prism tv private limited - reliance industries tv... · d. vijaya kumar ramoji rao ch. kiron...

715PRISM TV PRIVATE LIMITED

Prism TV Private Limited

716 PRISM TV PRIVATE LIMITED

Balance Sheet as at March 31, 2015

(Amount in Rupees)

Note As at As at31 March, 2015 31 March, 2014

EQUITY AND LIABILITIES

Shareholders’ fundsShare capital 1 250,513,400 250,513,400Reserves and surplus 2 (108,967,513) 1,245,443,637

141,545,887 1,495,957,037

Non-current liabilitiesLong-term borrowings 3 800,000,000 300,000,000Long-term provisions 4 27,718,832 53,182,045

827,718,832 353,182,045

Current liabilitiesShort-term borrowings 5 100,000,000 160,000,000Trade payables 6 784,040,237 659,824,912Other current liabilities 7 103,075,523 109,996,730Short-term provisions 8 325,544,556 173,758,813

1,312,660,316 1,103,580,455

TOTAL 2,281,925,035 2,952,719,537

ASSETSNon current assets

Fixed assets 9- Tangible assets 107,454,547 128,530,691- Intangible assets 20,960,499 1,984,900- Capital work-in-progress 11,568,228 -Long-term loans and advances 10 63,416,028 31,023,010

203,399,302 161,538,601

Current assetsInventories 11 313,063,285 1,089,618,658Trade receivables 12 1,227,203,331 924,783,177Cash and bank balances 13 53,679,434 312,031,761Short-term loan and advances 14 484,579,683 464,464,236Other current assets 15 - 283,104

2,078,525,733 2,791,180,937

TOTAL 2,281,925,035 2,952,719,537

The accompanying Notes 1 to 23 are an integral part of the Financial Statements

In terms of our report attached

For A.K.Sabat & Co. For and on behalf of the Board of DirectorsChartered Accountants(Firm Registration No. 321012E)

D. Vijaya Kumar Ramoji Rao Ch. KironPartner Chairman DirectorMembership No. : 051961

Place: HyderabadDate: 09-04-2015


Statement of Profit and Loss for the year ended March 31, 2015

(Amount in Rupees)

Note For the year For the yearended ended

March 31, 2015 March 31, 2014

Revenue

Revenue from operations 16 3,324,977,357 2,621,349,757

Other income 17 105,392,708 69,765,576

TOTAL REVENUE 3,430,370,065 2,691,115,333

Expenses

Operational Expenses 18 3,091,908,035 2,983,386,925

Employee benefits expense 19 265,623,634 359,930,837

Finance costs 20 68,214,881 32,407,696

Depreciation and amortisation expense 9 (61,257,823) 32,515,709

Other expenses 21 461,662,136 552,567,551

TOTAL EXPENSES 3,826,150,863 3,960,808,718

Profit/(Loss) before exceptional items and tax (395,780,798) (1,269,693,385)

Exceptional items 22 952,072,781 -

Profit/(Loss) before tax (1,347,853,579) (1,269,693,385)

Tax expenses - -

Profit/(Loss) for the year (1,347,853,579) (1,269,693,385)

Earnings per equity share (Face value of Rs.10 each) 23.3.o

Basic (in Rs.) (53.80) (101.54)

Diluted (in Rs.) (53.80) (101.54)







(Amount in Rupees)

For the year For the yearended ended

March 31, 2015 March 31, 2014

A. Cash flow from operating activitiesNet loss before tax (1,347,853,579) (1,269,693,386)Adjustments for:Profit on sale/discard of Fixed Assets (36,298) (1,851,609)Depreciation and Amortisation expense (61,257,823) 32,515,702Exceptional item 952,072,781 -Foreign exchange gain (425,058) (599,792)Inventory Written off - 10,636,220Provision for doubtful debts/bad debts Written off 44,520,642 141,312,038Provision for doubtful advances 108,893 639,617Excess provision for liability written back (100,485,936) (51,487,086)Interest expense 68,214,881 32,407,696Interest income (3,516,971) (10,411,341)Operating loss before working capital changes (448,658,469) (1,116,531,941)Adjustments for :Trade receivables (560,258,703) (75,375,815)Inventories 186,868,468 200,513,125Long-term loans and advances (32,501,911) 52,078,494Short-term loans and advances 96,311,414 110,183,651Trade payables 224,701,261 218,785,855Long-term provisions (25,463,214) 11,321,263Short-term provisions 151,785,743 70,102,494Other current liabilities 3,985,435 42,904,412Cash generated from operations (403,229,976) (486,018,463)Taxes paid (116,426,861) (154,295,720)

Net cash used in operating activities (519,656,837) (640,314,183)

B. Cash flows from investing activitiesPurchase of fixed assets (81,659,727) (6,163,994)Purchase of intangible assets (21,776,323) (537,904)Sale of fixed assets 62,008 2,327,374Interest received 3,800,075 21,783,505

Net cash used in investing activities (99,573,967) 17,408,980

C. Cash flows from financing activitiesLong-term borrowing 500,000,000 49,668,007Share capital - 250,332,000Other short term borrowings( Net) (60,000,000) 160,000,000Interest paid (79,121,523) (32,407,696)Net cash from financing activities 360,878,477 427,592,311Net decrease in cash and cash equivalents (A + B + C) (258,352,327) (195,312,892)Cash and cash equivalents at the beginning of the year 312,031,761 507,344,653

Cash and cash equivalents at the end of the year 53,679,434 312,031,761

Cash Flow Statement for the year ended March 31, 2015







Notes to the Financial Statements

(Amount in Rupees)

As at As at31 March, 2015 31 March, 2014

1. SHARE CAPITAL

Authorised:

Equity shares 3,00,00,000 (previous year 3,00,00,000), of Rs.10 each 300,000,000 300,000,000

Issued:


Subscribed and fully paid-up:


A. Reconciliation of the number of shares and amount outstanding

As at As at As at As at31.03.2015 31.03.2014 31.03.2015 31.03.2014

As at the beginning of the year Nos. 2,50,51,340 18,140 25,05,13,400 1,81,400

Add: Issue of shares Nos. - 2,50,33,200 - 25,03,32,000

As at the end of the year Nos. 2,50,51,340 2,50,51,340 25,05,13,400 25,05,13,400

B. Rights and restrictions attached to the equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares inentitled to one vote per share held. The dividend in case proposed by the Board of Directors will be subject to the approvalof the shareholder in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation,the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferencialamounts, in proportion to their shareholdings.

