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Notes to Accounts of Entertainment Network (India) Ltd.

Mar 31, 2017

Corporate Information

Entertainment Network (India) Limited (the ‘Company’) is a public limited company domiciled in India and is listed on the Bombay Stock Exchange (‘BSE’) and the National Stock Exchange (‘NSE’). The Company was incorporated on June 24, 1999 and has registered office at Mumbai, Maharashtra, India. The Company operates FM radio broadcasting stations in 40 Indian cities under the brand names ‘Radio Mirchi’ and ‘Mirchi Love’.

The Company’s principal revenue stream is advertising. Advertising revenues are generated through the sale of air time in the Company’s FM radio broadcasting stations, activations and monetization of Company’s digital and other media properties.

These financial statements were approved for issue by the Company’s Board of Directors on May 23, 2017.

1A. Recent accounting pronouncements

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7 - ‘Statement of cash flows’ and Ind AS 102- ‘Share-based payment.’ These amendments are in accordance with the recent amendments made by the International Accounting Standards Board (IASB) to IAS 7- ‘Statement of cash flows’ and IFRS 2- ‘Share-based payment,’ respectively. The amendments are effective from April 1, 2017.

The amendment to Ind AS 7 requires 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 non-cash changes. This may require inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The Company is evaluating the requirements of the amendment and its effect on the financial statements.

Presently, Company does not have any share based payments. Consequently, the amendments to Ind AS 102 are currently not relevant to the Company.

1B. Critical estimates and / or judgements

The preparation of financial statements requires the use of accounting estimates, which will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies. This note provides an overview of the areas that involved more judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

a. Current tax expense and payable - Refer Note 33 and Note 45 (b)

b. Goodwill impairment- Refer Note 5

c. Useful life of intangible asset - Refer Note 6

d. Defined benefit obligation - Refer Note 37

e. Impairment of trade receivables - Refer Note 12

f. Recognition of deferred tax assets - Refer Note 21 and 33

Estimates and judgements are continuously evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company. The estimates and judgments made by the management are believed to be reasonable under the prevailing circumstances.

2. COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

Estimated amount of capital expenditure contracted for at the end of the reporting period but not recognised as liabilities are as follows:

3. TRADE PAYABLES

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues. This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. The Company has classified the various employee benefits provided to employees as under :

I) Defined Contribution Plans

a) Provident Fund

b) Employee’s Pension Scheme

c) Employee State Insurance Scheme

d) National Pension Scheme

II) Defined Benefit Plans

Post-employment obligations

Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days’ salary multiplied for the number of years of service. The liability in respect of gratuity is uncapped and is not restricted to Rs.10 lakhs.

In accordance with Ind AS 19, actuarial valuation was done in respect of the aforesaid Defined Benefit Plan of gratuity (unfunded) based on the following assumptions :-

A) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

5. Segment Information

In accordance with Ind AS-108 ‘Operating Segments’, the Company’s business segment is Media and Entertainment and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as reflected in the Financial Statements as at and for the year ended March 31, 2017. The Company primarily caters to the domestic market and hence there are no reportable geographical segments.

6. Related Party Disclosures as required under Ind AS 24 - ‘Related Party Disclosures’ are given below:

i. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) - Holding Company (Refer Note 43)

Times Infotainment Media Limited (TIML) - the erstwhile Holding Company* (Refer Note 43)

ii. Subsidiary Company

Alternate Brand Solutions (India) Limited (ABSL) - Subsidiary Company*

iii. Fellow Subsidiary Companies

Mirchi Movies Limited (MML)

Times Innovative Media Limited (TIM)

TIM Delhi Airport Advertising Private Limited (TIMDA)

Times Global Broadcasting Company Limited (TGBCL)*

Times Internet Limited (TIL) #

Zoom Entertainment Network Limited (ZENL)*

Gamma Gaana Limited (GGL)

Metropolitan Media Company Limited (formerly Times VPL Limited) (MMCL)

Vardhaman Publishers Limited (VPL)

Junglee Pictures Limited (JPL)

Magic Bricks Reality Services Limited (MBRSL)

Brand Equity Treaties Limited (BETL)

Worldwide Media Private Limited (WWM)

Akuate Internet Services Private Limited (AISPL)

Times Centre for Learning Limited (TCLL)*

Times Business Solutions Limited (TBSL) #

Times Websol Limited (TWL) #*

Times Mobile Limited (TM)#

iv. Related Parties of Ultimate Holding Company

Bennett Property Holdings Company Limited (BPHCL)

Aegon Life Insurance Company Limited (ALIC)

v. Key Management Personnel

Managing Director & Chief Executive Officer

Mr. Prashant Panday

Non-Executive Directors

Mr. Vineet Jain

Mr. N. Kumar

Mr. Richard Saldanha

Mr. Ravindra Kulkarni

Ms. Punita Lal - from March 28, 2016

Mr. B. S. Nagesh - upto November 8, 2016

# Times Business Solutions Limited (TBSL), Times Websol Limited (TWL) and Times Mobile Limited (TM) have been merged into Times Internet Limited (TIL) in the previous year.

* There are no transactions during the year.

7. Disclosures for Operating Leases

Disclosures in respect of cancellable agreements for cars, transmission towers, office and residential premises taken on lease:

a. Lease payments recognised in the statement of profit and loss Rs.2,660.95 lakhs (Previous Year: Rs.1,930.28 lakhs).

b. Of the total leases, twelve lease licenses have a lock in period ranging from two years to five years. All the other agreements are cancellable at the option of the Company.

Future minimum rentals payable under non-cancellable operating leases are as follows:

8. Earnings Per Share (Basic and Diluted)

The number of shares used in computing Basic Earnings Per Share (EPS) is the weighted average number of shares outstanding during the year.

