Weighted Average Cost of Capital (WACC) of 14.05%.
b. For arriving at the terminal value, management has considered a growth rate of 3%.
The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
During the year ended March 31, 2017 and March 31, 2016, the company has paid dividend to its shareholders. This has resulted in payment of Dividend Distribution Tax to the taxation authorities. The company believes that Dividend Distribution Tax represents additional payment to taxation authority on behalf of the shareholders. Hence Dividend Distribution Tax paid is charged to equity.
Note I- Buyerâs credit from Yes Bank (Secured)
Outstanding Buyerâs Credit loan from Yes Bank (Secured) was drawn in various tranches from December 14, 2016 till March 7, 2017 @ average Interest Rate of 2.56% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from September 8, 2017 till November 30, 2017. This facility is secured by first Pari Passu charge on all current assets (both present & future).
Note II- Buyerâs credit from Citi Bank (Unsecured)
Outstanding Buyerâs Credit loan from Citi Bank (Unsecured) was drawn in various tranches from July 9, 2015 till January 4, 2016 @ average Interest Rate of 1.37% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from April 4, 2016 till September 30, 2016.
Note III- Buyerâs credit from DBS Bank (Unsecured)
Outstanding Buyerâs Credit loan from DBS Bank (Unsecured) was drawn in various tranches from September 7, 2016 till February 21, 2017 @ average Interest Rate of 2.32% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from June 2, 2017 till November 17, 2017.
Note IV- Buyerâs credit from Deutsche Bank (Unsecured)
Outstanding Buyerâs Credit loan from Deutsche Bank (Unsecured) was drawn in various tranches from January 14, 2016 till March 15, 2016 @ average Interest Rate of 1.74% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from July 12, 2016 till September 9, 2016.
Note V- Vendor financing from Citi Bank (Unsecured)
Outstanding Vendor Financing loan from Citi Bank (Unsecured) was drawn in various tranches from January 6, 2015 till March 23, 2015 @ average Interest Rate of 9.67% p.a. and are due for repayment respective due dates starting from April 6, 2015 till June 20, 2015.
Note VI- Vendor financing from BNP Paribas Bank (Unsecured)
Outstanding Vendor Financing loan from BNP Paribas Bank (Unsecured) was drawn in various tranches from January 9, 2015 till March 31, 2015 @ average Interest Rate of 9.67% p.a. and are due for repayment respective due dates starting from April 7, 2015 till June 24, 2015.
Note VII- Vendor financing from Deutsche Bank (Unsecured)
Outstanding Vendor Financing loan from Deutsche Bank (Unsecured) was drawn in various tranches from January 9, 2015 till March 31, 2015 @ average Interest Rate of 9.68% p.a. and are due for repayment respective due dates starting from April 9, 2015 till August 8, 2015.
Loan covenants
The company has complied with all the loan covenants
Terms and conditions of the above financial liabilities:
- Trade payables are non-interest bearing and are normally settled in the range of 1 to 180 days terms. For explanations on the companyâs credit risk management processes, refer to Note 38.
Foreign exchange forward contracts
While the company entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of foreign currency bonds, borrowings and payables. These contracts are not designated in hedge relationships and are measured at fair value through profit and loss.
NOTE 28 : EARNINGS PER SHARE (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
* Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognized as a liability (including Dividend Distribution Tax thereon) as at March 31.
NOTE 2 : TRANSFER OF MULTI-MEDIA CONTENT MANAGEMENT UNDERTAKING OF THE COMPANY (âMMCM UNDERTAKINGâ) TO HT DIGITAL STREAMS LIMITED
The Board of Directors of the Company at its meetings held on October 26, 2015 and November 19, 2015, on the recommendation of the Audit Committee, had approved the transfer and vesting of the Multi-media Content Management Undertaking of the Company (âMMCM Undertakingâ) to and in HT Digital Streams Limited ( HTDSL), as a âgoing concernâ on a slump exchange basis by way of issue of fully-paid up equity shares of the Transferee Company, to the Company.
The Scheme of Arrangement u/s 391-394 of the Companies Act, 1956 between the Company and HTDSL and their respective shareholders & creditors for transfer and vesting of the Multi-media Content Management Undertaking of the Company (âMMCM Undertakingâ) to and in HTDSL, as going concern on slump exchange basis, with effect from closing hours of March 31, 2016 (âAppointed Dateâ) (âthe Schemeâ), was sanctioned by the Honâble High Court of Judicature at Patna, in terms of the judgments dated November 24, 2016 and order dated December 19, 2016. Consequent upon filing of the judgments/order passed by the Honâble High Court with the Registrar of Companies, Bihar, the Scheme became effective from December 31, 2016 (closing hours) (âEffective Dateâ).
The financial impact of the Scheme was considered in financial statement for the year ended March 31, 2017 as summarized below:
a) HTDSL allotted its 85,87,896 Equity Shares of Rs, 10/each to the Company, which has been recorded as investment in HTDSL at a fair value of Rs, 7,450 lacs. Accordingly, the Company now holds 42.83% of equity share capital of HTDSL.
b) An amount of Rs, 7,727.37 lacs, being difference of purchase consideration (Rs, 7,450.00 lacs) and Book Value of Net Assets (Rs, 277.37 lacs (negative)) transferred to HTDSL, was recorded as Capital Reserve in the books of the Company. The Company has followed the applicable Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and other Generally Accepted Accounting Principles as on the Appointed Date in accordance with the scheme approved by Honâble High Court. This is not similar to the accounting as per applicable Indian Accounting Standards (Ind-AS) prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued there under .However, this was in compliance with Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and other Generally Accepted Accounting Principles as applicable when the scheme was filed before with Honâble High Court and as on the Appointed Date i.e March 31, 2016.
c) The revenues earned and expenses incurred for the period i.e. from the Appointed Date to the Effective Date were transferred to HTDSL on the effective date. Therefore, the financial statements for the year ended March 31, 2017 do not include any revenue, expenses, assets and liabilities of MMCM Undertaking
However, the Statement of Profit and Loss for year ended March 31, 2016 included expenses relatable to MMCM Undertaking of '' 4270.00 lacs (net of tax '' 2,792.24 lacs). Accordingly, the Statement of Profit and Loss for year ended March 31, 2017 are not comparable with corresponding Statement of Profit and Loss for year of previous year ended March 31, 2016.
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service. The Company has formed a Gratuity Trust to which contribution is made based on actuarial valuation done by independent valuer.
The following tables summaries the components of net benefit expense recognized in the Statement of Profit or Loss and the funded status and amounts recognized in the balance sheet for the respective plans:
Gratuity Plan
Changes in the defined benefit obligation and fair value of plan assets as at March 31, 2017 :
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is Rs, NIL (March 31, 2016: Rs, NIL)
III. The Group Company, Firefly e-Ventures Limited has given Employee Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited (HMVL).
A. Details of these plans are given below: Employee Stock Options
A stock option gives an employee, the right to purchase equity shares of Firefly e-Ventures Limited at a fixed price within a specific period of time. The grant price (or strike price) for options granted during the financial year 2009-10 shall be Rs, 10 each per option.
Weighted average fair value of the options outstanding is Rs, 4.82 per option. Since no options have been exercised during the period, thus weighted average share price has not been disclosed.
The Company has availed exemption under Ind-AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options as on transition date have been measured at intrinsic value
The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is Rs, NIL (March 31, 2016: Rs, NIL)
NOTE 3 : COMMITMENTS AND CONTINGENCIES
(a) Leases
Operating lease commitments - Company as lessee
The company has taken various residential, office and godown premises under operating lease agreements. These are generally cancellable leases and are renewable by mutual consent on mutually agreed terms with or without rental escalations.
The company has paid Rs, 642.63 lacs (March 31, 2016: Rs, 968.83 lacs) during the year towards minimum lease payment and infrastructure charges and the same is disclosed as Rent under Note 26.
B. During the current year, the management has received several claims substantially from employees in UP, Jharkhand and Bihar who are either retired or separated from the Company regarding the benefits of Majithia Wage Board recommendations. However, all such claims/ recovery order(s) issued by ALC/ DLC office are generally either stayed by the respective Honâble High Court(s) or are pending before ALC/ DLC.
Based on management assessment and current status of the above matters, the management is confident that no provision is required in the financial statements as on March 31, 2017.
NOTE 4 : RELATED PARTY TRANSACTIONS
i) List of Related Parties and Relationships:-
Name of related parties where control exists whether HT Media Limited (Holding Company) fransacflons twe occ^ed oi- not The Hindustan Times Limited #
Earthstone Holding (Two) Limited ##
Fellow subsidiaries (with whom transactions have Firefly e-Ventures Limited
occured during the year) HT Mobile Solutions Limited
HT Overseas Pte. Ltd.
HT Learning Centers Limited
Associate/ Fellow subsidiary HT Digital Streams Limited (became Associate w.e.f December 31, 2016)
Joint Venture of group company India Education Services Private Limited
Entities which are post employment benefit plans (with HMVL Editorial Employees Gratuity Fund
whom transactions have occurred during the year) ~HMVL Non Editorial & Other Employees Gratuity Fund
Mr. Priyavrat Bhartia
Mr. Shamit Bhartia (appointed as MD of HMVL w.e.f February 4, 2017)
Mr. Ashwani Windlass ( Non-Executive Independent Director)
Key Management Personnel and their relatives (with
, , Mr. Piyush G Mankad ( Non-Executive Independent Director)
whom transactions have occurred during the year) ---1-----
Mr. Shardul S. Shroff ( Non-Executive Independent Director)
Dr. Mukesh Aghi ( Non-Executive Independent Director)
Mr. Benoy Roychowdhury (Whole time Director)
# The Hindustan Times Limited (HTL) does not hold any direct investment in the Company. However, HTLâs subsidiary HT Media Limited holds shares in the Company.
## Earthstone Holding (Two) Limited is the holding Company of The Hindustan Times Limited.
ii) Transactions with related parties
Refer Note 34 A
iii) Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. . This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
iv) Transactions with key management personnel
Refer Note 34 A
NOTE 5 : SEGMENT INFORMATION
The Companyâs operations comprise of only one segment i.e. âPrinting and Publishing of Newspaperâ. The management also reviews and measure the operating results taking the whole business as one segment and accordingly make decision about the resources allocation. In view of the same separate segment information is not required to be given as per the requirement of Ind 108 on âOperating Segmentsâ
The analysis of geographical segment is based on the geographical location of the customers. The Company sells its products mostly within India with insignificant export income and does not have any operations in economic environments with different risks and returns and hence, it has been considered as to be operating in a single geographical segment.
NOTE 6 : HEDGING ACTIVITIES AND DERIVATIVES
Derivatives not designated as hedging instruments
The company uses foreign exchange forward contracts, to manage its foreign currency exposures. These contracts are not designated as cash flow hedges and are entered into for periods consistent with underlying transactions exposure with general tenure of 7 days to 60 months.
NOTE 7 : FAIR VALUES
Set out below, is a comparison by class of the carrying amounts and fair value of the companyâs financial instruments:
The management assessed that cash and cash equivalents, trade receivables, trade payables, current borrowings other current financial assets and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
- The Company has investment in quoted mutual funds being valued at Net Asset value.
-The Company invests in quoted equity shares valued at closing price of stock on recognized stock exchange.
- The Company enters into derivative financial instruments such as foreign exchange forward contracts being valued using valuation techniques, which employs the use of market observable inputs. The company uses Mark to Market Valuation provided by Bank for valuation of these derivative contracts.