C. Equity shares held by the Holding company( By virtue of control)

Equator Trading Enterprises Private Limited - Nos. 1,25,25,670 (Previous year 1,25,25,670)

D. Shareholders holding more than 5% of equity shares

Nos. % held Nos. % held

Equator Trading Enterprises Private Limited 1,25,25,670 50.00 1,25,25,670 50.00

Shinano Retail Private Limited 1,25,25,670 50.00 1,22,75,157 49.00

E. Equity shares allotted as fully paid-up shares without payment being received in cash for the period of five years immediatelypreceding March 31

No’s No’s

Shares issued in the year 2010-11 as part of Scheme of Arrangement of Television 18,140 18,140Division of Ushodaya Enterprises Private Limited (UEPL) with the Company


(Amount in Rupees)

As at As at31 March, 2015 31 March, 2014

2. RESERVES AND SURPLUS

Securities Premium Account*

At the beginning and at the end of the year 3,110,932,412 3,110,932,412

*Refer Note 23-1.2

(Deficit) in the Statement of Profit and Loss

At the beginning of the year (1,865,488,775) (595,795,389)

Add: (Loss) for the year (1,347,853,579) (1,269,693,386)

Add: Carrying amount of assets whose remaining life is NIL (6,557,570) -

At the end of the year (3,219,899,925) (1,865,488,775)

TOTAL (108,967,513) 1,245,443,637

3. LONG-TERM BORROWINGS

Unsecured-Loan and advances from related parties*

- Working Capital Loan - 300,000,000

Secured-Term Loan from ING Vysya Bank Limited. 800,000,000 -

(Secured by exclusive charge on current assets and moveable fixed assetsof the Company for opex/marketing expenses/content development etc.Interest at 11.25% p.a. Repayment in 20 equal quartely installments ofRs 4 cr after a moratorium of 24 months)

TOTAL 800,000,000 300,000,000

*Unsecured working capital loan from TV18 Broadcast Limited, utimate holding company, at 15% interest per annum on reducingbalance basis.

4. LONG-TERM PROVISIONS

Provision for employee benefits (Refer note no. 23.3h)

Gratuity 11,924,473 27,433,626

Compensated absence 15,794,359 25,748,420

TOTAL 27,718,832 53,182,046

5. SHORT-TERM BORROWINGS

Secured-Working Capital Demand Loan from HDFC Bank Limited. - 150,000,000

(Secured by first pari passu charge over the entire current assets andfirst pari passu charge on the entire movable fixed assets both present and future.)

Secured-Working Capital Demand Loan from ING Vysya Bank Limited. 100,000,000 10,000,000

(Secured by exclusive charge on current assets and moveable fixed assets of the Company,25 % margin on stocks & receivables upto 120 days. Interest rate currently at 10.8% p.a.)

TOTAL 100,000,000 160,000,000



6. TRADE PAYABLES* 784,040,237 659,824,912

* Includes due to related parties (Refer note 23-3j) 430,188,869 169,865,285

7. OTHER CURRENT LIABILITIES

Advance from customers 23,577,615 31,955,925

Statutory liabilities 79,204,072 66,607,951

Interest accrued and due on borrowings 293,837 11,200,479

Other payables - 232,375

TOTAL 103,075,523 109,996,730

8. SHORT-TERM PROVISIONS

Provision for employee benefits (Refer Note no. 23-3h)

Gratuity 4,152,355 10,455,003

Compensated absence 3,692,764 6,182,291

Provision for expenses 317,699,437 157,121,519

TOTAL 325,544,556 173,758,813


(Amount in Rupees)As at As at

31 March, 2015 31 March, 2014



9.F

IXE

D A

SSE

TS

(Am

ount

In

Rup

ees)

Parti

cular

sGr

oss B

lock

Accu

mul

ated

Depr

eciat

ionNe

t Bloc

k

As at

Dedu

ction

s/As

atAs

atAd

juste

d in

Acco

untin

gAs

sets

For t

heDe

ducti

ons/

As at

As at

As at

01.04

.2014

Addi

tions

Adju

stmen

ts31

.03.20

1501

.04.20

14re

tain

edpo

licy

char

ged

Year

Adju

stmen

ts31

.03.20

1531

.03.20

1531

.03.20

14ea

rnin

gsch

ange

off

A. T

angib

le As

sets

Build

ings

315,0

40-

315,0

40-

315,0

40-

--

-31

5,040

--

-

Leas

ehold

Impr

ovem

ents

52,54

6,779

81,82

0-

52,62

8,599

36,33

6,188

--

11,10

4,559

1,597

,084

-49

,037,8

303,5

90,76

916

,210,5

91

Plan

t and

Equ

ipmen

t:71

9,800

,880

50,97

5,717

4,322

,522

766,4

54,07

663

7,026

,844

30,74

2(7

2,769

,732)

116,3

60,08

411

,180,2

744,3

01,23

568

7,526

,975

78,92

7,101

82,77

4,037

Studio

Equ

ipmen

ts17

,413,5

18-

-17

,413,5

1814

,529,2

48-

(3,08

7,226

)4,8

60,64

627

1,575

-16

,574,2

4283

9,276

2,884

,270

A V

Equip

ments

702,3

87,36

250

,975,7

174,3

22,52

274

9,040

,558

622,4

97,59

530

,742

(69,6

82,50

6)11

1,499

,438

10,90

8,699

4,301

,235

670,9

52,73

378

,087,8

2579

,889,7

67

Air C

ondit

ioners

and

Refri

gerat

ion27

,806,2

0026

8,170

92,69

527

,981,6

7521

,959,8

58-

(6,26

2,067

)8,0

53,31

71,8

66,60

592

,695

25,52

5,017

2,456

,658

5,846

,343

Elec

trica

l Equ

ipmen

t54

,287,4

53-

320,2

4853

,967,2

0543

,125,2

703,0

46,37

7(5

,076,9

45)

7,605

,629

1,985

,138

320,2

4850

,365,2

213,6

01,98

411

,162,1

83

Data

Proces

sing E

quipm

ent

62,96

3,056

18,66

5,872

1,158

,000

80,47

0,927

56,64

8,401

1,682

,544

(1,64

0,575

)80

,045

7,958

,288

1,158

,000

63,57

0,702

16,90

0,225

6,314

,655

Furn

iture

and

Fixtu

res20

,053,4

9810

,420

106,5

1719

,957,4

0117

,259,8

8261

0,581

(3,64

2,317

)4,2

47,85

764

9,012

106,5

1719

,018,4

9993

8,902

2,793

,616

Vehic

les6,3

37,71

4-

-6,3

37,71

45,6

59,24

912

4,865

(903

,811)

