management discussion and analysis report...
TRANSCRIPT
1
CO
NT
EN
TS
Particu
larsP
age N
o.
Directors' R
eport 4-13
Report on C
orporate Governance
14-21
Managem
ent Discussion and A
nalysis Report
22-24
Auditors' R
eport 25-26
Annual A
ccounts 27-50
Consolidated A
nnual Accounts
51-78
Annual A
ccounts of Subsidiaries
79-112
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 1
2
GE
NE
RA
LIN
FO
RM
AT
ION
BO
AR
D O
F D
IRE
CTO
RS
Ch
airman
: S
hri. Ram
esh Chandra A
garwal
Man
agin
g D
irector
: S
hri. Sudhir A
garwal
No
n-E
xecutive D
irectors
: S
hri. Girish A
garwal
Shri. P
awan A
garwal
No
min
ee Directo
r:
Shri. N
iten Malhan
Ind
epen
den
t Directo
rs:
Shri. K
ailash Chandra C
howdhary
Shri. A
jay Piram
alS
hri. Piyush P
andeyS
hri. Harish B
ijoorS
hri. Ashw
ani Kum
ar Singhal
Co
mpan
y Secretary
: S
hri. K. V
enkataraman
Au
dito
rs:
S. R
. Batliboi &
Associates,
Chartered A
ccountants, M
umbai, M
aharashtra A
ndG
upta Navin K
. & C
o. C
hartered Accountants,
Gw
alior, Madhya P
radesh
Reg
istered O
ffice:
Plot N
o. 280, Sarkhej-G
andhi Nagar
Highw
ay, Near Y
MC
AC
lub, Makarba,
Ahm
edabad-380051
Head
Office
: D
warka S
adan, 6, Press C
omplex, M
.P. N
agar, Bhopal-462 011, M
adhya Pradesh
Co
rpo
rate Office
: 501, 5th F
loor, Nam
an Corporate Link,
Opp. D
ena Bank, C
-31, G- B
lock, B
andra Kurla C
omplex, B
andra - East,
Mum
bai - 400051
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 2
3
AN
NU
AL
RE
PO
RT
2010-2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 3
4
Particu
larsA
mo
un
t
Profit after tax
2,584.77Less:-C
hange in Current tax and deferred tax due to
the Schem
e(268.73)
Add:-
Gain on account of reduction in M
inority interest liability
46.98P
rofit after tax without considering the effect
of the Schem
e2,363.02
Dear S
hareh
old
ers,Your D
irectors are delighted to present the 15th Annual R
eportof your C
ompany for the year ended M
arch 31, 2011.
FIN
AN
CIA
LH
IGH
LIG
HT
S( S
tandalone Results)
(Rs. in M
n)
lT
he Sales &
Other incom
e reached Rs.12616.4 M
illion wit-
nessing a
magnificent
growth
of 23%
, as
compared
toR
s.10261.4 Million in the previous year.
lT
he EB
ITD
Agrew
by 18% to R
s.4085.2 Million as against
Rs.3460.8 M
illion in the previous year.l
The profit after tax for the year under review
also registeredan im
pressive growth of 34%
with R
s.2673.2 Million, as
compared to R
s.1990.4 Million in the previous year.
lA
lso, for the year ended on March 31, 2011, the consolidat-
ed revenue
of your
Com
pany increased
to R
s.12652.4M
illion from R
s.10629.8 Million in the previous year, regis-
tering a growth of 19.0%
and the consolidated PA
Tstood at
Rs.2584.8 M
illion as against Rs.1828.0 M
illion of the previ-ous year, registering a grow
th of 41.4%.
MA
NA
GE
ME
NT
DIS
CU
SS
ION
& A
NA
LYS
IS :
The M
anagement D
iscussion and Analysis R
eport on the oper-ations of the C
ompany is provided in a separate section and
forms a part of this R
eport.
RE
VIE
W O
F PE
RFO
RM
AN
CE
OF E
ME
RG
ING
ED
ITION
S :
The past experience in the industry indicates that any new
edition launched by the C
ompany takes about 3-4 years for
stabilization and for earnings. Hence for analyzing the perfor-
mance of the com
pany, we furnish the follow
ing information
about the emerging and other editions, in the light of business
potential of the Com
pany:(R
s. in M
n)
DIR
EC
TOR
S’R
EP
OR
T
Particu
lars2010-11
2009-10
Sales &
Other Incom
e12616.38
10261.38E
BIT
DA
4085.253460.84
Financial expenses
(12.13)146.84
Depreciation/ A
mortization
427.64266.41
Profit B
efore Tax3669.76
3047.58P
rovisions for Current Tax,D
eferred tax &
other Tax Expenses
996.531057.16
Profit A
fter Tax2673.22
1990.42Transfer to G
eneral Reserves
300.00150.00
Dividend P
roposed(Including Interim
dividend and Tax on Dividend)
849.45423.87
FIN
AN
CIA
LH
IGH
LIG
HT
S( C
onsolidated Results)
(Rs. in M
n)
The consolidated results include im
pact of the demerger of radio
business of Synergy M
edia Entertainm
ent Limited (S
ME
L) intoyour com
pany and is as under : (R
s. In Mn.)
RE
VIE
W O
F P
ER
FO
RM
AN
CE
:Your D
irectors are pleased to inform the im
proved results ofyour C
ompany for the financial year ended on M
arch 31, 2011and the follow
ing highlights evidence the performance during
the said period :
In your Com
pany's endeavour to reach higher levels , post stabilization of the em
erging editions, the long term results of
the corporate
growth
strategy w
ould be
seen in
the forthcom
ing years.
OP
ER
AT
ING
RE
SU
LTS
AN
D F
UT
UR
E O
UT
LO
OK
:In line w
ith the growth plan of the com
pany, your Directors con-
tinue the consistent efforts to enhancement of value to all stake-
holders. The year under review
, has dawned w
ith substantial
SU
MM
AR
YF
INA
NC
IAL
S
PAR
TIC
UL
AR
SE
merg
ing
Ed
ition
sO
thers
Total
FY
11F
Y11
FY
11T
UR
NO
VE
RP
UB
LISH
ING
- Advt R
evenues296.00
9720.1510016.15
- Sales
135.032181.93
2316.96- O
ther Income
10.89308.44
319.33TO
TAL
INC
OM
E441.92
12210.5212652.44
New
s Print C
ost357.98
3480.503838.50
Opex
507.544275.27
4782.81To
tal Co
st865.52
7755.778621.29
EB
ITD
A(423.60)
4454.754031.15
EB
IDTA
%-95.9
36.531.9
Interest(0.16)11.43
11.27D
epreciation12.56
420.29432.84
PB
T(436.00)
4023.043587.04
PB
T %
-98.732.9
28.3
Particu
lars2010-11
2009-10
Sales &
Other Incom
e12652.44
10629.75E
BIT
DA
4031.153429.41
Financial expenses
11.27245.40
Depreciation/ A
mortization
432.84378.35
Profit B
efore Tax3587.04
2805.66P
rovisions for Current Tax , D
eferred 999.68
1057.16tax &
other Tax Expenses
Profit A
fter Tax2584.77
1828.00Transfer to G
eneral Reserves
300.00150.00
Dividend P
roposed (Including 849.45
423.87Interim
dividend and Tax on Dividend)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 4
5
opportunities for growth for the com
pany and your directorsm
arch ahead with increased zeal for scaling new
er heights in future. B
esides, in
the upcom
ing global
economy,
the M
edia and
Entertainm
ent industry has begun to witness trem
endous poten-tial for grow
th. As m
ay be seen from the levels of industrial
expansion, improved aw
areness among the consum
ers, theentry and onset of large scale corporations (both dom
estic andm
ultinational) , the business avenues for your Com
pany with
value addition to the clients is also steadily on the rise and yourcom
pany continues to be trend setter, with am
bitious plans forevery area of grow
th.L
aun
ch o
f new
editio
ns
As a next step of its continuous grow
th coupled with leadership
footprint, the company launched D
ainik Bhaskar in R
anchi inA
ugust 2010,
in B
hatinda in
Septem
ber 2010,
Jamm
u in
October
2010, in
Jamshedpur
in D
ecember
2010 and
inS
riganganagar, Alw
ar, S
ikar and
Bhilw
ara in
January 2011.
Further,
during the
year under
review,
the com
pany also
launched "D B
Star" in Jodhpur and R
aipur and "Business
Bhaskar" in Jaipur. A
dditionally, during the current year 2011-12,the com
pany launched the Dhanbad edition in A
pril 2011.T
he company has already begun it's pre-launch activities in the
state of
Maharashtra,
with
great vigor
since your
directorsbelieve that the com
pany is well best placed to capture the
hugely under-penetrated regional market, having huge scope
for readership and ad revenue expansion, clubbed with high
economic grow
th potential of the region. With high regards for
its ability to identify new m
arket opportunities and to expand itsreadership through innovative m
arket penetration strategies, asdem
onstrated in the past, your company has in place m
eticu-lous planning, stringent controls, team
creation and training , atevery stage of this project. Your directors are confident thatthese efforts w
ould bring in fruits in future.
CA
PITA
LIS
AT
ION
AN
D R
ES
ER
VE
S :
(a) Transfer to
Reserve :
As on M
arch 31, 2011 an amount of R
s.300 Millions w
as trans-ferred to G
eneral Reserve as against R
s.150 Millions in the pre-
vious year.
(b) D
ividen
d :
The B
oard of Directors are pleased to inform
that for the yearunder review
, an interim dividend @
20% (i.e. R
s. 2/= per equity
share of face value of Rs.10/- each) w
as declared and paid bythem
and they further recomm
end a final dividend @ 20%
(i.e.R
s.2/- per equity share of face value of Rs.10/=
each) for thefinancial year 2010-11. T
he total amount of dividend outgo,
including Interim
D
ividend, for
the year
2010-11, w
ill be
Rs.72,96,79,324/- as against R
s.36,30,44,210/- for the previousfinancial year.
DIR
EC
TOR
AT
E :
In accordance with the provisions of the C
ompanies A
ct 1956,and the A
rticles of Association of the C
ompany, S
hri. Harish
Bijoor
and S
hri. A
shwani
Kum
ar S
inghal, D
irectors of
theC
ompany,
retire by
rotation at
the ensuing A
nnual G
eneralM
eeting of the Com
pany and being eligible, offer themselves for
re-appointment and your directors recom
mend the sam
e.D
uring the current financial year 2011-12, the term of M
r. Sudhir
Agarw
al, as the Managing D
irector of the company w
ill expire onD
ecember 31, 2011 and he w
ill be reappointed for a further peri-od of 5 years from
January 01, 2012 to Decem
ber 31, 2016,subject to approval of the shareholders in the ensuing A
nnual
General M
eeting of the Com
pany.
RE
PO
RT
ON
CO
RP
OR
AT
E G
OV
ER
NA
NC
E :
Aseparate report on C
orporate Governance as stipulated under
Clause 49 of the Listing A
greement w
ith the Stock E
xchangesform
s part of the Annual R
eport along with the C
ertificate fromthe A
uditors of the Com
pany, confirming com
pliance with the
provisions of Corporate G
overnance.
DE
MA
TE
RIA
LIZ
AT
ION
OF
SH
AR
ES
:T
he Com
pany has continued its tie up with N
ational Securities
Depository Lim
ited (NS
DL) and C
entral Depository S
ervices ofIndia Lim
ited (CD
SL) for dem
aterialization of the shares of theC
ompany. A
ccordingly, the shares of the Com
pany are availablefor dem
aterialization and can be traded in demat form
.
ES
OP
s :T
he Com
pany has granted Stock O
ptions to the employees
under the "DB
CL-E
SO
S-2008" and "D
BC
L- E
SO
S 2010". T
heparticulars required to be disclosed as per clause 12 of S
EB
I(E
mployees
Stock
Option
Schem
e and
Em
ployees S
tockP
urchase Schem
e) Guidelines, 1999 are set out in an A
nnexureto this R
eport. F
urther, with a view
to reward, m
otivate and retain the talentedbrain and to share the grow
th of the organisation with it's tena-
cious manpow
er resources , pursuant to the resolution passedat shareholders' m
eeting held on March 24,2011, the C
ompany
has em
barked on
another
E
mployee
Stock
Option
Plan
(ES
OP
) called
as "D
BC
L-
ES
OS
2011"
under w
hich the
employees of your C
ompany and its subsidiaries in India and
abroad as determined by the C
ompensation C
omm
ittee in itsow
n discretion will be entitled to receive up to 30,00,000 stock
options, in many tranches. A
s the options under this scheme are
in the process of being granted to the employees, in different
tranches, applicable details regarding the same are also fur-
nished in an Annexure to this R
eport.
SU
BS
IDIA
RY
CO
MPA
NIE
S &
TH
EIR
BU
SIN
ES
S :
The D
irectors are also pleased to inform that the follow
ing sub-sidiaries of your C
ompany, as on the date of the report, are per-
forming in a com
mendable m
anner.
(1) Syn
ergy M
edia E
ntertain
men
t Lim
ited (S
ME
L)
With a view
to reach advertisers with offering(s) of attractive
combined advertising options in the F
M R
adio medium
and printm
edium and to achieve operational synergies and generating
larger advertising revenue and better customer satisfaction, as
a result of radio's increasing market share in m
edia advertising,the m
anagement of your com
pany had considered it prudent,tim
ely and appropriate to de-merge the radio business of S
ME
Linto your com
pany. Accordingly, on com
pletion of all the relatedprocedures,
including approvals
of the
Shareholders,
stocke
xcha
ng
es,
oth
er
statu
tory
au
tho
rities,
for
Sch
em
e
of
Arrangem
ent in accordance with S
ections 391 through 394, andother applicable provisions, of the C
ompanies A
ct, 1956, andthe
approval of
the H
on' ble
High
Court
of G
ujarat at
Ahm
edabad and the Hon'ble H
igh Court of M
adhya Pradesh at
Jabalpur, the radio business of SM
EL, w
as demerged into your
company. T
he Schem
e of Arrangem
ent has April 01, 2010 as
the appointed date and subsequent to the completion of all the
above procedures, the same has com
e into effect, with the
Effective D
ate as March, 30, 2011.
As a result, all the license for 17 stations, under the nam
e "My
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 5
6
FM
", across the northern and western part of the country, have
now becom
e part of your company. T
his provides your compa-
ny the synergy in operations as both businesses complem
enteach other and also for cost savings, as com
mon infrastructure
is being used. Therefore, this brings in the benefit of R
adio busi-ness also into our fold. S
ME
Lhas achieved E
BIT
DA
of Rs.9.48 M
illions after reachingbreakeven in the previous year, driven by a top line grow
th ofaround 30%
in the shortest period of time of launch of its all
Stations and in an aggressive m
edia foray, reflects our growing
position and strong value proposition to customers. "M
YF
M" is
able to offer corporate customers integrated m
edia solutions forpan-India prom
otional campaigns. Its presence across these
cities allows custom
ers an extensive reach to Tier 2 and 3 cities,enabling the com
pany to provide value added advertisement
solutions.
(2) I Med
ia Co
rp L
imited
(IMC
L) :
India already ranks No.3 in the w
orld in terms of Internet users
with m
ore than 100 million users as per G
oogle and the actualpenetration to the grass-root levels is yet to happen, and thecom
pany foresees a huge potential for it's digital business.IM
CL,
the digital
arm
of D
ainik B
haskar group
is already
amongst the largest internet players am
ongst the media com
-panies w
ith increasing numbers of P
age View
s and reach andhas grow
n substantially, year over year, by focusing complete-
ly on content and the needs of user and there is a huge oppor-tunity to build an even larger content play on the internet.A
t present the company is operating portals in 4 languages by
the
n
am
e
of
Da
inikb
ha
skar.co
m,
Divya
Bh
aska
r.com
,D
ivyaMarathi.in and D
ailyBhaskar.com
. These portals are not
only about news but are also actually a one stop destination for
all content needs of all. The com
pany will continue to focus on
these portals and at the same tim
e venture into new avenues of
niche content to continue with the pace at w
hich it is growing.
Further to scale its corporate objective, the C
ompany is in the
process of adding value to it's online business development by
availing the natural synergies between the print and the W
ebm
edia.
AU
DITO
RS
:M
/s S
. R
. B
atliboi &
A
ssociates., C
hartered A
ccountants,M
umbai and M
/s Gupta N
avin K. &
Co, C
hartered Accountants,
Gw
alior, the Joint Statutory A
uditors of your company, w
ill retireat the conclusion of the forthcom
ing Annual G
eneral Meeting of
your Com
pany. Being eligible, they offer them
selves to holdoffice as joint auditors from
the conclusion of the ensuing Annual
General m
eeting until the conclusion of the next Annual G
eneralM
eeting of the Com
pany.T
he A
uditors' R
eport read
with
notes to
accounts is
self-explanatory and hence, needs no further clarification.
PU
BL
IC D
EP
OS
ITS
:Your C
ompany has not accepted or invited any deposits from
public within the m
eaning of Section 58 A
of the Com
panies Act,
1956, during the year under review.
PE
RS
ON
NE
L:
In terms of the provisions of S
ection 217(2A) of the C
ompanies
Act, 1956 and the C
ompanies (P
articulars of Em
ployees) Rules
1975, nam
es and
other particulars
of the
employees
arerequired to be set out in the annexure to this report. H
owever,
as per the provisions of Section 219(1)(b)(iv) of the C
ompanies
Act, 1956, the R
eport and Annual A
ccounts of the Com
panysent to the shareholders do not contain the said A
nnexure. Any
shareholder desirous of obtaining a copy of the said annexurem
ay write to the C
ompany S
ecretary at the Registered O
ffice ofthe C
ompany.
TE
CH
NO
LO
GY
AB
SO
RP
TIO
N &
FO
RE
IGN
EX
CH
AN
GE
MA
NA
GE
ME
NT:
(a) Techn
olo
gy A
bso
rptio
n
The
Com
pany is
using m
anufacturing technology,
which
ism
ostly indigenous and is the latest and advanced. The em
ploy-ees of the C
ompany are trained periodically and adequately to
enable them
to
understand the
related technology
and the
effects of such training result in improved efficiency in the oper-
ations of the Com
pany.
(b) F
oreig
n E
xchan
ge E
arnin
g &
Ou
tgo
The C
ompany earned F
oreign Exchange of R
s. NIL./-. F
oreignexchange E
xpenses on account of financial expenses duringthe year w
as Rs.2,41,32,816/- and on account of traveling and
other expenses was R
s.25,52,660/-.
HU
MA
N R
ES
OU
RC
ES
& IN
DU
ST
RIA
LR
EL
AT
ION
S:
Your Directors w
ould like to place on record their sincere appre-ciation for all em
ployees, at all levels, for their relentless service.D
uring the year under review, the industrial relations have been
very cordial.
DIR
EC
TOR
S' R
ES
PO
NS
IBIL
ITY
STA
TE
ME
NT:
As required under the provisions of S
ection 217 (2AA
) of theC
ompanies A
ct, 1956, we confirm
that:1.
in the preparation of the annual accounts, the applicableaccounting standards have been follow
ed;2.
the directors had selected such accounting policies andapplied them
consistently and made judgm
ents and esti-m
ates that have been reasonable and prudent so as to givea true and fair view
of the state of affairs of the Com
pany atthe
end of
the financial
year and
of the
profit of
theC
ompany for the year under review
;3.
the directors had taken proper and sufficient care for them
aintenance of
adequate accounting
records in
accor-dance w
ith the provisions of this Act for safeguarding the
assets of the Com
pany and for preventing and detectingfrauds and other irregularities
4.the directors had prepared the annual accounts for thefinancial year ended 31st M
arch, 2011 on a "going concern"basis;
AC
KN
OW
LE
DG
EM
EN
TS
:
Your Directors take this opportunity to express their gratitude to
the producers, vendors, investors, banks, financial institutions,C
entral and State G
overnments and other authorities for their
valuable guidance and continuous support.
For and on behalf of the B
oard of Directors
(Ram
esh C
han
dra A
garw
al)C
hairman
PLA
CE
: Mum
bai D
AT
E: M
ay 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 6
7
Particu
larsD
etails
Options granted (net) as per S
hare holders’approval7,00,000
Vesting S
chedule20%
each for 5 years
Pricing F
ormula
Exercise P
rice Rs.124/=
50% discount to the average of
closing market price of the first 30 trading days post IP
O.
(The m
arket price on the stock exchange showing the
highest volume of trading w
ould be considered)
Total number of options granted
4,13,427
Options V
ested91,653
Options E
xercised36,126
The total num
ber of shares arising as a result of exercise of options
36,126
Options lapsed / cancelled
1,02,217
Variation of term
s of optionsN
IL
Money realised by exercise of options
Rs.44,79,624/-
Total number of options in force
275084
Details of options granted to
(a)D
irectors (b)
Key M
anagerial Personnel
Dr. B
harat Agarw
alM
r. P.G. M
ishraM
r. R.D
. Bhatnagar
No options w
ere granted during the year.M
r. Shravan G
arg
(c)A
ny other employee w
ho received a grant in any one year of options am
ounting to 5% or
more of the options granted during the year
(Includes ex-employees and group C
ompany em
ployees)N
il
(d)Identified em
ployees who are granted options,
during any one year equal to exceeding 1% of the
issued capital (excluding outstanding warrants and
conversions) of the Com
pany at the time of grant
(includes ex-employees and group C
ompany em
ployees)N
il
Fully diluted E
PS
on a pre-issue basis for Fiscal 2011
Rs.14.70
Difference, if any, betw
een employee com
pensation cost (calculated using the intrinsic value of stock options) and the em
ployee compensation cost
(calculated using the fair value of stock options)(*)S
ee Note below
Weighted average exercise price either equals or exceeds or
No options w
ere granted during the year and is less than the m
arket value of the shareshence not applicable.
Weighted average fair values of options w
hose exercise N
o options were granted during the year and
price equals or is less than the market value of the stock.
hence not applicable.