9. Gross amount required to be spent by the Company during the year for Corporate Social Responsibility (CSR) activities was Rs.233.05 lakhs (Previous year: Rs.200.73 lakhs). Amount spent during the year by the Company is as follows:

10. The Scheme of Amalgamation and Arrangement (‘Scheme’) of TIML (the erstwhile holding company of the Company) with BCCL (the holding Company of TIML) was filed under the Companies Act, 1956 was approved by Hon’ble Bombay High Court on July 3, 2015 and by the MIB on April 25, 2016. Consequently, TIML’s entire shareholding in the Company was transferred to BCCL, and BCCL is the sole promoter shareholder of the Company. The appointed date of the Scheme was April 1, 2013.

11. In February 2015, the Company had entered into a non-binding memorandum of understanding with TV Today Network Limited (‘TVTN’) for purchase of seven radio stations from TVTN. On July 22, 2015 the Company received the approval from the Ministry of Information and Broadcasting (‘MIB’), Government of India to purchase TVTN’s four radio stations in Amritsar, Jodhpur, Patiala and Shimla. As regards the remaining three stations viz. Mumbai, Delhi and Kolkata, the MIB declined to grant its approval. The Company and TVTN have appealed against the MIB decision before the Hon’ble Delhi High Court. The next court hearing in respect of the appeal is scheduled for May 25, 2017. All the fixed assets acquired from TVTN were stated at fair value as on the date of acquisition.

12. Pending litigations and claims:

a. The Company is involved in various litigations the outcome of which are considered probable and in respect of which the Company has aggregate provisions of Rs.1,612.47 lakhs (Previous year Rs.1,031.38 lakhs) as at March 31, 2017.

b. Contingent liability-taxation

The Company is contesting certain disallowances to the taxable income and demands raised by the Income-tax authorities, the estimated tax liability of which is Rs.128.35 lakhs (Previous year : Rs.118.73 lakhs). The management does not expect the liability from these claims to crystallize and accordingly, no provision has been recognized in the financial statements for the same.

13. Capital Management

The Company’s objective is to maintain a strong capital base to ensure a sustainable future growth, maintain a strong credit rating and provide adequate returns to the shareholders. The Funding requirements of the Company are not large and are generally met through internal accruals and short term borrowings. The Company monitors capital using a capital gearing ratio. Capital gearing ratio is computed as net debt divided by the aggregate of shareholders’ funds and net debt.

The net debt of the Company was Nil as on March 31, 2017 and April 1, 2015. The net debt as on March 31, 2016 was Rs.292.40 lakhs.

14. Financial risk management

The Company’s activities expose it to a variety of market risks, liquidity risks and credit risks. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial statements.

a. Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments in debt mutual funds and deposits with banks.

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company undertakes a detailed review of the credit worthiness of clients before extending credit. Outstanding customer receivables are regularly monitored. The Company believes the concentration of risk with respect to trade receivables as low, as its customers are in several jurisdictions and industries and operate in largely independent markets. Management monitors the Company’s net liquidity position through rolling forecasts based on expected cash flows.

The Company uses the expected credit loss model as per IND AS 109 - ‘Financial Instruments’ to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix considers available external and internal credit risk factors and the Company’s historical experience in respect of customers.

b. Liquidity Risk

Liquidity risk is defined as a risk that the Company will not be able to settle or meet its obligations on time. The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the Senior Management.

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company has short term borrowings in the form of commercial papers. The Company believes that the same can be paid out of from internal accruals and mutual fund investments. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

At the end of the reporting period the Company held Mutual fund investments of Rs.10,754.44 lakhs (March 31, 2016 : Rs.22,738.24 lakhs April 1, 2015 : Rs.57,278.05 lakhs) that are expected to readily generate cash inflows for managing liquidity risk.

Maturities of financial liabilities

The tables below analyze the Company’s Financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

c. Foreign Currency risk

Foreign currency risk arises due to the fluctuations in foreign currency exchange rates. The Company does not have any material transactions in foreign currencies. Accordingly, its exposure to the foreign currency risk is limited.

d. 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 Company’s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

e. Price risk

The Company’s exposure to mutual fund securities arises from investments held by the Company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the framework and policies set by the Board of Directors.

15. The fair values of financial assets and liabilities are included at the amount at which the instrument can 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 vales:

a. Fair value of cash and cash equivalents, trade and other current financial assets, trade & other payables and short term borrowings approximate their carrying amounts due to the short maturities of these instruments.

b. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

16. First-time adoption of Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS. Beginning April 1, 2016, the Company has adopted applicable Ind AS standards and the adoptions were carried out in accordance with Ind AS 101- First time adoption of Indian Accounting Standards. The ‘Transition Date’ is April 1, 2015. The transition was carried out from Accounting Standards as prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the previous GAAP The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended March 31, 2017 and the comparative information.

This note explains the principal adjustments made by the Company in restating its Previous 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.

Exemptions and exceptions availed

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

1. Ind AS optional exemptions

a. Business combinations

The Company elected to apply Ind AS 103 prospectively to business combinations that occured on or after the Transition Date.

b. Deemed cost

The Company elected to continue with the carrying value measured as per the Previous GAAP for all its Property, Plant and Equipment, Intangible Assets and Investment Properties. The carrying value was used as deemed cost as at the Transition Date.

c. Investment in Subsidiary

The Company elected to measure its investment in Subsidiary, at the carrying value as per the Previous GAAP and used it as deemed cost as at the Transition Date.

2. Ind AS mandatory exceptions

i. Estimates

The estimates as at the Transition Date and as at March 31,2016 are consistent with the estimates as at the same date made in conformity with the Previous GAAP Additionally the Company made estimates for impairment of financial assets by applying expected credit loss model as at the Transition Date and as at March 31, 2016.

ii. Classification and measurement of financial assets

The Company designated all its investments in debt mutual funds at fair value through profit and loss as at the Transition Date.

Reconciliations between Previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

The Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.

Impact of Ind AS adoption on the statements of cash flows for the year ended March 31, 2016

There is no material impact on statement of cash flows due to transition from Previous GAAP to Ind AS.