821,6

3254

0,460

-6,2

42,39

695

,318

678,4

65

Offic

e Eq

uipme

nt9,0

61,33

589

,500

210,8

278,9

40,00

86,3

10,53

31,0

62,46

0(8

92,93

3)36

9,786

1,352

,976

206,4

047,9

96,41

494

3,591

2,750

,802

Tota

l95

3,171

,955

70,09

1,499

6,525

,850

1,016

,737,6

0582

4,641

,265

6,557

,570

(91,1

88,38

1)14

8,642

,910

27,12

9,836

6,500

,140

909,2

83,05

510

7,454

,547

128,5

30,69

1

Prev

ious y

ear

950,5

48,85

06,1

63,99

43,5

40,88

995

3,171

,955

796,0

95,31

5-

--

31,61

1,073

3,065

,124

824,6

41,26

512

8,530

,691

154,4

53,53

5

B. In

tangib

le As

sets

Comp

uter S

oftw

are21

,773,1

8721

,776,3

23-

43,54

9,510

19,78

8,287

--

-2,8

00,72

3-

22,58

9,011

20,96

0,499

1,984

,900

Copy

rights

and

Opera

ting

Righ

ts3,1

73,80

9,464

-3,1

73,80

9,464

-2,2

00,88

6,317

--

--

2,200

,886,3

17-

--

Tota

l3,1

95,58

2,651

21,77

6,323

3,173

,809,4

6443

,549,5

102,2

20,67

4,605

--

-2,8

00,72

32,2

00,88

6,317

22,58

9,011

20,96

0,499

1,984

,900

Prev

ious y

ear

3,084

,794,7

4753

7,904

3,195

,582,6

5121

,773,1

871,8

96,90

9,113

--

-90

4,628

2,200

,886,3

1719

,788,2

871,9

84,90

02,3

51,62

4

C. C

apita

l Wor

kIn

Pro

gress

-11

,568,2

28-

11,56

8,228

--

--

--

11,56

8,228

-

Tota

l-

11,56

8,228

-11

,568,2

28-

--

--

--

11,56

8,228

-

Prev

ious y

ear

--

--

--

--

--

--

-



10. LONG-TERM LOANS AND ADVANCES

Capital advances 14,834,343 -

Security deposits 28,379,149 10,820,474

Minimum alternate tax 12,738,536 12,738,536

Loans and advances to Related Parties*:

Unsecured, considered good 7,464,000 7,464,000

Doubtful 40,809,459 40,800,112

Less: Provision for doubtful advances (40,809,459) (40,800,112)

TOTAL 63,416,028 31,023,010

*Loans and advances to Related Parties are to Private limited companies in which Director is a member Rs. 74,60,000 (Previous yearRs. 74,60,000) and in which director has significant influence Rs.4,08,09,459 (previous year Rs.4,08,00,112)

11. INVENTORIES (At lower of cost or net realisable value)

Serials and programmes 92,422,911 116,695,512

Movies 220,640,374 972,923,147

Stores and spares - 1,312,327

Less: provision for obsolete and slow moving - (1,312,327)

TOTAL 313,063,285 1,089,618,659

12. TRADE RECEIVABLES

Outstanding for period exceeding six months from the date they are due for receipt

Unsecured, considered good 78,653,948 227,478,002

Unsecured, considered doubtful 481,977,148 223,713,541

Less: Provision for doubtful receivables (481,977,148) (223,713,541)

Others Debts ( Unsecured, considered good) 1,148,549,383 697,305,175

TOTAL 1,227,203,331 924,783,177

13. CASH AND BANK BALANCES

Balance with banks in current accounts 53,476,312 136,826,435

Cheques on hand - 125,000,000

Cash on hand 203,121 79,573

Fixed Deposit - 50,125,753

TOTAL 53,679,434 312,031,761


31 March, 2015 31 March, 2014



14. SHORT-TERM LOAN AND ADVANCES

(Unsecured, considered good)

Loans and advances to Related Parties* - 172,836,464

Security deposit 5,991,324 8,123,130

Others

Advance to vendors 29,514,998 4,626,593

Less: Provision for doubtful advances/deposits (5,000,000) (5,000,000)

Advance to staff 921,110 -

Advance to related party - 2,006,453

Income Tax (net of provisions) 359,124,211 242,697,350

Balance with Government authorities- service tax credit receivable 89,728,565 35,877,013

Prepaid expenses 4,299,475 3,297,235

TOTAL 484,579,683 464,464,236

*Relates to erstwhile ultimate Holding company Rs.NIL (Previous year Rs.12,50,00,000) and to Private company in which directoris a member Rs NIL (Previous year Rs. 4,78,36,464).

15. OTHER CURRENT ASSETS

Interest accrued on fixed deposits - 283,104

(Amount in Rupees)

For the For theyearended year ended

March 31, 2015 March 31, 201416. REVENUE FROM OPERATIONS

Advertisement revenue 2,417,999,781 2,050,014,635

Subscription revenue 897,470,328 566,570,000

Other operating revenue 9,507,248 4,765,122

TOTAL 3,324,977,357 2,621,349,757

17. OTHER INCOME

Interest on bank deposits 3,516,971 10,411,341

Miscellaneous receipts 928,445 5,415,748

Net gain on foreign exchange transactions and fluctuation 425,058 599,792

Profit on sale of assets 36,298 1,851,609

Liabilities/provisions no longer required written back 100,485,936 51,487,087

TOTAL 105,392,708 69,765,576

18. OPERATIONAL EXPENSES

Programming and Movie 2,526,002,634 2,680,125,506

Transmission and Uplinking 57,564,466 57,596,876

Marketing and Advertisement 302,623,141 245,664,544

Other Distribution 205,717,794 -

TOTAL 3,091,908,035 2,983,386,925


31 March, 2015 31 March, 2014



19. EMPLOYEE BENEFITS EXPENSE

Salaries, bonus and other allowances 241,413,135 321,499,434

Contribution to Provident fund & others 14,136,696 22,421,478

Gratuity expense 4,128,669 6,067,767

Workmen and staff welfare expenses 5,945,134 9,942,158

TOTAL 265,623,634 359,930,838

20. FINANCE COST

Interest expense

On Inter corporate deposits 15,852,741 12,390,410

On Term loan from bank 19,232,877 -

On Working capital facilities from banks 20,301,172 14,010,168

On others 328,091 7,118

Loan Processing Fee 12,500,000 6,000,000

TOTAL 68,214,881 32,407,696

21. OTHER EXPENSES

Power and fuel 20,991,548 25,506,453

Rent 46,530,576 43,887,222

Repairs and maintance 19,059,201 27,649,112

Office Maintenance 3,378,718 3,955,335

Auditors remuneration 1,800,000 1,400,000

News service charges 6,318,701 21,195,810

Bad debts written off - 53,688,012

Other balance written off 129,230 553,239

Inventory written off - 10,636,220

Communication costs 15,708,470 19,774,242

Insurance 3,352,465 1,818,685

Legal,professional consultancy charges 17,019,496 22,862,329

Reimbursement of expenses 226,600,132 184,103,427

Miscellaneous expenses 2,305,141 1,998,002

Sales Commission 4,385,990 -

Stores consumption 8,961,287 539,951

Printing and stationery 1,176,233 2,618,051

Provision for doubtful debtors and advances 44,629,535 87,624,026

Rates and taxes 5,176,270 8,177,458

Staff recruitment and training expenses 2,686,998 525,947

Travelling and conveyance 19,841,786 20,485,738

Vehicle Maintenance 11,402,603 12,895,847

Bank charges 207,758 672,445

TOTAL 461,662,136 552,567,551

(Amount in Rupees)

For the For theyearended year ended

March 31, 2015 March 31, 2014


22. Exceptional Items

Fixed Tangible Assets charged off 148,642,910 -

Movie copyrights written off 578,202,093 -

Provision for doubtful debtors 213,742,965 -

Serials and Programmes written off 11,484,813 -

TOTAL 952,072,781 -



Note 23: Significant Accounting Policies and Additional Notes to the Financial Statements for the year ended March 31, 2015.