- The loans and investment in bonds are evaluated by the company based on parameters such as interest rate, risk factors, risk characteristics and individual credit-worthiness of the counter party. Based on this evaluation, allowances are taken into account for the expected losses.
NOTE 8 A : FAIR VALUE HIERARCHY
The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
-Level 1: Quoted prices for identical instruments in an active market;
-Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and -Level 3: Inputs which are not based on observable market data.
There were no significant changes in the classification and no significant movements between the fair value hierarchy classifications of assets and liabilities during FY 2016-17 and 2015-16.
The Company enters into derivative financial instruments such as foreign exchange forward contracts being valued using valuation techniques, which employs the use of market observable inputs. The company uses Mark to Market provided by Bank for valuation of these derivative contracts.
NOTE 9 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the companyâs operations and to support its operations. The companyâs principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The company also enters into foreign exchange derivative transactions.
The company is exposed to market risk, credit risk and liquidity risk. The companyâs senior management oversees the mitigation of these risks. The companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the companyâs policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the companyâs policy that no trading in foreign exchange derivatives for speculative purposes will be undertaken. The policies for managing each of these risks, which are summarized below:-
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.
The sensitivity analysis in the following sections relate to the position as at March 31, 2017 and March 31, 2016.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at March 31, 2017.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2017 and March 31, 2016.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The companyâs exposure to the risk of changes in market interest rates relates primarily to the companyâs current debt obligations with fixed interest rates.
The Company manages its interest rate risk for short term borrowings by majorly raising funds at a fixed rate and for long term borrowing by selectively using Interest rate swaps, coupon only swap and other derivative instruments to manage its exposure to interest rate movements. These exposures are reviewed by appropriate levels of management as and when required.
Interest rate sensitivity
Since the Companyâs financial liabilities are usually under the fixed rate, the interest rate sensitivity is not disclosed. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the companyâs operating activities (when revenue or expense is denominated in a foreign currency), investments & borrowing in foreign currency etc.
The company manages its foreign currency risk by hedging foreign currency transactions with forward covers and option contracts. These transactions generally relates to purchase of imported newsprint, investment & borrowings in foreign currency.
When a derivative is entered into for the purpose of being a hedge, the company negotiates the terms of those derivatives to match the terms of the underlying exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Commodity price risk
The company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase of newsprint and therefore require a continuous supply of newsprint. Due to the volatility of the price of the newsprint, the Company also entered into various purchase contracts.
The management of company has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.
Commodity price sensitivity
The following table shows the effect of price changes in newsprint and ink:
Equity price risk
The companyâs listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the companyâs senior management on a regular basis. The companyâs Investment Commitee approves all equity investment decisions.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for major clients. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10A.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the companyâs policy. Investments of surplus funds are made as per guidelines and within limits approved by Board of Directors. Board of Directors/ Management reviews and update guidelines, time to time as per requirement. The guidelines are set to minimize the concentration of risks and therefore mitigate financial loss through counterpartyâs potential failure to make payments.
Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of Bank overdrafts, Bank loans. Approximately 100% of the Companyâs debt will mature in less than one year at March 31, 2017 (March 31, 2016: 100%, April 1, 2015: 100%) based on the carrying value of borrowings reflected in the financial statements.
The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding i.e. investments / bank limits for borrowing/ cash accrual from operation and debt maturing within 12 months can be paid/ rolled over with existing lenders.
Collateral
The Company has pledged part of its Investment in Mutual Funds in order to fulfil the collateral requirements for Borrowing. At March 31, 2017, March 31, 2016 and April 1, 2015, the invested values of the Investment in Mutual Funds pledged were Rs, 8,300.00 lacs, Rs, 7,800.00 lacs and Rs, 7,000.00 lacs, respectively. The counterparties have an obligation to return the securities to the company and the company has an obligation to repay the borrowing to the counterparties upon maturity/ due date / mutual agreement. There are no other significant terms and conditions associated with the use of collateral. Securities except pledge given against outstanding Bank facilities details is provided in borrowing note.
NOTE 10 : CAPITAL MANAGEMENT
For the purpose of the companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the companyâs capital management is to maximize the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company monitors capital using a gearing ratio ,which is net debt divided by total capital and net debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2017 and March 31, 2016.
NOTE 11 : STANDARDS ISSUED BUT NOT YET EFFECTIVE
In March 2017, the Ministry of Corporate Affairs issued the companyâs (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind-AS-7, âStatement of cash flowsâ and Ind-AS 102, âShare- based paymentâ. These amendments are in accordance with the recent amendments made by International Accounting standards Board (IASB) to IAS 7, âStatement of cash flowsâ and IFRS 2, âShare- based paymentâ respectively. The amendments are applicable to the Company from April 1, 2017.
Amendment to Ind-AS 7:
The amendment to Ind-AS 7 required the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and noncash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirements. The effect on the financial statements is being evaluated by the Company.
Amendment to Ind-AS 102 :
The amendment to Ind-AS 102 provides specific guidance to measurement of cash settled awards, modification of cash settled awards and awards that include a net settlement feature in respect of withholding taxes.
It clarifies that the fair value of cash settled awards is determined on a basis consistent with that used for equity settled awards. Market based performance conditions and non- vesting conditions are reflected in the âfair valuesâ, but non- market performance conditions and services vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash settled share based payment transaction are modified with the result that it becomes an equity settled share based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement. The effect on the financial statements is being evaluated by the Company.
NOTE 12 : CAPITALIZED EXPENDITURE
During the year, the company has capitalized the following expenses of revenue nature to the cost of fixed asset/capital work in progres (CWIP). Consequently, expenses disclosed under the respective notes are net of amounts capitalized by the company.
NOTE 13 : SPECIFIED BANK NOTES (SBNâs)
Ministry of Corporate Affairs issued an amendment to Schedule III of the Companies Act, 2013, regarding general instructions for preparation of Balance Sheet, to disclose the details of Specified Bank Notes (SBN) held and transacted during the period November 8, 2016 to December 30, 2016.
Explanation: For the purposes of this clause, the term âSpecified Bank Notesâ(SBN) shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.
The aforesaid disclosures of SBNâs have been compiled basis the bank confirmations and compilation of pay in slips. NOTE 44 : DETAILS OF CSR EXPENDITURE
Pursuant to the applicability of CSR (Corporate Social Responsibility) provisions of the Companies Act, 2013 the Company has made the requisite expenditure towards CSR as per details below :
(a) Gross amount required to be spent by the Company during the year is '' 395.00 lacs (Previous Year '' 304.00 lacs).
* Included in Donations/ Contribution expenses ** Included in Advertisement and sales promotion expenses
NOTE 14: FIRST-TIME ADOPTION OF IND-AS
1 These financial statements, for the year ended March 31, 2017, are the first the company has prepared in accordance with Ind-AS. For periods up to and including the year ended March 31, 2016, the company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
Accordingly, the company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31, 2017, together with the comparative period data as at and for the year ended March 31, 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the companyâs opening balance sheet was prepared as at April 1, 2015, the companyâs date of transition to Ind-AS. This note explains the principal adjustments made by the company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2015 and the financial statements as at and for the year ended March 31, 2016.
2 Exemptions and exceptions availed
Set out below are the applicable Ind-AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian GAAP to Ind- AS.
A Ind-AS optional exemptions
I Deemed Cost
- The company has elected to regard the carrying value of Property, Plant & Equipment and intangible assets as per Indian GAAP as its deemed cost at the date of the transition to Ind-AS. This exemption is also used for intangible assets covered by Ind-AS 38.
II Leases
The company has applied the transitional provision in Appendix C of Ind-AS 17 Determining whether an arrangement contains a Lease and has assessed all arrangements based upon the conditions in place as at the date of transition.
III Fair value measurement of financial assets and liabilities
Under Indian GAAP the financial assets and liabilities were being carried at the transaction value.
First-time adopters may apply Ind-AS 109 to day one gain or loss provisions prospectively to transactions occurring on or after the date of transition to Ind-AS. Therefore, unless a first-time adopter elects to apply Ind-AS 109 retrospectively to day one gain or loss transaction, transactions that occurred prior to the date of transition to Ind-AS do not need to be retrospectively restated.
IV Embedded Derivatives
The company has evaluated all its agreements on the basis of conditions that existed at the later of the date it first became a party to the contract and the date of reassessment.
V Business combinations
The Company has used the exemption under Ind-AS 101 at the date of transition to Ind-AS i.e., carrying amounts of assets and liabilities, that are required to be recognized under Ind-AS, is their deemed cost at the date of acquisition. After the date of acquisition, measurement is in accordance with the respective Ind-AS. The Company recognizes all assets and liabilities assumed in a past business combination.
VI Share Based Payment Transactions
The Company has availed exemption under Ind-AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options have been measured at intrinsic value .
B Ind-AS mandatory exemptions Estimates
a) The companyâs estimates in accordance with Ind-AS at the date of transition to Ind-AS are consistent with estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies) apart from the following items where application of Indian GAAP did not require estimation :
- Impairment of financial assets based on expected credit loss model
The estimates used by the company to present these amounts in accordance with Ind-AS reflect conditions as at the transition date and as of March 31, 2016
b) Ind-AS 101 treats the information received after the date of transition to Ind-AS as non-adjusting events. The entity shall not reflect that new information in its opening Ind-AS Balance Sheet (unless the estimates need adjustment for any differences in accounting policies or there is objective evidence that the estimates were in error).
Footnotes to the reconciliation of equity as at April 1, 2015 and March 31, 2016 and profit or loss for the year ended March 31, 2016
1. Derivative instruments
The fair value of forward foreign exchange contracts is recognized under Ind-AS, and was not recognized under Indian GAAP. On the date of transition, impact of Rs, (-)20.09 lacs in opening retained earnings as at April 01, 2015 and Rs, (-)20.34 lacs on retained earnings as at March 31, 2016.
2. Proposed Dividend and tax thereon
Under Indian GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind-AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs, 1,060.01 lacs as at March 31, 2016 (April 1, 2015 - Rs, 1,060.01 lacs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.
3. Remeasurements of post-employment benefit obligations
Both under Indian GAAP and Ind-AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind-AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost is reduced by Rs, 194.75 lacs with a tax impact of Rs, 73.70 lacs and remeasurement gains/ losses on defined benefit plans has been recognized in the OCI net of tax.
4. Agent Commission Paid
Under Indian GAAP, service charges paid on advertisement revenue is deducted from revenue. As per Ind-AS, the same has to be shown under other expenses. Hence service charges amounting to Rs, 247.86 lacs has been reclassified as an expense for the year ended March 31, 2016.
5. Extended credit given
As per Ind-AS if there is a significant lag between when the goods or services are provided and the consideration is received the time value of money should also be taken into account. That is, deferred payments might indicate that there is both a sale and a financing transaction. If there is a financing element it is necessary to discount the consideration to present value in order to arrive at fair value. On the date of transition, impact of Rs, (-)8.34 lacs in opening retained earnings as at April 01, 2015 and Rs, (-)22.80 lacs on retained earnings as at March 31, 2016.
6. Fair value of security deposit
Under Indian GAAP all the security deposits given to the less or are recorded at transaction value. Ind-AS 109 requires financial assets which are classified as amortized cost to be initially measured at fair value and subsequently at amortized cost using the effective interest method (EIR).