(An
nexu
re pu
rsuan
t to th
e DB
CL
-ES
OS
-2008)In
form
ation
requ
ired to
be d
isclosed
un
der S
EB
I ( ES
OS
and
ES
PS
) Gu
idelin
es, 1999(F
or th
e Fin
ancial Y
ear end
ed o
n M
arch 31, 2011)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 7
8
Particu
larsD
etailsA
ssumptions
No options w
ere granted during the year and E
xercise Price
hence not applicable.R
isk free Rate
Time to M
aturityE
xpected Volatility
Expected D
ividend Rate
Closing M
arket Price of S
hare on the dateof option grant
Lock-inN
il
Impact on profits and E
PS
of the last three yearsN
ot applicable
(*) Please see the N
ote for the same item
under the particulars furnished for DB
CL-E
SO
S-2010.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 8
9
Particu
larsD
etailsO
ptions available for grant to employees as per E
SO
PS
cheme
6,00,000
Pricing F
ormula
Rs.168/-
Exercise P
rice at a discount up to a maxim
um of 30%
tothe M
arket price, where the M
arket price shall be the closing m
arket price one day prior to the date of any G
rant, on the stock exchange where highest trading
volume is registered and w
here the quantum of
Discount shall be decided by the C
ompensation
Com
mittee for each of the G
rant of options
Total number of O
ptions Granted
4,91,203
Options V
estedN
IL
Options E
xercisedN
IL
The total num
ber of shares arising as a result of exercise of options
NIL
Options lapsed/surrendered/forfeited
16,494
Variation of term
s of optionsN
IL
Money realised by exercise of options
NIL
Total number of options in force
4,74,709
Details of options granted to
(a)D
irectorsN
IL(b)
Key M
anagerial Personnel
Dr. B
harat Agarw
al10,000
Mr. P.G
. Mishra
7,934M
r. R.D
. Bhatnagar
5,100M
r. Shravan G
arg3,129
(c)A
ny other employee w
ho received a grant in any one year N
ilof options am
ounting to 5% or m
ore of the options granted during the year (Includes ex-em
ployees and group C
ompany em
ployees)
(d)Identified em
ployees who are granted options, during any
Nil
one year equal to exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the
Com
pany at the time of grant (includes ex-em
ployees and group C
ompany em
ployees)
Fully diluted E
PS
on a pre-issue basis for Fiscal 2011
Rs. 14.70
Difference, if any, betw
een employee com
pensation (*) S
ee note belowcost (calculated using the intrinsic value of stock options) and the em
ployee compensation cost (calculated using the fair value of
stock options)
(An
nexu
re pu
rsuan
t to th
e DB
CL
-ES
OS
-2010)In
form
ation
requ
ired to
be d
isclosed
un
der S
EB
I ( ES
OS
and
ES
PS
) Gu
idelin
es, 1999(F
or th
e Fin
ancial Y
ear end
ed o
n M
arch 31, 2011)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 9
10
Particu
larsD
etailsW
eighted average exercise price either equals or exceeds or isless than the m
arket value of the sharesLess than M
arket Price - R
s. 168
Weighted average fair values of options w
hose exercise price equals or is less than the m
arket value of the stock.Less than M
arket Price - R
s. 124.97
Assum
ptionsE
xercise Price
Rs.168/-
Risk free R
ate7.10
Time to M
aturity4.5years
Expected V
olatility30.81%
Expected D
ividend Rate
0.31%C
losing Market P
rice of Share on the date of option grant
Rs.242.50
Lock-inN
il
Impact on profits and E
PS
of the last three yearsN
ot Applicable since options w
ere granted only in M
ay-2010
March
31 ,2011 ( Rs.)
Profit as reported
267,32,31,385
Add: E
mployee stock com
pensation under intrinsic value method
18,665,802
Less: Em
ployee stock compensation under fair value m
ethod30,462,660
Perfo
rma p
rofit
2,661,434,527
Earn
ing
s Per S
hare
Basic- A
s reported14.73
- As adjusted
14.66
Dilu
ted
- As reported
14.70
- As adjusted
14.64
(* ) The stock based com
pensation cost calculated as per the intrinsic value method for the period from
April 01, 2010 to M
arch 31,2011 is R
s. 18,665,802/-. If the stock based compensation cost w
as calculated as per the fair value method prescribed by S
EB
I (E
SO
S) G
uidelines 1999, the total cost to be recognized in the financial statements for the period from
April 01, 2010 to M
arch 31,2011, w
ould be Rs. 30,462,660/-. T
he effect of adopting the fair value method on the net incom
e and earnings per share as presented below
:
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 10
11
Particu
larsD
etailsO
ptions available for grant to employees as per E
SO
PS
cheme,
as approved by shareholders, to be granted in various tranches30,00,000
Vesting schedule :
Options granted under D
BC
L-ES
OS
-2011 would vest not
less than one year but not more than seven years from
the date of grant.
Pricing F
ormula
Exercise P
rice at a discount up to a maxim
um of 90%
to the M
arket price , where the M
arket price shall be the closing m
arket price one day prior to the date of any G
rant, on the stock exchange where highest trading
volume is registered and w
here the quantum of
Discount shall be decided by the C
ompensation
Com
mittee for each of the G
rant of options
Total number of O
ptions Granted
NIL
Options V
estedN
IL
Options E
xercisedN
IL
The total num
ber of shares arising as a result of exercise of options
NIL
Options lapsed/surrendered/forfeited
NIL
Variation of term
s of optionsN
IL
Money realised by exercise of options
NIL
Total number of options in force
NIL
Details of options granted to
(a)D
irectors N
IL(b)
Key M
anagerial Personnel
Options not granted as on M
arch 31, 2011
(c)A
ny other employee w
ho received a grant in any one year of options am
ounting to 5% or m
ore of the options granted during the year (Includes ex-em
ployees and groupC
ompany em
ployees)N
il
(d)Identified em
ployees who are granted options, during any
one year equal to exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the
Com
pany at the time of grant (includes ex-em
ployees and group C
ompany em
ployees)N
il
Fully diluted E
PS
on a pre-issue basis for Fiscal 2011
Not A
pplicable
Difference, if any, betw
een employee com
pensation cost (calculated using the intrinsic value of stock options) and the em
ployee compensation cost (calculated using the fair
value of stock options)N
ot applicable
Weighted average exercise price either equals or
exceeds or is less than the market value of the shares
Not applicable
(An
nexu
re pu
rsuan
t to th
e DB
CL
-ES
OS
-2011)In
form
ation
requ
ired to
be d
isclosed
un
der S
EB
I ( ES
OS
and
ES
PS
) Gu
idelin
es, 1999(F
or th
e Fin
ancial Y
ear end
ed o
n M
arch 31, 2011)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 11
12
Particu
larsD
etailsW
eighted average fair values of options whose exercise price
equals or is less than the market value of the stock.
Not applicable
Assum
ptionsE
xercise Price
Risk free R
ateTim
e to Maturity
Expected V
olatilityE
xpected Dividend R
ate C
losing Market P
rice of Share on the date of option grant
Not A
pplicable since no options were granted as on
March 31, 2011
Impact on the profits and E
PS
if the Issuer had followed the
Not A
pplicable since no options were granted as on
accounting policies specified in Clause 13 of the E
SO
PG
uidelines.M
arch 31, 2011
Lock-inN
il
Impact on profits and E
PS
of the last three yearsN
ot Applicable since no options w
ere granted as onM
arch 31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 12
13
1M
r. Ram
esh Chandra A
garwal
2M
r. Sudhir A
garwal
3M
r. Girish A
garwal
4M
r. Paw
an Agarw
al5
Ms. K
asturi Devi A
garwal
6M
s. Meena G
arg7
Ms. N
eelam G
oyal8
Ms. B
hawna A
garwal
9M
r. Vishnu P
rasad Garg
10D
r. O. P. G
arg11
Mr. G
ovind Prasad G
arg12
Ms. V
ineeta Khetaw
at13
Ms. Jyoti A
garwal
14M
s. Nitika A
garwal
15M
s. Nam
ita Agarw
al16
Mr. A
rjun Agarw
al 17
Ms. S
hubh Agarw
al18
Mr. D
. D. B
erry19
Ms. S
ushma B
erry20
Mr. S
umeet B
erry21
Ms. A
nnu Rakheja
22M
s. Nitu S
ingh23
Ms. R
enu Dua
24A
arkey Aditya D
evelopers Private Lim
ited25
Aarkey Investm
ents Private Lim
ited26
All S
eason Events P
rivate Limited
27A
vadh Exim
Private Lim
ited28
BE
LTraders P
rivate Limited
29B
FP
Enterprises P
rivate Limited
30B
FP
Traders Private Lim
ited31
Berry D
evelopers and Infrastructure Private Lim
ited32
Bhaskar A
irlines (India) Private Lim
ited33
Bhaskar B
roadcasting Corporation Lim
ited34
Bhaskar D
enim Lim
ited35
Bhaskar E
ntertainment &
Media P
rivate Limited
36B
haskar Exim
Limited
37B
haskar Exxoils P
rivate Limited
38B
haskar Infrastructure Limited
39B
haskar Foods P
rivate Limited
40B
haskar Global P
rivate Limited
41B
haskar Green P
ower P
rivate Limited
42B
haskar Housing D
evelopment C
ompany P
rivate Limited
43B
haskar Industries Limited
44B
haskar Infraventure Limited
45B
haskar Multi M
edia Private Lim
ited46
Bhaskar M
ultinet Limited
47B
haskar New
s Media Lim
ited48
Bhaskar P
ublications and Allied Industries P
rivate Limited
49B
haskar Bio-F
uels Private Lim
ited50
Bhaskar V
enkatesh Products P
rivate Limited
51B
haskar United S
porting Pvt. Ltd.
52B
haskar Inframine P
rivate Limited
53B
hopal Financial S
ervices Private Lim
ited54
Brick Joint P
te. Limited
55B
right Drug Industries Lim
ited 56
Brightrade P
te. Limited
57C
hambal Tradings P
rivate Limited
58D
B B
uildcon Private Lim
ited59
DB
Energy and F
oods Private Lim
ited60
D B
Energy P
rivate Limited
61D
B Infrastructures P
rivate Limited
62D
B Infratech P
rivate Limited
63D
B M
alls Private Lim
ited64
DB
Metals P
rivate Limited
65D
B M
ining Corp Lim
ited66
DB
Minings P
rivate Limited
67D
B P
artners Enterprises P
rivate Limited
68D
B P
ower Lim
ited69
DB
Pow
er (Chhattisgarh) Lim
ited70
DB
Pow
er (Jharkhand) Private Lim
ited 71
DB
Pow
er (Madhya P
radesh) Limited
72A
mple P
ower Lim
ited (Form
erly known as D
B P
ower (O
rissa) Limited)
73D
B P
ublications Private Lim
ited74
Delight Investm
ents Pte. Lim
ited75
Delta C
oal and Mining P
rivate Limited
76D
eluxe Travel Service P
rivate Limited
77D
emeurer D
evelopers Private Lim
ited78
Design S
olutions Limited
79D
ev Enterprises P
rivate Limited
80D
ev Fiscal S
ervices Private Lim
ited81
Diligent M
edia Corporation Lim
ited82
Dim
ension Media P
rivate Limited
83D
irect (OO
H) M
edia Private Lim
ited84
Divya D
ev Developers P
rivate Limited
85D
iva Oil and G
as Limited
86D
ivya Prabhat P
ublications Private Lim
ited87
Divya Trading P
rivate Limited
88D
olby Mining and P
ower P
rivate Limited
89D
ynamic C
oncepts Pte. Lim
ited90
Daksh E
nergy Private Lim
ited91
Delicious F
oods & B
everages Private Lim
ited92
Diligent P
ower P
rivate Limited
93D
olby Pow
er & E
nergy Private Lim
ited94
Dynam
ic Infraventure Private Lim
ited95
Devasree Infram
ine Private Lim
ited96
Dhanshree M
ines Private Lim
ited97
Divine Infram
ine Private Lim
ited98
Dynam
ic Inframine P
rivate Limited
99D
B M
icrofinance Private Lim
ited100
Deligent H
otel Corporation P
rivate Limited
101E
xxoils Enterprises P
rivate Limited
102G
walior B
uildcon Private Lim
ited 103
Hathw
ay Bhaskar M
ultinet Private Lim
ited104
India Interactive Technologies Limited
105India U
nited Textile Mills Lim
ited106
Jay Vision C
are and Ophthalm
ics Private Lim
ited107
Khandadhar M
inerals Limited
108M
anjul Publishing H
ouse Private Lim
ited109
Mary D
evelopers Private Lim
ited 110
New
Era P
ublications Private Lim
ited111
Peacock Trading and Investm
ents Private Lim
ited112
Rainbow
Resources P
te Limited
113R
egency Agro P
roducts Private Lim
ited114
Regency H
otels and Investments (India) P
rivate Limited
115S
. A. Trading and Investm
ents Private Lim
ited116
Saurashtra S
amachar P
rivate Limited
117S
. B. H
otels Private Lim
ited118
Sharda R
eal Estate P
rivate Limited
119S
harda Solvent Lim
ited120
Shashw
at Hom
es Private Lim
ited121
Shourya D
iamonds Lim
ited122
Solvent Traders P
rivate Limited
123S
titex Global Lim
ited 124
Sunshine S
olvent Private Lim
ited125
Surge D
evelopers Private Lim
ited 126
Surya E
ye Institute and Research C
entre Private Lim
ited127
Vastu M
ines Private Lim
ited128
Venture D
rive Pte. Lim
ited129
Vindhya S
olvent Private Lim
ited130
Vista N
atural Resources P
rivate Limited
131W
riters and Publishers P
rivate Limited
132Yom
an Infrastructure Private Lim
ited133
Bhaskar P
hoto Type Setter, B
hopal134
Bhaskar P
rinting Press, A
hmedabad, S
urat, Vadodra
135B
haskar Printing P
ress, Bhopal
136M
/s. Dw
arka Prasad A
garwal and B
rothers137
Dw
arka Prasad A
garwal C
haritable Trust138
Girish A
garwal H
UF
139M
/s. Matolia M
otels140
Om
Prakash G
arg HU
F141
Paw
an Agarw
al HU
F142
Ram
esh Chandra A
garwal H
UF
143R
.C.A
garwal C
haritable Trust144
R C
Phototype S
etter, Raipur
145M
/s. R.C
. Printers
146S
harda Devi C
haritable Trust147
Shivpuri Trading C
orporation148
Sudhir A
garwal H
UF
149V
ishnu Prasad G
arg HU
F150
Vindhya P
ower P
rivate Limited
151V
irat Infraventures Private Lim
ited
Sr. N
o.
Nam
e
An
nexu
re to th
e Directo
rs' Rep
ort fo
r the F
inan
cial Year en
din
g o
n M
arch 31, 2011
Persons constituting G
roup coming w
ithin the definition of the 'group' as defined in the Monopolies and R
estrictive Trade Practice A
ct, 1969, include the following:
Our P
romoters and P
romoter G
roup (Individuals and Entities)
Sr. N
o.
Nam
e
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 13
14
1)C
OM
PAN
YP
HIL
OS
OP
HY
ON
CO
DE
OF
GO
VE
RN
AN
CE
The C
ompany operates on valued principles evolving highest standards of ethics of business and attributing top m
ost priority tocorporate governance and com
pliance with the regulatory fram
ework since the C
ompany believes that exem
plary adherence tocorporate governance standards adds value in every activity, besides providing for control, accountability and proactive m
easuresw
herever required, ultimately resulting in enhancem
ent in stakeholders' value.S
ubsequent to an Initial Public O
ffer (IPO
) during the year 2009-10, the company's equity shares have been listed on B
SE
andN
SE
, w.e.f January 06, 2010. A
ccordingly, compliance w
ith the provisions of the relevant clauses of the Listing Agreem
ent relat-ed to C
orporate Governance have becom
e applicable to the company on and from
the date mentioned above.
2) NU
MB
ER
OF
BO
AR
D M
EE
TIN
GS
The B
oard of Directors duly m
et 7 times during the year on A
pril 9, 2010, May 5, 2010, M
ay 27, 2010, June 26, 2010, July 30,2010, O
ctober 22, 2010 and January 24, 2011. At least one m
eeting of the Board of D
irectors was held in every quarter and the
maxim
um gap betw
een two m
eetings was less than 4 m
onths.
3) DIR
EC
TOR
S' A
TT
EN
DA
NC
E R
EC
OR
D A
ND
DIR
EC
TOR
SH
IPH
EL
DT
he composition of B
oard of Directors, their attendance at the B
oard Meetings during the financial year and at the last A
GM
, asalso num
ber of other directorships held by them are as follow
s:-
(*)F
or the purpose of the above, directorships in other public limited com
panies only are considered.(**)
For the purpose of the above, m
embership/chairm
anship in the Audit C
omm
ittee and Shareholders' G
rievance Com
mittees only are considered.
Mr. R
.C. A
garwal, C
hairman
76
Yes9
Prom
oter0/1
Mr. S
udhir Agarw
al, Managing D
irector7
6N
o11
Prom
oter2/1
Mr. G
irish Agarw
al, Director
76
Yes14
Prom
oter1/0
Mr. P
awan A
garwal, D
irector7
5N
o11
Prom
oter1/3
Mr. N
iten Malhan, N
ominee D
irector7
4N
o6
Nom
inee4/0
Mr. A
jay Piram
al, Independent Director
72
No
4N
on-Executive
Independent1/0
Mr. K
.C. C
howdhary, Independent D
irector7
6Yes
1N
on-Executive
Independent1/0
Mr. P
iyush Pandey, Independent D
irector7
1N
o0
Non-E
xecutiveIndependent
0/0M
r. Harish B
ijoor, Independent Director
75
No
1N
on-Executive
Independent1/0
Mr. A
shwani S
inghal, Independent Director
75
No
1N
on-Executive
Independent0/0
Nam
e of th
e directo
r / D
esign
ation
Atten
dan
ce at meetin
gs
du
ring
2010-11
No. of B
oardM
eetings heldA
ttend
edL
ast AG
Matten
ded
No. of other
Directorship
(s) (*)
Categ
ory o
fD
irectors
No
. of m
em-
bersh
ips/ch
airman
-sh
ip(s) o
fB
oard
com
-m
ittees of
oth
er com
pa-n
ies(**)
RE
PO
RT
ON
CO
RP
OR
AT
E G
OV
ER
NA
NC
E
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 14
15
4) CO
MM
ITT
EE
S O
F T
HE
BO
AR
D4.1. M
and
atory C
om
mittees
The B
oard of Directors has constituted board-level com
-m
ittees to delegate matters requiring greater and m
orefocused
attention and
also for
smoother
and better
administrative
convenience and
on specific
matters,
these comm
ittees prepare the ground-work for decision
making and report to the B
oard.
Details on the role and com
position of these comm
ittees,including the num
ber of meetings held during the financial
year 2010-11 and the related attendance are providedbelow
:
A) A
ud
it com
mittee
The A
udit Com
mittee of the B
oard of Directors of the
Com
pany comprises of five m
embers and M
r. Kailash
Chandra
Chow
dhary, Independent
Director
heads the
same as C
hairman of the A
udit Com
mittee.
The com
position of Audit C
omm
ittee meets the require-
ments of S
ec 292Aof the C
ompanies A
ct, 1956 andclause 49 of the Listing A
greement.
The follow
ing table provides the composition of the A
uditC
omm
ittee of the company.
The A
udit Com
mittee acts as per the term
s of referencem
ade to it by the Board of D
irectors, from tim
e to time,
inter alia, assists the board in its responsibility for over-seeing the quality and integrity of the accounting, audit-ing, and reporting practices of the C
ompany and its com
-pliance w
ith the legal and regulatory requirements. T
hecom
mittee oversees the accounting and financial report-
ing process of the Com
pany, the audit of the Com
pany’sfinancial statem
ents, reviewing accounting policies and
acco
un
ting
sta
nd
ard
s a
pp
licab
le
to
the
C
om
pan
y,appointm
ent, independence
and perform
ance of
thestatutory A
uditors and Internal Auditors, review
ing theC
ompany’s
financial and
risk m
anagement
policies,review
ing the scope of the internal audit plan, procedures,adequacy of the internal audit functions and internal con-trol system
s, review of statem
ent of significant relatedparty transactions subm
itted by the managem
ent.
During the year the com
mittee m
et Four tim
es on May 27,
2010, July 30, 2010, October 22, 2010 and January 24,
2011.
Mr. K
ailash Chandra C
howdhary- C
hairman
Independent Director
Mr. A
shwani S
inghal Independent D
irectorM
r. Piyush P
andeyIndependent D
irectorM
r. Niten M
alhan N
on-executive Director
Mr. G
irish Agarw
al N
on-executive Director
Nam
e of the Director
Executive/N
on-executive/Independent
Atten
dan
ce of each
mem
ber at th
e Au
dit C
om
mittee
meetin
gs h
eld d
urin
g th
e year
Mr. K
. Venkataram
an, Com
pany Secretary of the com
pa-ny is acting S
ecretary of the Audit C
omm
ittee.
B)
Sh
areho
lders’an
d In
vestors’G
rievance C
om
mittee
The
Board
has constituted
a S
hareholders’and
Investors’Grievance C
omm
ittee under the chairman-
ship of Shri G
irish Agarw
al and the composition of the
same is as under :
The S
hareholders’/Investors’Grievance C
omm
ittee isre
spo
nsib
le
for
the
re
dre
ssal
of
sha
reh
old
ers
an
dinvestors’grievances such as non-receipt of share certifi-cates, annual reports and dividend, issuance of duplicateshare certificates, consolidation and splitting , transferand transm
ission, dematerialization / rem
aterialization ofshares etc.. T
he comm
ittee oversees the performance of
the Registrars and Transfer A
gents of the Com
pany (RTA
)and recom
mends m
easures for overall improvem
ent inthe quality of investor services.
At the close of the year under review
on March 31, 2011,
78 complaints in the nature of non- receipt of refund, non-
receipts of credit to Dem
at Accounts etc. w
ere receivedfrom
the shareholders and all of them have been resolved
and disposed accordingly, as reported by the RTA
of thecom
pany.