Notes to first-time adoption:

Note I : Investment property

Under the Previous GAAP, investment properties were presented as part of non-current investments. Under Ind AS, investment properties are disclosed on the face of the balance sheet. There is no impact on the total equity or statement of profit and loss.

Note II : Amortisation of goodwill

Under the Previous GAAP, the Company amortised goodwill over a period of 5 years. Under Ind AS, Goodwill is not amortised but tested for impairment as per IND AS 38 - ‘Intangible Assets’. Thus, total comprehensive income for the year ended March 31, 2016 and goodwill as at March 31, 2016 increased by Rs.20.67 lakhs.

Note III : Fair valuation of investments

In accordance with Ind AS, the Company’s investments in debt mutual funds have been fair valued. The Company has designated these investments at fair value through profit and loss. Under the Previous GAAP, the application of relevant accounting standard resulted in these investments being carried at cost.

Consequent to the above, total comprehensive income for the year ended March 31, 2016 increased by Rs.735.32 lakhs. Further the total equity as at March 31, 2016 increased by Rs.3,303.14 lakhs, out of which the increase as on April 1, 2015 i.e. the Transition Date was Rs.2,567.82 lakhs.

Note IV : Trade receivables

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the Provision for doubtful debts. As a result, the allowance for doubtful debts increased by Rs.57.86 lakhs as at March 31, 2016 (April 1, 2015 Rs.157.55 lakhs). Consequently, the total comprehensive income for the year ended March 31, 2016 reduced by 37.84 lakhs.

Note V : Borrowings

Under the Previous GAAP, transaction costs incurred in connection with borrowings used for capital expenditure were capitalised and depreciated over useful life of respective assets. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method. Accordingly, transaction costs on borrowings as at March 31, 2016 have been reduced by Rs.13.06 lakhs (April 1, 2015 Rs.Nil) with a corresponding adjustment in Capital work in progress of Rs.12.52 lakhs (April 1, 2015 Rs.Nil) and balance to retained earnings.

Note VI : Proposed dividend

Under the Previous 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 recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend and tax on it aggregating Rs.573.75 lakhs as at March 31, 2016 (April 1, 2015 Rs.573.75 lakhs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note VII : Actuarial gains and Losses

Both under Previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, all actuarial gains and losses are recognised in other comprehensive income. However, this has no impact on the total comprehensive income and total equity as on April 1, 2015 or as on March 31, 2016.

Note VIII : Security deposits

Under the Previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued certain security deposits by discounting them over the lock in period under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent. Consequent to this change, the amount of security deposits reduced by Rs.25.23 lakhs as at March 31, 2016 (April 1, 2015 Rs.Nil) and the prepaid rent increased by Rs.25.23 lakhs as at March 31, 2016 (April 1, 2015 - Rs.Nil).

Note IX : Deferred tax

Previous 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 certain temporary differences which was not required under Previous GAAP.

In addition, the various transitional adjustments lead to temporary differences. Under the Ind AS, the Company has to account for such differences. Deferred tax adjustments are recognised in relation to the underlying transactions either in retained earnings or as a separate component of equity. During the year ended March 31, 2016, the net deferred tax liabilities on account of Ind AS adjustments was Rs.53.23 lakhs. As on the Transition Date, the net impact on deferred tax assets due to Ind AS adjustments was Rs.515.52 lakhs.

Note X : Other Comprehensive Income

Under Previous GAAP, the Company has not presented other comprehensive income ‘OCI’ separately. Hence, it has reconciled Previous GAAP profit or loss to profit or loss as per Ind AS. Further, Previous GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

17. The previous year figures have been reclassified to conform to this year’s classification.

Signatures to notes “1” to “50” forming part of the financial statements.


Mar 31, 2016

1. Commitments to the extent not provided for

Estimated amount of contracts remaining to be executed on capital account Rs. 31,031,283 (Previous Year : Rs. 12,050,861) net of advances of Rs. 93,179,757 (Previous Year : Rs. 65,477).

2. Trade payables

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues. This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. The Company has classified the various employee benefits provided to employees as under:

I) Defined Contribution Plans

a) Provident Fund

b) National Pension Scheme

c) State Defined Contribution Plans - Employers'' Contribution to Employee''s Pension Scheme, 1995.

4. Segment Information

In accordance with Accounting Standard-17, ''Segment Reporting'', the Company''s business segment is Media and Entertainment and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as reflected in the Financial Statements as at and for the year ended March 31, 2016. The Company primarily caters to the domestic market and hence there are no reportable geographical segments.

5. Related Party Disclosures as required under Accounting Standard 18- ''Related Party Disclosures'' are given below:

i. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) - Ultimate Holding Company (Refer Note 35) Times Infotainment Media Limited (TIML) - Holding Company* (Refer Note 35)

ii. Subsidiary Company

Alternate Brand Solutions (India) Limited (ABSL) - Subsidiary Company*

iii. Fellow Subsidiary Companies

Times Innovative Media Limited (TIM)

TIM Delhi Airport Advertising Private Limited (TIMDA)

Times Internet Limited (TIL) #

Times Global Broadcasting Company Limited (TGBCL)

Times Business Solutions Limited (TBSL) #

Metropolitan Media Company Limited (formerly Times VPL Limited) (MMCL)

Vardhaman Publishers Limited (VPL)

Times Websol Limited (TWL) #

Times Mobile Limited (TM) #

Magic Bricks Realty Services Limited (MBRSL)*

Worldwide Media Private Limited (WWM)

Zoom Entertainment Network Limited (ZENL)

Gamma Gaana Limited (GGL)

Junglee Pictures Limited (JPL)

Akuate Internet Services Private Limited (AISPL)

Times Centre for Learning Limited (TCLL)

iv. Related Parties of Ultimate Holding Company

Bennett Property Holdings Company Limited (BPHCL)

v. Key Management Personnel

Managing Director & Chief Executive Officer

Mr. Prashant Panday

# Times Business Solutions Limited (TBSL), Times Websol Limited (TWL) and Times Mobile Limited (TM) have been merged into Times Internet Limited (TIL).