7. Straight lining of lease escalation
Indian GAAP mandate straight lining of lease escalation in case of non cancellable leases. Ind-AS 17 does not mandate straight-lining of lease escalation, if they are in line with the expected general inflation compensating the lessor for expected inflationary cost. On the date of transition, impact of Rs, 5.67 lacs in opening retained earnings as at April 01, 2015 and Rs, 9.45 lacs on retained earnings as at March 31, 2016.
8. Circulation Revenue - Gift cost recluses
As per Ind-AS, the gift cost is grouped under deduction from revenue and hence is netted off from circulation revenue. In Indian GAAP the gift cost was accounted for as advertisement and sales promotion expenses. This has resulted in decrease in circulation revenue for year March 31, 2016 by Rs, (-) 267.87 lacs and also reduction in advertisement and sales promotion expenses by the same amount.
9. Cash discount received
As per Ind-AS 1, cash discount received on before time payments were netted off from respective expenses resulting in decrease in expenses by Rs, 9.4 lacs and correspondingly decrease in other income for financial year ended March 31, 2016.
10. Deferred tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.
In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is of Rs, 496.53 lacs (March 31, 2016: Rs, 813.40 lacs).
11. Fair Valuation of Equity Investments
Under the Indian GAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind-AS, these investments are required to be measured at fair value. On the date of transition, impact of Rs, (-) 29.16 lacs in opening retained earnings as at April 01, 2015 and Rs, (-) 3.34 lacs on retained earnings as at March 31, 2016.
12. Statement of cash flows
The transition from Indian GAAP to Ind-AS has not had a material impact on the statement of cash flows.
13. Other comprehensive income
Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit to profit as per Ind-AS. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind-AS.
Mar 31, 2016
1. SEGMENT INFORMATION
The Company is engaged in the business of Printing and Publication of Newspapers and Periodicals. The entire operations are
governed by the same set of risk and returns, hence, the same has been considered as representing a single business segment. The
said treatment is in accordance with the guiding principles enunciated in Accounting Standard -17on ''Segment Reporting''.
The Company sells its products mostly within India with insignificant export income and does not have any operations in economic
environments with different risks and returns and hence, it has been considered as to be operating in a single geographical
segment.
2. GRATUITY (POST EMPLOYMENT BENEFIT PLAN)
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity
on departure at 15 days salary (last drawn salary) for each completed years of service. The Company has formed a Gratuity Trust
to which contribution is made based on actuarial valuation done by independent valuer.
The following table summarizes the components of net benefit expenses recognized in the statement of Profit and Loss and the
funded status and amount recognized in the Balance Sheet for respective plans:
3. LEASES
Rental expenses in respect of operating leases are recognized as an expense in the statement of Profit and Loss, on a
straight-line basis over the lease term.
Operating Lease (for assets taken on Lease):
a) The Company has taken various residential, office and godown premises under operating lease agreements. These are generally
cancellable leases and are renewable by mutual consent on mutually agreed terms with or without rental escalations.
b) Lease payments recognized for the year are Rs. 972.06 Lacs (Previous Year Rs. 941.19 Lacs) and are disclosed as Rent under
Note 25.
c) The future minimum lease payments under non-cancellable operating leases
- Not later than one year is Rs. 51.62 Lacs (Previous Year Rs. 28.89 Lacs)
- Later than one year but not later than five years is Rs. 205.54 Lacs (Previous Year Rs. 115.52 Lacs)
- Later than five years is Rs. 224.51 Lacs (Previous Year Rs. 160.12 Lacs)
4. SHARE BASED COMPENSATION
Disclosures in accordance with the Guidance Note on Accounting for Employee Share-based Payments
The Institute of Chartered Accountants of India has issued a Guidance Note on Accounting for ''Employees Share- based Payments'',
which is applicable to employee share based payment plans. The scheme detailed below is managed and administered, compensation
benefits in respect of the scheme is assessed and accounted by the Ultimate Parent Company, Parent Company and the Group Company.
To have an understanding of the scheme, relevant disclosures are given below.
5. CSR EXPENDITURE
Pursuant to the applicability of CSR (Corporate Social Responsibility) provisions of the Companies Act, 2013, the Company has
made the requisite expenditure towards CSR as per details below:
a) Gross amount required to be spent by the Company during the year is Rs. 304 Lacs (Previous Year Rs. 240 Lacs)
6. DISCONTINUING OPERATIONS
The Board of Directors of the Company at its meetings held on October 26, 2015 and November 19, 2015, on the recommendation of
the Audit Committee, had approved the transfer and vesting of the Multi-media Content Management Undertaking of the Company
(''MMCM Undertaking'') to and in HT Digital Streams Limited (Transferee Company), a wholly-owned subsidiary of HT Media Limited
(holding company), as a ''going concern'' on a slump exchange basis by way of issue of fully-paid up equity shares of the
Transferee Company, to the Company.
The proposed transfer of the MMCM Undertaking to Transferee Company shall be in terms of a Scheme of Arrangement u/s 391-394 of
the Companies Act, 1956 ("Scheme"). During the year, BSE and NSE have given their '' No Objection'' to the Scheme as per Clause
24(f) of the erstwhile Listing Agreement. Further, pursuant to the order of the Hon''ble Patna High Court, meetings of Equity
Shareholders and Unsecured Creditors of the Company were convened, wherein, the Scheme was approved with requisite majority. The
petition seeking sanction of the Scheme has been filed by the Company with the Hon''ble Patna High Court, and same is pending for
hearing.
7. Previous Year''s figures have been regrouped /reclassified Wherever necessary to correspond with those of current year''s
classification.
Mar 31, 2015
1. Corporate Information
Hindustan Media Ventures Limited ("HMVL or the Company") is a Public
Limited Company registered in India & incorporated under the provision
of the Companies Act, 1913. Its shares are listed on Bombay Stock
Exchange (BSE) & National Stock Exchange (NSE).
HT Media Limited ("Holding Company") holds 74.30% of Equity Share
Capital of the Company. The Company is engaged in the business of
publishing ''Hindustan'', a Hindi Daily, and two monthly Hindi magazines
''Nandan'' and ''Kadambani''.
2. Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material aspects with the Accounting Standards notified
under section 133 of the Companies Act 2013, read together with
paragraph 7 of the Companies (Accounts) Rules 2014. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained below.
3. Share capital
(a) Terms/rights attached to equity shares
The Company has only one class of equity shares having par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March, 2015, the amount of per share dividend
proposed as distribution to equity shareholders was Rs. 1.20 (Previous
Year Rs. 1.20).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
(b) Shares reserved for issue under options
For details of share reserved for issue under Employees Stock Option
Plan (ESOP) of the Company, refer note 38.
4. a) The Company had filed a Prospectus with Registrar of Companies,
Bihar and Jharkhand on July 12, 2010, for an Initial Public Offering
(IPO) of 16,265,060 shares aggregating to Rs. 26,999.99 Lacs. The
issue opened for subscription on July 5, 2010 and closed on July 7,
2010. Pursuant to this IPO, 16,265,060 equity shares of Rs. 10 each
were allotted for cash at a premium of Rs. 156 per share. With effect
from July 21,2010 the shares were listed on National Stock Exchange and
Bombay Stock Exchange.
b) Expenses aggregating to Rs. 1,596.82 Lacs incurred by the Company
in relation to said IPO activity (Share issue expenses) were accounted
for as "Miscellaneous Expenditure" (to the extent not written off or
adjusted)". These expenses (net of deferred taxes of Rs. 448.45 Lacs)
have been written-off in an earlier year against the Securities Premium
received from the Initial Public Offer of the equity shares of the
Company.
5. Segment Information
The Company is engaged in the business of Printing and Publication of
Newspapers and Periodicals. The entire operations are governed by the
same set of risk and returns, hence, the same has been considered as
representing a single business segment. The said treatment is in
accordance with the guiding principles enunciated in Accounting
Standard - 17 on ''Segment Reporting''.
The Company sells its products mostly within India with insignificant
export income and does not have any operations in economic environments
with different risks and returns and hence, it has been considered as
to be operating in a single geographical segment.
6. Gratuity (Post Employment Benefit plan)
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of services gets a gratuity on departure
at 15 days salary (last drawn salary) for each completed years of
service. The Company has formed a Gratuity Trust to which contribution
is made based on actuarial valuation done by independent valuer.
7. Names of Related Parties
Name of related parties where control exists whether transactions have
occurred or not
HT Media Limited (Holding Company)
The Hindustan Times Limited #
Earthstone Holding (Two) Limited ##
Fellow Subsidiaries (with whom transactions have occurred during the
year)
Firefly e-Ventures Limited
HT Mobile Solutions Limited
HT Overseas Pte. Ltd.
HT Learning Centers Limited
Topmovies Entertainment Limited
Key Management Personnel and their relatives (with whom Benoy
Roychowdhury (Whole time Director) transactions have occurred during
the year)
# The Hindustan Times Limited (HTL) does not hold any direct investment
in the Company. However, HTL''s subsidiary HT Media Limited holds shares
in the Company.
## Earthstone Holding (Two) Limited is the holding Company of The
Hindustan Times Limited
8. Leases
Rental expenses in respect of operating leases are recognized as an
expense in the statement of Profit and Loss, on a straight-line basis
over the lease term.
Operating Lease (for assets taken on Lease):
a) The Company has taken various residential, office and godown
premises under operating lease agreements. These are generally
cancellable leases and are renewable by mutual consent on mutually
agreed terms with or without rental escalations.
b) Lease payments recognized for the year are Rs. 941.19 Lacs
(Previous Year Rs. 908.96 Lacs) and are disclosed as Rent under Note
25.
c) The future minimum lease payments under non-cancellable operating
leases
* Not later than one year is Rs. 28.89 Lacs (Previous Year Rs. 28.88
Lacs);
* Later than one year but not later than five years is Rs. 115.52 Lacs
(Previous Year Rs. 115.52 Lacs);
* Later than five years is Rs. 160.12 Lacs (Previous Year Rs. 189.00
Lacs).
9. Contingent Liability and other Commitment
a) Claims against company not acknowledged as debts
(Rs. in lacs)
Particulars As at As at
31 March 31 March
2015 2014
a) The Company has filed a petition before the
Hon''ble Patna High Court against an initial claim
for additional contribution of Rs. 73.37 lacs
made by Employees State Insurance Corporation
(ESIC) relating to the years 1989-90 to 1999-00.
The Company has furnished a bank guarantee
amounting to Rs. 12.50 lacs to ESIC. The
Hon''ble High Court had initially stayed the matter
and on 18th July 2012 disposed of the Petition with
the Order of "No Coercive Step shall be taken against
HMVL" with direction to move for ESI Court. Matter
is still pending in Lower Court. There is no further
progress in the matter during the year. 73.37 73.37
b) The Company has filed a petition before the
Hon''ble Patna High Court against the demand of
Rs. 10.07 lacs (including interest) for short
payment of ESI dues pertaining to the years from
2001 to 2005. The Hon''ble High Court had initially
stayed the matter and on 18th July 2012 disposed of
the Petition with the Order of "No Coercive Step shall
be taken against HMVL" with direction to move for ESI
Court. Matter is still pending in Lower Court. There
is no further progress inthe matter during the year. 10.07 10.07
Based on management assessment and current status of the above matters,
the management is confident that no provision is required in the
financial statements as on March 31,2015
(b) Capital Commitment
(Rs. in lacs)
Particulars As at As at
31 March 31 March
2015 2014
Estimated amount of contracts remaining to be
executed on capital account and not 2,112.52 418.88
provided for (net of capital advances)
10. Share Based Compensation
Disclosures in accordance with the Guidance Note on Accounting for
Employee Share-based Payments
The Institute of Chartered Accountants of India has issued a Guidance
Note on Accounting for ''Employees Share-based Payments'', which is
applicable to employee share based payment plans. The scheme detailed
below is managed and administered, compensation benefits in respect of
the scheme is assessed and accounted by the Ultimate Parent Company,
Parent Company and the Group Company. To have an understanding of the
scheme, relevant disclosures are given below.