Mr. K
. Venkataram
an, Com
pany Secretary of the com
pa-ny
is acting
as the
Secretary
of S
hareholders’and
Investors’Grievance C
omm
ittee.
Mr. G
irish Agarw
al- Chairm
anN
on Executive D
irector
Mr. P
awan A
garwal
Non E
xecutive Director
Mr. S
udhir Agarw
alE
xecutive Director
Mr. N
iten Malhan
Non E
xecutive Director
Nam
e of the Director
Execu
tive/No
n
executive/In
dep
end
ent
Mr. K
ailash Chandra
Chow
dhary- Chairm
anIndependent
44
Mr. A
shwani S
inghal - Mem
berIndependent
43
Mr. P
iyush Pandey - M
ember
Independent4
1
Mr. N
iten Malhan - M
ember
Non- E
xecutive4
2
Mr. G
irish Agarw
al - Mem
ber N
on- Executive
44
Nam
e of the mem
ber ofthe A
udit Com
mittee
Nature of
Directorship in
the Com
pany
No. of
meetingsheld
No of
meetings
attended
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 15
16
During the year the com
mittee m
et Four tim
es on May 27,
2010, July 30, 2010, October 22, 2010 and January 24,
2011.
Attendance of each m
ember at the S
hareholders’and
Investors’G
rievance C
omm
ittee held
during the
year2010-11, is as under :
In the meetings of the S
hareholders’/Investors’Grievance
Com
mittee held during the year ended 31st M
arch, 2011,subsequent to the listing of the equity shares of the com
-pany, the periodical reports received from
the RTA
of thecom
pany were placed and noted.
4.2. No
n - M
and
atory C
om
mittees
C) R
emu
neratio
n C
om
mittee:
The com
position of Rem
uneration Com
mittee is as follow
s:
Nam
e of th
e Directo
rE
xecutive/N
on
-executive/
Ind
epen
den
t
Mr. A
jay Piram
al Independent D
irectorM
r. Kailash C
handra Chow
dhary Independent D
irectorM
r. Niten M
alhan N
on Executive D
irectorM
r. Girish A
garwal
Non E
xecutive Director
The
Rem
uneration C
omm
ittee determ
ines our
Com
pany'srem
uneration policy, having regard to performance standards
and existing industry practice. Under the existing policies of our
Com
pany, the Rem
uneration Com
mittee, inter alia, determ
inesthe rem
uneration payable to our Directors.
Apart from
discharging the above-mentioned basic function, the
Rem
uneration Com
mittee also discharges the follow
ing func-tions:
�F
raming policies and com
pensation including salaries andsalary adjustm
ents, incentives, bonuses, promotion, bene-
fits, stock options and performance targets of the top exec-
utives; and
�F
ormulating strategies for attracting and retaining em
ploy-ees, em
ployee development program
s.T
here was no m
eeting of the Rem
uneration Com
mittee during
the year. None of the directors have been granted any stock
option. The tenure of office of M
r. Sudhir A
garwal, M
anaging
Director of the com
pany, is for a period of 5 years with
effect from January 1, 2007, pursuant to the M
anagingD
irecto
r's a
gre
em
en
t d
ate
d
Au
gu
st 2
9,
20
07
. T
he
Managing D
irector is entitled to an annual salary of Rs.
3,600,000. As per the agreem
ent he is not paid any sittingfees
for attending
the m
eetings of
the B
oard or
any com
mittees.
During
the financial
year 2010-11
the C
ompany
paidrem
uneration to its Executive D
irectors as per the detailsgiven below
:
Nam
e of D
irector
Salaries &
perq
uisites (in
Rs.)
Mr. S
udhir Agarw
al, 36,00,000/=
Managing D
irector
During the current financial year 2011-12, the term
of Mr.
Sudhir A
garwal, as the M
anaging Director of the com
pa-ny w
ill expire on Decem
ber 31, 2011 and he will be reap-
pointed for a further period of 5 years from January 01,
2012 to Decem
ber 31, 2016, on an annual remuneration
of Rs.60,00,000/-, per annum
, pursuant to the approval ofthe rem
uneration comm
ittee and the Board of D
irectors,subject to approval of the shareholders in the ensuingA
nnual General M
eeting of the Com
pany.
D) C
om
pen
sation
Co
mm
ittee:
With a view
to comply w
ith the provisions of the SE
BI
(Em
ployees Stock O
ption Schem
e and Em
ployee Stock
Purchase S
cheme) G
uidelines, 1999, and other provi-sio
ns
as
ap
plica
ble
, th
e
Bo
ard
h
as
con
stitute
d
aC
ompensation C
omm
ittee, on Novem
ber 28, 2007. The
main scope of functions of this com
mittee shall be adm
in-istration, im
plementation, execution and m
onitoring of theE
mployees' S
tock Option S
cheme/s, of our C
ompany,
from
time
to tim
e. The
composition
of C
ompensation
Com
mittee is as follow
s:
Nam
e of th
e Directo
rE
xecutive/N
on
-execu
tive/Ind
epen
den
tM
r. Kailash C
handra Chow
dhary Independent D
irectorM
r. Ashw
ani Singhal
Independent Director
Mr. P
iyush Pandey
Independent Director
Mr. P
awan A
garwal
Non E
xecutive Director
Mr. N
iten Malhan
Non E
xecutive Director
During the year 2010-2011, one m
eeting of the Com
pensationC
omm
ittee was held on January 24, 2011.
Mr.
K
Venkataram
an, C
ompany
Secretary
and C
ompliance
Officer, acts as the S
ecretary of all the comm
ittees of our Board.
5)G
EN
ER
AL
BO
DY
ME
ET
ING
S :
The date, tim
e and venue of the previous Annual G
eneral
Mr. G
irish Agarw
al- Chairm
anN
on- Executive
44
Mr. S
udhir Agarw
al- Mem
berE
xecutive4
4
Mr. P
awan A
garwal - M
ember
Non- E
xecutive4
4
Mr. N
iten Malhan
- Mem
ber N
on- Executive
44
Nam
e of the mem
ber ofthe S
hareholders' andInvestors' G
rievanceC
omm
ittee
Nature of
Directorship in
the Com
pany
No. of
meetingsheld
No of
meetings
attended
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 16
17
meetings held during the last three years are given below
:
6.D
ISC
LO
SU
RE
S:
�T
here are no materially significant transactions m
adeby
the C
ompany
with
its P
romoters,
Directors
orM
anagement, their subsidiaries or relatives etc. that
may have a potential conflict w
ith the interest of theC
ompany at large.
�D
uring last three years, there were no strictures or
penalties im
posed by
either S
EB
I or
the S
tockE
xchanges or any statutory authority for non - compli-
ance of any matter.
�T
he Com
pany has a Code of C
onduct for its Directors
and Senior M
anagement P
ersonnel. The B
oard mem
-bers
and S
enior M
anagement
personnel of
theC
ompany affirm
compliance w
ith this code.
The details of the shares held by the D
irectors of theC
ompany as at M
arch 31, 2011 are as under:
Nam
e of th
e Directo
rN
o. o
f Eq
uity S
hares h
eld
Mr. R
.C. A
garwal,
32,010,062
Mr. S
udhir Agarw
al18,006,206
Mr. G
irish Agarw
al, 15,227,186
Mr. P
awan A
garwal,
17,424,808
Mr. N
iten Malhan
-- NIL--
Mr. K
ailash Chandra C
howdhary
-- NIL--
Mr. A
jay Piram
al,, -- N
IL--
Mr. P
iyush Pandey,
-- NIL--
Mr. H
arish Bijoor, Independent D
irector-- N
IL--
Mr. A
shwani S
inghal, Independent Director
-- NIL--
Sitting F
ees, paid to the Non- E
xecutive and IndependentD
irectors of the company, during the year 2010-11, is as
follows:
Nam
e of th
e Directo
rS
itting
fees paid
Mr. R
.C. A
garwal,
Rs. 1,20,000
Mr. G
irish Agarw
al, R
s. 1,20,000M
r. Paw
an Agarw
al, R
s. 1,00,000M
r. Niten M
alhanN
ilM
r. Kailash C
handra Chow
dhary R
s. 1,60,000M
r. Ajay P
iramal,,
Rs. 40,000
Mr. P
iyush Pandey,
Rs. 25,000
Mr. H
arish Bijoor,
Rs. 1,00,000
Mr. A
shwani S
inghal, R
s. 1,15,000
Total
Rs.7,80,000/=
7. ME
AN
S O
F C
OM
MU
NIC
AT
ION
:T
he unaudited quarterly results, audited financial results of theC
ompany are published for the inform
ation of the shareholders inleading national new
spapers and are also intimated to respective
stock exchanges as required under the Listing Agreem
ent.
8. GE
NE
RA
LS
HA
RE
HO
LDE
R IN
FOR
MA
TION
:
AG
M fo
r 2010-11: Date, tim
e and
venu
e : Ju
ly 8, 2011, Time: 4.00 P.M
.V
enu
e: Reg
istered O
ffice of th
e Co
mpan
y.F
inancial Calendar for the year com
mencing from
01-A
pril-2011 to 31-March- 2012 (Tentative)
First Q
uarter Results
:U
pto August 14, 2011
Second Q
uarter Results
:U
pto Novem
ber 14, 2011T
hird Quarter R
esults :
Upto F
ebruary 14, 2012R
esults for the year endingM
arch, 2012 U
pto May 15, 2012
Date of B
ook closure:
2nd July, 2011 to 8th July, 2011
Listing on Stock E
xchanges:
The
shares of
the com
pany are
listed on
Bom
bay S
tockE
xchange Limited and the N
ational Stock E
xchange of IndiaLim
ited. The A
nnual Listing fees for the year 2011-2012 havebeen paid to these S
tock Exchanges.
Stock C
ode:
Bom
bay Stock E
xchange Limited
:S
crip Code / S
ymbol -
533151 / DB
CO
RP
National S
tock Exchange of India Lim
ited :S
crip Sym
bol: DB
CO
RP
The com
pany has also paid the Annual C
ustodial fees toboth
depositories (i.e.
National
Securities
Depository
Limited and C
entral Depository S
ervices (India) Limited)
9.S
TOC
K M
AR
KE
T PR
ICE
DA
TAFO
R TH
E
YE
AR
2010-11:
Com
pany's shares are listed on Bom
bay Stock E
xchange andN
ational Stock E
xchange during the financial year, T
he Market quotation of com
pany's shares on BS
E and N
SE
isas follow
s:
MO
NTH
BS
E S
hare Price S
EN
SE
XN
SE
Share P
riceN
IFTY
HIG
HLO
WH
IGH
LOW
HIG
HLO
WH
IGH
LOW
April 2010265.50
241.0018,047.86
17,276.80266.10
239.005399.65
5160.90
May 2010
256.95225.00
17,536.8615,960.15
258.80211.35
5278.704786.45
June 2010253.80
230.1017,919.62
16,318.39253.00
227.555366.75
4961.05
July 2010248.00
230.0018,237.56
17,395.58246.00
230.555477.50
5225.60
August 2010275.00
240.3518,475.27
17,819.99275.75
240.255549.80
5348.90
September 2010
289.10246.00
20,267.9818,027.12
289.40247.00
6073.505403.05
October 2010
307.00266.70
20,854.5519,768.96
310.20265.00
6284.105937.10
Novem
ber 2010284.40
242.1021,108.64
18,954.82285.00
240.056338.50
5690.35
Decem
ber 2010274.05
235.1020,552.03
19,074.57275.00
235.106147.30
5721.15
January 2011279.00
238.0020,664.80
18,038.48278.65
235.156181.05
5416.65
February 2011261.65
226.0018,690.97
17,295.62261.30
231.005599.25
5177.70
March 2011
268.20234.25
19,575.1617,792.17
274.00233.70
5872.005348.20
Registrar &
Share Transfer A
gent (RTA
): F
or any assistance regarding Share Transfers, Transm
issions,change of address, non-receipt of dividends, duplicate m
issingshare certificates and other relevant m
atters, the Registrar and
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 17
18
Transfer Agents of the C
ompany at the follow
ingaddress m
ay be contacted:
M/s K
arvy Com
putershare Pvt. Ltd.
(Unit: D
.B. C
orp Limited)
Address
:P
lot no. 17 to 24, Vittalrao N
agarM
adhapur, Hyderabad - 500 081
Tel No
:040-44655000
Fax
: 040-23420814-0857
Contact person
: M
r. U. S
. Singh
10. SH
AR
E T
RA
NS
FE
R S
YS
TE
M:
The process of recording of share transfers, transm
is-sions, etc. , for shares held electronic form
is handled byM
/s Karvy C
omputer S
hare Pvt. Ltd (R
TA) and a report
thereof is
sent to
the com
pany periodically
and the
Shareholders'/Investors'
Grievance
Com
mittee
of
theC
ompany takes note of the sam
e periodically. In respectof shares held in physical form
the transfer documents
are lodged with the R
TAand after processing , the sam
eis sent to the com
pany, and the Shareholders'/Investors'
Grie
van
ce
Co
mm
ittee
co
nve
ys its
ap
pro
val
to
the
Registrars, w
ho dispatch the duly transferred share cer-tificates to the shareholders concerned, after com
plyingw
ith the applicable provisions. The average tim
e taken forprocessing share transfers requests including dispatch ofS
hare certificates is 30 days, while it takes m
inimum
of 15days for processing dem
aterialization requests by theS
hare Transfer Agents.
Dem
aterialization
of sh
ares and
Liq
uid
ity: A
s on 31-03-2011, the Com
pany, the status of the dematerial-
ized and physical form of shares of the com
pany, is as under:
Sh
ares held
in
No
. of S
hares
%E
lectronic Form
with C
DS
L413123
0.22E
lectronic Form
with N
SD
L150265792
81.99P
hysical Form
3260431617.79
Total
183283231100
11.SH
AR
EH
OL
DIN
G PA
TT
ER
N (E
QU
ITY
) AS
ON
MA
RC
H 31 2011:
Sr. C
ategoryN
o. of N
o.H
oldersTotal S
haresP
ercentage1
PR
OM
OT
ER
S13
11686870363.76%
2P
RO
MO
TE
RS
BO
DIE
S
CO
RP
OR
AT
E7
4099505722.37%
3F
OR
EIG
N IN
ST
ITU
TIO
NA
LIN
VE
ST
OR
S31
96230055.25%
4O
VE
RS
EA
S C
OR
PO
RA
TE
B
OD
IES
26607594
3.61%5
MU
TU
AL
FU
ND
S30
58155693.17%
6R
ES
IDE
NT
IND
IVID
UA
LS12042
12165990.66%
7B
OD
IES
CO
RP
OR
AT
ES
2561634605
0.89%8
H U
F537
5038740.27%
9N
ON
RE
SID
EN
TIN
DIA
NS
9216208
0.01%10
CLE
AR
ING
ME
MB
ER
S21
20170.00%
Total13031
183283231100.00%
12.D
ISTR
IBU
TION
SC
HE
DU
LE A
S O
N M
AR
CH
31, 2011: S
hare o
r deb
entu
reS
hare / d
eben
ture
Sh
are / A
mo
un
th
old
ing
of n
om
inal
ho
lders
deb
entu
revalu
e
Rs.
Rs.
Num
ber%
to TotalIn R
s.%
to Total
(1)(2)
(3)(4)
(5)
Upto
-5000
1276697.91%
81354200.44%
5001-
1000098
0.75%759730
0.04%
10001-
2000039
0.30%587960
0.03%
20001-
3000016
0.12%409670
0.02%
30001-
400007
0.05%256430
0.01%
40001-
5000010
0.08%468380
0.03%
50001- 100000
190.15%
14385400.08%
100001&
A
bove84
0.64%1820776180
99.34%
Total13039
100%1832832310
100%
Equity S
hares held in Suspense A
ccount:
As per C
lause 5Aof the Listing A
greement, the com
pany reportsthat 247 S
hares are lying in the suspense account, as on March
31, 2011.
Th
e GD
R/ A
DR
/ Co
nvertib
le instru
men
ts:T
he Com
pany has not issued any GD
R/A
DR
/Convertible instru-
ments during the financial year 2010-11.
Ad
dress fo
r Investo
r Co
rrespo
nd
ence:
K. V
enkataraman
Com
pany Secretary &
Com
pliance Officer
D.B
. Corp Lim
ited501, 5th F
loor, Nam
an Corporate Link,
Opp. D
ena Bank,
C-31, G
- Block,
Bandra K
urla Com
plex, B
andra - East,
Mum
bai - 400051Tel N
o: 022-39888840 F
ax No: 022-39804793
e-mail: dbipo@
imcl.co.in
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 18
19
Declaratio
n reg
ardin
g co
mp
liance b
y the B
oard
and
Sen
ior m
anag
emen
t perso
nn
el with
the C
od
e of C
on
du
ct
This is to certify that the C
ompany has adopted a C
ode of Conduct for all B
oard Mem
bers and Senior M
anagerialP
ersonnel of the Com
pany and this Code has been posted on the w
ebsite of the Com
pany.
I confirm that in respect of the financial year M
arch 31, 2011, the Com
pany has received a declaration of compliance w
iththe C
ode of Conduct as applicable to them
, from the senior m
anagerial personnel of the Com
pany and the Mem
bers ofthe B
oard.
May 18, 2011
(Sudhir A
garwal)
Mum
baiM
anaging Director
Au
dito
rs' Certificate o
n C
om
plian
ce with
the
con
ditio
ns o
f Co
rpo
rate Go
vernan
ce
We have exam
ined the compliance of conditions of C
orporate Governance of D
.B. C
orp Limited (T
he Com
pany ), for theyear ended on M
arch 31, 2011, as stipulated in clause 49 the Listing Agreem
ent of the said Com
pany with stock
exchanges.
The com
pliance of conditions of corporate governance is the responsibility of the managem
ent. Our exam
ination was lim
-ited to procedures and im
plementation thereof , adopted by the C
ompany, for ensuring the com
pliance conditions ofC
orporate Governance. It is neither an audit nor an expression of opinion on the financial statem
ents of the Com
pany. In our opinion and to the best of our inform
ation and according to the explanations given to us , we certify that the
Com
pany has complied w
ith the conditions of Corporate G
overnance, as stipulated in the above mentioned Listing
Agreem
ent.
We further state that such com
pliance is neither an assurance as to the future viability of the Com
pany nor the efficien-cy or effectiveness w
ith which the m
anagement has conducted the affairs of the com
pany.
Fo
r S.R
.Batlib
oi &
Asso
ciates F
or G
up
ta Navin
K.&
Co
Firm
Reg
istration
No
: 101049W
Firm
Reg
istration
No
: 06263CC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Partn
er P
artner
Mem
bership No : 36656
Mem
bership No : 75030
May 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 19
20
Details o
f the D
irectors seekin
g ap
po
intm
ent/reap
po
intm
ent at th
e forth
com
ing
AG
M :
Nam
e of th
e Directo
rM
r. Harish B
ijoor
Date o
f Birth
3rd June 1961
Date o
f Ap
po
intm
ent
28th Novem
ber 2007A
reas of E
xperien
ceH
e has over 27 years of experience in marketing and brand m
anagement. H
e beganhis career in H
industan Lever Limited (form
erly known as B
rooke Bond Lipton India
Limited), and w
as in charge of sales, distribution and brand managem
ent of the com
pany. He also w
orked in Tata Coffee Lim
ited and was responsible for their brand
managem
ent for over eight years. He also w
orked in Zip Telecom
Limited as C
hief O
perating Officer from
2000 to 2001.
Ed
ucatio
nal Q
ualificatio
ns
Graduate and P
ost Graduate degree in A
rts, from B
angalore University.
Co
mpan
ies in w
hich
he h
old
s d
irectorsh
ipG
lobal Edge S
oftware Lim
ited
Mem
bersh
ip/C
hairm
ansh
ip o
f B
oard
Co
mm
itteesN
IL
Sh
areho
ldin
gN
IL
Nam
e of th
e Directo
rM
r. Ashw
ani Kum
ar Singhal
Date o
f Birth
31st October 1961
Date o
f Ap
po
intm
ent
28th Novem
ber 2007A
reas of E
xperien
ceM
r. A
shwani
Kum
ar S
inghal has
over 26
years of
experience in
non-ferrous m
etallurgical industry
and is
presently handling
the activities
related to
global sourcing of raw
materials of his business in m
anufacture of non-ferrous metals. H
e w
as the vice-president of BIR
Brussels, the International A
uthority in Non- F
errous M
etals for global trends in the industry from 1996 to 2008.
Ed
ucatio
nal Q
ualificatio
ns
B.C
om (H
ons.) degree from G
urunanak Dev U
niversity, Am
ritsar
Com
panies in which he holds directorship
Katyanidevi Leasing and F
inance Com
pany Private Lim
itedS
ynergy Media E
ntertainment Lim
ited
Mem
bersh
ip/C
hairm
ansh
ip o
f Bo
ard
Co
mm
itteesD
.B. C
orp Limited
Sh
areho
ldin
gN
IL
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 20
21
Details o
f the D
irectors seekin
g ap
po
intm
ent/reap
po
intm
ent at th
e forth
com
ing
AG
M :
Nam
e of th
e Directo
rM
r. Sudhir A
garwal
Date o
f Birth
20th July 1967
Date o
f Ap
po
intm
ent
Appointed as A
dditional Director on 10-12-2005 and appointed as the M
anaging
Director from
01-01-2007 a period of 5 years .
Areas o
f Exp
erience
Mr. S
udhir Agarw
al is having approximately 22 years of experience in the publishing
and newspaper business and has been em
ployed with our organization for all of this
period. He is responsible for our long term
vision and strategy and is heading many
new initiatives undertaken by the com
pany.