* There are no transactions during the year.

31. Disclosures for Operating Leases

Disclosures in respect of cancellable agreements for cars, transmission towers, office and residential premises taken on lease:

a) Lease payments recognised in the Statement of Profit and Loss Rs. 193,027,615 (Previous Year :Rs. 175,229,203).

b) Two lease licenses have a lock in period of three years from the commencement of respective lease period. All the other agreements are cancellable at the option of the Company.

6. In the previous year ended March 31, 2015, the Company had revised depreciation rates on fixed assets w.e.f. April 1, 2014 as per the useful life specified in Schedule II of the Companies Act, 2013 (the Act'') or as re- assessed by the Company. As prescribed in the said Schedule II of the Act, an amount of Rs. 58,324,116 (net of deferred tax of Rs. 30,032,369) was charged to the opening balance of retained earnings in that year for the assets in respect of which there was no remaining useful life as on April 1, 2014.

7. Gross amount required to be spent by the Company during the year for Corporate Social Responsibility (CSR) activities was Rs. 20,072,852 (Previous year: Rs. 16,007,525). Amount spent during the year by the Company was Rs. 20,084,000 (Previous year:Rs. 7,143,200).

8. The Scheme of Amalgamation and Arrangement (''Scheme'') of TIML (the holding company of the Company) with BCCL(the holding company of TIML) was filed under the Companies Act, 1956. The Scheme was approved by the Hon''ble Bombay High Court vide Order dated July 3, 2015 (''Order''), which was subject to the approval of the Ministry of Information & Broadcasting, Government of India (''MIB''). The MIB, vide its letter dated April 25, 2016 (received by the Company on April 26, 2016), accorded its approval to the change in ownership pattern of the Company under the Scheme. Consequently, TIML''s entire shareholding in the Company transferred to BCCL, and BCCL is the sole promoter shareholder of the Company. The appointed date of the Scheme was April 1,2013.

9. In February 2015, the Company had entered into a non-binding memorandum of understanding with TV Today Network Limited (''TVTN'') for purchase of seven radio stations from TVTN. On July 22, 2015 the Company received the approval from the MIB to purchase TVTN''s four radio stations in Amritsar, Jodhpur, Patiala and Shimla. The Company acquired these four stations for a consideration of Rs. 40,000,000. The Company allocated Rs. 15,377,157 towards fixed assets received from TVTN and the balance consideration was allocated towards the FM Radio License cost i.e. NOTMFfor the four stations acquired through the Business Transfer Agreement I''BTA). The Company completed the acquisition on September 19, 2015. The Company also paid the migration fees to the MIB for these four stations in order to migrate from Phase II to Phase III. As regards the remaining three stations viz. Mumbai, Delhi and Kolkata, the MIB declined to grant its approval. The Company and TVTN have appealed against the MIB decision before the Hon''ble Delhi High Court. The next court hearing in respect of the appeal is scheduled for July 13, 2016.

10. Pending litigations and claims

a. The Company is involved in various litigations the outcome of which are considered probable and in respect of which the Company has aggregate provisions ofRs. 103,137,851 (Previous year Rs. 85,333,139) as at March 31,2016.

b. Contingent liability - taxation

The Company is contesting certain disallowances to the taxable income and demands raised by the Income tax authorities, the estimated tax liability on account of these disallowances and demands is Rs. 11,873,445 (Previous year:Rs. 11,873,445). The management does not expect the liability from these claims to crystallize and accordingly, no provision has been recognized in the financial statements for the same.

11. Previous year''s figures have been reclassified to confirm to this year''s classification.


Mar 31, 2014

1. Segment Information

In accordance with Accounting Standard–17, "Segment Reporting", the Company''s business segment is radio broadcasting business and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as reflected in the Financial Statements as of and for the year ended March 31, 2014. The Company mainly caters to the needs of the domestic market and hence there are no reportable geographical segments.

2. Related Party Disclosures as required under Accounting Standard 18 - "Related Party Disclosures" are given below:

i. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) – Ultimate Holding Company Times Infotainment Media Limited (TIML) – Holding Company *

ii. Subsidiary Company

Alternate Brand Solutions (India) Limited (ABSL) – Subsidiary Company*

iii. Fellow Subsidiary Companies

Times Innovative Media Limited (TIM)

TIM Delhi Airport Advertising Private Limited (TIMDA)

Times Internet Limited (TIL)

Times Global Broadcasting Company Limited (TGBCL)

Times Business Solutions Limited (TBSL)

Metropolitan Media Company Limited (formerly Times VPL Limited) (MMCL)

Vardhaman Publishers Limited (VPL)

Times Websol Limited (TWL)

Times Mobile Limited (TM)

Brand Equities Treaties Limited (BETL)

Worldwide Media Private Limited (WWM)

BCCL International Events Private Limited (BIEPL)

Times Centre for Learning Limited (TCLL)

iv. Other Related Parties

Bennett Property Holdings Company Limited (BPHCL) Aegon Religare Life Insurance Company Limited (ARLIC)

v. Key Managerial Personnel

Executive Director & Chief Executive Officer

Mr. Prashant Panday


Mar 31, 2013

Nature of Operations

The Company was incorporated on June 24, 1999. The Company operates FM radio broadcasting stations in 32 Indian cities under the brand name ''Radio Mirchi''. The Company''s principal revenue stream is advertising. Advertising revenues are generated through the sale of air time in the Company''s FM radio broadcasting stations.

1. Commitments to the extent not provided for

Estimated amount of contracts remaining to be executed on capital account Rs. 790,039 (Previous Year : Rs. 1,523,654) net of advances of Rs. 1,088,144 (Previous Year : Rs. 235,565).