I. The Hindustan Times Limited (the ultimate Parent Company) and HT
Media Limited (the Parent Company) has given loan to "HT Group
Companies - Employee Stock Option Trust" which in turn has purchased
Equity Shares of Rs. 10/- each of the Company for the purpose of
granting Options under the ''HT Group Companies -Employee Stock Option
Rules'' ("HT ESOP"), to eligible employees of the group.
II. The Group Company, Firefly e-Ventures Limited has given Employee
Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited
(HMVL).
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of Firefly e-Ventures Limited at a fixed price within a specific period
of time. The grant price (or strike price) for options granted during
the financial year 2009-10 shall be Rs. 10 each per option.
III. Pursuant to purchase of Hindi Business, certain employees of HT
Media Limited (the parent company) have become employees of the Company
on continued service basis under HT ESOS -Plan A (Plan A), HT ESOS -
Plan B (Plan B) and HT ESOS - Plan C (Plan C). These employees continue
to hold the Employee Stock Options (ESOPs) of parent company which were
granted to them during their employment with the parent company.
11. CSR Expenditure:
Pursuant to the applicability of CSR (Corporate social responsibility)
provisions of the Companies Act, 2013, the Company has made the
requisite expenditure towards CSR as per details below:
a) Gross amount required to be spent by the Company during the year is
Rs. 240 lacs
12. Previous Year''s figures have been regrouped /reclassed wherever
necessary to correspond with those of current year''s classification.
Mar 31, 2014
1. a) The Company had fled a Prospectus with Registrar of Companies,
Bihar and Jharkhand on July 12, 2010, for an Initial Public Offering
(IPO) of 16,265,060 shares aggregating to Rs26,999.99 Lacs. The issue
opened for subscription on July 5, 2010 and closed on July 7, 2010.
Pursuant to this IPO, 16,265,060 equity shares of Rs10 each were
allotted for cash at a premium of Rs156 per share. With effect from
July 21, 2010 the shares were listed on National Stock Exchange and
Bombay Stock Exchange.
As on March 31, 2014, against the balance of IPO funds of Rs523.03 Lacs
to be utilized as per Prospectus, the actual amount of unutilized IPO
funds were Rs326.20 Lacs (Previous Year Rs2,131.82 Lacs). The
difference being a shortfall of Rs196.83 Lacs between proceeds of the
issue and requirement of funds to be utilized for the objects of the
IPO Issue, will be met through internal accruals.
Unutilized IPO funds of Rs326.20 Lacs as on March 31, 2014 (Previous
Year Rs2,131.82 Lacs), were temporarily invested in debt-based mutual
funds, pending their use for the objects of the issue.
c) Expenses aggregating to Rs1,596.82 Lacs incurred by the Company in
relation to said IPO activity (Share issue expenses) were accounted for
as "Miscellaneous Expenditure" (to the extent not written off or
adjusted)". These expenses (net of deferred taxes of Rs448.45 Lacs)
have been written-off in an earlier year against the Securities Premium
received from the Initial Public Offer of the equity shares of the
Company.
2. SEGMENT INFORMATION
The Company is engaged in the business of Printing and Publication of
Newspapers and Periodicals. The entire operations are governed by the
same set of risk and returns, hence, the same has been considered as
representing a single business segment. The said treatment is in
accordance with the guiding principles enunciated in Accounting
Standard  17 on ''Segment Reporting''.
The Company sells its products mostly within India with insignificant
export income and does not have any operations in economic environments
with different risks and returns and hence, it has been considered as
to be operating in a single geographical segment.
3. GRATUITY (POST EMPLOYMENT BENEFIT PLAN)
The Company has a Defined benefit gratuity plan. Every employee who has
completed five years or more of services gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
For employees other than those transferred to the Company on account of
the business purchase, the scheme is funded with LIC in the form of a
Group Gratuity policy, to which contributions is made based on
actuarial valuation done by independent valuer. For the employees
transferred to the Company on account of business purchase, the Company
has formed a Gratuity Trust to which contribution is made based on
actuarial valuation done by independent valuer.
The following table summarizes the components of net benefit expenses
recognized in the Statement of Profit and Loss and the Funded status and
amount recognized in the Balance Sheet for respective plans:
Amount recognized in the Statement of Profit and Loss
The estimates of future salary increases, considered in actuarial
valuation, take account of infation, seniority, promotion and other
relevant factors on long term basis.
The disclosure of the amount required by paragraph 120 (n) of AS-15:
4. NAMES OF RELATED PARTIES
Name of related parties where control exists whether transactions have
HT Media Limited (Holding Company)
occurred or not. The Hindustan Times Limited (Ultimate Holding
Company)#
Fellow Subsidiaries (whether transactions with them have occurred or
not)
HT Music and Entertainment Company Limited
Firefy e-Ventures Limited
HT Digital Media Holdings Limited
HT Burda Media Limited (ceased to be a fellow subsidiary
w.e.f. 30.09.2013)
HT Mobile Solutions Limited
HT Interactive Media Properties Limited
Go4i.com (Mauritius) Limited
Go4i.com (India) Private Limited
HT Films Limited
White Tide Amusement Limited
HT Education Limited
HT Learning Centers Limited
HT Overseas Pte. Ltd.
HT Global Education
Ed World Private Limited (formerly Peacock Education
Services Private Ltd).
Ivy Talent India Private Limited
Topmovies Entertainment Limited (w.e.f. May 24, 2013)
Companies where common control exists by the ultimate parent company
and the holding company. (whether transactions with them have occurred
or not)
Paxton Trexim Private Limited India Education Service Private Limited
MyParichay Services Private Limited Duke Commerce Limited
Key Management Personnel Benoy Roychowdhury (Whole time Director)
# The Hindustan Times Limited (HTL) does not hold any direct investment
in the Company. However, HTL''s subsidiary HT Media Limited holds shares
in the Company.
5. LEASES
Rental expenses in respect of operating leases are recognized as an
expense in the Statement of Profit and Loss, on a straight-line basis
over the lease term.
Operating Lease (for assets taken on Lease):
a) The Company has taken various residential, office and godown premises
under operating lease agreements. These are generally cancellable
leases and are renewable by mutual consent on mutually agreed terms
with or without rental escalations.
b) Lease payments recognized for the year are Rs908.96 Lacs (Previous
Year Rs802.94 Lacs) and are disclosed as Rent under Note 25.
c) The future minimum lease payments under non-cancellable operating
leases
- Not later than one year is Rs28.88 Lacs (Previous Year Rs6.73 Lacs);
- Later than one year but not later than five years is Rs115.52 Lacs
(Previous Year Rs5.50 Lacs);
- Later than five years is Rs189.00 Lacs (Previous Year Rs91.77 Lacs).
6. CONTINGENT LIABILITY AND OTHER COMMITMENT
a) Claims against company not acknowledged as debts
(Rs in Lacs)
Particulars As at As at
31 March 2014 31 March 2013
a) The Company has fled a petition before
the Hon''ble Patna High Court against an
initial claim for additional contribution
of Rs73.37 Lacs made by Employees State
Insurance Corporation (ESIC) relating to
the years 1989-90 to 1999-00. The Company
Has furnished a bank guarantee 73.37 73.37
amounting to Rs12.50 Lacs to ESIC. The
Hon''ble High Court had initially
stayed the matter and on 18th July 2012
disposed of the Petition with the
Order of "No Coercive Step shall be taken
against HMVL" with direction to move for
ESI Court. Matter is still pending in Lower
Court. There isno further progress in the
matter during the year.
b) The Company has fled a petition before
the Hon''ble Patna High Court against
the demand of Rs10.07 Lacs (including interest) 10.07 10.07
for short payment of ESI dues pertaining
to the years from 2001 to 2005. The Hon''ble High
Court had initially stayed the matter and on 18th
July 2012 disposed of the Petition with the Order
of "No Coercive Step shall be taken against HMVL"
with direction to move for ESI Court. Matter is
still pending in Lower Court. There is no
further progress in the matter during the year.
Based on management assessment and current status of the above matters,
the management is confdent that no provision is required in the
financial statements as on March 31, 2014
7. SHARE BASED COMPENSATION
Disclosures in accordance with the Guidance Note on Accounting for
Employee Share-based Payments
The Institute of Chartered Accountants of India has issued a Guidance
Note on Accounting for ''Employees Share-based Payments'', which is
applicable to employee share based payment plans. The scheme detailed
below is managed and administered, compensation benefits in respect of
the scheme is assessed and accounted by the Ultimate Parent Company,
Parent Company and the Group Company. To have an understanding of the
scheme, relevant disclosures are given below.
I. The Hindustan Times Limited (the ultimate Parent Company) and HT
Media Limited (the Parent Company) has given loan to "HT Group
Companies  Employee Stock Option Trust" which in turn has purchased
Equity Shares of Rs10/- each of the Company for the purpose of granting
Options under the ''HT Group Companies ÂEmployee Stock Option Rules''
("HT ESOP"), to eligible employees of the group.
As no stock options have been granted during the current year and
Previous Year, the disclosures regarding estimated fair value are not
provided.
C. Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of the Company at a fixed price within a specific period of time. The
details of exercise price for stock options outstanding at the end of
the year are as under:
Options granted are exercisable for a maximum period of 14 years after
the scheduled vesting date as per the Scheme.
The Company has accounted for the charge under Intrinsic Value method
relatable to options granted to it''s employees under this scheme. Same
is included in Employee benefit expenses.
Difference between employee compensation cost (calculated using the
fair value of stock options) and the employee compensation cost
(calculated on the intrinsic value of the options) is Rs0.01 Lacs
(Previous Year Rs0.88 Lacs).
II. The Group company, Firefy e-Ventures Limited has given Employee
Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited
(HMVL).
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of Firefy e-Ventures Limited at a fixed price within a specific period of
time. The grant price (or strike price) for options granted during the
financial year 2009-10 shall be Rs10 each per option.
B. Details of stock options existing during the year ended March 31,
2014 are as given below:
Weighted average fair value of the options outstanding is Rs4.82 per
option. Since no options have been exercised during the period, thus
weighted average share price has not been disclosed.
Difference between employee compensation cost (calculated using the
fair value of stock options) and the employee compensation cost
(calculated on the intrinsic value of the options) is Rs0.36 Lacs
(credit) (Previous Year Rs0.69 Lacs). However, these have not been
charged back to the Company by the Group company, hence not accounted
for by the Company.
III. Pursuant to purchase of Hindi Business, certain employees of HT
Media Limited (the parent company) have become employees of the Company
on continued service basis under HT ESOS ÂPlan A (Plan A), HT ESOS Â
Plan B (Plan B) and HT ESOS Â Plan C (Plan C). These employees continue
to hold the Employee Stock Options (ESOPs) of parent company which were
granted to them during their employment with the parent company.
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of HT Media Limited at a fixed price within a specific period of time.
The details of exercise price for stock options outstanding at the end
of the year ended March 31, 2014 are as below:
Options granted are exercisable for a period of 10 years after the
scheduled vesting date of the last tranche of the Options as per the
Scheme.
