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Notes to Accounts of Sahara One Media & Entertainment Ltd.

Mar 31, 2015

1. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

Statement of profit and loss

Net employee benefit expense recognized in the employee cost

2. Leases

Operating lease: company as lessee

The Company has entered into operating cancellable lease agreements for its office premises/ Godown/ aircraft hire for a period of 3-5 years. There are no clauses relating to renewal / escalation. There are no subleases. The lease rental charged during the year is as follows:

3. Segmental Information:

Business Segments:

The Company operating businesses are organized and managed separately according to the nature of services provided, with each segment representing a strategic business unit that serves different markets. The Company principal business is sale of television programmers and motion pictures production and distribution.

4. Related party disclosures

Related parties with whom transactions have taken place during the year

Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

5. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for, are Rs. Nil (31 March 2014: Rs. Nil)

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company's financial position and results of operations.

6. In the matter of dispute in respect of repayment of Optionally Fully Convertible Debentures (OFCDs) by two group companies, namely M/s Sahara India Real Corporation Limited & Sahara Housing Investment Corporation Limited, the Hon'ble Supreme Court of India vide its order dated 21-11-2013 had directed that Sahara Group of Companies shall not part with movable and immovable properties and accordingly Security and Exchange Board of India (SEBI) has seized the company's Fixed Deposit and Non Current Investment. Subsequent to this, Hon'ble Supreme Court vide it's order dated 4th June, 2014 has directed to defreeze the Fixed Deposit account of the company subject to condition that total proceeds would be transferred to special account opened by the SEBI. Accordingly, the company has transferred an amount of Rs 694,027,883 to Sahara-SEBI Refund account. However, the company's management strongly believes that the money deposited is recoverable and will be received back alongwith interest, as the amount in Sahara - SEBI Refund Account is in the shape of Fixed Deposit. However, the Company has not accrued any interest on this amount.

7. Details of dues to micro and small enterprises as defined under the Micro, Small and Medium Enterprises(MSMED) Act, 2006

As per the information available with the Company, no amounts are due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at 31 March 2015. (31 March 2014: Nil)

8. Previous year's figures have been regrouped where necessary to conform to this year's classification.


Mar 31, 2014

1. Corporate information

Sahara one Media And Entertainment Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is a television content provider and also produces and distributes films.

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 respects 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 statement has 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.

(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.

During the year ended 31 March 2014, the amount of per share dividend recognized as distributions to equity shareholders was Nil (31 March 2013: Nil).

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.

As per records of the company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

As per order of Hon''ble Supreme Court of India dated 21-11-2013, SEBI has attached/freezed the above Fixed Deposit Receipts of Rs.656,000,000 and Current Account Bank Balance of Rs. 15,658,387. (refer note 32 for details)

3. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

The plan assets comprises of 25.22% (previous year 27.56%) investments in Government of India Securities, 55.63% (previous year 58.71%) investments in high quality corporate bonds and 19.15% (previous year 13.73%) in Fixed Deposits with Bank.

The expected rate of return on assets is taken on the basis of LIC rate and RBI Deep Discounting Rate.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4. Segmental Information:

Business Segments:

The Company operating businesses are organized and managed separately according to the nature of services provided, with each segment representing a strategic business unit that serves different markets. The Company principal business is sale of television programmes and motion pictures production and distribution.

5. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for, are Rs. Nil (31 March 2013: Rs. Nil)

6. Contingent liabilities

31 March 2014 31 March 2013 Rs. Rs.

a) Income Tax in respect of Assessment Years 2000-01 to 2011-12 in 485,354,530 483,388,673 respect of which the Company has gone on appeal. Based on judicial pronouncements, the Company''s claim is likely to be accepted by the appellate authorities.

b) Custom case pending at appellate authorities in respect of financial 445,000 445,000 year 2008-09.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and results of operations.