1. Corporate Information

1.1 Background

Prism TV Private Limited (the ‘Company’ or Non-Telugu Regional Undertaking) is a Company registered under Indian CompaniesAct, 1956. The Company is in the business of programmes production and broadcasting satellite television in various regionallanguages predominantly to viewers in India. The Company’s channel are ETV-Marathi, ETV-Bangla, ETV-Gujarati, ETV-Kannada and ETV-Oriya. The Company’s pay channel division undertakes distribution/transmission of its satellite channels tovarious cable operators and direct to home (DTH) service providers.

1.2 Scheme of arrangement

Under Honourable High Court of Andhra Pradesh approved and regulatory complied Scheme of Arrangement under Section391 to 394 of the Companies Act 1956, business undertaking demerged from Ushodaya Enterprises Private Limited, comprisingof ETV Kannada, ETV Bangla, ETV Marathi, ETV Gujarati and ETV Oriya vested with the Company. Accordingly, on February29, 2012 with effect from April 1, 2010 as the appointed date, assets and liabilities of the demerged undertaking have been takenover at their respective book values on a going concern basis.

2. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principlesin India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956(Accounting Standards) Rules, 2006 (as amended) (“the 1956 Act”) (which continue to be applicable in respect of Section 133of Companies Act, 2013 (“the 2013 Act”) in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry ofCorporate Affairs ) and the relevant provisions of the 1956 Act/ 2013 Companies Act, as applicable. The financial statementshave been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation ofthe financial statements are consistent with those followed in the previous year.

b. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to bemade that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statementsand the reported amount of revenues and expenses during the reporting period. Difference between the actual results andestimates are recognized in the period in which the results are known/materialise.

c. Fixed Assets

Tangible Assets

i. Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation,less accumulated depreciation and impairment loss, if any. The cost comprises purchase price, borrowing costs and any costdirectly attributable to bringing the asset to its working condition for its intended use.

ii. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefitsfrom the existing asset beyond its previously assessed standard of performance.

iii. Projects under which are assets are not ready for their intended use are shown as Capital work-in-progress.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairmentloss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to itsworking condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchangerate variations attributable to the intangible assets.



d. Depreciation and amortisation

Tangible assetsi. Depreciation is provided considering the useful lives of respective fixed assets as provided and prescribed under Schedule II of

the Companies Act, 2013.ii. Assets costing Rupees five thousand or less are fully depreciated in the year of purchase.iii. Pursuant to the enactment of the Companies Act, 2013, cost of leasehold improvements are depreciated over the remaining

period of lease of the premises.Intangible assetsCosts incurred towards purchase of computer software is depreciated over a period of 5 (Five) years.

e. Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged tothe Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prioraccounting period is reversed if there has been a change in the estimate of recoverable amount

f. Leases

i. Where the Company is the lessee

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased item is classified asoperating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss.

ii. Where the Company is the lessor

Lease income is recognised in the Statement of Profit and Loss on a straight-line basis over the lease term. Initial direct costssuch as legal costs, brokerage costs, etc. are recognised immediately in the Statement of Profit and Loss.

g. Inventories

Serial, program and movie costs

i. Serials and program purchased or produced in-house which are yet to be telecast are carried at cost. Cost includes amount paidto the producers for serials and program purchased. Cost of programs produced in-house includes remuneration to artists,directors and technicians, location expenses and other production costs. Provision for impairment is made for episodes ofserials and programs not telecast for more than a year.

ii. Cost of serials and programs purchased and the costs of serials and programs produced in-house are expensed off based onnumber of episodes telecast during the year. The costs are amortized at 90% in the first year of telecast and the balance isamortized evenly in the subsequent financial year. Also, the cost of inventory is reviewed by the management on yearly basisfor evaluation of inventory cost carried in the books.

iii. Cost of news/current affairs/one-time events are fully expensed on first telecast.

iv. Cost of satellite movie rights acquired are amortized on the exploitation of such rights based on the management estimates offuture revenue potential. However, the prime time movies are amortised at 30% on first airing and balance over license period.

h. Foreign currency transactions

i. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction orthat approximates the actual rate at the date of the transaction.

ii. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which arecovered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognisedas exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

iii. Non-monetary foreign currency items are carried at cost.

iv. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statementof Profit and Loss.

i. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue canbe reliably measured. Specifically the following basis is adopted:



i. Advertising income

Advertising income is recognized when the related commercial or program is telecast on the channels.

ii. Televoting /SMS income

Televoting /SMS income is recognized as per the terms of the contract with the mobile service provider and the production house.

iii. Subscription income

Subscription income from pay channels represents subscription fees billed to Cable Operators, direct to home service providerstowards pay-channels operated by the Company and are recognized in the year during which the service is provided. Subscriptionfees are determined based on Management’s best estimates of the number of subscribers to which the service is supplied, atcontractually agreed rates. Subscription Income from DTH customers is recognized in accordance with terms of agreementsentered into with the service providers.

iv. Interest income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rateapplicable.

j. Retirement and other Employee benefits

i. Regular monthly contribution to Employees’s Provident Fund Scheme which is in the nature of defined contribution plan ischarged against revenue when the contributions to the respective funds are due. There are no other obligations other than thecontribution payable to the fund.

ii. The Company provides for gratuity, a defined benefit retirement plan (‘’the Gratuity Plan’’) covering eligible employees. Inaccordance with the Payment of Gratuity Act,1972, the Gratuity Plan provides a lump sum payment to vested employees atretirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary andtenure of employment.

The Company also makes contributions to funds administered and managed by the insurance companies for the amount notifiedby the said insurance companies.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projectedunit credit method, which recognizes each year of services as giving rise to additional unit of employee benefit entitlement andmeasures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimatedfuture cash flows. The discount rate used for determining the present value of the obligation is based on the market yield ongovernment securities as at the balance sheet date. Actuarial gains/losses are recognized immediately in the statement of profitand loss.

The Liability with respect to the Gratuity Plan is determined based on actuarial valuation done by an independent actuary at theyear end and any differential between the fund amount as per the insurer and actuarial valuation is charged to the statement ofprofit and loss.

iii. Earned Leave encashment liability and sick Leave liability which are in the nature of defined benefit obligation are provided foron actuarial basis, based on independent actuarial valuation on Projected Unit Credit Method on the date of the financialstatements as per the requirements of Accounting Standard-15 on “Employee Benefits”.

Actuarial gains/losses are recognised immediately in the Statement of Profit and Loss.

k. Taxes on Income

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the taxauthorities in accordance with the Indian Income Tax Act,1961. Deferred income taxes reflects the impact of current year timingdifferences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income willbe available against which such deferred tax assets can be realised. In situations where the company has unabsorbed depreciationor carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincingevidence that they can be realised against future taxable profits.




At each Balance Sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes the unrecognized deferredtax assets to the extent that it is reasonably certain that sufficient future taxable income will be available against which suchdeferred tax assets can be realized.

l. Provisions

A provision is recognised when the Company has a present obligation as a result of past event; it is probable that an outflow ofresources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are notdiscounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheetdate. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

m. Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted andwhen there is reasonable certainty in availing/utilizing the credits.

n. Earnings per share

‘Basic’ earnings per share is calculated by dividing the net profit or loss for the year attributable to the shareholders by theweighted average number of equity shares outstanding at the year end.