Weighted average fair value of the options outstanding is:
- Plan A Â Rs53.03
- Plan C Â Rs68.90
Difference between employee compensation cost (calculated using the
fair value of stock options) and the employee compensation cost
(calculated on the intrinsic value of the options) is Rs1.56 Lacs
(credit) which will result into Profit of Rs1.56 Lacs (Previous Year
gain of Rs4.58 Lacs).
Had the fair value method been used to account for these costs by the
Company for various options granted to it''s employees under all the
above schemes , the Profit would have been higher by Rs1.91 Lacs (
Previous Year higher by Rs3.01 Lacs) and adjusted and diluted EPS would
have been Rs15.15 (Previous Year- Rs11.52)
8. In order to achieve minimum 25% public shareholding in the Company
as set out in second proviso to Rule 19(2)(b)(ii) of the Securities
Contracts (Regulations) Rules, 1957, during the current year, HT Media
Limited (Promoter) sold 19,39,027 equity shares of the Company (2.64%)
in the secondary market, by way of ''Offer for Sale of Shares through
the Stock Exchange Mechanism''.
9. Previous Year''s figures have been regrouped/reclassed wherever
necessary to correspond with those of current year''s classification.
Mar 31, 2013
1. Corporate Information
Hindustan Media Ventures Limited ("HMVL or the Company") is a
Public Limited Company registered in India & incorporated under the
provision of the Companies Act, 1913 . Its shares are Listed on Bombay
Stock Exchange (BSE) & National Stock Exchange (NSE).
The Company is a 76.94% subsidiary of HT Media Limited ("Holding
Company"). The Company is engaged in the business of publishing
''Hindustan'', a Hindi Daily, and two monthly Hindi magazines
''Nandan and Kadambani''.
2. Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material aspects with the Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
3. a) The Company had filed a Prospectus with Registrar of Companies,
Bihar and |harkhand on July 12, 2010, for an Initial Public Offering
(IPO) of 16,265,060 shares aggregating to Rs.26,999.99 Lacs. The issue
opened for subscription on July 5, 2010 and closed on July 7, 2010.
Pursuant to this IPO, 16,265,060 equity shares of Rs.10 each were
allotted for cash at a premium of Rs. 156 per share. With effect from
July 21, 2010 the shares were listed on National Stock Exchange and
Bombay Stock Exchange.
As on March 31, 2013, against the balance of IPO funds of Rs.2,328.65
Lacs to be utilized as per Prospectus, the actual amount of unutilized
IPO funds were Rs.2,131.82 Lacs (Previous Year Rs.2,580.67 Lacs). The
difference being a shortfall of Rs. 196.83 Lacs between proceeds of the
issue and requirement of funds to be utilized for the objects of the
IPO Issue, will be met through internal accruals.
Unutilized IPO funds of Rs.2,131.82 Lacs as on 31 March, 2013 (Previous
Year Rs.2,580.67 Lacs), were temporarily invested in debt-based mutual
funds, pending their use for the objects of the issue.
c) Expenses aggregating to Rs.1,596.82 Lacs incurred by the Company in
relation to said IPO activity (Share issue expenses) were accounted for
as "Miscellaneous Expenditure" (to the extent not written off or
adjusted)". These expenses (net of deferred taxes of Rs.448.45 Lacs)
have been written-off in an earlier year against the securities premium
received from the Initial Public Offer of the equity shares of the
Company.
4. SEGMENT INFORMATION
The Company is engaged in the business of Printing and Publication of
Newspapers and Periodicals. The entire operations are governed by the
same set of risk and returns, hence, the same has been considered as
representing a single business segment. The said treatment is in
accordance with the guiding principles enunciated in Accounting
Standard - 17 on ''Segment Reporting''.
The Company sells its products mostly within India with insignificant
export income and does not have any operations in economic environments
with different risks and returns and hence, it has been considered as
to be operating in a single geographical segment.
5. GRATUITY (POST EMPLOYMENT BENEFIT PLAN)
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of services gets a gratuity on departure
at 15 days salary (last drawn salary) for each completed year of
service. For employees other than those transferred to the Company on
account of the business purchase, the scheme is funded with LIC in the
form of a Group Gratuity policy, to which contributions is made based
on actuarial valuation done by independent valuer. For the employees
transferred to the Company on account of business purchase, the company
has formed a Gratuity Trust to which the contributions are made based
on actuarial valuation done by independent valuer.
The following table summarizes the components of net benefit expenses
recognized in the statement of Profit and Loss and the Funded status
and amount recognized in the Balance Sheet for respective plans:
6. NAMES OF RELATED PARTIES
Name of related parties where control exists whether transactions have
occurred or not.
HT Media Limited (Holding Company)
The Hindustan Times Limited (Ultimate Holding Company)
Fellow Subsidiaries
(whether transactions with them have occurred or not)
HT Music and Entertainment Company Limited
Firefly e-Ventures Limited
HT Digital Media Holdings Limited
HT Burda Media Limited
HT Mobile Solutions Limited
HT Interactive Media Properties Limited
Go4i.com (Mauritius) Limited
Go4i.com (India) Private Limited
HT Films Limited
White Tide Amusement Limited
HT Education Limited
HT Learning Centers Limited
HT Overseas Pte. Limited
HT Global Education
Ed World Private Limited, formerly Peacock Education Services Private
Ltd. Ivy Talent India Private Limited (w.e.f. Nov 9, 2012)
Companies where common control exists by the ultimate parent company
and the holding company.
(whether transactions with them have occurred or not)
Paxton Trexim Private Limited
India Education Services Private Limited
My Parichay Services Private Limited
Duke Commerce Limited
Key Management Personnel Benoy Roychowdhury (Whole time Director)
7. LEASES
Rental expenses in respect of operating Leases are recognized as an
expense in the statement of Profit and Loss, on a straight-line basis
over the lease term.
Operating Lease (for assets taken on Lease):
a) The Company has taken various residential, office and godown
premises under operating lease agreements. These are generally
cancellable leases and are renewable by mutual consent on mutually
agreed terms with or without rental escalations.
b) Lease payments recognized for the year are Rs.802.94 Lacs (Previous
Year Rs.721.42 Lacs) and are disclosed as Rent under Note 25.
c) The future minimum lease payments under non-cancellable operating
leases
- Not later than one year is Rs.6.73 Lacs (Previous Year Rs.14.78
Lacs);
- Later than one year but not later than five years is Rs.5.50 Lacs
(Previous Year Rs.71.56 Lacs);
- Later than five years is Rs.91.77 Lacs (Previous Year Rs.89.41
Lacs).
8. Based on the information available with the Company, following a
re the disclosures required under The Micro, Small and M edium
Enterprises Development Act, 2006 (MSMED Act, 2006)
9. SHARE BASED COMPENSATION
Disclosures in accordance with the Guidance Note on Accounting for
Employee Share-based Payments
The Institute of Chartered Accountants of India has issued a Guidance
Note on Accounting for ''Employees Share-based Payments'', which is
applicable to employee share based payment plans. The scheme detailed
below is managed and administered, compensation benefits in respect of
the scheme is assessed and accounted by the Ultimate Parent Company,
Parent Company and the Group Company. To have an understanding of the
scheme, relevant disclosures are given below.
I. The Hindustan Times Limited (the ultimate Parent Company) and HT
Media Limited (the Parent Company) has given loan to "HT Group
Companies - Employee Stock Option Trust" which in turn has purchased
Equity Shares of Rs.10/- each of the Company for the purpose of
granting Options under the ''HT Group Companies -Employee Stock Option
Rules'' ("HT ESOP"), to eligible employees of the group.
Options granted are exercisable for a maximum period of 14 years after
the scheduled vesting date as per the Scheme.
The Company has accounted for the charge under Intrinsic Value method
relatable to options granted to it''s employees under this scheme.
Same is included in Employee benefit expenses.
Difference between employee compensation cost (calculated using the
fair value of stock options) and the employee compensation cost
(calculated on the intrinsic value of the options) is Rs.0.88 Lacs
(Previous Year Rs.9.54 Lacs).
II. The Group company, Firefly e-Ventures Limited has given Employee
Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited
(HMVL).
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of Firefly e-Ventures Limited at a fixed price within a specific period
of time. The grant price (or strike price) for options granted during
the financial year 2009-10 shall be Rs.10 each per option.
10. Previous year''s figures have been regrouped/reclassed wherever
necessary to correspond with those of current year''s classification.
Mar 31, 2012
1. Corporate Information
Hindustan Media Ventures Limited ("HMVL" or "the Company") is a Public
Limited Company registered in India & incorporated under the provision
of the Companies Act, 1913. Its shares are listed on Bombay Stock
Exchange (BSE) & National Stock Exchange (NSE).
The Company is a 76.94% subsidiary of HT Media Limited ("Holding
Company"). The Company is engaged in the business of publishing
'Hindustan', a Hindi Daily, and two monthly Hindi magazines 'Nandan and
Kadambani'.
2. Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material aspects with the Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year, except for the
change in accounting policy explained below.
a) Terms/rights attached to equity shares
The Company has only one class of equity shares having par value of Rs.10
per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March 2012, the amount of per share dividend
proposed as distributions to equity shareholders was Rs.1.20 (previous
year Rs.1).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
b) Shares held by holding/ ultimate holding company and/ or their
subsidiaries/ associates
Out of the equity shares issued by the Company, shares held by its
holding company and subsidiary of holding company are as below:
3. a) The Company had filed a Prospectus with Registrar of Companies,
Bihar and Jharkhand on July 12, 2010, for an Initial Public Offering
(IPO) of 16,265,060 shares aggregating to Rs.26,999.99 lacs. The issue
opened for subscription on July 5, 2010 and closed on July 7, 2010.
Pursuant to this IPO, 16,265,060 equity shares of Rs.10 each were
allotted for cash at a premium of Rs.156 per share. With effect from July
21, 2010 the shares were listed on National Stock Exchange and Bombay
Stock Exchange.
As on March 31, 2012, against the balance of IPO funds of Rs.2,777.49
lacs to be utilized as per Prospectus, the actual amount of unutilized
IPO funds were Rs.2,580.67 lacs (Previous year Rs.7,000.83 lacs). The
difference being a shortfall of Rs.196.83 lacs between proceeds of the
issue and requirement of funds to be utilized for the objects of the
IPO Issue, will be met through internal accruals.
Unutilized IPO funds of Rs.2,580.67 lacs as on March 31, 2012, were
temporarily invested in debt-based mutual funds, pending their use for
the objects of the issue.
c) As on March 31, 2011, expenses aggregating to Rs.1,596.82 lacs
incurred by the Company in relation to said IPO activity (Share issue
expenses) were accounted for as "Miscellaneous Expenditure (to the
extent not written off or adjusted)". These expenses (net of deferred
taxes of Rs.448.45 lacs) have been written-off against the securities
premium received from the Initial Public Offer of the equity shares of
the Company.
4. Segment Information
The Company is engaged in the business of Printing and Publication of
Newspapers and Periodicals. The entire operations are governed by the
same set of risk and returns, hence, the same has been considered as
representing a single business segment. The said treatment is in
accordance with the guiding principles enunciated in Accounting
Standard - 17 on 'Segment Reporting'.
The Company sells its products mostly within India with insignificant
export income and does not have any operations in economic environments
with different risks and returns and hence, it has been considered as
to be operating in a single geographical segment.