Ed
ucatio
nal Q
ualificatio
ns
Bachelor's degree in science
Com
panies in which he holds directorship
As per list given below
Mem
bersh
ip/C
hairm
ansh
ip o
f B
oard
Co
mm
itteesM
ember - S
hareholders/Investors' Grievance C
omm
ittee
Sh
areho
ldin
g in
the co
mpan
y18006206 shares
Directo
rship
List o
f Sh
ri. Su
dh
ir Ag
arwal
S.N
oN
ame o
f the C
om
pany
S. N
oN
ame o
f the C
om
pany
1B
haskar Venkatesh P
roducts Private Lim
ited20
Vindhya S
olvent Pvt. Lim
ited2
Bhaskar F
oods Pvt. Ltd.
21A
arkey Aditya D
evelopers Pvt. Ltd
3B
haskar Industries Ltd.22
Delta C
oal & M
ining Pvt. Ltd.
4B
haskar Publications and
Allied Ind. P
vt. Ltd.23
Am
ple Pow
er Ltd (Form
erly known as
DB
Pow
er (Orissa) Ltd)
5B
haskar Bio-fuels P
vt. Ltd.24
DB
Pow
er (Chhattisgarh) Lim
ited6
Bhaskar E
xxoils Pvt. Lim
ited25
Vastu M
ines Pvt. Ltd
7D
B M
alls Pvt. Lim
ited26
Dolby M
ining & P
ower P
vt. Ltd8
Diligent M
edia Corporation Ltd
27V
ista Natural R
esources Pvt. Ltd
9I M
edia Corp Ltd
28B
haskar New
s Media Lim
ited10
Saurashtra S
amachar P
rivate Limited
29B
haskar Entertainm
ent & M
edia Pvt. Ltd
11S
hourya Diam
onds Limited
30D
B P
ower (Jharkhand) P
vt. Ltd12
Surge D
evelopers Private Ltd.
31D
B E
nergy and Foods P
vt. Ltd13
Synergy M
edia Entertainm
ent Ltd.32
Dem
eurer Developers P
vt. Ltd14
Writers and P
ublishers Pvt. Lim
ited33
Le Soleil D
evelopers Pvt Ltd
15D
B E
nergy Private Lim
ited34
Sharda S
olvent Limited
16India Interactive Technologies Lim
ited35
Daksh E
nergy Pvt Ltd
17H
athway B
haskar Multinet P
vt Ltd36
Vindhya P
ower P
vt Ltd18
DB
Publications P
rivate Limited
37D
eligent Hotel C
orporation Pvt Ltd
19D
iva oil & G
as Limited
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 21
22
Additionally, during the current year 2011-12, the com
pany launched the D
hanbad edition in April 2011.
We continue our efforts to provide best quality of new
spapersto our readers and in this direction, D
ainik Bhaskar group has
alw
ays
use
d
late
st te
chn
olo
gy
of
prin
ting
in
frastru
cture
,im
proved editorial content etc., enhanced printing quality. In it'sendeavor to achieve new
er heights and long term objectives,
the company m
arches ahead with m
any steps and initiativesand notew
orthy efforts have begun in the areas of corporaterestructuring, A
d revenue planning and Editorial content in addi-
tion to attributing more focus on the event m
anagement. It is an
on going affair for the company to receive recognitions and
improve its m
arket position in the industry. Increasing rate of lit-eracy across the country, grow
th in readership of Hindi new
spa-pers
and im
proved reach
to consum
ers and
increase in
the advertisement spend are m
ainly the driving forces for thecom
pany.K
eeping in
mind
the potential
available and
remaining
untapped, the com
pany has already begun it's pre-launch activitiesin the state of M
aharashtra, with great vigor since it is felt that
the company is w
ell best placed to capture the hugely under-penetrated regional m
arket, having huge scope for readershipand ad revenue expansion, clubbed w
ith high economic grow
thpotential of the region. W
ith high regard for its ability to identifynew
market opportunities and to expand its readership through
innovative market penetration strategies, as dem
onstrated inthe past, your com
pany has in place meticulous planning, strin-
gent controls, team creation and training, at every stage of this
project.B
esides, looking into the synergy available for the product mix
of print and non-print offers to customers, the com
pany hasm
erged into
itself the
radio business
of S
ynergy M
ediaE
ntertainment Lim
ited, a subsidiary of your company, as m
en-tioned in the D
irectors Report for the year under review
.
RIS
KS
, CO
NC
ER
NS
AN
D T
HR
EA
TS
:O
ur company perceives the follow
ing aspects, during the courseof the business:
vC
om
petitio
n :
The Indian new
spaper industry in general and Hindi new
spa-pers industry in particular have becom
e competitive. In each of
our market, w
e face competition from
other newspapers in cir-
culation, readership and advertising.
v M
anag
emen
t's percep
tion
: T
he overall growth in the econom
y, globally, has opened upm
ore potential for the company and the com
petition is healthyfor the com
pany, acting as a booster to achieving better resultsin the years to com
e. The im
pact of the growth w
ill be seen inthe advertisem
ent revenue of the company and w
ith the stabili-ty gained from
the experience during the gloomy year of 2008-
09, the company is consolidating it's position in the chosen
areas of business. To over com
e the competition, w
e equip ourselves with w
idelyrecognized national brand, experienced and dedicated m
an-agem
ent team, better reader connect, expanding net w
ork, flex-ible liquidity and investm
ent in product development, and con-
sistent focus on up gradation of technology and all these would
result in enhancement of our capabilities to m
eet the competi-
tion effectively. Besides, w
e face and competition as our m
oti-vational factor since w
e are continuously exploring our entry into
Man
agem
ent D
iscussio
n an
d A
nalysis rep
ort
IND
US
TR
YO
VE
RV
IEW
:
In keeping pace with the grow
th in the world econom
ies, partic-ularly in India and em
erging markets, the M
edia Industry in Indiais also poised for trem
endous growth.
The Indian M
edia & E
ntertainment industry grew
from IN
R 587
billion in 2009 to INR
652 billion in 2010, registering an overallgrow
th of 11 percent. Backed by positive industry sentim
ent andgrow
ing m
edia consum
ption, the
industry is
estimated
toachieve grow
th of 13 percent in 2011 to touch INR
738 billion.A
s the industry braces for exciting times ahead, the sector is
projected to grow at a C
AG
R of 14 percent to reach IN
R 1,275
billion by 2015. (Source : F
rames- R
eport by KP
MG
- 2011)T
he Media industry consisting of P
rint and Non-P
rint segments
is flooded with huge grow
th potential and all the players in theindustry are untiringly w
orking towards higher levels of achieve-
ment, in term
s of volume, value and stakeholders' enhance-
ment.
"With the increased spending pow
er, brand consciousness, bet-ter education levels and aspirations, w
e expect buoyant con-sum
erism in regional m
arkets and Tier2/3 cities. These con-
sumers have also preferred H
indi and regional dailies overE
nglish. The traditional m
onetization gap between E
nglish V/s
Hindi and other language new
spapers has already narrowed
and we w
ill see this trend continue on the back of this buoyantm
arket condition in Tier2/3 cities."
(Source : a quote in F
rames- R
eport by KP
MG
- 2011 )
The avenues for the N
on-Print front are also increasing and
Radio business is also having substantial potential for grow
th. "T
he industry will see grow
th from existing licenses (through
increased inventory utilization), from new
licenses in the existingcities and through the addition of new
cities as a part of Phase
Three. A
s the new cities being added in P
hase Three are pri-
marily sm
all towns, they are not expected to contribute a large
share of industry growth in the m
edium term
." (Source : F
rames-
Report by K
PM
G- 2011 )
"In addition, in the light of the improved cost econom
ies and theexpectation from
Phase T
hree licensing, there could be interestin the sector from
new players. T
hese could include regionalprint players looking to leverage the radio opportunity, as w
ell asm
usic companies." (S
ource : Fram
es- Report by K
PM
G- 2011 )
OP
ER
AT
ION
S A
T A
GL
AN
CE
:F
rom a hum
ble beginning with one H
indi edition from B
hopal in1958,
Dainik
Bhaskar
group has
today em
erged as
the m
ost widely read new
s paper group in the country. We are one
of the leading print media com
panies in India, publishing news-
papers with 59 editions and 135 sub-editions in three languages
(Hindi, G
ujarati and English) in 13 states in India. W
e have apresence in a substantial portion of N
orth, Central and W
esternIndia, especially the rem
arkable presence and coverage in Non-
metro region, w
hich is a key strength and advantage over ourcom
petitors.D
uring the year under review, the com
pany launched Dainik
Bhaskar in R
anchi in August 2010, in B
hatinda in Septem
ber2010, Jam
mu in O
ctober 2010, in Jamshedpur in D
ecember
2010 and
in S
riganganagar, A
lwar,
Sikar
and B
hilwara
inJanuary 2011. F
urther, the company also launched "D
B S
tar" inJo
dh
pu
r a
nd
R
aip
ur
an
d
"Bu
sine
ss B
ha
skar"
in
Jaip
ur.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 22
23
newer m
arkets, suiting the potential for growth for our business
avenues.
v D
epen
den
ce on
advertisem
ent reven
ue :
We rely substantially on advertising custom
ers for our revenue.D
uring the year ended on March, 31, 2011, w
e derived adver-tisem
ent revenue 79.50% of total revenue and during the year
ended on March, 31, 2010 the sam
e was 75.78%
.
v M
anag
emen
t's percep
tion
: W
e came out of the m
ost economically difficult financial year
2008-09 and we have registered a grow
th of 22.95% in total rev-
enue by achieving turnover of Rs. 1261.64 C
rores during theyear 2010-11 as com
pared to the same of R
s.1026.13 Crores
during the year 2009-10. The grow
th is after effect of demerger
of Radio division of S
ynergy Media E
ntertainment Ltd. (S
ME
L)into the com
pany with effect from
1st April'10.
v N
ewsp
rint p
rice fluctu
ation
:N
ewsprint form
s the major raw
material com
ponent for our busi-ness and represents a significant portion of our expenses. F
orthe year ended M
arch 31, 2011 and March31, 2010, new
sprintcost represented 45.00%
and 48.21% respectively of our total
expenses. The volatility in new
sprint prices is not in control ofprint m
edia businesses.
v M
anag
emen
t's percep
tion
: T
he year 2008-09 had seen the peak of newsprint prices at
unrealistically high levels. How
ever, these prices have declinedsig
nifica
ntly
du
ring
th
e
yea
r u
nd
er
revie
w.
Be
side
s, th
enew
sprint price movem
ent is consistently monitored by the com
-pany and prom
pt decisions on procurement planning w
ill contin-ue to result in reduced consum
ption cost in future, as evidencedby the com
pany in the financial year 2011.
v S
enio
r man
agem
ent team
:W
e have a team of professionals to oversee the operations and
growth of our business. O
ur success is substantially dependenton the expertise and services of our m
anagement team
. The
loss of services of such managem
ent personnel or key person-nel could have an adverse effect on our business. F
urther ourability to m
aintain our leadership position in the print media busi-
ness depends on our ability to attract, train, motivate and retain
highly skilled personnel.
v M
anag
emen
t's percep
tion
: T
he company has team
of professional managers com
mensu-
rate with its size of operations, w
ith dependence on no singleperson. W
e have second line managem
ent in all our depart-m
ents to take over from seniors. F
urther, as the company is
enjoying leadership position, it does not have threat of losingkey personnel, as evident from
the fact that we have not had
any significant turnover at senior managem
ent level. Further the
managem
ent assesses all the related risks periodically andkeeps a close tab and m
onitoring of the same. T
his enables thecom
pany embark up on plans for m
inimization and m
itigation,as and w
hen required, pro-actively.
FIN
AN
CIA
LP
ER
FO
RM
AN
CE
:T
he consolidated results include income from
MY
FM
radio busi-ness and the im
pact of the demerger of radio business of
Synergy M
edia Entertainm
ent Limited.
Sales an
d o
ther o
peratin
g In
com
e :
It comprises new
spaper sales, advertisement revenue, event
managem
ent income, job w
ork charges and scrap and wastage
paper sale. We registered a grow
th of 22.95% by achieving
turnover of Rs.1261.63. C
rores during the year 2010-11 as com-
pared to Rs. 1026.13 C
rores during the year 2009-10. The
growth w
as noted in all revenue streams. A
dvertising revenuegrew
from R
s 777.59 Crores to R
s1003.03 Crores registering an
increase of 28.99%. T
he growth is after effect of dem
erger ofR
adio division of Synergy M
edia Entertainm
ent Ltd (SM
EL) into
the company w
ith effect from 1st A
pril'10.
Oth
er Inco
me:
It comprises of interest incom
e. Other incom
e decreased by6.51%
by registering income of R
s16.50 Crores in the year
2010-11 as compared to R
s17.65 Crores in 2009-10.
Raw
Material co
nsu
med
:N
ewsprint consum
ption increased from R
s. 327.86 Crores to
Rs. 383.90 C
rores during the year 2010-11 due to set up of newunits in Jharkhand, G
ujarat, Punjab, H
aryana, Rajasthan, regis-
tering increase of nearly 17%. W
e have maintained close m
on-itoring and control over consum
ption quantity and wastage.
Op
erating
cost :
It mainly com
prises cost of stores and spares consumed, print-
ing job expenses, electricity charges and plant repairs andm
aintenance etc. There is an increase in operating expenses by
13.15% due to expansion of business.
Em
plo
yees cost :
Em
ployees cost has been increased by 55.19% due to set up of
various new units in the state of G
ujarat, Rajasthan, H
aryana,P
unjab, Jharkhand and MP. F
urther the increase is after effectof dem
erger of Radio division of S
ynergy Media E
ntertainment
Ltd. (SM
EL) into the com
pany with effect from
1st April'10
Dep
reciation
:D
epreciation in 2010-11 increased by about 60.51% due to
addition in
fixed assets
and the
increase is
after effect
ofdem
erger of Radio division of S
ynergy Media E
ntertainment
Ltd.(SM
EL) in the com
pany with effect from
1st April'10
Fin
ancial co
st :F
inancial cost decreased from R
s. 32.34 Crores in 2009-10 to
Rs.15.28 C
rores, in 2010-11, registering a decline of 52.75%and this w
as achieved due to repayment of loans.
Earn
ing
on
Exch
ang
e fluctu
ation
:D
uring the year 2010-11, we earned R
s. 8.72 lacs on account ofE
xchange fluctuation gain as compared to gain of R
s.89.45 lacsin previous year.
Pro
fit befo
re taxation
:P
rofit before taxation increased from R
s. 304.76 Crores to R
s.366.98 C
rores registering a growth of 20.41%
in the year 2010-11 due to increase in revenue.
Taxation
:Tax provision w
as increased due to increased profits of the com-
pany.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 23
24
FU
TU
RE
OU
TL
OO
K :
Dainik B
haskar group is comm
itted to being at the front of them
edia business embracing everything new
Media have to offer
and the technology necessary for leadership.
We believe that m
edia industry is growing and the business
potential is substantial. We continue our steps to m
ake our mark
and brands in newer locations in addition to offering im
provedproducts and value added services in the existing areas, as hasalw
ays been our vision. In this direction, we believe that the
innovative approach adopted by us would pave a long w
ay forachieving our long term
objectives.
Disclaim
er : It may please be noted that the statem
ents in thisM
anagement D
iscussion and Analysis R
eport describing theC
ompany's objectives and predictions m
ay be forward looking
within the m
eaning of the applicable regulations. Actual results
may differ m
aterially from those either expressed or im
plied inthe statem
ent depending on circumstances.
INT
ER
NA
LC
ON
TR
OL
S :
The system
of internal controls adopted in the company, com
-m
ensurate with its nature and size of business is proper and
adequate to ensure that all assets are safeguarded and protect-ed against any loss and that all transactions are authorized,recorded and reported correctly. T
hese are further supplement-
ed by an extensive program of effective and continuous internal
audit by various independent firms of C
hartered Accountants at
various locations and the reports are reviewed periodically by
the Audit C
omm
ittee. The internal control system
is designed toensure that all financial and other records are reliable for prepar-ing financial statem
ents and other data and for maintaining
accountability of assets and compliance w
ith applicable statuto-ry requirem
ents. The com
pany always provides for cost savings
and profit enhancement ideas and recom
mendations m
ade bythe Internal A
udit Departm
ent are also considered by the Audit
Com
mittee. T
he process of SA
Padopted by the com
pany cov-ers m
any business processes for closer monitoring of im
provedcontrols and ensuring transparency. T
he company also has a
strong and exhaustive budgetary control and performance m
an-agem
ent system to m
onitor the progress on realization of busi-ness objectives on an ongoing basis.
UT
ILIS
AT
ION
OF
IPO
PR
OC
EE
DS
:
The total IP
O proceeds received by the C
ompany are R
s 2,690,065,000. Follow
ing are the details of utilization of IPO
proceeds tillM
arch 31, 2011. (F
igures in Rs.)
Particu
larsA
mo
un
t to b
e A
ctual
Balan
ce to b
eu
tilized as p
er U
tilization
tillu
tilized as o
nP
rosp
ectus
March
31, 2011M
arch 31, 2011
Setting up new
publishing units 600,000,000
448,361,906151,638,094
Upgrading existing plant &
machinery
305,000,000392,122,896
(87,122,896)S
ales and marketing
501,000,0003,804,070
497,195,930R
educing working capital loans
41,460,00041,460,000
-P
repaying existing term loans
1,100,000,0001,100,000,000
-Issue E
xpenses paid out of IPO
Proceeds
142,605,000111,578,053
31,026,947
Total
2,690,065,0002,097,326,925
592,738,075
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 24
25
ToTh
e Mem
bers o
f D.B
. Co
rp L
imited
1.
We have audited the attached B
alance Sheet of D
.B. C
orpLim
ited ('the Com
pany') as at March 31, 2011 and also
the Profit and Loss account and the C
ash Flow
Statem
entfor the year ended on that date annexed thereto. T
hesefinancial statem
ents are the responsibility of the Com
pany'sm
anagement. O
ur responsibility is to express an opinion onthese financial statem
ents based on our audit.2.
We conducted our audit in accordance w
ith auditing stan-dards generally accepted in India. T
hose Standards require
that we plan and perform
the audit to obtain reasonableassurance about w
hether the financial statements are free
of material m
isstatement. A
n audit includes examining, on a
test basis, evidence supporting the amounts and disclosures
in the financial statements. A
n audit also includes assessingthe accounting principles used and significant estim
atesm
ade by managem
ent, as well as evaluating the overall
financial statement presentation. W
e believe that our auditprovides a reasonable basis for our opinion.
3.A
s required by the Com
panies (Auditor's R
eport) Order,
2003 (as
amended)
('the O
rder') issued
by the
Central
Governm
ent of India in terms of sub-section (4A
) of section227 of the C
ompanies A
ct, 1956 ('the Act'), w
e enclose in theA
nnexure a statement on the m
atters specified in para-graphs 4 and 5 of the said O
rder.4.
Further to our com
ments in the A
nnexure referred to above,w
e report that:(i)
We have obtained all the inform
ation and explana tions,w
hich to the best of our knowledge and belief w
ere necessary for the purposes of our audit;
(ii)In our opinion, proper books of account as required by law
have been kept by the Com
pany so far as appears from
our examination of those books;
(iii)T
he balance sheet, profit and loss account and cashflowstatem
ent dealt with by this report are in agreem
ent w
ith the books of account;(iv)
In our opinion, the balance sheet, profit and loss accountand cash flow
statement dealt w
ith by this report comply
with the accounting standards referred to in sub-section
(3C) of section 211 of the A
ct.(v)
On the basis of the w
ritten representations receivedfrom
the directors, as on March 31, 2011, and taken on
record by the Board of D
irectors, we report that none of
the directors is disqualified as on March 31, 2011 from
being appointed as a director in term
s of clause (g) of sub-section (1) of section 274 of the A
ct.(vi)
In our opinion and to the best of our information and
according to the explanations given to us, the saidaccounts give the inform
ation required by the Act, in the
manner so required and give a true and fair view
in conform
ity w
ith the
accounting principles
generallyaccepted in India;(a)
in the case of the balance sheet, of the state of affairs of the C
ompany as at M
arch 31, 2011; (b)
in the case of the profit and loss account, of the profit of the C
ompany for the year ended on that
date; and(c)
in the case of cash flow statem
ent, of the cash flow
s for the year ended on that date.
For S.R. Batliboi & AssociatesFor G
upta Navin K. & Co.Firm
registration number: 101049W
Firm registration num
ber: 06263CChartered Accountants
Chartered Accountants
per Amit M
ajmudar
per Navin K. Gupta
PartnerPartner
Mem
bership No. 36656M
embership No. 75030
Mum
baiM
ay 18, 2011
An
nexu
re referred to
in parag
raph
3 of o
ur rep
ort o
f evend
ate Re: D
.B. C
orp
Lim
ited ('th
e Co
mpan
y')(i)
(a) T
he Com
pany has maintained proper records show
ing full particulars, including quantitative details and situationof fixed assets.
(b)A
ll fixed assets have not been physically verified by the m
anagement during the year but there is a regular pro
gramm
e of verification which, in our opinion, is reason
able having regard to the size of the Com
pany and the nature of its assets. A
s informed, no m
aterial discrepancies w
ere noticed on such verification. (c)
There w
as no substantial disposal of fixed assets during the year.
(ii) (a)
The m
anagement has conducted physical verification of
inventory at reasonable intervals during the year.(b)
The procedures of physical verification of inventory fol
lowed
by the
managem
ent are
reasonable and
adequate in relation to the size of the C
ompany and the
nature of its business. (c)
The C
ompany is m
aintaining proper records of inventoryand no m
aterial discrepancies were noticed on physical
verification.(iii)
(a)T
he Com
pany has granted unsecured loans to two com
panies covered in the register maintained under section
301 of the Act. T
he maxim
um am
ount involved during theyear w
as Rs 499,441,154 and the year- end balance of
loans granted was R
s 382,427,644.(b)
In our opinion and according to the information and
explanations given to us, the rate of interest and other term
s and conditions for such loans are not prima facie
prejudicial to the interest of the Com
pany.(c)
In respect of loans granted to one of the parties, repaym
ent of the principal amount is as stipulated and pay
ment of interest have been regular. In respect of loans
granted to other parties, we are inform
ed that the loans including interest thereon are re-payable on dem
and. As
informed, the C
ompany has not dem
anded repayment of
any such loan and interest during the year, thus, there has been no default on the part of the parties to w
hom
the money has been lent.