‘Diluted’ earnings per share using the weighted average number of equity shares and dilutive potential equity shares outstandingat the year end, except when the result would be anti-dilutive.

o. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an originalmaturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into knownamounts of cash and which are subject to insignificant risk of changes in value.

p. Cash Flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for theeffects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cashflows from operating, investing and financing activities of the Company are segregated based on the available information.

q. Barter Transactions:

Barter transactions are recognized at fair value of consideration receivable or payable. When the fair value of transaction cannotbe measured reliably, the revenue/expense is measured at the fair value of the goods/services provided/received adjusted by theamount of cash or cash equivalent transferred.

3. ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS

a. Accounting policy change

(i) Depreciation on Fixed tangible Assets

The Company has changed the method of providing depreciation retrospectively from Written Down Value method to theStraight Line Method, as a result of which of Rs. 9,11,88,381 has been written back to the Statement of Profit and Loss andadjusted against the depreciation of the year. Had this change not been made, the loss of the year would have been lower byRs.9,04,436 on account of current depreciation and the value of net fixed assets would have been higher by Rs. 9,04,436.

(ii) Inventory accounting

The Company has changed its policy prospectively in accounting amortization of inventories from amortising 100% of the costof programs/serials on telecast to amortising 90% of the cost of serials/programs in the first year of telecast and balance amortisedevenly in the subsequent year. Had this change not been made, the loss for the year would have been higher by Rs. 7,06,45,789on account of programming cost and the value of inventory would have been lower by Rs.7,06,45,789.

(iii) Reclassification of movie copyrights

Movies acquired for telecast were being accounted under Fixed Intangible assets-‘Copyrights and operating rights’. EffectiveApril 1, 2014, the Company has reclassified and considered such ‘Copyrights and operating rights’ as current assets under



‘Inventory’. However, the amount of amortization expenses remain the same on such reclassification of such rights being thesame rate applied as that of earlier years and has no financial impact in the Statement of Profit and Loss.

b. Depreciation

Depreciation for the year is provided as per Schedule II of the Companies Act, 2013 (the Act). Accordingly Rs.65,57,570 beingthe remaining Carrying amount of the assets whose remaining life in NIL are recognized in the opening balance of retainedearnings and Rs. (6,12,57,823) is charged to revenue as depreciation for the year. Hence, depreciation for the year is not directlycomparable with previous year.

c. Obligation on long term, non-cancellable operating leases

The Company has taken various office premises under operating lease agreements. The lease term of these leases rangesbetween 1 to 15 years and they are renewable by mutual consent. There are no sub lease or restrictions imposed by leasearrangements. There are certain lease agreements with escalation clauses during the initial lease term. Lease payments duringthe year recognized in the Statement of Profit and Loss amount to Rs.4,65,30,576 (Previous year Rs.4,38,87,222).

The details of future minimum lease payments under non-cancellable leases are as under:

Particulars As at As at31.03.2015 31.03.2014

(Rs.) (Rs.)

Later than 1 year but not later than 5 year 15,44,31,784 5,86,56,750

Later than five year 15,46,78,355 17,01,61,725

Less than 1 year 4,61,63,748 68,73,864

d. Contingent liabilities and capital commitments

Contingent liabilities

a. The Company has received legal notices of claims/ lawsuits filed against it relating to defamation suit in relation to newstelecast, for an aggregate claim of Rs.100,00,00,000 (Previous year Rs. 100,00,00,000). In the opinion of the management, nomaterial liability is likely to arise on account of such claim/law suits and thus no provision has been made. Also, legal noticereceived of claims/ lawsuits filed against the Company in the previous year relating to defamation suit in relation to newstelecast amounting to Rs.NIL (previous year Rs.50,52,25,000) has been dismissed in the current year.

b. The Company has received legal notices of claims/ lawsuits filed against it relating to copyright infringement in relation totelecasting Common Wealth Games 2010, for an aggregate claim of Rs.20,00,100 (Previous year Rs. 20,00,100). In the opinionof the management, no material liability is likely to arise on account of such claim/law suits and thus no provision has beenmade.

c. Claims against the Company not acknowledged as debts include demands raised by Income Tax authorities for AY 11-12aggregating to Rs. 36,68,27,854 and for AY 12-13 aggregating to Rs. 44,22,71,999 (Previous year Rs.30,09,16,069)

d. Tax Deducted at source not admitted by Income tax Authorities Rs 34,58,008 for the Assessment Years 11-12 (Previous year Rs.34,58,008) and Rs. 2,94,48,401 for AY 12-13 (Previous year Rs. 2,94,48,401). No provision has been made in the accounts forthese demands as the Company has made representation for admission of the same.

e. Claims against the Company not acknowledged as debts include demands raised by Service Tax authorities aggregating to Rs.14,58,45,638 (Previous year Rs. 12,50,66,237). No provision has been made in the accounts for these demands as the Companyexpects a favorable decision in appeal.

Commitments

Estimated amount of contracts remaining to be executed on capital accounts and not provided for Rs. 11,88,37,042 (previousyear Rs. 8,66,18,692).


e. Micro, Small and Medium enterprises

The identification of Micro, Small and Medium Enterprise suppliers as defined under the provisions of “The Micro, Small andMedium Enterprises Development Act, 2006” is based on Management’s knowledge of their status.

The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under theMicro, Small and Medium Enterprises Development Act, 2006) claiming their status as Micro, Small or Medium Enterprises.Consequently the amount paid / payable to these parties during the year and previous year is Nil.

f. Exceptional Items

During the year, based on review of current and non- current assets, the company has accounted for a) impairment in the valueof certain tangible and intangible assets of Rs.14,86,42,910 b) provision of certain non-recoverable receivables of Rs. 21,37,42,965and c) write off of certain inventories of Rs.58,96,86,906. The amount has been charged to the Statement of Profit & Loss asdetailed under note 22 as Exceptional Item. However, the above adjustments will have no impact on the future operating profitsand cash flows of the businesses of the Company.

g. Going concern

The Company’s accumulated losses of Rs. 321,98,99,925 as at the end of the current financial year is more than fifty percent ofits net worth of Rs.14,15,45,887. The Company has incurred cash loss during the year and in the immediately precedingfinancial year. The net worth of the Company has been substantially eroded. Given the long term corporate strategies and futureprofit projections, the Company has followed the fundamental accounting assumption of ‘Going concern’ for preparation offinancials for the year ended March 31, 2015. In the opinion of the Board of Directors of the Company, the Company will meetall its financial obligation as they fall due for payment for atleast 12 months from the date of signature of these financialstatements.

h. Employee benefits

On 1st April 2014, 346 no. of employees, on 1st December 2014, 188 no. of employees and on January 1, 2015 10No. ofemployees were transferred from Prism TV Private Limited (Related Party) and Prism TV Private Limited also transferred theliabilities amounting to Rs. 431.62 lacs with respect to gratuity, leave encashment and other employees benefits up to December31, 2014 for such transferred employees on the basis of actuarial valuation.

During the year, Panorama Television Private Limited has taken over 544 employees on its rolls who were transferred to it, oncontinuing employment basis, from the Company. The Company has taken over the gratuity and compensated absence benefitsliability of Rs. 341.62 lacs, in respect to these employees accrued up to 31st December 2014, on the basis of actuarial valuation.