5. Gratuity (Post Employment Benefit plan)
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of services gets a gratuity on departure
at 15 days salary (last drawn salary) for each completed year of
service. For employees other than those transferred to the Company on
account of the business purchase, the scheme is funded with LIC in the
form of a Group Gratuity policy, to which contributions is made based
on actuarial valuation done by independent valuer. For the employees
transferred to the Company on account of business purchase, the parent
company has formed a gratuity trust to which the contributions are
made.
The following table summarizes the components of net benefit expenses
recognized in the Statement of Profit and Loss and the Funded status
and amount recognized in the Balance Sheet for respective plans:
6. Leases
Rental expenses in respect of operating leases are recognized as an
expense in the Profit and Loss Account, on a straight-line basis over
the lease term.
Operating Lease (for assets taken on Lease):
a) The Company has taken various residential, office and godown
premises under operating lease agreements. These are generally
cancellable leases and are renewable by mutual con- sent on mutually
agreed terms with or without rental escalations.
b) Lease payments recognized for the year are Rs.721.42 lacs (Previous
year Rs.695.99 lacs) and are disclosed as Rent under Note 25.
c) The future minimum lease payments under non-cancellable operating
leases
- Not later than one year is Rs.14.78 (Previous year Rs.0.84 lac);
- Later than one year but not later than five years is Rs.71.56 lacs
(Previous year Rs.5.31 lacs);
- Later than five years is Rs.89.41 lacs (Previous year Rs.90.50 lacs).
7. Contingent Liability and other Commitment
a) Claims against Company not acknowledged as debts
(Rs.in lacs)
Particulars As at March As at March
31, 2012 31, 2010
a) The Company has filed a
petition before the Hon'ble Patna 73.37 73.37
High Court against an initial
claim for additional contribu-
tion of Rs.73.37 lacs made by
Employees State Insurance Cor-
poration (ESIC) relating to the
years 1989-90 to 1999-00.
The Company has furnished a
bank guarantee amounting to
Rs.12.50 lacs to ESIC and the
Hon'ble High Court has stayed
the matter. There is no
further progress in the
matter during
last one year.
b) The Company has filed a
petition before the Hon'ble
Patna 10.07 10.07
High Court against the demand
of Rs.10.07 lacs (including
interest) for short payment of
ESI dues pertaining to the
years from 2001 to 2005. The
Hon'ble Patna High Court has
stayed the matter. There is no
further progress in the matter
during last one year.
There are few legal cases in relation to labor relations for which
amount is not ascertainable at this point of time.
Based on management assessment and current status of the case, the
management is confident that provision is not required to be provided
for in the financial statement as on March 31, 2012
b) Bank guarantees issued by Company's bankers on behalf of a fellow
subsidiary Nil (Previous year Rs.28.03 lacs)
8. Share-based Compensation
Disclosures in accordance with the Guidance Note on Accounting for
Employee Share-based Payments
The Institute of Chartered Accountants of India has issued a Guidance
Note on Accounting for 'Employees Share-based Payments', which is
applicable to employee share based payment plans. The scheme detailed
below is managed and administered, compensation benefits in respect of
the scheme is assessed and accounted by the Ultimate Parent Company,
Parent Company and the Group Company. To have an understanding of the
scheme, relevant disclosures are given below.
I. The Hindustan Times Limited (the ultimate Parent Company) and HT
Media Limited (the Parent Company) has given loan to "HT Group
Companies - Employee Stock Option Trust" which in turn has purchased
Equity Shares of Rs.10/- each of the Company for the purpose of granting
Options under the 'HT Group Companies -Employee Stock Option Rules'
("HT ESOP"), to eligible employees of the group.
C. Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of the Company at a fixed price within a specific period of time. The
details of exercise price for stock options outstanding at the end of
the year are as under:
Options granted are exercisable for a maximum period of 14 years after
the scheduled vesting date as per the Scheme.
The Company has accounted for the charge under Intrinsic Value method
relatable to options granted to it's employees under this scheme. Same
is included in Employee benefit expenses.
Difference between employee compensation cost (calculated using the
intrinsic value of stock options) and the employee compensation cost
(calculated on the fair value of the options) is Rs.9.54 lacs (Previous
year Rs.7.24 lacs).
II. The Group Company, Firefly e-Ventures Limited has given Employee
Stock Options (ESOPs) to employees of Hindustan Media Ventures Limited
(HMVL).
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of Firefly e-Ventures Limited at a fixed price within a specific period
of time. The grant price (or strike price) for options granted during
the financial year 2009-10 shall be Rs.10 each per option
Difference between employee compensation cost (calculated using the
intrinsic value of stock options) and the employee compensation cost
(calculated on the fair value of the options) is Rs.4.11 lacs (Previous
Year Rs.3.43 lacs). However, these have not been charged back to the
Company by the Group Company, hence not accounted for by the Company.
III. Pursuant to purchase of Hindi Business, certain employees of HT
Media Limited (the parent Company) have become employees of the Company
on continued service basis under HT ESOS -Plan A (Plan A), HT ESOS -
Plan B (Plan B) and HT ESOS - Plan C (Plan C). These employees continue
to hold the Employee Stock Options (ESOPs) of parent Company which were
granted to them during their employment with the parent Company.
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of HT Media Limited at a fixed price within a specific period of time.
9. Previous year figures
Till the year ended March 31, 2011, the Company was using pre-revised
Schedule VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended March
31, 2012, the revised Schedule VI notified under the Companies Act,
1956, has become applicable to the Company. The Company has
reclassified previous year figures to conform to this year's
classification.
Mar 31, 2011
1. Pursuant to Business Purchase Agreement dated November 16, 2009,
executed with HT Media Limited (the Parent Company), the Company during
the previous year, with effect from December 1, 2009 purchased the Hindi
Business undertaking comprising of "Hindustan" (Hindi news daily),
"Nandan" & "Kadambini" (Hindi magazines) and its related facilities
(the Hindi Business) from the Parent Company, on slump sale and going
concern basis for a lump sum consideration of Rs. 14,318.27 lacs
comprising net fixed assets (including Capital work in progress and
capital advances) of Rs. 12,534.26 lacs and net working capital of Rs.
1,784.01 lacs. The acquisition cost of the individual fixed assets was
recognised based on the valuation carried out by an independent expert.
As a result, Capital Reserve of Rs. 237.91 lacs being difference
between the aggregate value of assets as per valuation report and
consideration towards the fixed assets paid by the Company, was
recognized in the previous year.
Due to above, the results for the current year are not strictly
comparable with results of preceding financial year
2. a) The Company had filed a Prospectus with Registrar of Companies,
Bihar and Jharkhand on July 12, 2010, for an Initial Public Offering
(IPO) of 16,265,060 shares aggregating to Rs. 26,999.99 lacs. The issue
opened for subscription on July 5, 2010 and closed on July 7, 2010.
Pursuant to this IPO, 16,265,060 equity shares of Rs. 10 each were
allotted for cash at a premium of Rs. 156 per share. With effect from
July 21, 2010 the shares were listed on National Stock Exchange and
Bombay Stock Exchange.
b) Utilization of IPO funds:
The actual amount of unutilized IPO funds as on March 31, 2011 was Rs.
7,000.83 lacs. The difference being a shortfall of Rs. 196.83 lacs
between proceeds of the issue and requirement of funds to be utilized
for the objects of the IPO Issue, will be met through internal
accruals.
Unutilized IPO funds of Rs. 7,000.83 lacs as on March 31, 2011, were
temporarily invested in debt-based mutual funds, pending their use for
the objects of the issue.
c) Expenses aggregating to Rs. 1,596.82 lacs incurred by the company in
relation to said IPO activity (Share issue expenses) were accounted for
as ÃMiscellaneous Expenditure" (to the extent not written off or
adjusted)". These expenses (net of deferred taxes of Rs. 448.45 lacs)
have been written-off against the securities premium received from the
Initial Public Offer of the equity shares of the Company.
3. Segment Information
The Company is engaged in the business of Printing and Publication of
Newspapers and Periodicals. The entire operations are governed by the
same set of risk and returns, hence, the same has been considered as
representing a single primary segment. The said treatment is in
accordance with the guiding principles enunciated in Accounting
Standard à 17 on Segment Reporting.
The Company sells its products mostly within India with insignificant
export income and does not have any operations in economic environments with
different risks and returns and hence, it has been considered as to be
operating in a single geographical segment.
4. Gratuity (Post Employment Benefit plan)
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of services gets a gratuity on departure
at 15 days salary (last drawn salary) for each completed year of
service. For employees other than those transferred to the Company on
account of the business purchase, the scheme is funded with LIC in the
form of a Group Gratuity policy, to which contributions is made based
on actuarial valuation done by independent valuer. For the employees
transferred to the Company on account of business purchase, the parent
company has formed a gratuity trust to which the contributions are
made.
The following table summarizes the components of net benefit expenses
recognized in the Profit and Loss Account and the Funded status and
amount recognized in the Balance Sheet for respective plans:
The overall expected rate of return on assets is determined based on
the market prices prevailing on that date, applicable to the period
over which the obligation is to be settled. There has been significant
change in expected rate of return on assets due to the improved stock
market scenario.
The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors on long term basis.
The disclosure of the amount required by paragraph 120 (n) of AS-15
need not to be given as the Company has adopted the standard with
effect from financial year 2008-2009.
5. Names of Related Parties
Name of related parties where
control exists whether
transactions HT Media Limited (Parent Company)
have occurred or not The Hindustan Times Limited
(Ultimate Parent Company)
Names of other related parties
(whether transactions with
them have occurred or not):
Fellow Subsidiaries (whether
transactions with them have HT Music and Entertainment
Company Limited
occurred or not)
Firefly e-Ventures Limited
HT Digital Media Holdings Limited
HT Burda Media Limited
HT Mobile Solutions Limited
HT Overseas Pte. Ltd.(w.e.f.
September 20, 2010)
Shradhanjali Investment &
Trading Co. Limited
HTL Investment and Trading
Company Limited
HT Interactive Media Properties
Limited
Go4i.com (Mauritius) Limited
Go4i.com (India) Private Limited
HT Films Limited
White Tide Amusement Limited
HT Education Limited
HT Learning Centres Limited
Group companies where common
control exists (whether Paxton Trexim Private Limited
transactions with them have
occurred or not) Metropolitan Media Company Private
Limited
Key Management Personnel Shri S.M.Agarwal (Whole-time Director)
(from 01.04.2009 to 22.02.2010)
Shri Benoy Roychowdhury
(Whole-time Director)
(w.e.f 23.02.2010)
10. Leases
Rental expenses in respect of operating leases are recognized as an
expense in the Profit and Loss Account, on a straight-line basis over
the lease term.
Operating Lease (for assets taken on Lease):
a) The Company has taken various residential, office and godown
premises under operating lease agreements. These are generally
cancellable leases and are renewable by mutual consent on mutually
agreed terms with or without rental escalations.
b) Lease payments recognized for the year are Rs. 695.99 lacs (Previous
year Rs. 214.97 lacs) and are disclosed as Rent under schedule 19.
c) The future minimum lease payments under non-cancellable operating
leases
- Not later than one year is Rs. 0.84 lac (Previous year Rs. 0.84 lac);
- Later than one year but not later than five years is Rs. 5.31 lacs
(Previous year Rs. 5.07 lacs);
- Later than five years is Rs. 90.50 lacs (Previous year Rs. 91.59
lacs).
11. Contingent Liabilities not provided for
(a) Claim against company not acknowledged as debts:
(Rs. in lacs)
As at As at
March 31, March 31,
2011 2010
The Company has filed a petition
before the Honble 73.37 73.37
Patna High Court against an initial
claim for additional
contribution of Rs. 73.37 lacs made
by Employees State
Insurance Corporation (ESIC)
relating to the years
1989-90 to 1999-2000.