(d)T
here is no overdue amount of loans granted to com
panies, firm
s or other parties listed in the register main
tained under section 301 of the Act.
(e)T
he Com
pany has not taken any loans, secured or unsecured from
companies, firm
s or other parties covered in the register m
aintained under section 301 of the Act.
Accordingly, clauses 4 (iii) (f) and (g) of the O
rder are not applicable.
(iv)In our opinion and according to the inform
ation and explana-tions given to us, there is an adequate internal control system
Au
dito
rs' Rep
ort
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 25
26
comm
ensurate with the size of the C
ompany and the nature of
its business, for the purchase of inventory and fixed assetsand for the sale of goods and services. D
uring the course ofour audit, no m
ajor weakness has been noticed in the internal
control system in respect of these areas, and w
e have notobserved any continuing failure to correct m
ajor weakness in
internal control system of the C
ompany.
(v)(a)
According to the inform
ation and explanations provided by the m
anagement, w
e are of the opinion that the particulars of contracts or arrangem
ents referred to in section 301 of the A
ct that need to be entered into the register m
aintained under section 301 have been so entered.(b)
In respect of transactions made in pursuance of such
contracts or arrangements exceeding value of R
upees five lakhs entered into during the financial year, because of
the unique
and specialized
nature of
the item
s involved and absence of any com
parable prices, we are |
unable to comm
ent whether the transactions w
ere made
at prevailing market prices at the relevant tim
e.(vi)
The C
ompany has not accepted any deposits from
the public.(vii)
In our opinion, the Com
pany has an internal audit systemcom
mensurate w
ith the size and nature of its business.(viii)
To the best of our knowledge and as explained, the C
entralG
overnment has not prescribed m
aintenance of cost recordsunder clause (d) of sub-section (1) of section 209 of the A
ct forthe products of the C
ompany.
(ix) (a)
The C
ompany is regular in depositing w
ith appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, em
ploees' state insurance, incom
e-tax, sales-tax, wealth-tax, ser
vice tax, customs duty, cess and other m
aterial statutory dues applicable to it. T
he provisions relating to
excise duty are not applicable to the C
ompany.
Further, since the C
entral Governm
ent has till date not prescribed the am
ount of cess payable under section 441 A
of the Act, w
e are not in a position to comm
ent upon the regularity or otherw
ise of the Com
pany in depositing the sam
e.(b)
According to the inform
ation and explanations given to us, no m
aterial undisputed amounts payable in respect
of provident
fund, investor
education and
protection fund, em
ployees' state insurance, income-tax, w
ealth-tax, service tax, sales-tax, custom
s duty, cess and other undisputed statutory dues w
ere outstanding, at the year end, for a period of m
ore than six months from
the date they becam
e payable. The provisions relating to excise
duty are not applicable to the Com
pany.(c)
According to the records of the C
ompany, the dues out
standing of income-tax, sales-tax, w
ealth-tax, service tax, custom
s duty, excise duty and cess on account of any dispute, are as follow
s
(x)T
he Com
pany has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the cur-rent and im
mediately preceding financial year.
(xi)B
ased on our audit procedures and as per the information
and explanations given by the managem
ent, we are of the
opinion that the Com
pany has not defaulted in repayment of
dues to a financial institution and bank. The C
ompany did
not have any outstanding debentures during the year. (xii)
According to the inform
ation and explanations given to usand based on the docum
ents and records produced to us,the C
ompany has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and
other securities.(xiii)
In our opinion, the Com
pany is not a chit fund or a nidhi /m
utual benefit fund / society. Therefore, the provisions of
clause 4(xiii)
of the
Order
are not
applicable to
theC
ompany.
(xiv)In our opinion, the C
ompany is not dealing in or trading in
shares, securities,
debentures and
other investm
ents.A
ccordingly, the provisions of clause 4(xiv) of the Order are
not applicable to the Com
pany.(xv)
According to the inform
ation and explanations given to us,the C
ompany has given guarantee for loans taken by others
from bank or financial institutions, the term
s and conditionsw
hereof in our opinion are not prima-facie prejudicial to the
interest of the Com
pany.(xvi)
Based on inform
ation and explanations given to us by them
anagement, term
loans were applied for the purpose for
which the loans w
ere obtained.(xvii)A
ccording to the information and explanations given to us
and on an overall examination of the balance sheet of the
Com
pany, we report that no funds raised on short-term
basishave been used for long-term
investment.
(xviii)The C
ompany has not m
ade any preferential allotment of
shares to parties or companies covered in the register m
ain-tained under section 301 of the A
ct. (xix)
The C
ompany did not have any outstanding debentures dur-
ing the year.(xx)
We have verified that the end use of m
oney raised by pub-lic issues is as disclosed in the notes to the financial state-m
ents.(xxi)
Based upon the audit procedures perform
ed for the purposeof reporting the true and fair view
of the financial statements
and as per the information and explanations given by the
managem
ent, we report that no fraud on or by the C
ompany
has been noticed or reported during the course of our audit.
For S.R. Batliboi & AssociatesFor G
upta Navin K. & Co.Firm
registration number: 101049W
Firm registration num
ber: 06263CChartered Accountants
Chartered Accountants
per Amit M
ajmudar
per Navin K. Gupta
PartnerPartner
Mem
bership No. 36656M
embership No. 75030
Mum
baiM
ay 18, 2011
Nam
e of N
ature ofA
mount
Period to which
Forum w
herethe statute
dues(R
s)the am
ountdispute is
relatespending
Income-tax
Income tax
11,200,040Assessm
ent yearAppellate tribunal,
Act, 1961dues
2008-09Ahm
edabad
Income-tax
Income tax
2,034,830Assessm
ent yearC
omm
issioner of Act, 1961
dues2009-10
Income tax,
Ahmedabad
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 26
27
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
Sch
edu
lesA
s At
As A
t M
arch 31, 2011
March
31, 2010
SO
UR
CE
S O
F F
UN
DS
Sh
areho
lders' F
un
ds
Share C
apital1
1,832,842,3101,815,156,050
Stock O
ptions outstanding2
28,919,04512,965,726
Reserves and S
urplus3
6,691,448,9945,476,371,476
8,553,210,3497,304,493,252
Lo
an F
un
ds
Secured Loans
42,081,725,340
2,728,630,982 U
nsecured Loans5
290,349,265 241,008,762
2,372,074,605 2,969,639,744
Deferred
Tax Liab
ilities (Net)
6694,597,627
608,762,958
TOTA
L11,619,882,581
10,882,895,954
AP
PL
ICA
TIO
N O
F F
UN
DS
Fixed
Assets
7G
ross Block
8,363,183,802 6,059,323,218
Less : Accum
ulated depreciation / amortisation
1,711,569,524 998,234,795
Net B
lock6,651,614,278
5,061,088,423 C
apital Work-in-progress including C
apital Advances
680,090,624 614,282,768
7,331,704,902 5,675,371,191
Investm
ents
8520,327,800
910,786,000 C
urren
t Assets, L
oan
s and
Ad
vances
Inventories9
728,033,099 721,615,361
Sundry D
ebtors10
2,385,688,638 1,834,818,477
Cash and B
ank Balances
111,661,621,130
1,869,377,994 Loans and A
dvances12
1,055,424,450 1,668,816,547
A5,830,767,317
6,094,628,379 L
ess : Cu
rrent L
iabilities an
d P
rovisio
ns
Current Liabilities
131,632,626,057
1,538,634,024 P
rovisions 14
540,118,275 384,952,163
B2,172,744,332
1,923,586,187
Net C
urrent Assets
(A-B
)3,658,022,985
4,171,042,192
Miscellaneous E
xpenditure15
109,826,894 125,696,571
(to the extent not written off or adjusted)
TOTA
L11,619,882,581
10,882,895,954
NO
TE
S TO
AC
CO
UN
TS
25The Schedules referred to above and Notes to Accounts form
an integral part of the Balance Sheet.As per our Report of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or G
up
ta Navin
K. &
Co
.F
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WF
irm reg
istration
nu
mb
er: 06263CD
.B. C
orp
Lim
itedC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Man
agin
g D
irector
Directo
r P
artner
Partn
erM
embership N
o. 36656M
embership N
o. 75030
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 27
28
PR
OF
IT A
ND
LO
SS
AC
CO
UN
T F
OR
TH
E Y
EA
R E
ND
ED
MA
RC
H 31, 2011(A
mo
un
ts in In
dian
Ru
pees)
Sch
edu
lesF
or th
e Year E
nd
edF
or th
e Year E
nd
ed
March
31, 2011M
arch 31, 2010
INC
OM
ES
ales16
2,291,469,563 2,250,708,317
Income from
Event M
anagement
151,469,431111,096,269
Advertisem
ent Income
10,030,346,059 7,775,851,234
Other O
perating Income
17143,090,733
123,720,771 12,616,375,786
10,261,376,591
EX
PE
ND
ITU
RE
Raw
Materials C
onsumed
183,839,083,276
3,278,675,591 Increase in S
tock of Finished G
oods(604,314)
(15,938)E
vent Expenses
148,803,282 102,432,523
Operating E
xpenses19
1,307,782,214 1,155,736,330
Personnel E
xpenses20
1,790,276,3421,153,577,933
General and A
dministrative E
xpenses21
773,328,450 512,484,620
Selling and D
istribution Expenses
22672,450,041
597,646,224 O
peratin
g P
rofit b
efore in
terest and
dep
reciation
4,085,256,4953,460,839,308
Other Incom
e (Interest Income)
23164,975,346
176,544,941 F
inancial Expenses
24152,837,144
323,387,926 D
epreciation / Am
ortisation7
427,635,700 266,411,936
Pro
fit Befo
re Tax3,669,758,997
3,047,584,387
Tax Exp
ense
Current Tax
894,192,943840,010,000
Deferred Tax C
harge85,834,669
215,943,289 P
rovision for tax of earlier years16,500,000
1,208,404 996,527,612
1,057,161,693
Pro
fit for th
e Year
2,673,231,385 1,990,422,694
Balance brought forw
ard from previous year
2,180,841,150 764,285,596
Pro
fit available fo
r Ap
pro
priatio
n4,854,072,535
2,754,708,290
Ap
pro
priatio
ns :
Interim D
ividend363,083,050
136,135,954P
roposed Final D
ividend366,596,274
226,908,256 Tax on D
ividend119,774,637
60,822,930 Transfer to G
eneral Reserve
300,000,000 150,000,000
1,149,453,961573,867,140
Balan
ce carried to
Balan
ce Sh
eet3,704,618,574
2,180,841,150
Earnings P
er Share (R
efer Note 13 of S
chedule 25)B
asic Earning P
er Share
14.7311.56
Diluted E
arning Per S
hare14.70
11.55 N
ominal V
alue Per S
hare10
10
NO
TE
S TO
AC
CO
UN
TS
25
The Schedules referred to above and N
otes to Accounts form
an integral part of the Profit and Loss A
ccount.A
s per our Report of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or G
up
ta Navin
K. &
Co
.F
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WF
irm reg
istration
nu
mb
er: 06263CD
.B. C
orp
Lim
itedC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Man
agin
g D
irector
Directo
r P
artner
Partn
erM
embership N
o. 36656M
embership N
o. 75030
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 28
29
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E B
AL
AN
CE
SH
EE
T A
S A
T M
AR
CH
31, 2011(A
mo
un
ts in In
dian
Ru
pees, excep
t share d
ata)
As A
tA
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 1S
HA
RE
CA
PITA
L
Au
tho
rised :
249,000,000(P
revious Year 249,000,000) Equity S
hares of Rs. 10 each
2,490,000,0002,490,000,000
1,000(P
revious Year 1,000), 0%, N
on- Convertible R
edeemable
Preference S
hares of Rs. 10,000 each
10,000,000 10,000,000
2,500,000,0002,500,000,000
Issued
, Su
bscrib
ed an
d P
aid u
p :
183,283,231(P
revious Year 181,514,605) Equity S
hares of Rs.10 each fully paid up
1,832,832,310 1,815,146,050
1(P
revious Year 1), 0%, N
on - Convertible R
edeemable
Preference S
hare of Rs. 10,000 each
10,000 10,000
No
tes :a)
Of the above, 166,652,850 (P
revious Year 166,652,850) Equity shares of R
s. 10 each,fully paid up have been issued as bonus shares by capitalisation of G
eneral Reserve
b) O
f the above shares, 3,869,255 (Previous Year 2,136,755) E
quity shares have beenissued for a consideration other than cash (R
efer Note 4A
of Schedule 25)
c)1 (P
revious Year 1) Preference share of R
s. 10,000 has been issued for consideration other than cash
d)P
reference shares are redeemable at par after five years from
the date of allotm
ent i.e. July 31, 2007e)
For E
mployee S
tock Option S
cheme R
efer Note 15 of S
chedule 25f)
For S
hares issued pursuant to an Initial Public O
ffer Refer N
ote 3 of Schedule 25
1,832,842,3101,815,156,050
Sch
edu
le 2S
TOC
K O
PT
ION
S O
UT
STA
ND
ING
(Refer N
ote 15 of Schedule 25)
Em
ployee Stock O
ptions outstanding57,831,008
25,109,412 Less: D
eferred Em
ployee Com
pensation outstanding26,166,387
12,143,686
31,664,621 12,965,726
Less: Value of E
mployee C
ompensation of options exercised
2,745,576 -
28,919,045 12,965,726
Sch
edu
le 3R
ES
ER
VE
S A
ND
SU
RP
LU
SG
eneral R
eserve A
s per last Balance S
heet929,597,888
779,597,888 A
dd : Transferred from P
rofit and Loss Account
300,000,000 150,000,000
Less: Adjusted pursuant to the schem
e of arrangement (R
efer Note 4A
of Schedule 25)
615,563,846 -
614,034,042929,597,888
Secu
rities Prem
ium
Acco
un
tA
s per last Balance S
heet2,365,932,438
88,200 A
dd: Received on account of F
resh Issue of Equity S
hares (Refer N
ote 3 of Schedule 25)
- 2,562,815,000
Add: R
eceived on exercise of employee stock options
6,863,940-
Less: Share Issue expenses (R
efer Note 3 of S
chedule 25)-
196,970,762 2,372,796,378
2,365,932,438 P
rofit an
d L
oss A
ccou
nt
3,704,618,574 2,180,841,150
6,691,448,994 5,476,371,476
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 29
30
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E B
AL
AN
CE
SH
EE
T A
S A
T M
AR
CH
31, 2011(A
mo
un
ts in In
dian
Ru
pees, excep
t share d
ata)
As A
tA
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 4
SE
CU
RE
D L
OA
NS
Term L
oan
s - R
upee Loans from B
anks480,000,000
660,000,000 - R
upee Loans from F
inancial Institution-
77,777,758 - F
oreign Currency Loan from
Financial Institution
1,264,944,748 1,418,250,923
Wo
rking
Cap
ital Lo
ans
- Cash C
redit Facilities from
Banks
51,612,055121,698,805
- Buyers' C
redit from B
ank285,168,537
450,903,496
(For S
ecurity Refer N
ote 5 of Schedule 25)
2,081,725,340 2,728,630,982
Sch
edu
le 5U
NS
EC
UR
ED
LO
AN
S
Security D
eposits Received
290,349,265241,008,762
290,349,265 241,008,762
Sch
edu
le 6D
EF
ER
RE
D TA
X L
IAB
ILIT
IES
(NE
T)
Deferred
Tax Liab
ilitiesD
epreciation814,647,539
664,227,093
814,647,539664,227,093
Deferred
Tax Assets
Provision for D
oubtful Debts and A
dvances61,837,662
21,318,660 P
rovision for Gratuity and Leave E
ncashment
16,219,00311,893,675
Provision for D
iminution in value of Investm
ent32,387,063
17,844,750 P
rovision for Em
ployee Stock O
ption Schem
e9,606,184
4,407,050
120,049,912 55,464,135
Deferred
Tax Liab
ilities (Net)
694,597,627608,762,958
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 30
31
SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2011(Amounts in Indian Rupees)
Schedule 7FIXED ASSETS
Assets Gross Block Accumulated Depreciation/Amortisation Net BlockAs At Transfer in Additions Deductions As At Up To Transfer in For the On Up To As At As At
April 1, 2010 accordance with during during March 31, 2011 April 1, 2010 accordance with year deductions March 31, 2011 March 31, 2011 March 31, 2010scheme of the year the year scheme of
arrangement as arrangement asat April 1, 2010 at April 1, 2010
Tangible Assets
Land
- Freehold 37,737,900 - 24,496,413 - 62,234,313 - - - - - 62,234,313 37,737,900
- Leasehold 11,192,602 - 18,754,976 - 29,947,578 411,916 - 400,124 - 812,040 29,135,538 10,780,686
Buildings
- Freehold 557,736,270 - 116,860,508 - 674,596,778 28,595,931 - 19,793,382 - 48,389,313 626,207,465 529,140,339
- Leasehold - - 509,727,738 - 509,727,738 - - 575,964 - 575,964 509,151,774 -
Leasehold Improvements 47,801,132 2,941,561 11,102,564 - 61,845,257 5,769,077 514,975 5,430,472 - 11,714,524 50,130,733 42,032,055
Plant and Machinery 4,417,476,404 442,098,801 374,974,211 11,852,244 5,222,697,172 589,883,633 120,407,875 261,933,422 3,042,422 969,182,508 4,253,514,664 3,827,592,771
(Refer Note 2 Below)
Office Equipments 140,761,484 20,279,477 20,547,996 1,667,383 179,921,574 33,211,351 5,610,034 9,739,822 605,401 47,955,806 131,965,768 107,550,133
Vehicles 19,759,905 1,776,581 4,815,743 1,605,801 24,746,428 15,106,807 327,499 1,705,815 907,862 16,232,259 8,514,169 4,653,098
Furniture and Fixtures 160,853,986 52,544,397 26,934,103 67,698 240,264,788 48,048,086 9,294,900 15,327,842 39,861 72,630,967 167,633,821 112,805,900
Electric Fitting, Fans
and Coolers 209,215,560 12,613,319 47,671,758 - 269,500,637 27,979,685 3,511,364 12,395,297 - 43,886,346 225,614,291 181,235,875
Computers 302,610,633 19,087,437 58,808,699 4,720,614 375,786,155 205,514,394 7,980,965 32,676,620 3,653,202 242,518,777 133,267,378 97,096,239
D.G.Sets 99,884,175 - 36,200,489 - 136,084,664 10,683,436 - 5,450,403 - 16,133,839 119,950,825 89,200,739
Intangible Assets
Computer Software 28,683,650 - 9,336,553 - 38,020,203 14,880,871 - 5,955,458 - 20,836,329 17,183,874 13,802,779
Goodwill 25,609,517 - - - 25,609,517 18,149,608 - 5,030,979 - 23,180,587 2,428,930 7,459,909
One Time License Fees - 512,201,000 - - 512,201,000 - 146,300,165 51,220,100 - 197,520,265 314,680,735 -
Total 6,059,323,218 1,063,542,573 1,260,231,751 19,913,740 8,363,183,802 998,234,795 293,947,777 427,635,700 8,248,748 1,711,569,524 6,651,614,278 5,061,088,423
Capital Work-in-progress 680,090,624 614,282,768
(including Capital Advances)
(Refer Note 1, 3 and 4 Below)
7,331,704,902 5,675,371,191
Previous year ended
March 31, 2010 3,589,445,271 - 2,482,086,208 12,208,261 6,059,323,218 736,132,152 - 266,411,936 4,309,293 998,234,795 5,061,088,423 614,282,768
Notes
1) For details of Pre operative expenses and borrowing costs capitalised Refer Note 18 of Schedule 25.
2) Plant and Machinery above include Common Transmitters Infrastructure which are Jointly held assets as at March 31, 2011:
Gross Block - Rs. 127,300,000
Net Block - Rs.101,333,902
% of Ownership - 30.26%
3) Additions during the year and Capital Work-in-progress as at March 31, 2011 includes exchange differences Rs.442,492 [foreign exchange gain (net)] [Previous year Rs. 204,770,841 (foreign exchange loss (net))].
4) Additions during the year and Capital Work-in-progress as at March 31, 2011 includes Borrowing Cost capitalised Rs. Nil (Previous year Rs. 16,184,462).
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:26 AM Page 31
32
Schedule 8IN
VESTMEN
TS
Long Term Investm
ents (At cost)
U
nquoted and Non Trade
In Subsidiary C
ompanies: (R
efer Note 17(a) of S
chedule 25)
136,800 (P
revious Year 22,800,000) Equity S
hares of Rs. 10 each fully paid up
1,741,800 700,000,000
of Synergy M
edia Entertainm
ent Limited (R
efer Note 4A of S
chedule 25)
577,500 (P
revious Year 577,500) Equity S
hares of Rs. 10 each fully paid up
5,775,000 5,775,000
of I Media C
orp Limited
350,000
(Previous Year N
il) Zero Coupon Fully C
onvertible Debentures of R
s.