7. During the financial year 2010-2011, the Company had filed an application with the Commissioner of Sales Tax seeking clarification in respect of applicability of MVAT on the temporary transfer of copyrights/ license to a customer with effect from July 1, 2010. However, the response from the authority is currently awaited. The Company had obtained a legal opinion in the previous year stating that such transaction is subject to only service tax and hence MVAT is not applicable. Management believes that MVAT on such transaction is not applicable and hence MVAT has not been charged on such transactions.

8. the Company has been charging service tax on sale of content under the category of ''copyright services'' during the period July 2010 to June, 2012. With effect from July 1, 2012 copyright service has been exempted from payment of service tax under serial number 15 of Notification No.25/2012-ST, Company has decided to not to avail the exemption and the Company has charged service tax on content sale.

9. In the matter of dispute in respect of repayment of optionally Fully Convertible Debentures (OFCDs) by two group companies, namely M/s Sahara India Real Corporation Limited & Sahara Housing Investment Corporation Limited, the Hon''ble Supreme Court of India vide its order dated 21-11-2013 had directed the Securities & Exchange Board of India (SEBI) to attach/freeze several current and non-current assets of group companies and its promoters. Accordingly, SEBI had attached/frozen the company''s Fixed Deposit Receipts of Rs. 656,000,000/- Current Account Bank Balance of Rs. 15,658,387/- and Non Current Investment of Rs. 11,120,300/-. Since the proceedings in relation to the above matter are in process in the Hon''ble Supreme Court of India, SEBI has the power to retain and /or utilize these assets /funds towards the repayment of OFCD Liabilities of the said two group companies. However, the company''s management is in discussion with the concerned group companies to provide matching assets as compensation in the event the company''s attached/frozen assets are appropriated by SEBI.

10. Details of dues to micro and small enterprises as defined under the Micro, Small and Medium Enterprises (MSMED) Act, 2006

As per the information available with the Company, no amounts are due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at 31 March 2014. (31 March 2013: Nil)

11. previous year''s figures have been regrouped where necessary to conform to this year''s classification.


Mar 31, 2013

1. Corporate information

Sahara one Media And entertainment Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. the company is a television content provider and also produces and distributes flms.

2. Basis of preparation

the fnancial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAp). the company has prepared these fnancial statements to comply in all material respects with the accounting standards notifed under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. the fnancial statement has been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of fnancial statements are consistent with those of previous year.

3. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for, are Rs. nil (31 March 2012: Rs. nil)

4. During the fnancial year 2010-2011, the Company had fled an application with the Commissioner of Sales tax seeking clarifcation in respect of applicability of MVAt on the temporary transfer of copyrights/ license to a customer with effect from July 1, 2010. however, the response from the authority is currently awaited. the Company had obtained a legal opinion in the previous year stating that such transaction is subject to only service tax and hence MVAt is not applicable. Management believes that MVAt on such transaction is not applicable and hence MVAt has not been charged on such transactions.

5. the Company has been charging service tax on sale of content under the category of ''copyright services'' during the period July 2010 to June, 2012. With effect from July 1, 2012 copyright service has been exempted from payment of service tax under serial number 15 of notifcation no.25/2012-St, Company has decided to not to avail the exemption and the Company has charged service tax on content sale.

6. Details of dues to micro and small enterprises as defned under the Micro, Small and Medium Enterprises (MSMED) Act, 2006

As per the information available with the Company, no amounts are due to Micro, Small and Medium enterprises as per MSMeD Act, 2006 as at 31 March 2013. (31 March 2012: nil)

7. previous year''s fgures have been regrouped where necessary to conform to this year''s classifcation.


Mar 31, 2011

1. Nature of Operations

Sahara One Media And Entertainment Limited is a television content provider and also produces and distributes movies.

2. Segmental Information:

Business Segments:

The Company operating businesses are organized and managed separately according to the nature of services provided, with each segment representing a strategic business unit that serves different markets. The Company principal business is sale of television programmes and motion pictures production and distribution.