The Company has furnished a
bank guarantee amounting to Rs. 12.50
lacs to ESIC
and the Honble High Court has stayed
the matter.
There is no further progress in the
matter during the
year.
The Company has filed a petition
before the Honble 10.07 10.07
Patna High Court against the
demand of Rs. 10.07 lacs
(including interest) for short
payment of ESI dues
pertaining to the years from 2001
to 2005. The Honble Patna High
Court has stayed the matter. There
is no further progress in the
matter during the year.
Total 83.44 83.44
There are few legal cases in relation to labor relations for which
amount is not ascertainable at this point of time.
On the basis of current status of individual cases and as per legal
opinion taken by the Company, discussions with the solicitors, etc. the
Company believes that there is fair chance of decisions in its favour
in respect of the above cases and hence no provision is considered
necessary against the same.
(b) Bank guarrantees issued by Companys bankers on behalf of a fellow
subsidiary Rs. 28.03 lacs (Previous year Nil)
19. Share Based Compensation
Disclosures in accordance with the Guidance Note on Accounting for
Employee Share-based Payments
The Institute of Chartered Accountants of India has issued a Guidance
Note on Accounting for Employees Share-based Payments, which is
applicable to employee share based payment plans. The scheme detailed
below is managed and administered, compensation benefits in respect of
the scheme is assessed and accounted by the Ultimate Parent Company,
Parent Company and the Group Company and there is no cross charge to
the Company for obligation towards expenses. Accordingly, the Company
is of the opinion that there is no further accounting required.
However, to have an understanding of the scheme, relevant disclosures
are given below.
I. The Hindustan Times Limited (the Ultimate Parent Company) and HT
Media Limited (the Parent Company) has given loan to ÃHT Group
Companies à Employee Stock Option Trust" which in turn has purchased
37,338 Equity Shares of Rs. 10/- each of the Company for the purpose of
granting Options under the HT Group Companies ÃEmployee Stock Option
Rules (ÃHT ESOP"), to eligible employees of the group. On these
purchased shares, the trust has also received 238,964 shares out of the
bonus shares issued by the Company on February 21, 2010.
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of Firefly e-Ventures Limited at a fixed price within a specific period
of time. The grant price (or strike price) for options granted during
the financial year 2009-10 shall be Rs. 10 each per option
Difference between employee compensation cost (calculated using the
intrinsic value of stock options) and the employee compensation cost
(calculated on the fair value of the options) is Rs. 21.35 lacs
(Previous year Rs. 2.30 lacs). However, these have not been charged
back to the Company by the Group Company, hence not accounted for by
the Company.
III.Pursuant to purchase of Hindi Business, certain employees of HT
Media Limited (the Parent Company) have become employees of the Company
on continued service basis under HT ESOS - Plan A (Plan A), HT ESOS -
Plan B (Plan B) and HT ESOS - Plan C (Plan C). These employees continue
to hold the Employee Stock Options (ESOPs) of Parent Company which were
granted to them during their employment with the Parent Company.
A. Details of these plans are given below:
Employee Stock Options
A stock option gives an employee, the right to purchase equity shares
of HT Media Limited at a fixed price within a specific period of time.
Weighted average fair value of the options outstanding is:
-Plan A Ã Rs. 50.05
-Plan C Ã Rs. 68.90
Since no option has been exercised during the year, thus weighted
average share price has not been disclosed.
The estimated fair value of each stock option granted on each date was
made using the Black-Scholes option pricing model with the following
assumptions:
Difference between employee compensation cost (calculated using the
intrinsic value of stock options) and the employee compensation cost
(calculated on the fair value of the options) is Rs. 29.88 lacs
(Previous year Rs. 26.48 lacs). However, these have not been charged
back to the Company by the Parent Company, hence not accounted for by
the Company.
20. Prior Period item in the previous year represents provision for
gratuity liability relating to earlier years to the extent of Rs. 99.19
lacs which has been recognized in the FY 2009-10.
21. During the previous year, the Company has amended its Capital
Clause of Memorandum of Association, detailed as below:- - Amendment
vide resolution dated September 29, 2009
Authorized Equity Share Capital of Rs. 1,700 lacs divided into 170 lacs
number of equity shares of Rs. 10 each was converted into two class of
shares namely à Class A" 150 lacs Equity Shares of Rs. 10 each and
ÃClass B" 20 lacs Equity Shares of Rs. 10 each with differential voting
rights as to voting and/or dividend.
22. Previous Year Comparatives
Previous year figures have been regrouped/ rearranged wherever
considered necessary.
Mar 31, 2010
1. Nature of operations
Hindustan Media Ventures Limited ("HMVL or the Company*) Is a 98 85%
subsidiary of HT Media Limited (Parent Company) Till Novomber 30.
2009. it was engaged in was business of porting of newspapers on behalf
of its parent company.
With effect from December 1. 2009. the Company has purchased the *Hindi
Business Undertaking* comprising of Hindustan, the Hindi Daily,
Nandan and Kadambani. Hindi magazines on a slump sale basis from its
parent company.
2. Pursuant to Business Purchase Agreement dated November 16.2009.
executed with HT Media Limited (the Parent Company), the Company has
with effect from December 1. 2009 purchased the Hindi Business
undertaking comprising of "Hindustan" (Hindi news daily), "Nandan" &
"Kadambini" (Hindi magazines) and its related facilities (the Hindi
Business) from the Parent Company, on slump sale and going concern
basis for a lump sum consideration of Rs.14,316.27 lacs comprising net
fixed assets of Rs.12.534.26 lacs and net working capital of Rs
1,784.01 lacs. The acquisition cost of the individual fixed assets has
been recognised based on the valuation carried out by an independent
expert Accordingly a capital reserve of Rs 237.91 lacs has been
recognised, being difference between the aggregate value of assets as
per valuation report and consideraton towards the fixed assets paid by
the Company,
3. Segment Information
The Company is engaged in the business of Printing and Publication of
Newspapers and Periodicats. The entire operations are governed by the
same set of risk and returns, hence, the same has been considered as
representing a single primary segment. The said treatment is in
accordance with the guiding principles. enunciated in Accounting
Standard - 17 on Segment Reporting.
The Company setts its products mostly within India witn insignificant
export income and does not have any operations in economic environments
with different risks and returns, hence, it has been considered as
operating in a single geographical segment.
4. Gratuity (Post Employment Benefit plan)
The Company has a defined benefit gratuity plan, Every employee who has
completed five years or more of services gets a gratuity on departure
at 15 days salary (last drawn salary) for each compiled year of
service. For the employees of erstwhile HMVL the scheme is funded with
LIC in the form of a Group Gratuty policy. to which contributions a
made based on actuarial valuation done by independent valuer and for
the employees transferred to HMVL on account of business purchase the
parent company has formed a gratuity trust to which contributions were
made.
Following table summarizes the components of net benefit expenses
recognized in the Profit and Loss Account and the Funded status and
amount recognized in the Balance Sneet tor respective plans:
5. Names of Related Parties
Name of related parties where control exists HT Media Limited (Parent
Company)
whether transactions have occurred or not The Hindustan Times
Limited (Ultimate
Parent Company)
Follow Subsidiaries HT Music and
Entertainment Company
Limited
(whether transactions with them have
occurred Firefly e-Ventures
Limited
or not) HT Digital Media
Holdings Limited
HT Burda Media Limited
HT Mobile Solutions
Limited
Shradhanjali investment
& Trading Co. Limited
HTL Investment and
Trading Company Limited
HT Interactive Media
Properties Limited
Go4i.com (Mauritius)
Limited
Go41com (India) Private
Limited
HT Films Limited
White Tide Amusement
Limited
HT Education Limited
(formerly Live Newscast
Limited)
HT learning Centres
Limited
Group companies where common control exists Paxion 7rexim Private
Limited
(whether transactions with them have
occurred or not TVML Limited
Metropolitan Media
Company Private Limited
Duke Commerce Limited
Key Management Personnel Shri S. M. Agarwal
(Whole-time Director)
(from 1.04,2009 to
22.02.2010)
Shri Benoy Roychowdhury
(Whole time Director)
(from 23.02 2010)
6, Leases
Rental expenses in respect of operating leases are recognized as an
expense in the Profit and Loss Account, on a straight-line basis over
the lease term.
Operating Lease (tor assets taken on Lease):
a) The Company has taken various residential, office and godown
premises under operating tease agreements. These are generally
cancellable leases and are renewable by mutual consent on mutually
agreed terms with or without rental escalations.
b) Lease payments recognized for the year are Rs 214.97 lacs (Previous
year Rs 5.07 lacs) and are disclosed as Rent under schedule 19.
c) The future minimum lease payments under non cancellable operating
leases:
- Not later than one year is Rs. 26.89 lacs (Previous year Rs. Nil);
- Later than one year but not later than five years is Rs. 116.22 lacs
(Previous year Rs. Nil):
- Later than five years is Rs. 336.90 lacs (Previous year Rs. Nil).
7. Contingent Liabilities not provided for
(Rs. in lacs)
As at As at
March 31, 2010 March 31. 2009
Claim against company not
acknowledged as debts:
The Company has filed a petition
before the Honble 73.37 73.37
Patna High Court against an
initial claim for additional
contribution of Rs.73 37 lacs
made by Employees State
Insurance Corporation (ESIC)
relating to the years
1989-90 to 1999-00. The Company
has furnished a bank guarantee
amounting to Rs 12 50 lacs to ESIC
and the Honble High Court has
stayed the matter.
The Company has Media petition
before the Honble 10.07 -
Patna High Court against the
demand of Rs 10. 07 lacs (Including
interest) for short payment of
ESI dues pertaining to the
years from 2001 to 2005.
The Honble Patna High Court has
stayed the matter.
Total 83.44 73.37
There are few legal cases in relation to labour relations for which
amount is not ascertainable at ft* point or time.
On the basis of current status of individual cases and as per legal
opinion taken by the Company, discussions with the solicitors. etc. the
Company believes that there is lair chance of decisions m lbs favour in
respect of above cases and hence no provision is considered necessary
against the same.
8. Prior period item represents prevision for gratuity liability
relating to earlier years to the extent of Rs. 99.19 lacs (Previous
year - Rs. Nil) which has been recognised during the currant year
9 Previous year comparatives
The figures of previous year were audited by a firm of Chartered
Accountants other than S.R. Batiblo & Co.
Previous years figures have been regrouped / rearranged where necessary
to conform to this year classification.
Mar 31, 2009
1. During the year ended March 31,2005, the Company acquired the
printing undertaking at New Delhi from its holding company namely The
Hindustan Times Limited (HTL).The writ petition filed by the ex
-workmen of HTL challenging the transfer of business was quashed by the
Honble Delhi High Court on May 9,2006. Thereafter, the ex-workmen of
HTL raised the industrial dispute before Delhi Government, who referred
the dispute to Industrial Tribunal-I, Karkardooma Courts, New Delhi
(Tribunal). During the course of the proceedings before Tribunal, the
ex-workmen moved application for interim relief. The Tribunal vide its
order dated March 8,2007, granted interim relief to the ex-workmen of
HTL to the extent of 50% of last drawn wages from the date of such
order till the disposal of the matter
However, HTL challenged the said order before Honble Delhi High Court
in a Writ Petition, wherein the Honble Court modified the order of the
Tribunal to the extent that the amount equivalent to 50% so received by
ex-workmen will be set off against their retrenchment compensation (not
encashed by the above ex-workmen till date), in the event of HTL
succeeding in the writ petition. The Honble Court further clarified
that payment will be made only from date of the High Court order (i.e.