Defined Contribution Plans

Contribution to Defined Contribution Plans, recognised as expense for the year is as under:

Particulars 2014-15 2013-14

Employer’s Contribution to Provident Fund 1,18,42,448 1,73,18,228

Defined Benefit Plan

The employees’ gratuity fund scheme managed by a Trust (PNB Met Life for SEZ unit of the Company) is a defined benefitplan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, whichrecognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unitseparately to build up the final obligation. The obligation for Compensated Absences is recognised in the same manner asgratuity.



i) Change in defined Benefit Obligation Gratuity Compensated Absences(Funded) (Unfunded)

2014-15 2013-14 2014-15 2013-14

Defined Benefit obligation at beginningof the year 4,83,92,158 5,24,82,347 31,930,711 19,295,932

Current Service Cost 27,11,110 55,95,174 5,983,494 5,689,327

Interest Cost 38,71,373 41,98,588 2,554,457 1,543,675

Actuarial (gain) / loss (15,97,867) (29,35,300) (844,592) 15,473,484

Benefits paid (3,33,05,746) (109,48,651) (20,136,948) (10,071,707)

Defined Benefit obligation at year end 2,00,71,028 4,83,92,158 19,487,122 31,930,711

ii) Fair value of Plan Assets Gratuity Compensated Absences(Funded) (Unfunded)

2014-15 2013-14 2014-15 2013-14

Fair value of Plan assets at beginning of the year 1,05,03,529 1,35,19,860 - -

Expected return on plan assets 8,40,282 10,81,589 - -

Actuarial (gain) / loss (15,665) 2,90,894 - -

Employer contribution 6,31,976 71,41,625 - -

Benefits paid (79,97,252) (1,09,48,651) - -

Fair value of Plan assets at year end 39,94,200 1,05,03,529 - -

Actual Return on plan assets 8,55,947 7,90,695 - -

iii) Amount recognized in the Balance Sheet Gratuity Compensated Absences(Funded) (Unfunded)

As at 31st March As at 31st March

2014-15 2013-14 2014-15 2013-14

Fair value of Plan assets 39,94,200 1,05,03,529 - -

Present value of obligation 2,00,71,028 4,83,92,158 19,487,122 31,930,711

Amount recognised in Balance Sheet 1,60,76,828 3,78,88,629 19,487,122 31,930,711

iv) Expenses recognised in statement of profit and loss account Gratuity Compensated Absences(Funded) (Unfunded)

2014-15 2013-14 2014-15 2013-14

Current Service Cost 27,11,110 55,95,174 59,83,494 56,89,327

Interest Cost 38,71,373 41,98,588 25,54,457 15,43,675

Expected return on Plan assets (8,40,282) (10,81,589) - -

Actuarial (gain) / loss (16,13,532) (26,44,406) (8,44,592) 15,473,484

Other Transfer - - - -

Net Cost 41,28,669 60,67,767 76,93,359 2,27,06,486




v) Principal Actuarial assumptions

Gratuity Compensated Absences(Funded) (Unfunded)

2014-15 2013-14 2014-15 2013-14

Mortality Table 2006-08 2006-08 2006-08 2006-08

(Ultimate) (Ultimate) (Ultimate) (Ultimate)

Discount rate (per annum) 8% 8% 8% 8%

Expected rate of return on plan assets (per annum) 8% 8% - -

Rate of escalation in salary (per annum) 8% 8% 8% 8%

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotionand other relevant factors including supply and demand in the employment market. The above information is certified by theactuary

vi) Amounts recognised in current year and previous four years

Particular As at 31st March

Gratuity 2015 2014 2013 2012

Defined benefit obligation 2,00,71,028 4,83,92,158 5,24,82,347 1,38,19,501

Fair value of plan assets 39,94,200 1,05,03,529 1,35,19,860 1,62,54,075

(Surplus) / Deficit in the plan 1,60,76,828 3,78,88,629 3,89,62,487 24,34,574

Actuarial (gain) / loss on plan obligation 15,97,867 29,35,300 3,92,94,301 (73,19,884)

Actuarial (gain) / loss on plan assets (15,665) 2,90,894 10,79,975 -

vii) Investment detailsAs at As at

31st March, 2015 31st March, 2014Amount (Rs) % Invested Amount (Rs) % Invested

GOI Securities - - - -

Public Securities - - - -

State Government Securities - - - -

Funds Managed by Insurer 39,94,200 100% 1,05,03,529 100%

Others (including bank balances) - - - -



viii) The expected contributions for Defined Benefit Plan for the next financial year will be in line with the current year.

i. Derivative instruments and unhedged foreign currency exposure

The year-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:

Particulars Foreign Currency Amount Closing exchange Amount(FC) Type (FC) rate (Rs) Rs.

Sundry Debtors

(previous year) GBP 35,990 92.46 33,27,631

(Nil) (NIL) (Nil)

Sundry Debtors USD 103235 62.59 64,61,510

(previous year) (130,642) (60.10) (78,51,581)

Advances USD 26,081 62.59 16,32,422

(previous year) (25,657) (60.10) (15,41,997)

j. Related Party Transactions

(i) Related parties and description of relationship.

Sr. No. Name of the entity Relationship

1 Equator Trading Enterprises Pvt. Ltd Enterprises exercising control

2 Independent Media Trust (w.e.f. 07.07.2014) Enterprises exercising control

3 Adventure Marketing Private Limited (w.e.f. 07.07.2014)# Enterprises exercising control

4 Watermark Infratech Private Limited (w.e.f. 07.07.2014)# Enterprises exercising control

5 Colorful Media Private Limited (w.e.f. 07.07.2014)# Enterprises exercising control

6 RB Media Holdings Private Limited (w.e.f. 07.07.2014)# Enterprises exercising control

7 RB Mediasoft Pvt Limited (w.e.f. 07.07.2014)# Enterprises exercising control

8 RRB Mediasoft Pvt Limited (w.e.f. 07.07.2014)# Enterprises exercising control

9 Network18 Media & Investments Ltd Enterprises exercising control

10 TV18 Broadcast Limited Enterprises exercising control

11 Reliance Industries Limited (RIL) (w.e.f. 07.07.2014) Beneficiary/Protector of IndependentMedia Trust

12 Reliance Industrial Investments and Holdings Limited Beneficiary/Protector of Independent(w.e.f. 07.07.2014) Media Trust

13 Panorama Television Private Limited Fellow Subsidiary

14 Television Eighteen Mauritius Limited Subsidiary of enterprise exercising control

15 Capital18 Fincap Private Limited Subsidiary of enterprise exercising control

16 Television Eighteen Media and Investments Limited Subsidiary of enterprise exercising control

17 Network18 Holdings Limited Subsidiary of enterprise exercising control

18 Digital 18 Media Limited Subsidiary of enterprise exercising control

19 RRB Investments Private Limited Subsidiary of enterprise exercising control

20 Setpro18 Distribution Limited Subsidiary of enterprise exercising control

21 Infomedia Press Limited Subsidiary of enterprise exercising control


22 NW 18 HSN Holdings Plc Subsidiary of enterprise exercising control(formerly TV18 HSN Holdings Limited) Cyprus

23 BK Holdings Limited (Amalgamated with Network18 Subsidiary of enterpriseHoldings Ltd w.e.f. 03.06. 2014) exercising control