(a) Related parties where control exists irrespective of whether transactions have occurred or not :- Major shareholders having control over the company

Shri Subrata Roy Sahara

(b) Enterprise owned or significantly influenced by group of individuals or their relatives who have control or significant influence over the Company

- Sahara India Commercial Corporation Ltd.

- Sahara Hospitality Ltd.

- Aamby Valley Ltd.

- Sahara India, partnership firm

- Sahara India Mass Communication, partnership firm

- Geon Studios Pvt. Ltd.

- Sahara India Financial Corporation Ltd.

- Sahara Sanchar Ltd.

(c) Key Management Personnel

Manager Shri Suresh Mishra

CEO-Television Content Production Shri Avinash Kaul (till August 16, 2010)

COO Shri Sanjay Chitale (till November 30, 2009)

COO - Motion Picture Shri Deepak Segal (from December 01, 2009)

Chief Financial Officer Shri Sanjay Garg

3, Leases:

The Company has taken the office premises on an operating lease from Sahara India Commercial Corporation Ltd. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements.

4. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for are Rs. Nil (2009-2010: Rs. Nil)

5. Contingent Liabilities not provided for:

Particulars As at As at

March 31, 2011 March 31, 2010

(Rs.) (Rs.)

a) Guarantees and Counter guarantees given by the Company :- 525,000,000 525,000,000 Against loan availed by Sahara Sanchar Limited from a bank.

Loan availed as at 31-3-2011 Rs.215,402,344 (31-3-2010: Rs.310,402,762).

b) Income Tax of Rs. 101,816,371 in respect of Assessment 101,816,371 99,951,580 Years 2000-01, 2002-03, 2004-05, 2005-06, 2006-07 and 2007-08 in respect of which the Company has gone on appeal. Based on judicial pronouncements, the Company's claim is likely to be accepted by the appellate authorities

c) Custom case pending at Tribunal in respect of financial year 410,000 555,000 2008-09

6. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summaries the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

The expected rate of return on assets is taken on the basis of LIC rate and RBI Deep Discounting Rate.

The Company expects to contribute Rs. 360,000 to gratuity in next year (Previous year Rs. 367,000).

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Provident Fund

The Provident Fund being administered by a Trust is a defined benefit scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay to the fund every month. The benefit vests upon commencement of employment. The interest credited to the accounts of the employees is adjusted on an annual basis to confirm to the interest rate declared by the Government for the Employees Provident Fund. The Guidance Note on implementing AS-15, Employee Benefits (revised 2005) issued by the Accounting Standard Board (ASB) states that provident funds set up by employers, which requires interest shortfall to be met by the employer, needs to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Actuarial Society of India, the company's actuary has expressed his inability to reliably measure the provident fund liability. There is no deficit in the fund.

7. As per the information available with the Company, no amounts are due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at March 31, 2011. (March 31, 2010: Nil)

8. Additional information pursuant to the provisions of paragraphs 3,4, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 :

8.1 Quantitative Details

The Company is engaged in producing /procuring television programmes and supplying them to media companies. The production and sale of such programmes cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraphs 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

9. During the current year, the Company has filed an application with the Commissioner of Sales Tax seeking clarification in respect of applicability of MVAT on the temporary transfer of copyrights/ license to a customer with effect from July 1, 2010. However, the response from the authority is currently awaited. The Company has obtained a legal opinion stating that such transaction is subject to only service tax and hence MVAT is not applicable. Management believes that MVAT on such transaction is not applicable and hence MVAT has not been charged on such transaction.

10. Previous year's figures have been regrouped where necessary to conform to this year's classification.


Mar 31, 2010

1. Nature of Operations

Sahara One Media And Entertainment Limited is a television content provider and also produces and distributes movies.

2. Related Parties:

(a) Related parties where control Shri Subrata Roy Sahara exists irrespective of whether transactions have occurred or not :-

Major shareholders having control over the company

(b) Enterprises under common Sahara India Commercial Corporation Ltd. control

Sahara Hospitality Ltd.