350,000,000
1,000 each fully paid up of I Media C
orp Limited
-
In Others : (R
efer Note 17(b) of Schedule 25)
100,000
(Previous Year 100,000) E
quity Shares of R
s. 10 each fully paid up
15,000,000
15,000,000
at a prem
ium of R
s. 140 per share of Dw
arkas Gem
s Limited
14,286 (P
revious Year 14,286) Equity S
hares of Rs. 10 each fully paid up
5,000,000 5,000,000
at a premium
of Rs. 340 per share of A
ayam H
erbal Private Lim
ited
375,000
(Previous Year 375,000) E
quity Shares of R
s. 10 each full paid up
15,000,000
15,000,000
at a prem
ium of R
s. 30 per share of Arvind C
oirfoam P
rivate Limited
100,000
(Previous Year 100,000) E
quity Shares of R
s. 10 each fully paid up
40,000,000
40,000,000
at a prem
ium of R
s. 390 per share of Micro S
ecure Solution Lim
ited (Refer N
ote 2 below)
81,085 (P
revious Year 81,085) Equity S
hares of Rs. 10 each fully paid up
30,000,000 30,000,000
at a premium
of Rs. 359.95 per share of N
aaptol Online Shopping Private Lim
ited (Refer N
ote 2 below)
230,415 (P
revious Year 230,415) Equity S
hares of Rs. 10 each fully paid up
50,000,000 50,000,000
at a premium
of Rs. 207 per share of N
eesa Leisure Limited
27,778
(Previous Year 27,778) E
quity Shares of R
s. 10 each fully paid up at a premium
10,000,000 10,000,000
of Rs. 350 per share of P
rofessionals Coaching C
ompany P
rivate Limited
1 (P
revious Year 1) 0%, Fully C
onvertible Debenture of R
s. 3 Crores fully paid up
30,000,000
30,000,000
of A
bbee Consum
ables and Peripherals S
shope Limited (R
efer Note 1 below
)
200,000
(Previous Year 200,000) 0%
, Fully Convertible D
ebentures of Rs. 100 each fully
20,000,000
20,000,000
paid up of C
ubit Com
puters Private Lim
ited (Refer N
ote 2 below)
N
il (P
revious Year 200,000) 14% N
on Convertible D
ebentures of Rs. 100 each fully paid up
-
20,000,000
of E
veronn Education Lim
ited
2,280,000 (P
revious Year Nil) Zero C
oupon Fully Convertible D
ebentures of Rs. 10 each
22,800,000
-
fully paid up of E
veronn Education Lim
ited
100 (P
revious year 100) Equity S
hares of Rs. 100 each fully paid up of U
nited New
s of India
10,000 10,000
10 (P
revious year 10) Equity S
hares of Rs. 100 each fully paid up of P
ress Trust of India
1,000 1,000
Aggregate am
ount of Unquoted investm
ents
595,327,800
940,786,000 Q
uoted and Non-Trade (R
efer Note 17(b) of S
chedule 25)
300,000
(Previous Year 300,000) E
quity Shares of R
s. 10 each fully paid up
22,500,000
22,500,000
at a prem
ium of R
s. 65 per share of Ajcon G
lobal Services Lim
ited
(Market Value as at M
arch 31, 2011 is Rs. 6,330,000) (A
s at March 31, 2010 R
s. 2,994,000)
Aggregate am
ount of Quoted investm
ents
22,500,000
22,500,000
A
ggregate Market value as at M
arch 31, 2011 is Rs. 6,330,000
(As at M
arch 31, 2010 Rs. 2,994,000)
617,827,800 963,286,000
Less: Provision for D
iminution in Value of Investm
ents
97,500,000
52,500,000
520,327,800
910,786,000 N
otes :
1) These investm
ents are yet to be transferred in the name of the C
ompany.
2) These investm
ents contain Lock-in-Period of tw
elve months from
the date of subscription/allotment.
Schedule 9
IN
VENTO
RIES (A
t lower of cost and net realisable value)
R
aw M
aterial - New
s Prints (Including S
tock in Transit Rs. 147,250,346)
573,865,091 619,901,028
(Previous Year R
s. 50,936,079)
Stores and S
pares
129,561,869
71,959,244 M
agazines
1,709,499
417,070 G
ifts / Prom
otional Products
22,896,640 29,338,019
728,033,099 721,615,361
SCH
EDU
LES FOR
MIN
G PA
RT O
F THE B
ALA
NC
E SHEET A
S AT MA
RC
H 31, 2011
(Am
ounts in Indian Rupees, except share data)
As A
tM
arch 31, 2011A
s At
March 31, 2010
33
Schedule 10
SUN
DRY D
EBTO
RS (R
efer Note 10 and 12(a) of S
chedule 25) (U
nsecured)
Debts outstanding for a period exceeding six m
onths :
- Considered G
ood
249,912,747
189,465,537 - C
onsidered Doubtful
125,480,554 62,720,386
375,393,301 252,185,923
Others D
ebts :
- Considered G
ood
2,135,775,891 1,645,352,940
2,511,169,192 1,897,538,863
Less : Provision for D
oubtful Debts
125,480,554 62,720,386
2,385,688,638 1,834,818,477
Schedule 11
CA
SH A
ND
BA
NK
BA
LAN
CES
C
ash on Hand
17,142,758 11,594,079
Cheques on H
and/Transit
185,607,254
82,156,988 B
alances with S
cheduled Banks:
O
n Current A
ccounts
361,882,997
338,433,014 O
n Fixed Deposit A
ccount (Refer N
ote 3 and 16 of Schedule 25)
1,096,988,121 1,437,193,913
1,661,621,130 1,869,377,994
Schedule 12
LOA
NS A
ND
AD
VAN
CES
(U
nsecured, considered good unless otherwise stated)
Loans and Advances to S
ubsidiaries (Refer N
ote 12(b) of Schedule 25)
- 847,111,139
Loans and Advances to E
mployees
22,890,129 13,722,576
Advances recoverable in cash or kind or for value to be received (R
efer Note 12(b) of S
chedule 25)
- Considered G
ood
400,398,591
268,619,855 - C
onsidered Doubtful
5,679,338 -
Inter Corporate D
eposits (Refer N
ote 12(b) of Schedule 25)
359,839,548 321,693,941
Deposit w
ith Governm
ent Authorities
54,721,079
31,165,971 Inter C
orporate Deposit against Lease of P
roperties (Refer N
ote 12(b) of Schedule 25)
132,950,000
132,950,000 D
eposit with O
thers
84,625,103
53,553,065
1,061,103,788
1,668,816,547 Less : P
rovision for Doubtful Loans and A
dvances
5,679,338 -
1,055,424,450 1,668,816,547
Schedule 13
CU
RR
ENT LIA
BILITIES
S
undry Creditors (R
efer Note 10 and 19 of S
chedule 25)
1,216,559,536
1,093,742,041 (Includes R
s. 26,405,159 against Capital G
oods) (Previous Year R
s. 96,478,418)
Advances from
Custom
ers
366,609,493
399,797,797 B
ook Overdraft
- 10,753,125
Interest Accrued but not due on loans
1,822,950
2,239,584 O
ther Liabilities
47,634,078
32,101,477
1,632,626,057
1,538,634,024 Schedule 14
PRO
VISION
S
P
rovision For Tax (Net of taxes paid R
s. 2,689,297,806)
58,944,501
78,742,280 (P
revious Year Rs. 1,731,280,040)
P
rovision For Fringe Benefit Tax (N
et of taxes paid Rs. 81,867,995)
6,613,316 6,613,316
(Previous Year R
s. 74,903,642)
Provision For W
ealth Tax
50,000
10,000 P
rovision For Gratuity (R
efer Note 14 of S
chedule 25)
7,807,371
7,137,589 P
rovision For Leave Encashm
ent (Refer N
ote 14 of Schedule 25)
40,499,289 27,854,097
Provision For P
roposed Dividend
366,732,717 226,908,256
Tax on Proposed D
ividend
59,471,081
37,686,625
540,118,275
384,952,163 Schedule 15
(to the extent not written off or adjusted)
Share Issue Expenses
Opening B
alance
-
41,764,142 A
dditions during the Year
- 155,206,620
Less: Transferred to Securities P
remium
Account (R
efer Note 3 of S
chedule 25)
-
196,970,762
-
- Term
Loan Processing Fees
Opening B
alance
125,696,571
175,106,651 Less: A
mortized during the Year
- C
harged to Profit and Loss A
ccount
15,869,677
43,721,667 - Transferred to C
apital Work in P
rogress
-
5,688,413
109,826,894
125,696,571
109,826,894
125,696,571
SCH
EDU
LES FOR
MIN
G PA
RT O
F THE B
ALA
NC
E SHEET A
S AT MA
RC
H 31, 2011
(Am
ounts in Indian Rupees, except share data)
As A
tM
arch 31, 2011A
s At
March 31, 2010
34
SCHEDULES FORM
ING PART O
F THE PROFIT AND LO
SS ACCOUNT FO
R THE YEAR ENDED MARCH 31, 2011
(Am
ounts in Indian Rupees, except share data)
For the Year EndedM
arch 31, 2011For the Year Ended
March 31, 2010
Schedule 16
S
ALE
S
S
ale of New
spapers (Refer N
ote 11(b) of Schedule 25)
2,084,953,525 2,052,110,962
Wastage S
ale
137,470,287
117,191,477 S
ale of Pow
er (Refer N
ote 11(b) of Schedule 25)
10,418,972 15,637,552
Sale of M
agazines (Refer N
ote 11(b) of Schedule 25)
58,626,779 65,768,326
2,291,469,563 2,250,708,317
Schedule 17
O
THE
R O
PE
RATIN
G IN
CO
ME
Printing Job C
harges
91,351,789
72,222,345 E
xcess Liabilities / provisions written back
39,560,727 24,594,795
Foreign Exchange G
ain (Net)
872,499 8,945,810
Miscellaneous Incom
e
11,305,718
17,957,821
143,090,733
123,720,771 Schedule 18
RA
W M
ATER
IALS
CO
NS
UM
ED
New
s Prints (R
efer Note 11(d) and 11(e) of S
chedule 25)
Opening Inventories
619,901,028
631,818,955 A
dd: Purchases during the Year
3,793,047,339 3,266,757,664
4,412,948,367 3,898,576,619
Less: Closing Inventories
573,865,091 619,901,028
3,839,083,276 3,278,675,591
Schedule 19
O
PE
RATIN
G E
XP
EN
SE
S
C
onsumption of S
tores and Spares (R
efer Note 11(e) of S
chedule 25)
587,046,859
514,905,721 P
rinting Job Work E
xpenses
109,959,802
172,183,645 N
ews C
ollection Expenses
159,041,008 210,023,380
Binding E
xpenses
32,016,227
26,448,405 E
lectricity and Water C
harges
154,613,559
124,318,208 R
epairs and Maintenance - M
achinery
109,733,755
86,455,123 License Fees
23,749,449 -
Tower R
ent and Other O
perating Rental
20,257,458 -
Royalty
68,383,705
3,740,000 O
ther Operating E
xpenses
42,980,392
17,661,848
1,307,782,214
1,155,736,330 Schedule 20
PE
RS
ON
NE
L EX
PE
NS
ES
Salaries, W
ages and Bonus
1,633,428,759 1,053,342,733
Contribution to P
rovident Fund and Other Funds
88,612,105 55,651,650
Workm
en and Staff W
elfare Expenses
68,235,478 44,583,550
1,790,276,342 1,153,577,933
35
SCHEDULES FORM
ING PART O
F THE PROFIT AND LO
SS ACCOUNT FO
R THE YEAR ENDED MARCH 31, 2011
(Am
ounts in Indian Rupees, except share data))
For the Year EndedM
arch 31, 2011For the Year Ended
March 31, 2010
Schedule 21
G
EN
ER
AL A
ND
AD
MIN
ISTR
ATIVE
EX
PE
NS
ES
E
lectricity
49,514,382
31,416,409 R
ent
95,586,120
69,919,405 R
ates and Taxes
3,374,104
2,787,936 Insurance
7,972,532 5,658,438
Repair and M
aintenance
- Building
6,211,526 8,931,412
- Others
24,974,128 18,361,596
Legal and Professional C
harges
114,650,067
67,456,871 P
ostage and Telegram
8,524,021 6,923,959
Com
munication
39,479,186 28,760,226
Printing and S
tationery
25,558,326
18,178,663 Traveling
105,763,611 57,719,047
Conveyance
5,989,704 4,924,659
Vehicle Running and M
aintenance
6,644,309
7,690,404 A
uditors Rem
uneration (Refer N
ote 11(i) of Schedule 25)
8,953,400 7,793,100
Loss on Sale of fixed assets (N
et)
1,801,825
2,156,587 B
ad Debts w
ritten off
4,305,249
Less: O
ut of the Provision of earlier years
(1,008,696)
3,296,553
20,042,592 P
rovision for diminution in value of Investm
ents
45,000,000
45,000,000 P
rovision for doubtful debts
58,173,429
41,217,142 P
rovision for doubtful advances (including for Capital advances)
60,679,338 -
Miscellaneous E
xpenses
101,181,889
67,546,174
773,328,450
512,484,620 Schedule 22
SE
LLING
AN
D D
ISTR
IBU
TION
EX
PE
NS
ES
A
dvertisement and P
ublicity
121,949,213
127,825,068 D
istribution Expenses
212,816,228 228,113,715
Business P
romotion
149,844,277 121,593,517
Survey E
xpenses
187,840,323
120,113,924
672,450,041
597,646,224 Schedule 23
OTH
ER
INC
OM
E
Interest Incom
e from
- B
ank Deposits (Tax deducted at source R
s.8,529,506)
86,265,097
30,381,375 (P
revious Year Rs. 3,210,440)]
- Loans to S
ubsidiaries (Tax deducted at source Rs. 2,375,845)
23,758,436 83,478,561
(Previous Year R
s. 11,543,718)
- Other S
undry deposits (Tax deducted at source Rs. 407,247)
4,113,369 5,301,786
(Previous Year R
s. 826,405)
- Intercorporate Deposits (Tax deducted at source R
s. 5,083,844)
50,838,444
57,383,219 (P
revious Year Rs. 8,468,244)
164,975,346
176,544,941 Schedule 24
FINA
NC
IAL E
XP
EN
SE
S
Interest E
xpenses
-O
n Term Loans
79,492,865 224,252,844
-On B
anks
23,033,206
17,279,862 -O
n Others
30,635,365 68,064,735
Exchange (G
ain) / Loss on Buyers' C
redit from B
anks (Net)
397,490 (39,711,687)
Bank C
harges
19,278,218
53,502,172
152,837,144
323,387,926
36
A. C
ASH
FLOW
FRO
M O
PERATIN
G A
CTIVITIES
Profit before Taxation
3,669,758,997
3,047,584,387
Adjustm
ent for :
Loss on sale of fixed assets (net)
1,801,825 2,156,587
Interest expense (net)
(31,813,910)
133,052,500
Depreciation / am
ortization
427,635,700 266,411,936
M
iscellaneous Expenditure W
ritten off
15,869,677
43,721,667
Provision for D
oubtful Loans and Advances
60,679,338 -
P
rovision for Dim
inution in Value of Investments
45,000,000 45,000,000
B
ad Debts W
ritten Off
3,296,553
20,042,592
Provision W
ritten Back
-
(6,448,216)
Provision for D
oubtful Debts
58,173,429
41,217,142
Unrealised E
xchange Rate Fluctuation
8,407,005 (11,191,950)
O
perating profit before working capital changes
4,258,808,614 3,581,546,645
Increase / D
ecrease in Working C
apital
(Increase) in Inventories
(6,417,738) (10,796,435)
(Increase) in S
undry Debtors
(526,955,892)
(194,806,268)
Decrease / (Increase) in Loans and A
dvances
171,329,625
(187,345,692)
Increase / (Decrease) in C
urrent Liabilities
4,550,544
(28,547,904)
Increase / (Decrease) in P
rovisions
8,905,727 (317,546)
C
ash generated from operations
3,910,220,880
3,159,732,800
Direct Taxes paid
(909,872,984)
(1,005,236,629)
NET C
ASH
FRO
M O
PERATIN
G A
CTIVITIES
(A)
3,000,347,896
2,154,496,171 B
C
ASH
FLOW
FRO
M IN
VESTING
AC
TIVITIES
P
urchase of Fixed Assets
(1,431,566,914)
(596,456,546)
Proceeds from
Sale of Fixed A
ssets
9,863,167
5,742,381
Purchase of Investm
ents
(372,800,000) (70,000,000)
C
ash and Cash E
quivalents taken over as per scheme of arrangem
ent
27,963,287
-
Sale of Investm
ents
20,000,000 57,500,000
Interest received
164,975,346
176,544,941
Fixed Deposit w
ith maturity period m
ore than three months P
laced
-
(1,373,893,498)
Fixed Deposit w
ith maturity period m
ore than three months R
eceived
764,832,626
-
NET C
ASH
(USED
IN) IN
VESTING
AC
TIVITIES
(B
)
(816,732,487) (1,800,562,722)
C
CA
SH FLO
W FR
OM
FINA
NC
ING
AC
TIVITIES
Loan Taken - S
ecured
14,279,058 286,963,423
R
epayment of Loan - S
ecured
(898,851,552) (2,498,196,657)
Loan Taken - U
nsecured
49,340,503 22,062,843
D
ividend Paid
(589,854,863)
(220,530,757)
Dividend D
istribution tax
(97,990,181) (37,479,202)
Interest P
aid
(133,578,070) (349,021,929)
S
hares Issue Expenses
-
(155,206,620)
Proceeds from
issuance of shares
4,479,624 2,690,065,000
N
ET CA
SH (U
SED IN
) FINA
NC
ING
AC
TIVITIES
(C
)
(1,652,175,481) (261,343,899)
N
et Increase in Cash and C
ash Equivalents
(A)+(B
)+(C)
531,439,928 92,589,550
C
ash and Cash E
quivalents at the beginning of the Year
433,194,081
340,604,531
Cash and C
ash Equivalents at the end of the Year
964,634,009
433,194,081
Net Increase in C
ash and Cash Equivalents
531,439,928 92,589,550
For D
etails of Com
ponents of Cash and C
ash Equivalents - Refer Schedule - 11
C
losing Balance
1,661,621,130
1,869,377,994
Less: Fixed Deposit w
ith maturity period of m
ore than three months
696,987,121 1,436,183,913
(R
efer Note 16 of S
chedule 25)
Net C
ash and Cash Equivalents at the end of the year (A
s per notified AS- 3)
964,634,009 433,194,081
Refer N
ote 4A of Schedule 25 for details of equity shares issued on account of schem
e of demerger
As per our R
eport of even date
For S. R. B
atliboi & A
ssociates
For Gupta N
avin K. &
Co.
For and on behalf of the Board of D
irectors of Firm
registration number: 101049W
Firm
registration number: 06263C
D.B
. Corp Lim
ited
Chartered A
ccountants
Chartered A
ccountants
per A
mit M
ajmudar
per N
avin K. G
upta M
anaging Director
Director
Partner
Partner
Mem
bership No. 36656
M
embership N
o. 75030 C
ompany Secretary
May 18, 2011
Mum
bai
March 31, 2010
CA
SH FLO
W STATEM
ENT FO
R TH
E YEAR
END
ED M
AR
CH
31, 2011(A
mounts in Indian R
upees)
March 31, 2011
37
SCH
EDU
LE 25N
OTES TO
AC
CO
UN
TS:1.
Nature of O
perations
D.B
. Corp Lim
ited (“the Com
pany”) is in the business of publishing new
spapers and radio broadcasting. The major brands in publishing
business are ‘Dainik B
haskar’ and ‘Business B
haskar’ (Hindi dailies),
‘Divya B
haskar’ and ‘Saurashtra S
amachar’ (G
ujarati dailies), ‘DN
A E
nglish’, (E
nglish D
aily) and
monthly
magazines
such as
‘Aha
Zindagi’, ‘Bal B
haskar’, etc. Presently, the C
ompany is on air in 17
cities under the brand name ‘M
y FM’. The frequency allotted to the
Com
pany is 94.3. The Com
pany derives its revenue mainly from
the sale of these publications and advertisem
ents published in the publi-cations and aired on radio. The C
ompany is also in the business of
event managem
ent, internet and wind energy.
2. STATEM
ENT O
F SIGN
IFICA
NT A
CC
OU
NTIN
G PO
LICIES
a) B
asis of Preparation
The financial statements have been prepared to com
ply in all material
respects w
ith the A
ccounting S
tandards notified
by C
ompanies
(Accounting S
tandards) Rules, 2006, (as am
ended) and the relevant provisions of the C
ompanies A
ct, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the C
ompany and are consistent w
ith those used in the previous year.b) U
se of Estimates
The preparation of financial statem
ents in conformity w
ith generally accepted accounting principles requires m
anagement to m
ake estimates
and assumptions that affect the reported am
ounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial state-m
ents and the results of operations during the reporting period. Although these estim
ates are based upon managem
ent’s best knowledge of cur-
rent events and actions, actual results could differ from these estim
ates.c)
Fixed Assets
Fixed assets are stated at cost, less accum
ulated depreciation/amor-
tization and impairm
ent losses, if any. Cost com
prises the purchase price and any attributable cost of bringing the asset to its w
orking condition for its intended use. B
orrowing costs relating to acquisition
of fixed assets which takes substantial period of tim
e to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.
E
xchange differences, in respect of accounting periods comm
encing on or after D
ecember 7, 2006, arising on reporting of long-term
foreign currency m
onetary items at rates different from
those at which they
were initially recorded during the year, or reported in previous financial
statements, in so far as they relate to the acquisition of a depreciable
fixed asset, are added to or deducted from the cost of the asset and
are depreciated over the balance life of the asset.d) D
epreciation
Depreciation is provided using the S
traight Line Method at the rates
computed based on estim
ated useful life of the assets as estimated by
the managem
ent, which are equal to the corresponding rates pre-
scribed in Schedule X
IV to the C
ompanies A
ct, 1956.
Leasehold Improvem
ents are amortised on a straight line basis over
the shorter of the estimated useful life of the asset or the lease term
w
hich is 10 years. Assets individually costing below
Rs. 5,000 are fully
depreciated in the year of its acquisition.e)
Intangibles
Goodw
ill: Goodw
ill is amortized on a straight-line basis over a period
of five years.
Com
puter Software
C
omputer S
oftware, being the cost of E
RP License and Installation, is
SCH
EDU
LE FOR
MIN
G PA
RT O
F THE B
ALA
NC
E SHEET A
S AT MA
RC
H 31, 2011
amortised on a straight-line basis over a period of five years.