24 Capital18 Limited, Mauritius(Amalgamated withNetwork18 Holdings Ltd w.e.f. 03.06. 2014) Subsidiary of enterprise exercising control

25 RRK Finhold Private Limited Subsidiary of enterprise exercising control

26 RVT Finhold Private Limited Subsidiary of enterprise exercising control

27 Greycells 18 Media Limited Subsidiary of enterprise exercising control

28 Colosceum Media Private Limited Subsidiary of enterprise exercising control

29 Stargaze Entertainment Private Limited Subsidiary of enterprise exercising control

30 Web 18 Holdings Limited, Cyprus Subsidiary of enterprise exercising control

31 E-18 Limited, Cyprus Subsidiary of enterprise exercising control

32 Web 18 Software Services Limited Subsidiary of enterprise exercising control

33 e - Eighteen.com Limited Subsidiary of enterprise exercising control

34 Moneycontrol Dot Com India Limited Subsidiary of enterprise exercising control

35 ibn18 (Mauritius) Limited Subsidiary of enterprise exercising control

36 AETN18 Media Private Limited Subsidiary of enterprise exercising control

37 RVT Media Private Limited Subsidiary of enterprise exercising control

38 TV18 Home Shopping Network Limited Subsidiary of enterprise exercising control

39 Big Tree Entertainment Private Limited Subsidiary of enterprise exercising control

40 Reed Infomedia India Private Limited Subsidiary of enterprise exercising control

41 Viacom18 Media Private Limited Joint ventures of enterprise exercising control

42 IBN Lokmat News Private Limited Joint ventures of enterprise exercising control

43 Indiacast UTV Media Distribution Private Limited Joint ventures of enterprise exercising control

44 Indiacast UK Limited Joint ventures of enterprise exercising control

45 Indiacast Media Distribution Pvt. Limited Joint ventures of enterprise exercising control

46 Eenadu Television Private Limited Associates of enterprise exercising control

47 Ramoji Rao Key Management Personnel

48 Ch.Kiron Key Management Personnel

49 Shinano Retail Private Limited Entities under significant influence

50 Arimas Trading Private Limited Entities under significant influence

51 Dolphin Hotels Limited Entities under significant influence of KMP’s

52 Margadarsi Enterprises Entities under significant influence of KMP’s

53 Margadarsi Computers Entities under significant influence of KMP’s

54 Mayuri Film Distributors Entities under significant influence of KMP’s

55 Ushakiron Properties Entities under significant influence of KMP’s

56 Margadarsi Financiers Entities under significant influence of KMP’s

57 Ushodaya News Agency Entities under significant influence of KMP’s


j. Related Party Transactions (Cont.)




58 Ramoji Universal Travels Entities under significant influence of KMP’s

59 Ushakiron Enterprises Entities under significant influence of KMP’s

60 Vasundhara Publications Entities under significant influence of KMP’s

61 Ushakiron Movies International Entities under significant influence of KMP’s

62 Ramoji Knowledge Centre Entities under significant influence of KMP’s

63 Colorama Printers Private Limited Entities under significant influence of KMP’s

64 Margadarsi Marketing Private Limited Entities under significant influence of KMP’s

65 Manpower Selection and ManagementServices Private Limited Entities under significant influence of KMP’s

66 Variety Entertainment Private Limited Entities under significant influence of KMP’s

67 Usha Kiron Movies Limited Entities under significant influence of KMP’s

68 Priya Foods Private Limited Entities under significant influence of KMP’s

69 Margadarsi Investment and Leasing CompanyPrivate Limited Entities under significant influence of KMP’s

70 Ushodaya Shipping Private Limited Entities under significant influence of KMP’s

71 Suman Advertising Private Limited Entities under significant influence of KMP’s

72 Images Hoardings Private Limited Entities under significant influence of KMP’s

73 Margadarsi Financial Services Private Limited Entities under significant influence of KMP’s

74 Margadarsi Chit Fund Private Limited Entities under significant influence of KMP’s

75 Margadarsi Housing Private Limited Entities under significant influence of KMP’s

76 Margadarsi Chits (Karnataka) Private Limited Entities under significant influence of KMP’s

77 Ushodaya Enterprises Private Limited Entities under significant influence of KMP’s

78 Variety Entertainment Ltd Entities under significant influence of KMP’s

79 Reliance Retail Limited Fellow Subsidiary (Subsidiary of RelianceIndustries limited, The Sole beneficiary ofIndependent Media Trust)

# Control by Independent Media Trust of which RIL is the sole beneficiary

Note: Related parties have been identified by the management.


j. Related Party Transactions (Cont.)





THIS PA

GE INTENTIO

NALLY L

EFT BLANK


ii) Transaction with Related parties in the current yearTransactions Enterprises Associate of Fellow Subsidiary JV of Entity Under

excercising enterprise Subsidiary of enterprises enterprise Significantcontrol exercising exercising exercising Influence

control control control(i) Transaction during the period ended31st March,2015Revenue from operationsIndiaCast Media Distribution Pvt Ltd - - - - 33,177,471 -

- - - - (5,541,777) -IndiaCast UTV Media Distribution Pvt Ltd - - - - 96,549,557 -

- - - - (164,265,462) -Viacom18 Media Limited - - - - 2,376,750 -

- - - - - -IndiaCast UK Limited - - - - 18,833,183 -

- - - - - -TV18 Broadcast Limited 750,825,391 - - - - -

- - - - - -AETN Media Pvt Ltd - - - 834,000 - -

- - - - - -Ushodaya Enterprises Pvt Ltd - - - - - -

- - - - - (4,800)Panorama Television Private Limited - - 5,714,144 - - -

- - - - - -Other IncomeEenadu Television Private Limited - - - - - -

- (1,472,965) - - - -Expenditure for Services ReceivedColosceum Media Pvt Ltd - - - 62,949,500 - -

- - - (10,045,000) - -Dolphin Hotels Ltd - - - - - 555,031

- - - - - (1,111,438)Eenadu Television Private Limited - 37,173,084 - - - -

- (42,514,196) - - - -Manpower Selection & Management Services Pvt Ltd - - - - - 50,000

- - - - - (120,000)Panorama Television Private Limited - - 535,000 - - -

- - (1,149,990) - - -Margradasi Computers - - - - - 899,999

- - - - - (820,410)Ushakiron Movies Limited - - - - - 1,653,254

- - - - - (9,429,467)Viacom18 Media Limited - - - - 17,652,600 -

- - - - - -Ushakiron Properties - - - - - 8,375,298

- - - - - (9,715,502)Margradasi Financiers - - - - - 1,062,513

- - - - - (3,035,734)