2. Sundry Creditors

i. Disclosure has been made as per the definition given in the Micro, Small and Medium Enterprises Development Act, 2006. The Company received information from some of the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to the amounts as at year end together with interest payable as required under the Act have been given below:

The information in the table above and that regarding micro and small enterprises given in Note 7 "Trade Payables" has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

ii. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

3. The Company has classified the various employee benefits provided to employees as under:- I) Defined Contribution Plans

a) Provident Fund

b) State Defined Contribution Plans - Employers'' Contribution to Employee''s Pension Scheme, 1995. During the year, the Company has recognised the following amounts in the Statement of Profit and Loss :-

4. Segment Information

In accordance with Accounting Standard – 17, "Segment Reporting", the Company''s business segment is radio broadcasting business and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as reflected in the Financial Statements as of and for the year ended March 31, 2013. The Company mainly caters to the needs of the domestic market and hence there are no reportable geographical segments.

5. Related Party Disclosures as required under Accounting Standard 18 - "Related Party Disclosures" are given below:

i. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) – Ultimate Holding Company Times Infotainment Media Limited (TIML) – Holding Company *

ii. Subsidiary Companies

Alternate Brand Solutions (India) Limited (ABSL) – Subsidiary Company

iii. Fellow Subsidiary Companies

Mirchi Movies (India) Limited (MML) *

Times Innovative Media Limited (TIM)

TIM Delhi Airport Advertising Private Limited (TIMDAA)

Times Internet Limited (TIL)

Times Global Broadcasting Company Limited (TGBCL)

Times Business Solutions Limited (TBSL)

Times VPL Limited (TVL) *

Vardhaman Publishers Limited (VPL)

Times Websol Limited (TWL)

Times Mobile Limited (TM)

Brand Equities Treaties Limited (BETL)

iv. Other Related Parties

Worldwide Media Private Limited (WWM) Bennett Property Holding Company Limited (BPHCL) BCCL International Events Private Limited (BIEPL) Aegon Religare Life Insurance Company (ARLIC)

v. Key Managerial Personnel

Executive Director & Chief Executive Officer

Mr. Prashant Panday

* There are no transactions during the year

6. Disclosures for Operating Leases

Disclosures in respect of cancellable agreements for cars, transmission towers, office and residential premises taken on lease:

a) Lease payments recognised in the Statement of Profit and Loss Rs. 159,735,947 (Previous Year : Rs. 153,516,356).

b) All the agreements provide for early termination by the Company by giving prior notice in writing.

7. Earnings Per Share (Basic and Diluted)

The number of shares used in computing Basic Earnings per share (EPS) is the weighted average number of shares outstanding during the year.

8. The Board of Directors of the Company at their meeting held on August 13, 2012 approved the purchase of its wholly owned subsidiary''s (ABSL) Intellectual Property Rights Events Business (''IPR Business'') as a going concern. The slump sale of the IPR Business by ABSL to the Company was effected through a Business Transfer Agreement (''BTA'') for a consideration of Rs. 100. The transfer was effective from July 1, 2012. The purchase resulted in a goodwill of Rs. 49,708 and acquisition of assets and liabilities amounting to Rs. 83,571,199 and Rs. 83,620,807 respectively.

9. The previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2012

Nature of Operations

The Company was incorporated on June 24, 1999. The Company operates FM radio broadcasting stations in 32 Indian cities under the brand name "Radio Mirchi!. The Company's principal revenue stream is advertising. Advertising revenues are generated through the sale of air time in the Company's FM radio broadcasting' stations.

FOote:

per the Frequency Module (FM) broadcasting policy, effective April 1, 2005 the Company was given the option to migrate all its existing licenses from Phase I regime to Phase II regime on payment of migration 3es. Migration fees for each station was equal to the average of all successful bids received for that city. The Company had exercised the option and had migrated its licenses for all the seven cities to Phase II regime y payment of migration fees aggregating Rs 815,234,695. Migration Fees have a remaining amortization period of three years. Further, the Company had participated in the second round of bidding and was awarded quench at 25 locations. The payment made by the Company to acquire these frequencies (One Time Entry Fees) was Rs 1,301,000,000. The remaining arranges e we ears. Based on the opinion obtained from an independent firm of Chartered Accountants, both Migration .Fees and One Time Entry Fees have been capita.

Provision for income tax was made on the basis of Section 115JB of the Income Tax Act, 1961 (Minimum Alternate Tax) in the previous year.

Commitments to the extent not provided for

Estimated amount of contracts remaining to be executed on capital account Rs 1,523,654 (Previous Year: Rs 933,966) net of advances ofRs 234,565 (Previous Year: Rs 10,922,919),

The information in 26 (i) above and that regarding micro and small enterprises given in Note 6 "Trade Payables" has been determined to the extent such parties have been identified on the basis of information available with the Company. This has' been relied upon by the auditors.

There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

Ill) The liability for leave encashment and compensated absences as at the year end is Rs 14,173,038 (Previous Year: Rs 12,378,764).

2. SEGMENT INFORMATION

In accordance with Accounting Standard - 17, "Segment Reporting'' issued by the Institute of Chartered Accountants of India, the Company's business segment is radio broadcasting business and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as reflected in the Financial Statements as of and for the year ended March 31, 2012. The Company caters to the needs of the domestic market and hence there are no reportable geographical segments.

2. RELATED PARTY DISCLOSURES

i. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) - Ultimate Holding Company

Times Infotainment Media Limited (TIML) - Holding Company

ii. Subsidiary Companies

Alternate Brand Solutions (India) Limited (ABSL) - Subsidiary Company '

Times Innovative Media Limited (TIM) - Subsidiary Company up to December 29, 2010 '

TIM Delhi Airport Advertising Private Limited (TIMDAA) - A Subsidiary Company of TIM (ceased to be a subsidiary from December 29, 2010)

iii. Fellow Subsidiary Companies

Mirchi Movies (India) Limited (MML)

Times Internet Limited (TIL)

Times Global Broadcasting Company Limited (TGBCL)

Times Business Solutions Limited (TBSL)

Optimal Media Solutions Limited (OMSL) '

Times VPL Limited (TVL) [formerly Vijayanand Printers Limited (VAPL)

Vardhaman Publishers Limited (VPL)

Artha Distribution Services Limited (ADSL)*

Times Innovative Media Limited (TIM) - from December 30, 2010

TIM Delhi Airport Advertising Private Limited (TIMDAA) - from December 30, 2010

iv. Other Related Party where common control exists

Aegon Relegate Life Insurance Company (ARLIC)

Worldwide Media Private Limited (WWM)

Bennett Property Holding Company Limited (BPHCL)

v. Key Managerial Personnel Chairman

Mr. Vineet Jain

Executive Director & Chief Executive Officer .