O
ne time Entry Fees
O
ne time Entry fees represent am
ount paid for acquiring licenses for new
radio stations and is amortized on a straight line basis over a period
of ten years i.e. period of Grant of Perm
ission Agreement entered into
with M
inistry of Information and Broadcasting for each station, com
-m
encing from the date on w
hich the radio station becomes operational.
f) Expenditure on new
projects
Capital W
ork-in-Progress:
Expenditure directly relating to construction activity is capitalized.
Pre-operative Expenditure:
Indirect expenditure incurred during construction period is capitalized under the respective asset-head as part of the indirect construction cost, to the extent to w
hich the expenditure is indirectly related to the asset-head. O
ther indirect expenditure incurred during the construc-tion period, w
hich is not related to the construction activity or which is
not incidental thereto is written off in the profit and loss account.
Incom
e earned during the construction period and income from
trial runs is deducted from
preoperative expenditure pending allocation. g) Im
pairment of A
ssets
The carrying amount of assets is review
ed at each balance sheet date if there is any indication of im
pairment based on internal/external fac-
tors. An im
pairment loss is recognized w
herever the carrying amount
of an asset exceeds its recoverable amount. The recoverable am
ount is the greater of the assets’ net selling price and value in use. In assessing the value in use, the estim
ated future cash flows are dis-
counted to their present value using a pre-tax discount rate that reflects current m
arket assessments of the tim
e value of money and
risks specific to the asset.
After im
pairment, depreciation is provided on the revised carrying
amount of the asset over its rem
aining useful life.h) Investm
ents
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investm
ents. All other invest-m
ents are classified as long-term investm
ents. Current investm
ents are carried at low
er of cost and fair value determined on an individual
investment basis. Long-term
investments are carried at cost. H
owever,
provision for diminution in value, if any, is m
ade to recognise a decline other than tem
porary in the value of the investments.
i) Leases
W
here the Com
pany is the lessee
Leases, where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item
are classified as operating leases. O
perating lease payments are recognized as an expense in the
profit and loss account on a straight-line basis over the lease term.
j) Inventories
Inventories are valued as follow
s:
Raw
materials- N
ews P
rints and S
tores and Spares
Lower of cost and net realizable
value. H
owever,
material
and other item
s held for use in the production of inventories are not w
ritten down below
cost if the finished products in w
hich they w
ill be incorporated are expect-ed to be sold at or above cost. C
ost is determined on a w
eight-ed average basis.
Magazines and G
ift / Prom
otional P
roductsLow
er of cost and net realizable value.
38
N
et realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of com
pletion and estimated
costs necessary to make the sale.
k) R
evenue Recognition
R
evenue is recognized to the extent that it is probable that the eco-nom
ic benefits will flow
to the Com
pany and the revenue can be reli-ably m
easured. Specifically, the follow
ing bases are adopted.
Advertisem
ents
Revenue is recognized as and w
hen advertisement is published/dis-
played/aired and is disclosed net of discounts and service tax.
Sale of New
spaper, Magazine, W
aste Paper and Scrap
Revenue is recognized w
hen the significant risks and rewards of ow
n-ership have passed on to the buyer and is disclosed net of sales return and discounts.
Printing Job W
ork
Revenue from
printing job work is recognized on the com
pletion of job w
ork as per terms of the agreem
ent with the custom
er.
Sale of power
R
evenue from sale of pow
er generated in the Wind E
nergy Unit of the
Com
pany is accounted on the basis of supply made to M
adhya P
radesh Paschim
Kshetra V.V. C
o. Limited, as per the agreem
ent.
Interest
Revenue is recognized on a tim
e proportion basis taking into account the am
ount outstanding and the rate applicable. D
ividend Income
R
evenue is recognised when the shareholders’ right to receive the
payment is established by the B
alance sheet date.l)
Foreign currency transactions
Initial recognition
Foreign currency transactions are recorded in Indian Rupees by
applying to the foreign currency amount, the exchange rate betw
een the Indian R
upee and the foreign currency prevailing at the date of the transaction.
C
onversion
Foreign currency monetary item
s are reported using the closing rate. N
on-monetary item
s which are carried in term
s of historical cost denom
inated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-m
onetary items w
hich are carried at fair value or other sim
ilar valuation denominated in a foreign
currency are reported using the exchange rates that existed when the
values were determ
ined.
Exchange differences
Exchange differences, in respect of accounting periods com
mencing
on or after Decem
ber 7, 2006, arising on reporting of long-term foreign
currency monetary item
s at rates different from those at w
hich they w
ere initially recorded during the year, or reported in previous financial statem
ents, in so far as they relate to the acquisition of a depreciable fixed asset, are added to or deducted from
the cost of the asset and are depreciated over the balance life of the asset..
E
xchange differences arising on the settlement of m
onetary items not
covered above, or on reporting such monetary item
s at rates different from
those at which they w
ere initially recorded during the year, or reported in previous financial statem
ents, are recognized as income or
as expense in the year in which they arise.
Forw
ard exchange contracts not intended for trading or specula-tion purposes
The prem
ium or discount arising at the inception of forw
ard exchange contracts is am
ortised as an expense or income over the life of the con-
tract. Exchange differences on such contracts are recognised in the statem
ent of profit and loss in the year in which the exchange rates
change. Any profit or loss arising on cancellation or renewal of forw
ard exchange contract is recognised as incom
e or as expense for the year.m
) Retirem
ent and other employee benefits
R
etirement benefits in the form
of Provident Fund are a defined con-
tribution scheme and the contributions are charged to the profit and
loss account of the year when the contributions to the respective funds
are due. There are no other obligations other than the contribution payable to the respective funds.
G
ratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done as per projected unit credit m
ethod, carried out by an independent actuary at the end of the year.
The C
ompany m
akes contributions to a trust administered and m
an-aged by the insurance com
pany to fund the gratuity liability. Under this
scheme, the obligation to pay gratuity rem
ains with the C
ompany,
although the insurance company adm
inister the scheme.
S
hort term com
pensated absences are provided for based on esti-m
ates. Long term com
pensated absences are provided based on actuarial valuation carried out by an independent actuary at the end of the year. The actuarial valuation is done as per projected unit credit m
ethod.
Actuarial gains/losses are im
mediately taken to profit and loss account
and are not deferredn) Incom
e Taxes
Tax expense comprises of current and deferred tax. C
urrent income
tax is measured at the am
ount expected to be paid to the tax authori-ties in accordance w
ith the Income Tax A
ct, 1961 enacted in India. D
eferred income taxes reflects the im
pact of current year timing differ-
ences between taxable incom
e and accounting income for the year
and reversal of timing differences of earlier years.
D
eferred tax is measured based on the tax rates and the tax law
s enacted or substantively enacted at the balance sheet date. D
eferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable incom
e will be available against
which such deferred tax assets can be realised. In situations w
here the C
ompany has unabsorbed depreciation or carry forw
ard tax loss-es, all deferred tax assets are recognised only if there is virtual cer-tainty supported by convincing evidence that they can be realised against future taxable profits.
A
t each balance sheet date, unrecognized deferred tax assets of ear-lier years are re-assessed and recognized to the extent that it has becom
e reasonably certain or virtually certain, as the case may be,
that sufficient future taxable income w
ill be available against which
such deferred tax assets can be realized. The carrying amount of
deferred tax assets are reviewed at each balance sheet date. The
Com
pany writes-dow
n the carrying amount of a deferred tax asset to
the extent that it is no longer reasonably certain or virtually certain, as the case m
ay be, that sufficient future taxable income w
ill be available against w
hich deferred tax asset can be realised. Any such w
rite down
is reversed to the extent that it becomes reasonably certain or virtu-
ally certain, as the case may be, that sufficient future taxable incom
e w
ill be available.o) Provision
A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources w
ill be required to settle the obligation and in respect of w
hich a reliable estim
ate can be made. P
rovisions are not discounted to its present value and are determ
ined based on best estimate required to settle
the obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best esti-m
ates.p) D
eferred Revenue Expenditure
Term
loan processing fees incurred for raising loan funds are amor-
tised equally over the period of the loan.q) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
39
loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the w
eighted average num
ber of equity shares outstanding during the year. The w
eighted average number of equity shares outstanding during the
year are adjusted for events of bonus issue; bonus element in a rights
issue to existing shareholders; share split; and reverse share split (consolidation of shares) (if any).
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the w
eighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.r)
Cash and C
ash equivalents
Cash and C
ash equivalents in the cash flow statem
ent comprise cash
at bank and in hand and short term investm
ents with an original m
atu-rity of three m
onths or less.s)
Segment Inform
ation
Identification of segments
The C
ompany’s operating businesses are organized and m
anaged separately according to the nature of products and services provided, w
ith each segment representing a strategic business unit that offers
different products and serves different markets. There are no geo-
graphical reportable segments since the C
ompany caters to the Indian
market only and does not distinguish any reportable regions w
ithin India.
Inter segm
ent Transfers
The Com
pany generally accounts for intersegment sales and transfers
as if the sales or transfers were to third parties at current m
arket prices.
A
llocation of comm
on costs
Com
mon allocable costs are allocated to each segm
ent according to the relative contribution of each segm
ent to the total comm
on costs.
Unallocated item
s
Includes general corporate income and expense item
s which are not
allocated to any business segment.
Segm
ent Policies
The Com
pany prepares its segment inform
ation in conformity w
ith the accounting policies adopted for preparing and presenting the financial statem
ents of the Com
pany as a whole.
t) Employee Stock C
ompensation C
ost
Measurem
ent and disclosure of the employee share-based paym
ent plans is done in accordance w
ith the Securities and E
xchange Board
of India (Em
ployee Stock O
ption Schem
e and Em
ployee Stock
Purchase S
cheme) G
uidelines 1999 and Guidance N
ote on Accounting
for Em
ployee Share-based P
ayments, issued by the Institute of
Chartered A
ccountants of India. The Com
pany measures com
pensa-tion cost relating to em
ployee stock options using the intrinsic value m
ethod. Com
pensation expense is amortized over the vesting period
of the option on a straight line basis.3. Initial Public O
ffer
During the previous year, the C
ompany com
pleted an Initial Public
Offer (IP
O) of its 18,175,000 E
quity Shares of R
s.10/- each for cash at a price of R
s. 210 each for Retail Investors and R
s. 212 each for other than retail investors. O
ut of total shares listed, 12,725,000 fresh equity shares w
ere issued by the Com
pany and an offer for sale of 5,450,000 equity shares of the C
ompany w
as made by C
liffrose Investm
ents Limited.
The prem
ium of R
s. 200 per share for Retail Investors and R
s. 202 each for other than retail investors, am
ounting to Rs.2,562,815,000
was
credited to
Securities
Prem
ium A
ccount. The
Share
Issue expenses incurred by the C
ompany am
ounting to Rs 196,970,762
were debited against S
ecurities Prem
ium A
ccount.
Pursuant to the P
ublic Issue, shares of the Com
pany were listed on
Bom
bay Stock E
xchange and National S
tock Exchange w
ith effect
from January 6, 2010.
The total IP
O proceeds received by the C
ompany are R
s 2,690,065,000. Follow
ing are the details of utilization of IPO
proceeds till March 31,
2011.
ParticularsA
mount to be utilised as
per Prospectus
Actual
Utilisation
till March
31, 2011
Balance to be
utilised/ (excess
utilised) as on M
arch 31, 2011
Setting up
publishing units
600,000,000448,361,906
151,638,094
Upgrading
existing plant and m
achinery
305,000,000392,122,896
(87,122,896)
Sales and
marketing
501,000,0003,804,070
497,195,930
Reducing
working capital
loans
41,460,00041,460,000
-
Prepaying
existing term
loans
1,100,000,0001,100,000,000
-
Issue E
xpenses paid out of IP
O
Proceeds
142,605,000111,578,053
31,026,947
Total2,690,065,000
2,097,326,925592,738,075
N
ote:1)
As per the provisions in the P
rospectus, the managem
ent of the C
ompany has the discretion to change the allocation as w
ell as reschedule the utilization of IP
O proceeds proposed in the prospectus
depending on
the business
scenario and
funding requirem
ents. A
ccordingly, the managem
ent has reallocated the proposed utilization as follow
s:a)
The Proceeds allocated tow
ards Sales and m
arketing expenses and IP
O expenses and lying unutilized w
ould be used for setting up new
publishing units and upgrading the existing plant and machinery;
b) The proceeds w
ould be utilised for setting up publishing units as well as
upgrading the existing plant and machinery at locations / states in addi-
tion to the number of locations / states m
entioned in the prospectus.
The Audit C
omm
ittee and the Board of D
irectors of the Com
pany in the m
eeting held on May 18, 2011 have approved the revised alloca-
tion and resultant utilisation of proceeds of IPO
till March 31, 2011.
2) P
ending utilization, as at March 31, 2011, the funds are tem
porarily held in:
ParticularsA
mounts
Fixed Deposit
580,000,000
Balance in C
urrent Account
12,738,075
Total592,738,075
4. Scheme of A
rrangement:
A) D
emerger of R
adio division of Synergy M
edia Entertainm
ent Limited
(SM
EL) and m
erger with the C
ompany:
a) The C
ompany along w
ith its subsidiary Synergy M
edia Entertainm
ent
40
Limited had filed the S
cheme of D
emerger (‘the S
cheme’) w
ith the H
on’ble high Court w
ith Judicature at Madhya P
radesh (“Madhya
Pradesh H
igh Court”) and H
on’ble high Court w
ith Judicature at G
ujarat (“Gujarat H
igh Court”) for dem
erger of Radio division of S
ME
L and m
erger with the C
ompany.
The S
cheme of A
rrangement w
as approved by Madhya P
radesh High
Court and G
ujarat High C
ourt vide their order dated January 13, 2011 and January 17, 2011 respectively. The certified order copy of the M
adhya Pradesh H
igh Court and G
ujarat High court dated January
29, 2011 and February 2, 2011 respectively were filed w
ith the R
egistrar of Com
panies on February 15, 2011 and February 16, 2011 respectively.
A
s prescribed
in the
Schem
e, the
Ministry
of Inform
ation and
Broadcasting, G
overnment of India accorded their approval vide letter
No. 212/30(33)/2006-FM
(Vol.II)/120 dated March 30, 2011.
A
ccordingly, after the approval by the Ministry of Inform
ation and B
roadcasting, Governm
ent of India, the Schem
e became effective on
March 30, 2011 w
ith appointed date April 1, 2010.
b) A
s per the Schem
e, the Com
pany has issued and allotted 1,732,500 fully paid equity shares of R
s.10 each at par in the ratio of one equity share of the C
ompany for every ten equity shares of S
ME
L as on record date to the shareholders of S
ME
L. c)
Further, as per Clause 4.8 of the S
cheme, the unabsorbed deprecia-
tion and brought forward losses related to S
ME
L till March 31, 2010
has been transferred to the Com
pany which has been set off by the
Com
pany while com
puting the Current Tax provision for the year
ended March 31, 2011.
d) A
s prescribed in the Schem
e, all the assets and liabilities of Radio
division of SM
EL as at M
arch 31, 2010 are transferred to and account-ed in the books of the account of the C
ompany at their respective
book value and the deficit, after considering the cancellation of the C
ompany’s investm
ents in SM
EL and also the face value of the equity
shares issued and allotted by the Com
pany) is debited to General
Reserve account as under:-
NO
TICE TO
AC
CO
UN
TS (Continued):
ParticularsA
mount
Fixed assets769,594,796
Current A
ssets369,561,111
Total Assets
1,139,155,907
Current liabilities and provision
155,086,567
Secured loans
237,666,852
Unsecured loans
646,383,134
Total Liabilities1,039,136,553
Net A
ssets100,019,354
Less: C
ancellation
of Investm
ents of
the C
ompany
(22,663,200 E
quity shares
of R
s.10 each)
held in
Synergy
Media E
ntertainment Lim
ited
698,258,200
Less: Equity shares issued and
allotted by the Com
pany17,325,000
Deficit
debited to
General
Reserve
615,563,846
B) D
emerger of Internet D
ivision of Indiainfo.com:
a) A
s per the Schem
e of Arrangem
ent relating to take over of the Internet D
ivision of Indiainfo.Com
Limited, the C
ompany had to issue
25 (twenty five) fully paid equity shares of R
s. 10 each and 10 (ten) fully paid preference shares of R
s. 10,000 each to the equity share-holders of Indiainfo.C
om Lim
ited on the effective date i.e. July 31, 2007. O
ut of these shares, 4 equity shares and 1 preference share w
ere allotted and the balance was to be allotted subsequent to
obtaining the Foreign Investment P
romotion B
oard (FIPB
) approval. H
owever subsequent to the filing of the schem
e with the H
igh C
ourts, the Reserve B
ank of India issued a press release which
restricts issue of non-convertible securities to non-resident share-holders
in par
with
External
Com
mercial
Borrow
ings (E
CB
). A
ccordingly, as a matter of abundant precaution and to avoid any
ambiguity it w
as considered appropriate to modify the form
and term
s of consideration pursuant to clause 14 of the Schem
e of A
rrangement. A
ccordingly it was decided by the B
oard of Directors
in its meeting dated O
ctober 25, 2007, to issue 180 equity shares of R
s. 10 each in lieu of 9 preference shares at a total value of Rs.
90,000. Further the Com
pany declared bonus shares during the year ended, M
arch 31, 2008. The shares to be issued (including bonus shares) am
ounting to Rs. 106,590 w
ere shown under S
hare sus-pense account for the year ended M
arch 31, 2008. Subsequently,
the Com
pany has issued all the balance 1,839 equity shares on June 7, 2008 and the securities prem
ium am
ounting to Rs.88,200 on 180
equity shares issued in lieu of 9 preference shares is shown under
securities premium
account.b)
The Com
pany has been legally advised that it shall be able to set off the unabsorbed losses of Internet D
ivision of Indiainfo.com
against its
taxable incom
e. A
ccordingly, the
Com
pany has
considered and adjusted the unabsorbed tax losses and unabsorbed depreciation of erstw
hile Internet Division of Indiainfo.com
Limited
in its taxable income for the year ended M
arch 31, 2007, as perm
issible under the relevant provisions of Income Tax A
ct, 1961. The m
anagement is confident that all the conditions stipulated
under Section 72A of the Incom
e Tax Act, 1961 shall be fulfilled
within stipulated tim
e period.
5. Term
Loans, Cash C
redit facilities, Foreign Currency loan and
Buyers’ credit facilities consist of:
Particulars M
arch 31, 2011 M
arch 31, 2010R
upee Term Loans
IDB
I Bank
480,000,000 660,000,000
Rabo India Finance
Private Lim
ited-
77,777,758
Cash C
redit FacilitiesS
tate Bank of
Hyderabad
21,626,44311,329,189
State B
ank of Indore-
48,348,046
Bank of
Maharashtra
29,985,61262,021,570
Foreign Currency
LoanA
GC
O Finance
Gm
bHU
SD
28,304,872 equivalent to
Rs. 1,264,944,748
US
D 31,572,817
equivalent toR
s. 1,418,250,923
41
Buyers C
redit FacilitiesS
tandard Chartered
Bank
US
D 754,498
equivalent to R
s. 33,718,527
US
D 2,495,452
equivalent to R
s. 112,095,712
HS
BC
Bank
US
D 5,625,420
equivalent to R
s. 251,450,010
US
D 7,542,471
equivalent to R
s. 338,807,784
a) The Term
Loans are secured by:i)
First Charge on P
lant and Machinery situated at all locations (other
than Gujarat) of the C
ompany;
ii) S
econd Charge on all current assets;
iii) Personal G
uarantee of directors aggregating to Rs. 60,000,000 [S
hri R
amesh C
handra Agarw
al];iv) C
orporate Guarantees of W
riters and Publishers P
rivate Limited
aggregating to Rs. 480,000,000.
v) ID
BI B
ank: Exclusive C
harge on the Plant and M
achinery being acquired out of the financial assistance. S
econd Charge on all the
fixed assets of the Com
pany;vi) ID
BI B
ank: First pari passu Charge w
ith other lenders on up gradation P
roject Assets.
S
econd Charge on Im
movable housing property of W
riters and P
ublishers Private Lim
ited at various units. b) C
ash Credit Facilities are secured by:
i) First C
harge on the entire current assets and;ii)
Second C
harge on the other movable properties (other than current
assets) of the Com
pany.iii) P
ersonal Guarantees of D
irectors aggregating to Rs. 71,607,191 [S
hri R
amesh C
handra Agarw
al, Shri. S
udhir Agarw
al, Shri. G
irish Agarw
al and S
hri. Paw
an Agarw
al].iv) C
orporate Guarantees of W
riters & P
ublishers Private Lim
ited.
c) Foreign C
urrency Loan is secured by:i) A
GC
O Finance G
mbH
: First pari passu Charge w
ith other lenders on up gradation P
roject Assets.
d) Buyers C
redit Facilities are secured by:i)
Standard C
hartered Bank: First C
harge on the current assets of the C
ompany
ii) H
SB
C B
ank: First Pari passu C
harge over current assets of the C
ompany
S
econd Charge over P
lant and Machinery of the C
ompany and
Corporate G
uarantee of Writers and P
ublishers Private Lim
ited.
6. (a) Related Party D
isclosure
Related party disclosures, as required by notified A
ccounting Standard
18 - "Related P
arty Disclosures” notified by the C
ompanies (A
ccounting S
tandards) Rules, 2006, (as am
ended) are given below:
ParticularsR
elated PartyS
ubsidiaries- S
ynergy Media E
ntertainment
Limited.
- I Media C
orp Limited.
Key M
anagement P
ersonnel - S
hri Sudhir A
garwal, M
anaging D
irector- S
hri Girish A
garwal, D
irector
Relatives of key m
anagement
personnel- S
hri. Ram
esh Chandra
Agarw
al - S
mt. K
asturi Devi A
garwal
- Shri. P
awan A
garwal
- Sm
t. Jyoti Sudhir A
garwal
- Sm
t. Nam
ita Girish A
garwal
- Sm
t. Nikita P
awan A
garwal
Enterprises ow
ned or signifi-cantly influenced by key m
an-agem
ent personnel or their rela-tives
- All S
eason Events (P
) Limited.