- Aamby Valley Ltd.

- Sahara India, partnership firm

- Sahara India Mass Communication, partnership firm

- Sahara India Entertainment Management Company Ltd.

- Geon Studios Pvt. Ltd.

- Sahara Sanchar Limited

(c) Key Management Personnel

CEO - TV-Content Production Shri Avinash Kaul (from Feb. 15, 2010 to Aug. 16, 2010)

COO Shri Sanjay Chitale (till Nov. 30, 2009)

COO - Motion Pictures Shri Deepak Segal (from Dec. 01, 2009)

Manager & Head (Legal) Shri Suresh Mishra

Chief Financial Officer Shri Sanjay Garg

3. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for are Rs. NIL (2008-2009: Rs. NIL)

4. Contingent Liabilities not provided for:

Particulars As at March 31, As at March 31,

2010 2009 (Rs) (Rs.)

a) Guarantees and Counter guarantees given by the Company:-

- against loan availed by Sahara Sanchar Limited from a bank. 525,000,000 - Loan availed as at 31 -3-2010 Rs.310,402,762 (31 -3-2009: Rs.Nil).

- against loan availed by Sahara Hospitality Limited from a - 3,000,000,000 bank. Loan availed as at 31-3-2010 Rs. Nil (31-3-2009: Rs.1,549,038,494).

- against cash credit availed by Sahara Hospitality Limited from - 66,700,000 a bank. Cash credit availed as at 31-3-2010 Rs. Nil (31-3- 2009: Rs. 49,197,509).

b) Income Tax of Rs. 99,951,580 in respect of Assessment 99,951,580 88,085,274 Years 2000-01, 2002-03, 2004-05, 2005-06, 2006-07 and

2007-08 in respect of which the company has gone on appeal. Based on judicial pronouncements, the Companys claim is likely to be accepted by appellate authorities

c) Custom case pending at Tribunal in respect of financial year 555,000 555,000 2008-09.



The Corporate Guarantee extended to M/s Sahara Hospitality Limited aggregating to Rupees 3,066,700,000/- has been discharged before 31.03.2010 and the consortium finance security agents have issued discharge letters.

5. Gratuity and other post-employment benefit plans:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summaries the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

The expected rate of return on assets is taken on the basis of LIC rate and RBI Deep Discounting Rate.

The Company expects to contribute Rs. 367,000 to gratuity in 2010-11.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Provident Fund

The Provident Fund being administered by a Trust is a defined benefit scheme whereby the Company deposits an amount determined as a fixed percentage of basic pay to the fund every month. The benefit vests upon commencement of employment. The interest credited to the accounts of the employees is adjusted on an annual basis to confirm to the interest rate declared by the Government for the Employees Provident Fund. The Guidance Note on implementing AS-15, Employee Benefits (revised 2005) issued by the Accounting Standard Board (ASB) states that provident funds set up by employers, which requires interest shortfall to be met by the employer, needs to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Actuarial Society of India, the companys actuary has expressed his inability to reliably measure the provident fund liability. There is no deficit in the fund.

6. Details of loans given to subsidiaries and associates and firms / companies in which directors are interested. Sahara India Commercial Corporation Limited.

Balance as at March 31, 2010 Rs. NIL (RY. Rs. NIL)

Maximum amount outstanding during the year Rs. NIL (RY. Rs. 700,000,000)

7. As per the information available with the Company, no amounts are due to Micro, Small and Medium Enterprises as per MSMED Act, 2006 as at March 31, 2010. (March 31, 2009: NIL)

8. Additional information pursuant to the provisions of paragraphs 3, 4, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 :-

8.1 Quantitative Details

The Company is engaged in producing /procuring television programmes and supplying them to media companies. The production and sale of such programmes cannot be expressed in any generic unit. Hence it is not possible to give the quantitative details of sales and certain information as required under paragraphs 3,4C

9. Previous years figures have been regrouped where necessary to conform to this years classification.

 
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