Mr. Prashant Panday - Executive Director from July 1, 2010 .

Non-Executive Directors .

Mr. N. Kumar ,

Mr. Deepak M. Satwalekar - up to March 30,2011

Mr. Ravindra Kulkarni

Mr. Ravindra Dhariwal

Mr. A. P Parigi

Mr. Richard Saldanha - from November 23, 2010

* There are no transactions during the year.

4. Disclosures for Operating Leases ' ,

Disclosures in respect of cancellable agreements for cars, transmission towers, office and residential premises taken on lease:

a) Lease payments recognized in the Profit and Loss Account Rs 153,516,356 (Previous Year: Rs 136,769,643).

b) All the agreements provide for early termination by the Company by giving prior notice in writing.

5. On December 29, 2010, the Company sold its entire stake in Times Innovative Media Limited (TIM) to Bennett, Coleman & Company Limited (BCCL). The profit from this sale amounting to 1126,848,239 has been reflected as exceptional items in the financial statements in the previous year. '

6. The Company has a Media Collaboration Arrangement with Bennett, Coleman & Company Limited (BCCL), the ultimate holding company. This arrangement seeks to expand the advertisement market and inter- alia helps the Company gain access to certain clients who may not otherwise advertise in FM radio. The revenues generated from this arrangement where Rs 149,249,927(Previous Year: Rs 167,865,293).

Hitherto, in view of the uncertainties subsequent to the sale as to the timing and the quantum of the ultimate collection, the Company had based on the Accounting Standards created a provision for doubtful debts in respect of the sales made pursuant to this arrangement and remaining uncollected. The provision amounted to Rs 111,829,272 in the previous year.

During the current year, the Company revised the terms of settlement for the deals under the Media Collaboration Arrangement. The Company also finalized the terms of settlement for all outstanding deals done up to March 31, 2011. The revised terms and the settlement of the prior deals resulted in an aggregate net write back of Rs 115,247,775.

7. The Honorable Copyright Board ("CRB'') vide its final order dated August 25, 2010 ruled that radio broadcasters will be liable to set apart 2% of the net advertising earnings of each of their FM radio stations for royalty payment to all the music providers in proportion to usage. Following a writ petition by the Super Cassettes Industries Limited ("SCIL"), the Honorable Delhi High Court granted stay on implementation of the aforesaid CRB order against SCIL. Accordingly, w.e.f. August 25, 2010 the Company has accounted the music royalty for sound recordings provided by all music providers other than the SCIL on a revenue share basis, in the interim, the music royalty for sound recording provided by SCIL is accounted based on the needle hour rate indicated in the CRB order dated November 19, 2002.

8 The financial statements for the year ended March 31, 2011 was prepared as per the then applicable pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per the Revised Schedule VI, Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

Nature of Operations

The Company was incorporated on June 24, 1999. The Company operates FM radio broadcasting stations in 32 Indian cities under the brand name 'Radio Mirchi'. The Company's principal revenue stream is advertising. Advertising revenues are generated through the sale of air time in the Company's FM radio broadcasting stations.

1. Contingent Liabilities

a. Guarantees issued by banks on behalf of the Company Rupees 15,254,202 (Previous Year : Rupees 6,000,000).

b. Corporate Guarantee issued by the Company to HDfic Bank on behalf of Times Innovative Media Limited (an erstwhile subsidiary company) Rupees Nil (Previous Year : Rupees 200,000,000) and to HSBC Bank Rupees Nil (Previous Year : Rupees 500,000,000).

2. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account Rupees 933,966 (Previous Year : Rupees 5,094,910) net of advances of Rupees 10,922,919 (Previous Year : Rupees 10,800,000).

* excludes contribution to gratuity and leave encashment which is based on actuarial valuations done at an overall company level.

@ The current year's managerial remuneration is for the period beginning from July 1, 2010 and ending March 31, 2011 paid to the Executive Director & Chief Executive Officer of the Company.

# The Previous year's managerial remuneration is for the six months period ended September 30, 2009 paid to the Managing Director of the Company.

Approval for the appointment and payment of the above remuneration in the previous year to Mr. A. P. Parigi, Managing Director has been received from the Central Government of India, Ministry of Corporate Affairs vide their letter No. SRN/A/56429632/3/2009-CL. VII dated October 26, 2009 and A70602552-CL-VII dated April 19, 2010.

b. Director's Sitting Fees Rupees 910,000 (Previous Year : Rupees 720,000)

3. One Time Entry Fee (OTEF) and Migration Fee

As per the Frequency Module (FM) broadcasting policy, effective April 1, 2005 the Company was given the option to migrate all its existing license from Phase I regime to Phase II regime on payment of migration fees. Migration fees for each station was equal to the average of all successful bids received for that city. The Company had exercised the option and had migrated its licenses for all the seven cities to Phase II regime by payment of migration fees aggregating Rupees 815,234,695. Migration Fees has remaining amortisation period of four years.

Further, the Company had participated in second round of bidding and was awarded frequency at 25 locations. The payment made by the Company to acquire these frequencies (One Time Entry Fees) was Rupees 1,301,000,000. The remaining amortisation period of OTEF ranges between four and seven years.

Based on the opinion obtained from an independent firm of Chartered Accountants, both Migration Fees and One Time Entry Fees have been capitalised as Intangible Asset.

11. The Company has classifed the various employee benefits provided to employees as under : I) Defined Contribution Plans

a. Provident Fund

b. State Defined Contribution Plans - Employers' Contribution to Employee's Pension Scheme, 1995.