IndiaCast UTV Media Distribution Pvt Ltd - - - - 190,717,795 -- - - - - -

IBN Lokmat News Private Limited - - - - 2,294,161 -- - - - - -

Reimbursement of Expenses (Paid)Eenadu Television Private Limited - - - - - -

- (1,034,142) - - - -Colosceum Media Pvt Ltd - - - 162,244 - -

- - - - - -Panorama Television Private Limited - - 16,350 - - -

- - (87,435) - - -Ushakiron Movies Limited - - - - - 21,431,474

- - - - - (22,328,257)Ushakiron Properties - - - - - 150,888

- - - - - -Viacom18 Media Limited - - - - 226,600,132 -

- - - - (45,724,469) -Network18 Media & Investments Limited 171,918 - - - - -

- - - - - -Manpower Selection & Management Services Pvt Ltd - - - - - 4,200

- - - - - -Ushodaya Enterprises Private Limited - - - - - -

- - - - - (20,375)Reimbursement of Expenses (Received)Eenadu Television Private Limited - 110,198 - - - -

- (2,729,189) - - - -Panorama Television Private Limited - - 1,279,613 - - -

- - (1,087,191) - - -Ushakiron Movies Limited - - - - - 182,750

- - - - - (73,500)Sale of AssetUshakiron Movies Limited - - - - - -

- - - - - (180,000)Loan ReceivedTV18 Broadcast Limited - - - - - -

(50,000,000) - - - - -Loan RepaidTV18 Broadcast Limited 300,000,000 - - - - -

- - - - - -Asset PurchaseViacom18 Media Limited - - - - - -

- - - - (42,000,000) -

ii) Transaction with Related parties in the current year (Continued)

Transactions Enterprises Associate of Fellow Subsidiary JV of Entity Underexcercising enterprise Subsidiary of enterprises enterprise Significant

control exercising exercising exercising Influencecontrol control control



Consumable PurchasedColorama Printers Pvt Ltd - - - - - 43,658

- - - - - (139,631)Interest ExpensesTV18 Broadcast Limited 15,852,740 - - - - -

(7,171,233) - - - - -Advance GivenVariety Entertainment Pvt Ltd - - - - - 9,347

- - - - - (344,041)Loan Received BackArimas Trading Pvt Ltd - - - - - 125,000,000

- - - - - (125,000,000)Other TransactionEenadu Television Private Limited - 757,500 - - - -

- (103,885,779) - - - -Panorama Television Private Limited - - - - - -

- - (1,507,987) - - -(iii) Balances at year endeLong -term borrowingsTV18 Broadcast Limited - - - - - -

(300,000,000) - - - - -Trade payableColosceum Media Pvt Ltd - - - 7,614,842 - -

- - - (10,486,782) - -IndiaCast UTV Media Distribution Pvt Ltd - - - - 190,744,899 -

- - - - - -Dolphin Hotels Ltd - - - - - -

- - - - - (228,309)Viacom18 Media Limited - - - - 200,456,173 -

- - - - (201,273,131) -Margradasi Financiers - - - - - 310,740

- - - - - (258,949)Panorama Television Private Limited - - 29,737,353 - - -

- - - - - -IBN Lokmat News Private Limited - - - - 392,839 -

- - - - - -Ushakiron Properties - - - - - 714,415

- - - - - -Ushakiron Movies Limited - - - - - 217,609

- - - - - (210,401)Short-term ProvisionsTV18 Broadcast Limited 9,456,149 - - - - -

- - - - - -






B) ReceivablesLong-term Loans and AdvancesMargradasi Financers (Deposit) - - - - - 1,464,000

- - - - - (1,464,000)Varietv Entertainment Pvt Ltd - - - - - 40,809,459

- - - - - (40,800,112)Eenadu Television Private Limited - 6,000,000 - - - -

- (6,000,000) - - - -Trade ReceivablesIndiaCast UK Limited - - - - 7,151,388 -

- - - - - -AETN18 Media Pvt Ltd - - - - 920,402 -

- - - - - -TV18 Homeshopping Network Limited - - - - 1,271,736 -

- - - - (1,299,213) -Network18 Media & Investments Limited - - - - - -

(13,884,274) - - - - -TV18 Broadcast Limited 629,746,093 - - - - -

- - - - - -IndiaCast Media Distribution Pvt Ltd - - - - 9,076,924 -

- - - - (7,304,494) -IndiaCast UTV Media Distribution Pvt Ltd - - - - - -

- - - - (168,142,124) -Short-Term Loans & AdvancesEenadu Television Private Limited - - - - - -

- (46,031,420) - - - -Armas Trading Pvt Ltd - - - - - -

- - - - - (125,000,000)Manpower Selection & Management Services Pvt Ltd - - - - - -

- - - - - (1,283)Margadarsi Chit Fund Private Limited - - - - - -

- - - - - (488,867)Figures in brackets represent previous years figures






k. Value of imports calculated on C.I.F BasisFor the year Ended For the year ended

31.03.2015 (Rs) 31.03.2014 (Rs)

Fixed Assets 120,15,645 18,51,485

TOTAL 120,15,645 18,51,485

l. Earnings in foreign currencyFor the year For the year

ended 31.03.2015 ended 31.03.2014(Rs) (Rs)

Subscription income 1,88,33,183 3,77,32,972

TOTAL 1,88,33,183 3,77,32,972

m. Deferred TaxThe Company has carried out its tax computation in accordance with the mandatory Accounting Standard (AS) 22 on “Accountingfor Taxes on Income”, and in the absence of virtual certainty, no deferred tax assets have been recognised on the amount ofcarried forward tax losses and unabsorbed depreciation.

n. Expenditure in foreign currencyFor the year ended For the year ended

31.03.2015 31.03.2014(Rs) (Rs)

Telecast cost 78,87,572 1,53,32,967

News service charges 2,78,664 5,77,106

Operational expenses 81,24,205 3,05,13,834

Travelling and conveyance 1,82,265 -

TOTAL 1,64,72,706 4,64,23,907

o. Earnings per equity share (EPS)For the year For the year

ended 31.03.2015 ended 31.03.2014

Profit/(Loss) after tax (in Rupees) (1,347,853,579) (1,26,96,93,386)

Weighted average number of shares outstanding for basic earnings per share (No’s) 2,50,51,340 1,25,03,956

Effect of potential shares on debentures outstanding (Nos.) - -

Weighted average number of shares considered for diluted earnings per share (No’s) - -

Earnings per share on Loss of the year (Face Value Rs.10 per Share)

-Basic(in Rs.) (53.80) (101.54)

-Diluted (in Rs.) (53.80) (101.54)


p . Auditors remuneration For the year ended For the year ended

31.03.2015 31.03.2014(Rs) (Rs)

Audit Fee 8,50,000 8,50,000

Limited Review 7,50,000 3,50,000

Tax Audit Fee 2,00,000 2,00,000

TOTAL 18,00,000 14,00,000

q. Segment reporting

The Company’s operations fall within a single business segment “Production of programmes and broadcasting satellite television”and single geographical segment and therefore segment information as required under AS - 17 is not applicable.

r. Previous Year Comparatives

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year classification/disclosure.


For A.K.Sabat & Co. For and On behalf of the Board of Director DirectorsChartered Accountants(Firm Registration No. 321012E)

D. Vijaya Kumar Ch. Kiron Ramoji RaoPartner Director ChairmanMembership No: 051961


prism tv private limited - reliance industries tv... · d. vijaya kumar ramoji rao ch. kiron...

Documents