March 23,2007) till the disposal of writ petition and it further stayed
the order and proceedings pending before the Tribunal.
The said writ stands disposed of by Delhi High Court vide order dated
16.01.2009 by holding that it was agreed between the parties to make
the payment to ex-workmen till the amount of their Retrenchment
Compensation is exhausted. The stay on the proceedings before the
Industrial Tribunal was also vacated by High Court and accordingly
proceedings before the Industrial Tribunal has re-started.
2. Segment Information
Identification of Segments: Primary Segment
Business Segment
The Company is presently engaged in the business of Printing and
Publication of Newspapers & Periodicals and in the business of radio
broadcast and all other related activities through its Radio channels
operating under brand name Fever 104 in India. Accordingly the
Company has organised its operations into two major businesses:
"Printing and Publishing of Newspapers and Periodicals" and "Radio
Broadcast".
Secondary Segment
Geographical Segments
The Companys operations are mostly within India and do not have
operations in economic environments with different risks and returns.
Hence, it is considered operating in single geographical segment.
3. Merger of Radio business
The Board of Directors of the Company at its meeting held on November
28,2008 approved a Scheme of Arrangement and Restructuring u/s 391 -394
read with Sections 100-104 of the Companies Act, 1956 between the HT
Music and Entertainment Company Limited ("Demerged Company") and the
Company ("Resulting Company") (hereinafter referred to as "the
Scheme").
The Scheme, inter-alia, provides for the following:
[A] Upon the Scheme coming into effect and with effect from Appointed
Date-1 i.e. 30th September, 2008 (closing business hours).
I. Reduction of equity share capital of the Demerged Company, by
reducing face value of equity shares from Rs. 10 to Re.1 by cancelling
Rs.9 per equity share.
II. Reduction of preference share capital of the Demerged Company, by
reducing face value of preference shares from Rs.100 to Rs.62 by
cancelling Rs.38 per preference share.
III. The loss of Rs. 70,50,00,000 on reduction of paid-up value of
Equity and Preference Share Capital in Demerged Company held by
Resulting Company as contemplated in AI & AII above shall be adjusted
against Securities Premium Account.
[B] Upon the Scheme coming into effect and with effect from Appointed
Date-2 i.e. 1s January, 2009 (opening business hours):
I. Demerger of Radio Business of the Demerged Company and transfer and
vesting thereof, as a going concern into the Company.
II. Reduction of issued, subscribed and paid up equity share capital
of HT Music by Rs. 1,00,00,000 proportionately amongst the equity
shareholders from Rs.2,00,00,000 divided into 2,00,00,000 equity shares
of Re.1 each to Rs.1,00,00,000 divided into 1,00,00,000 equity shares
of Re.1 each.
III. Cancellation of the entire issued, subscribed and paid-up
Preference Share Capital of Rs.93,00,00,000.
IV. The loss of Rs.94,00,00,000 on reduction of paid-up value of Equity
and Preference Share Capital in Demerged Company held by HT Media as
contemplated in BII & B III above shall be adjusted against Securities
Premium Account.
The Equity Shareholders, Secured and Unsecured Creditors of the
Company, at their respective meetings held on 28th January, 2009 in
terms of the Order made on 19th December, 2008 by the Honble Delhi
High Court, approved the Scheme. Thereafter, the Scheme was sanctioned
by the Honble Delhi High Court in terms of the Order passed on 19th
March, 2009. Consequent upon approval of the Ministry of Information
and Broadcasting for demerger of Radio Business of the Demerged Company
and transfer and vesting thereof into the Company (as provided in the
Scheme) vide its order no.212/ 30(11 )/2006-FM dated 15,h May,2009, the
Scheme came into effect from 1st January, 2009.
In accordance with the provision of the Scheme outlined in Para A
above, the loss of Rs. 70,50,00,000 on reduction of paid-up value of
Equity and Preference Share Capital in Demerged Company held by the
Company, has been adjusted against Securities Premium Account.
The loss on reduction of paid-up value of Equity Share Capital and
Preference Share Capital of the Demerged Company held by the Company
mentioned in Para B above, has also been adjusted against Securities
Premium Account.
The application and reduction of the Securities Premium Account in two
tranches as mentioned above, has been effected in terms of the Scheme
and in accordance with the provisions of Sections 100 to 104 of the
Companies Act, 1956, and as the same does not involve either diminution
of liability in respect of unpaid share capital or payment to any
shareholder of any paid-up share capital, the provisions of Section 101
of the Companies Act, 1956 are not applicable, However, the Order of
the Honble Court sanctioning the Scheme is deemed to be an Order under
Section 102 of the Companies Act, 1956 confirming reduction of capita/.
In terms of the Scheme of Arrangement and Demerger, 7,69,230 Equity
Shares of Rs.2 each of the Company shall be allotted to the external
shareholders of the Demerged Company against consideration of Radio
business of the Demerged Company.
The assets and liabilities, rights and obligation of Radio business of
the Demerged Company have been vested with the Company w.e.f. Jan
1,2009. The Scheme has, accordingly, been given effect to in these
accounts. The amalgamation has been accounted for under the "Pooling of
Interests Method" as per Scheme of Amalgamation. Accordingly, the
assets and liabilities of the Radio business as at Jan 1,2009 have been
taken over at cost.
The provision for tax for the current year has been computed after
adjusting the carried forward business loss of Rs.
. 12,378.28 lacs of the demerged undertaking.
One Time Entry Fees paid for acquiring licences for Radio business paid
by the Demerged Company in earlier years is capitalized and amortized
on straight line basis. The same shall be amortized against the credit
balance of securities premium account over the useful life of the said
licences or their unexpired period (whichever is lower) from date of
Merger of Radio business as per the approved Scheme. Consequently
amount of Rs.188.73 lacs has been debited to the Securities Premium
Account in the current year.
9. The Company has till date, invested in Firefly e-Ventures Limited
through its wholly owned subsidiary company HT Digital Media Holdings
Limited (formerly Hindustan Media Limited), Rs. 5,500 lacs by way of
Equity Share Capital. Firefly is engaged in the internet related
business like Jobs, Social networking etc.
The aforesaid company has been presently incurring losses. The
accumulated losses as at March 31,2009 are Rs.4,127.43 lacs. The
Company, however, is of the view that the nature of business of the
said company being such, the losses were expected in the initial years
and the said company based on future projections prepared for next five
years expects to generate sufficient income which will enable it to
offset the entire amount of accumulated losses incurred upto date. In
view of this on impairment vision is this investment
4. As approved by the shareholders at their Extra-ordinary General
Meeting held on October 21,2005, during an earlier year, the Company
has given interest-free loan of Rs. 2,174.28 lacs to HT Media Employee
Welfare Trust which in turn purchased 4,68,044 Equity Shares of Rs.
10/- each of HT Media Limited (as on date equivalent to 23,40,220
Equity Shares of Rs. 21- each) from the open market [average cost per
share - Rs. 92.91 based on Equity Share of Rs. 21- each], for the
purpose of granting Options under the HTML Employee Stock Option
Scheme (the Scheme), to eligible employees.
During the financial year 2007-08, the Scheme was modified to the
effect - (a) Options granted w.e.f. September 15, 2007 shall vest as
per previous revised schedule of vesting period; and (b) to extend the
coverage of the Scheme to the eligible full-time employees of the
subsidiary company.
The Options granted under the Scheme shall vest as per two Schedules of
vesting period which are hereinafter referred to as Plan A and Plan
B (applicable to Options granted w.e.f. September 15,2007). Options
granted under both the plans are exercisable for a period of 10 years
after the scheduled vesting date of the last tranche of the Options as
per the Scheme.
5. In terms of the Scheme of Arrangement and Demerger under Sections
391 -394 of the Companies Act, 1956 between the Company and Go4i.com
(India) Private Limited (Go4i.com) and their respective shareholders
and creditors effective July 1, 2006 (Appointed Date), the Company has,
during the year allotted 22,600 Equity Shares of Rs.2/- each to the
shareholders of Go4i.com on July 21,2008.
6. Gratuity (Post Employment Benefit plan)
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of services gets a gratuity on separation
at 15 days salary (last drawn salary) for each completed year of
service. The Company has formed a Gratuity Trust to which contribution
is made based on actuarial valuation done by independent valuer.
The following table summarize the components of net benefit expenses
recognized in the Profit and Loss Account and the Funded status and
amount recognized in the Balance Sheet for respective plans:
7. Names of Related Parties
Parties having direct or indirect control over the Company (Holding
Company)
The Hindustan Times Limited
Subsidiaries
Hindustan Media Ventures Limited (formerly known as
Searchlight Publishing House Limited)
HT Music and Entertainment Company Limited.
Firefly e- Ventures Limited
HT Digital Media Holdings Limited ( formerly known as
Hindustan Media Limited)
HT Burda Media Limited (w.e.f. 22.07.2008)
HT Mobile Solutions Limited (w.e.f. 19.02.2009)
Group companies where common control exists (Fellow Subsidiaries) and
where transactions have taken place during the year
Go4i.com (India) Private Limited Paxton Trexim Private Limited
Joint Venture
Metropolitan Media Company Private Limited
Key Management Personnel
Smt. Shobhana Bhartia (Chairperson & Editorial Director), Mr. Shamit
Bhartia (Whole time Director) Mr. Priyavrat Bhartia (Whole time
Director)
Relatives of key management personnel
Late Dr. K.K.Birla (upto 30th August, 2008)
Enterprises owned or significantly influenced by Key Management
Personnel or their relatives and where transactions have taken place
during the year
The Hindustan Times Limited
HT Music and Entertainment Company Limited
Firefly e- Ventures Limited
8. Leases
Rental expenses in respect of operating leases are recognized as an
expense in the Profit and Loss Account, on a straight-line basis over
the lease term.
Operating Lease (for assets taken on Lease)
(a) The Company has taken various residential, office and godown
premises under operating lease agreements. These are generally
cancellable leases and are renewable by mutual consent on mutually
agreed terms with or without rental escalations.
(b) Lease payments recognized for the year are Rs. 2,227.36 lacs
(Previous year Rs. 1,516.94 lacs) and are disclosed as Rent under
schedule 18.
(c) The future minimum lease payments under non-cancellable operating
leases
à Not later than one year is Rs. 998.84 lacs (Previous year Rs. 421.51
lacs);
à Later than one year but not later than five years is Rs. 2,411.25
lacs (Previous year Rs. 1188.81 lacs);
à Later than five years is Rs. 1921.76 lacs (Previous year Rs. 227.14
lacs).
(d) Sub- lease Income recognized in Profit and Loss account for the
year are Rs. 53 lacs.(Previous year Rs. Nil)
9. Exceptional Items:
(a) Provision of Rs 852.50 lacs towards diminution in Long Terms
Investments, as estimated by management based on valuation done by
independent valuer.
(b) Provision of Rs 276.50 lacs towards diminution in value of advances
paid for purchase of properties, as estimated by management based on
quotations from independent property consultants.
(c) One time and non-recurring expenditure of Rs 752.51 lacs towards
consultancy charges paid for drawing up strategic plan(s) for new areas
of business.
10. Previous Year comparatives
Previous years figures have been regrouped / recasted where necessary
to conform to this years classification.