III) The liability for leave encashment and compensated absenses as at the year end is Rupees 12,378,764 (Previous Year : Rupees 11,764,713).

4. Segment Information

In accordance with Accounting Standard – 17, "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company's business segment is radio broadcasting business and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liabilities, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as refected in the Financial Statements as of and for the year ended March 31, 2011. The Company caters to the needs of the domestic market and hence there are no reportable geographical segments.

5. Related Party Disclosures

a. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) – Ultimate Holding Company Times Infotainment Media Limited (TIML) – Holding Company

b. Subsidiary Companies

Alternate Brand Solutions (India) Limited (ABSL) – Subsidiary Company

Times Innovative Media Limited (TIM) – Subsidiary Company up to December 29, 2010

TIM Delhi Airport Advertising Private Limited (TIMDAA) – A Subsidiary Company of TIM (ceased to be a subsidiary from December 29, 2010)

c. Fellow Subsidiary Companies

Mirchi Movies (India) Limited (MML)

Times Internet Limited (TIL)

Times Global Broadcasting Company Limited (TGBCL)

Times Business Solutions Limited (TBSL)

Optimal Media Solutions Limited (OMSL)

Times VPL Limited (TVL) [formerly Vijayanand Printers Limited (VAPL)]

Vardhaman Publishers Limited (VPL)

Artha Distribution Services Limited (ADSL)*

Times Innovative Media Limited (TIM) – from December 30, 2010

TIM Delhi Airport Advertising Private Limited (TIMDAA) – from December 30, 2010

d. Other Related Party

Aegon Religare Life Insurance Company (ARLIC)

e. Key Managerial Personnel Chairman

Mr. Vineet Jain

Managing Director

Mr. A. P. Parigi – upto September 30, 2009

Executive Director & Chief Executive Officer

Mr. Prashant Panday- Executive Director from July 1, 2010

Non-Executive Directors

Mr. N. Kumar

Mr. Deepak M. Satwalekar - up to March 30, 2011

Mr. Ravindra Kulkarni

Mr. Ravindra Dhariwal

Mr. A. P. Parigi - from October 01, 2009

Mr. Richard Saldanha - from November 23, 2010

* There are no transactions during the year

6. Disclosures for Operating Leases

Disclosures in respect of cancellable agreements for cars, transmission towers, office and residential premises taken on lease:

a. Lease payments recognised in the Profit and Loss Account Rupees 136,769,643 (Previous Year : Rupees 136,974,009).

b. All the agreements provide for early termination by the Company by giving prior notice in writing.

7. On December 29, 2010, the Company sold its entire stake in Times Innovative Media Limited (TIM) to Bennett, Coleman & Company Limited (BCCL). The profit from this sale amounting to Rupees 126,848,239 has been refected as exceptional items in the financial statements.

8. The Company has a Media Collaboration Arrangement with Bennett, Coleman & Company Limited (BCCL), the ultimate holding company. This arrangement seeks to expand the advertisement market and inter-alia helps the Company to gain access to certain clients who may not otherwise advertise in FM radio. The revenues generated from this arrangement were Rupees 167,865,293 (Previous Year : Rupees 144,153,607) in the current year. Subsequently, in view of the uncertainties as to timing and the quantum of the ultimate collection, the Company has based on the principles of prudence, created a provision for doubtful debts to the extent of Rupees 111,829,272 (Previous Year : Rupees 127,735,492) in respect of the sales made pursuant to this arrangement.

9. Provision for income tax has been made on the basis of Section 115JB of the Income Tax Act, 1961 (Minimum Alternate Tax).

10. The Honourable Copyright Board ("CRB") vide its final order dated August 25, 2010 ruled that radio broadcasters will be liable to set apart 2% of the net advertising earnings of each of their FM radio stations for royalty payment to all the music providers in proportion to usage. Following a writ petition by the Super Cassettes Industries Limited ("SCIL"), the Honourable Delhi High Court granted stay on implementation of the aforesaid CRB order against SCIL. Accordingly, w.e.f. August 25, 2010 the Company has accounted the music royalty for sound recordings provided by all music providers other than the SCIL on a revenue share basis. In the interim, the music royalty for sound recording provided by SCIL is accounted based on the needle hour rate indicated in the CRB order dated November 19, 2002.

11. Recoveries deducted from expenses are on account of sharing of common expenses with subsidiaries and Group Companies.

12. Information pursuant to other provisions of Part II of Schedule VI to The Act, is either nil or not applicable to the Company for the year.

13. Previous year's figures have been regrouped where necessary.


Mar 31, 2010

Nature of Operations

The Company was incorporated on June 24, 1999. The Company operates FM radio broadcasting stations through the brand Radio Mirchi in 32 Indian cities. The Companys revenue is generated mainly from the sale of air time for advertising.

2. Contingent Liabilities

a) Guarantees issued by banks on behalf of the Company Rupees 6,000,000 (Previous Year : Rupees 6,000,000).

b) Corporate Guarantee issued by the Company to HDFC Bank on behalf of Times Innovative Media Limited (a subsidiary company) Rupees 200,000,000 (Previous Year : Rupees 200,000,000) and to HSBC Bank Rupees 500,000,000 (Previous Year : Rupees Nil).

3. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account Rupees 5,094,910 (Previous Year : Rupees 87,809) net of advances of Rupees 11,089,571 (Previous Year : Rupees 20,500,000).

* In the previous year, provision for / contributions to employee retirement / post retirements, which are based on actuarial valuations done on an overall company basis, are excluded above.

# The current years managerial remuneration is for the six months period ended September 30, 2009 paid to the Managing Director of the Company since the Company did not have a managing / whole-time director after that date.

Approval for the appointment and payment of the above remuneration to Mr. A. P. Parigi, Managing Director, has been received from the Central Government of India, Ministry of Corporate Affairs vide their letter No. 12/928/2007- CL.VII dated December 6, 2007, SRN/A/56429632/3/2009- CL.VII dated October 26, 2009 and A70602552-CL-VII dated April 19, 2010.

Note: The computation of proft under Section 309(5) of the Companies Act, 1956 is not applicable as no commission is payable to the Managing Director.

b) Directors Sitting Fees Rs. 720,000 (Previous Year : Rupees 690,000)

4. One Time Entry Fee (OTEF) and Migration Fee

As per the new Frequency Module (FM) broadcasting policy, effective April 1, 2005 the Company had been given the option to migrate all its existing licence from Phase I regime to Phase II regime on payment of migration fees. Migration fees for each station shall be equal to the average of all successful bids received for that city. The Company had exercised the option and has migrated its licences for all the seven cities to Phase II regime by payment of migration fees aggregating Rupees 815,234,695.

Further, the Company had participated in second round of bidding and was awarded frequency at 25 locations. The payment made by the Company to acquire these frequencies (One Time Entry Fees) is Rupees 1,301,000,000.

Based on the opinion obtained from an independent frm of Chartered Accountants, both Migration Fees and One Time Entry Fees have been capitalised as Intangible Asset.

G) Expected employers contribution for the next year Rupees 4,805,497 (Previous Year : Rupees 5,420,826).

III) The liability for leave encashment and compensated absenses as at the year end is Rupees 11,764,713 (Previous Year : Rupees 11,132,510).

5. Segment Information

In accordance with Accounting Standard – 17, “Segmental Reporting" issued by the Institute of Chartered Accountants of India, the Companys business segment is radio broadcasting business and it has no other primary reportable segments. Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liability, total cost incurred to acquire segment assets and total amount of charge for depreciation during the year, is as refected in the Financial Statements as of and for the year ended March 31, 2010. The Company caters to the needs of the domestic market and hence there are no reportable geographical segments.

6. Related Party Disclosures

a. Parties where control exists

Bennett, Coleman & Company Limited (BCCL) – Ultimate Holding Compan Times Infotainment Media Limited (TIML) – Holding Company

b. Subsidiary Companies

Times Innovative Media Limited (TIM) – Subsidiary Company Alternate Brand Solutions (India) Limited (ABSL) – Subsidiary Company

c. Fellow Subsidiary Companies

Vardhaman Publishers Limited (VPL)

Times Internet Limited (TIL)

Times Global Broadcasting Company Limited (TGBCL)

Times Business Solutions Limited (TBSL)

Zoom Entertainment Networks Limited (ZENL)*

Optimal Media Solutions Limited (OMSL)

Artha Distribution Services Limited (ADSL)

Vijayanand Printers Limited (VAPL)

Mirchi Movies (India) Limited (MML)

d. Other Related Party where common control exists Worldwide Media Private Limited (WWM)*

* There are no transactions during the year.

e. Key Managerial Personnel

Chairman

Mr. Vineet Jain

Managing Director

Mr. A. P. Parigi – upto September 30, 2009

Non - Executive Directors

Mr. Ravindra Dhariwal

Mr. N. Kumar

Mr. Deepak M. Satwalekar

Mr. Ravindra Kulkarni

Mr. A. P. Parigi – from October 01, 2009

Chief Executive Offcer

Mr. Prashant Panday

7. Disclosures for Operating Leases

Disclosures in respect of cancellable agreements for cars, offce and residential premises taken on lease:

a) Lease payments recognised in the Proft and Loss Account Rupees 146,600,344 (Previous Year : Rupees 137,328,503).

b) All the agreements provide for early termination by either party by giving prior notice in writing.

8. Employee Stock Option Scheme (ESOS)

Pursuant to the resolution passed by the Board of directors and members of the Company at the meeting of Board of Directors and Extra Ordinary General Meeting of the Members of the Company respectively, held on November 5, 2005, the Company had introduced an Employee Stock Option Scheme (“the scheme") for its existing and future permanent employees and directors and existing and future permanent employees and directors of its Subsidiary Company and Holding Company.

The scheme provides that the total number of options granted there under will be 109,360. Pursuant to a resolution passed by the Remuneration / Compensation Committee at its meeting held on November 5, 2005, all 109,360 options that are exercisable for Equity Shares have been granted at an exercise price of Rupees 90.

In accordance with the Guidance Note on “Accounting for Employee Share-based Payments" issued by the The Institute of Chartered Accountants of India and Employee Stock Option and Stock Purchase Guidelines, 1999 issued by the Securities and Exchange Board of India, fair value of these options, on the grant date, is amortised over the vesting period.

9. The Company has a Media Collaboration Arrangement with Bennett, Coleman & Company Limited (BCCL), the ultimate holding company. This arrangement seeks to expand the advertisement market and inter-alia helps the Company to gain access to certain clients who may not otherwise advertise in FM radio.

The revenues generated from this arrangement were Rupees 144,153,607 in the current year. Subsequently, in view of the uncertainties as to timing and the quantum of the ultimate collection, the Company has based on the principles of prudence, created a provision for doubtful debts to the extent of Rupees 127,735,492 in respect of the sales made from this arrangement.

10. Recoveries deducted from expenses are on account of sharing of common expenses with subsidiaries and Group Companies.

11. The Company has made investment aggregating Rupees 320,000,000 (83.44% shares) in Times Innovative Media Limited (TIM) a subsidiary of the Company.

As at March 31, 2010 TIM had accumulated losses of Rupees 1,496,740,430. This has resulted in net worth erosion of 65%. This is due to the losses incurred in the past few years on account of severe economic downturn coupled with expansion of inventory. TIM has critically reviewed its property portfolio and has given up non-strategic loss making properties. The Company has assessed TIMs revenue and cash fow projections has agreed to provide fnancial support to TIM as and when required.

In view of the above and since the investment is long term in nature, in the opinion of the Management, no provision for diminution is required presently to the carrying value of the investment.

12. Information pursuant to other provisions of Part II of Schedule VI to The Act, is either nil or not applicable to the Company for the year.

13. Previous years fgures have been regrouped where necessary.

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