- D B
Partners E
nterprises P
rivate Limited.
- Writers and P
ublishers Private
Limited
- Bhaskar P
hototype Setter-
Bhopal*
- Bhaskar P
rinting Press -
Rajasthan
- Bhaskar P
rinting Press-
MP
CG
- Bhaskar P
rinting Press- C
PH
2- B
haskar Printing P
ress- G
ujarat- R
C P
hototype Setter- R
aipur*- R
.C. P
rinter - Raipur
- Bhaskar P
ublication and Allied
Industries Private Lim
ited.- N
ew E
ra Publications P
rivate Lim
ited- B
haskar Infrastructure Limited
- Bhaskar Industries Lim
ited- B
haskar Multinet Lim
ited- B
haskar Exxoil P
rivate Limited
- Diligent M
edia Corporation
Limited
- Direct (O
OH
) Media P
rivate Lim
ited- S
titex Global Lim
ited- D
ivya Prabhat P
ublications P
rivate Limited
- Bhaskar Venkatesh P
roducts P
rivate Limited
- Sharda S
olvent Limited
- D B
Malls P
rivate Limited
- Bhaskar S
amachar S
eva- Jaipur P
rinting Press*
- Bikaner P
rinting Press*
- Jaipur Phototype S
etter*- A
jmer P
rinting House*
- Udaipur P
rinting Setter*
- New
Jodhpur Printer*
- New
Kota P
rinters*- B
haskar Process H
ouse*- India Interactive Technologies Lim
ited- D
B P
ublication Private Lim
ited- A
bhivyakti Kala K
endra- B
haskar Food Private Lim
ited* U
p to March 31, 2010
42
SCH
EDU
LE AN
NEXED
TO A
ND
FOR
MIN
G PA
RT O
F THE A
CC
OU
NTS A
S AT AN
D FO
R
THE YEA
R EN
DED
ON
MA
RC
H 31, 2011
(Am
ounts in Indian Rupees)
6. (b) Details of transactions w
ith related parties:
March 31, 2010
March 31, 2011
Transactions year ended
March 31, 2010
March 31, 2011
Am
ount receivable (payable) A
s At
Advertisem
ent Income
S
ynergy Media E
ntertainment Lim
ited -
20,047,851
- 5,120,461
I Media C
orp Limited
14,248,402
8,507,054
723,330 5,119,258
Writers and P
ublishers Private Lim
ited 18,006,363
41,861,638
1,113,197 6,922,547
Abhivyakti K
ala Kendra
-
9,194,275
- -
Bhaskar Industries Lim
ited
159,162 2,313,160
32,932
14,816 B
haskar Multinet Lim
ited
78,853 510,322
7,639
24,968 S
harda Solvent Lim
ited
12,901 8,344,170
-
9,720 B
haskar Exxoil P
rivate Limited
21,996
7,477,988
- -
Bhaskar Food P
rivate Limited
-
7,426,028
- -
D B
Malls P
rivate Limited
120,516
25,639,495
98,960 662,922
Bhaskar Venkatesh P
roducts Private Lim
ited 1,748,641
-
1,348,641 -
Sale of Magzine
B
haskar Publication and A
llied Industries Private Lim
ited 342,686
405,213
223,207 171,744
Sale of New
spaper
Bhaskar P
ublication and Allied Industries P
rivate Limited
7,789,674 8,366,520
7,299,995
- Printing Job C
harges
Bhaskar P
ublication and Allied Industries P
rivate Limited
3,976,509 4,262,153
280,445
- S
ynergy Media E
ntertainment Lim
ited -
198,000
- -
Salaries, Wages and B
onus
Shri S
udhir Agarw
al, Managing D
irector 3,600,000
3,600,000
- (7,441,123)
Rent Incom
e
Bhaskar P
ublication and Allied Industries P
rivate Limited
1,020,000 -
-
- R
ent Paid
Writers and P
ublishers Private Lim
ited 28,679,176
19,203,211
- -
Bhaskar Industries Lim
ited
144,000 159,997
-
(89,109)B
haskar Publication and A
llied Industries Private Lim
ited 100,000
100,000
- -
Bhaskar Infrastructure Lim
ited
3,829,260 4,055,761
-
- R
.C. P
rinter, Raipur
1,654,500
1,816,320
- -
Shri G
irish Agarw
al, Director
100,000
100,000
- (176,907)
New
s Collection Expenses
B
haskar Sam
achar Seva
37,648,538
69,716,165 (12,731,331)
(10,429,064)D
iligent Media C
orporation Limited
1,886,478
1,572,792
(650,422) (1,867,580)
Printing Job Work Expense
M
P Printer (a unit of W
riters and Publishers P
rivate Limited)
48,891,299 52,499,220
(4,780,453)
(12,741,845)D
iligent Media C
orporation Limited
7,489,292
7,659,526
(173,948) (1,342,631)
Bhaskar P
rinting Press R
ajasthan
6,734,372 32,783,800
(3,445,339)
(5,920,767)B
haskar Printing P
ress MP
CG
13,582,184 12,145,451
(3,450,417)
(8,359,576)B
haskar Printing P
ress CP
H2
5,863,675
6,719,342
(338,542) (556,362)
Bhaskar P
rinting Press G
ujarat
11,326,685 13,671,085
(3,305,883)
(3,123,127)R
.C. P
rinter, Raipur
685,833
4,616,373
(223,493) (293,023)
Royalty
D
iligent Media C
orporation Limited
3,970,979
2,550,000
- (144,310)
Advertisem
ent and Publicity Expenses
Synergy M
edia Entertainm
ent Limited
- 8,095,698
- (9,030,726)I M
edia Corp Lim
ited
3,433,912 3,389,062
150,471
(1,857,453)B
haskar Multinet Lim
ited
- 170,221
-
- A
bhivyakti Kala K
endra
720,000 -
-
- M
P Printer (a unit of W
riters and Publishers P
rivate Limited)
4,902,095 -
-
- Interest Incom
e from D
eposits
Writers and P
ublishers Private Lim
ited 33,264,382
57,383,219
513,770 860,611
Bhaskar M
ultinet Limited
20,132,499
2,299,958
6,847,886 4,545,294
Interest Income from
Loans to Subsidiaries
Synergy M
edia Entertainm
ent Limited
-
63,057,055
-
43
SCH
EDU
LE AN
NEXED
TO A
ND
FOR
MIN
G PA
RT O
F THE A
CC
OU
NTS A
S AT AN
D FO
R
THE YEA
R EN
DED
ON
MA
RC
H 31, 2011
(Am
ounts in Indian Rupees)
6. (b) Details of transactions w
ith related parties:
I Media C
orp Limited
23,758,437
20,421,506 -
- Sale of Fixed A
ssets
Bhaskar P
ublication and Allied Industries P
rivate Limited
5,625,852 -
5,625,852 -
Purchase of Fixed Assets
B
haskar Publication and A
llied Industries Private Lim
ited 18,823
- -
- Loan / A
dvances Given / (R
epaid by party)
Synergy M
edia Entertainm
ent Limited
- 198,478,886
- 646,383,132
- (20,993,767)
- -
I Media C
orp Limited
(256,620,481)
56,006,622 - 200,728,006
55,892,475 -
- -
Bhaskar M
ultinet Limited
15,816,658
- 170,750,252
15,740,211 W
riters and Publishers P
rivate Limited
(116,666,668) (116,666,668)
204,166,662 320,833,330
Advance received / (repaid) for publication of advertisem
ent
Writers and P
ublishers Private Lim
ited -
78,968,141 (54,396,376)
(83,477,055)
(204,272,633)
- A
dvances given during the year for investment in equity shares
W
riters and Publishers P
rivate Limited
- 40,000,000
80,000,000 80,000,000
Factoring of Recievables / advances
W
riters and Publishers P
rivate Limited
- 6,185,441
- -
Security Deposit given against lease of properties
W
riters and Publishers P
rivate Limited
- -
132,950,000 132,950,000
Security Deposit R
eceived
Bhaskar P
ublication and Allied Industries P
rivate Limited
- 10,000,000
(10,000,000) (10,000,000)
Sale of Investments
W
riters and Publishers P
rivate Limited
- -
60,000,000 60,000,000
Shri S
udhir Agarw
al, Managing D
irector -
- -
77,500 S
hri Girish A
garwal, D
irector
- -
50,000 50,000
Investments m
ade
I Media C
orp Limited
350,000,000
- -
- N
ews print loan given / (taken)
M
P Printer (a unit of W
riters and Publishers P
rivate Limited)
20,894,894 6,806,277
15,517,265 6,766,924
Diligent M
edia Corporation Lim
ited
21,279,228 19,558,103
1,220,197 5,911
Divya P
rabhat Publications P
rivate Limited
113,129 1,348,102
- 2,615,694
Bhaskar P
ublication and Allied Industries P
rivate Limited
(27,879,307) 15,380,846
7,144,565 27,833,360
Balance outstanding at the year end
S
ynergy Media E
ntertainment Lim
ited -
- (5,896,619)
2,911,128 I M
edia Corp Lim
ited
- -
23,472 2,027,022
M P P
rinter (a unit of Writers and P
ublishers Private Lim
ited) -
- (2,080,011)
(5,442)D
iligent Media C
orporation Limited
-
- (227,270)
(5,274,331)B
haskar Industries Limited
-
- 1,590,148
- D
B M
alls Private Lim
ited
- -
796,787 -
India Interactive Technologies Limited
- -
- (4,059,891)
Bhaskar M
ultinet Limited
-
- 339,214
257,215 R
.C. P
rinter, Raipur
-
- 363,205
456,787 D
ivya Prabhat P
ublications Private Lim
ited -
- (854,155)
(3,944,739)W
riters and Publishers P
rivate Limited
- -
(11,287,503) (12,365,745)
Bhaskar P
ublication and Allied Industries P
rivate Limited
- -
72,885,625 (26,305,936)
Direct (O
OH
) Media P
rivate Limited
-
- -
13,236 B
haskar Infrastructure Limited
-
- -
183,678 D
B P
ublication Private Lim
ited
- -
- 6,618
Abhivyakti K
ala Kendra
-
- -
237,092 S
hri Paw
an Agarw
al, Director
-
- -
784,774 N
ote: For details of guarantees given by related parties, Refer N
ote 5 of Schedule 25.
March 31, 2010
March 31, 2011
Transactions year ended
March 31, 2010
March 31, 2011
Am
ount receivable (payable) A
s At
44
7. Leases
R
ental expenses in respect of operating leases are recognized as an expense in the profit and loss account, on a straight-line basis over the lease term
.
Operating Lease (for assets taken on Lease)
a) The C
ompany has taken various residential, office and godow
n prem-
ises under operating lease agreements. These are generally renew
-able by m
utual consent;b)
Lease payments for the year are R
s. 115,843,578 (Previous year R
s. 69,919,405);
c) The future m
inimum
lease payments under non-cancelable operating
leases;��
not later than one year is Rs. 115,280,172 (P
revious year Rs.
60,993,479);��
later than one year but not later than five years is Rs. 499,931,012
(Previous year R
s. 268,489,767);��
later than
five years
Rs
59,302,817 (P
revious year
Rs.
4,124,307).d) There are no restrictions im
posed in these lease agreements. There
are escalation clauses in agreement w
ith some parties. There are no
sub leases.8.
Capital C
omm
itments
E
stimated am
ount of contracts remaining to be executed on capital
account and not provided for Rs. 148,479,849 (P
revious year Rs.
138,612,551).9.
Contingent Liabilities not provided for
a) G
uarantees issued
by bank
on behalf
of the
Com
pany R
s. 18,122,375.
b) C
orporate Guarantee issued by the C
ompany of R
s. 450,000,000 in favor of E
xport Developm
ent Canada on behalf of B
haskar Exxoils
Private Lim
ited.c)
The Indian Perform
ing Rights S
ociety Limited (IP
RS
) had filed a suit against S
ME
L on May 27, 2006 before the H
igh Court of D
elhi con-testing against the refusal by S
ME
L to obtain a license from the IP
RS
w
ith regards to broadcasting / performing its copyrighted w
orks. The IP
RS
has prayed for a permanent injunction restraining the R
adio D
ivision from infringing any of the copyrights ow
ned by the IPR
S as
well as for dam
ages in favour of the IPR
S. The m
atter is pending before the H
on'ble court, as the court has reserved the order after hearing to both the parties. The m
anagement is confident that the
case would be settled in the favor of the C
ompany, how
ever, pending the result of the suit, as a m
atter of abundant precaution, the C
ompany has provided on best judgm
ent basis Rs.10,579,831 for the
year ended March 31, 2011 tow
ards the royalty payable to IPR
S. The
managem
ent believes that the provision made in the books is suffi-
cient to take care of the final liability for royalty, if any, which w
ould be confirm
ed only after the result of the suit.d) A legal S
uit was filed by S
ME
L on July 28, 2008 against Phonographic
Perform
ance Limited (P
PL) before the C
opy Right B
oard against the exorbitant rates proposed by P
PL for grant of com
pulsory licenses. The C
opy Right B
oard passed the Order on A
ugust 25, 2010. As per
the Order, P
PL is supposed to get a proportionate am
ount (as per the m
usic played) out of the kitty of 2% of the net revenue. The C
ompany
is accordingly paying to PP
L since then.
The Com
pany has asked for a refund of Rs. 4,011,858 from
PP
L out of the deposit paid to them
after adjusting the amount payable for the
period prior to the Order, as per the rates specified in the O
rder. PP
L has been claim
ing the previous period amount at a higher rate. P
PL
has subsequently filed a summ
ary suit in Bom
bay High C
ourt towards
recovery of the said amount. A
t present the matter is pending before
the Bom
bay High C
ourt. The managem
ent is confident that the case w
ould be settled in the favor of the Com
pany, however, pending the
result of the suit, as a matter of abundant precaution, the C
ompany
has provided on best judgment basis R
s.7,794,055 for the year ended M
arch 31, 2011 towards the royalty payable to P
PL. The m
an-agem
ent believes that the provision made in the books is sufficient to
take care of the final liability for royalty, if any, which w
ould be con-firm
ed only after the result of the suit.e)
There are several defamation and other legal cases pending against
the Com
pany and its directors. These include criminal and civil cases.
There are certain employee related cases also pending against the
Com
pany. In view of large num
ber of cases, it is impracticable to
disclose the details of each case.
The estimated am
ount of claims against the C
ompany in respect of
these cases is Rs. 16,835,528 (P
revious year Rs. 12,187,682). The
estimated contingency in respect of som
e cases cannot be ascer-tained. B
ased on discussions with the solicitors and also the past
trend in respect of such cases, the Com
pany believes that there is fair chance of decisions in its favour in respect of above and hence no provision is considered necessary against the sam
e.10. D
erivative Instruments
Particulars of unhedged foreign currency exposure as at the balance
sheet date:
ParticularsCurrency
Am
ount in foreign
currency
Am
ount in R
s.A
mount in
foreign cur-rency
Am
ount in Rs.
Sundry
Creditors
US
D1,057,623
46,378,0063,039,710
136,543,772
Sundry
Creditors
EUR
O-
-45,700
2,767,444
Standard
Chartered
Bank B
uyers C
redit
US
D754,498
33,718,5272,495,452
112,095,712
HS
BC
Bank
Buyers C
reditU
SD
5,625,420251, 450, 010
7,542,471338,807,784
AGCO
Finance G
mbH
US
D28,304,872
1,264,944,74831,572,817
1,418,250,923
Sundry
Debtors
US
D-
-1,847
82,967
11. Additional inform
ation pursuant to the provisions of para
graphs 3, 4B, 4C
, 4D of Part II of the Schedule VI of the
C
ompanies A
ct, 1956:a) Licensed and installed capacity:-
Licensed capacity is not applicable.Installed C
apacity (as certified by the managem
ent and relied upon by the auditors, it being a technical m
atter).
Type of M
achineNo. of
Machines
Total Capacity
(Impressions per hour)
No. of M
achinesTotal C
apacity (Im
pressions per hour)
Cold S
et M
achines61
2,274,000
511,941,000
Heat S
et M
achines5
120,0005
120,000
b) i) Actual Production and Sales
March 31, 2011
March 31, 2010
New
s paperN
o. of Copies
No. of C
opiesP
roduction1,396,530,119
1,328,957,295
Sales
1,382,822,6121,315,960,527
Power
Units
Units
Production
3,211,8704,569,760
March 31, 2011
March 31, 2010
March 31, 2011
March 31, 2010
45
Sales
2,714,4604,040,273
Magazines
No. of C
opiesN
o. of Copies
Production
10,793,74013,714,126
Sales*
10,773,05513,603,059
* E
xcludes magazines distributed as free sam
ples 15,185 Copies
(Previous year – 131,067 C
opies).
ii) Opening and C
losing stock of finished goods:
March 31, 2011
March 31, 2010
Magazines
No. of C
opiesN
o. of Copies
Closing S
tock51,000
60,000
Opening stock
60,00080,000
c) Value of Imports on C
IF Basis
ParticularsM
arch 31, 2011M
arch 31, 2010R
aw M
aterial714,929,410
931,967,788
Stores and S
pares17,149,434
6,887,014
Capital G
oods-
155,451,592
d) C
onsumption of R
aw M
aterial
Quantity
In Kgs.
Value Q
uantityIn K
gs.Value
New
sprint141,430,175
3,839,083,276130,270,636
3,278,675,591
e) Imported and indigenous raw
materials, stores and spares
consumed
Value%
of total Consum
ptionValue
% of total
Consumption
i)Raw
M
aterials
Imported
819,088,77721.34%
928,466,14728.32%
Indigenous3,019,994,499
78.66%2,350,209,444
71.68%
Total3,839,083,276
100.00%3,278,675,591
100.00%
ii) Stores &
Spares
Imported
17,149,4342.92%
6,887,0141.34%
Indigenous569,897,425
97.08%508,018,707
98.66%
Total587,046,859
100.00%514,905,721
100.00%
f) Earnings in foreign currency (on accrual basis)
ParticularsM
arch 31, 2011M
arch 31, 2010A
dvertisement Incom
e-
666,981g) Expenditure in foreign currency (on accrual basis)
ParticularsM
arch 31, 2011M
arch 31, 2010Traveling
807,586742,016
Financial Expenses
24,132,81621,317,090
Advertisem
ent &
Publicity
-57,822
Others
1,745,07424,985,485
O
f the above, Rs. N
il (Previous year – R
s. 10,496,049) is disclosed under addition to fixed assets (including C
apital Work-in-P
rogress) and R
s. Nil (P
revious year Rs. 13,539,190) is disclosed under addi-
tion to
Share
Issue expenses
under the
head ‘M
iscellaneous E
xpenditure’ in the Balance S
heet.h) M
anagerial Rem
uneration
ParticularsM
arch 31, 2011M
arch 31, 2010S
alaries and A
llowances
3,600,0003,600,000
Total3,600,000
3,600,000 i)
Auditors’ R
emuneration (including service tax)
ParticularsM
arch 31, 2011M
arch 31, 2010A
s Auditor
Audit Fees
6,195,9006,066,500
Limited R
eview Fees
1,654,500330,900
Tax Audit Fees
551,500551,500
Tax Opinion Fees
-110,300
Out-of-pocket expenses
551,500661,800
In other manner
Certification relating to IP
O-
7,721,000
Total8,953,400
15,442,000
O
ut of above expenditure, Rs. N
il (Previous Year – R
s. 7,721,000) is included in S
hare Issue Expenses w
hich is adjusted against Securities
Prem
ium A
ccount.
12. Receivables from
Com
panies under the same m
anagement as
required under Clause 32 of the listing agreem
ent.
(a) Sundry D
ebtors include the following am
ounts receivable from the
companies under the sam
e managem
ent:N
ame of the
Com
pany
March 31, 2011
March 31, 2010
March 31, 2011
March 31, 2010
Synergy M
edia E
ntertainment
Limited
-5,120,461
-44,757,834
I Media C
orp Lim
ited723,330
5,119,25815,407,970
5,119,258
Bhaskar
Industries Lim
ited
32,93214,816
41,1542,030,181
Bhaskar M
ultinet Lim
ited7,639
24,96845,699
699,437
Bhaskar E
xxoil Lim
ited-
-
21,9967,477,988
Bhaskar
Venkatesh P
roducts Private
Limited
1,348,641-
1,348,641-
March 31, 2011
March 31, 2011
Closing B
alance
March 31, 2010
March 31, 2010
M
aximum
Amount
Outstanding during the year
46
Divya P
rabhat P
ublication P
rivate Limited
--
-1,758,158
Sharda S
olvent Lim
ited-
9,72021,085
8,325,788
DB
Malls P
rivate Lim
ited98,960
662,922729,354
23,439,331
Abhivyakti K
ala K
endra-
--
21,622,608
Writers and
Publishers
Private Lim
ited
1,113,1976,922,547
4163,5516,922,547
(b) Loans, Advances and D
eposits include the following am
ounts receiv-able from
the companies under the sam
e managem
ent:N
ame of the
Com
pany
March 31, 2011
March 31, 2010
March 31, 2011
March 31, 2010
Synergy M
edia E
ntertainment
Limited
-646,383,131
-646,383,131
I Media C
orp Lim
ited23,472
200,728,007278,203,594
200,897,576
Writers and
Publishers
Private Lim
ited
466,342,929582,278,196
738,180,658732,863,795
Bhaskar M
ultinet Lim
ited.177,937,352
20,542,720178,005,015
20,733,950
Bhaskar E
xxoil Lim
ited-
-16,000
10,578
Diligent M
edia C
orp Limited
1,220,197 -
1,220,19724,909,243
Bhaskar
Industries Lim
ited
1,590,148-
1,590,148-
Divya P
rabhat P
ublications P
rivate Limited
--
-8,592,331
Bhaskar
Infrastructure Lim
ited
-183,678
-183,678
Bhaskar
Publication &
A
llied Industries P
rivate Limited
80,030,1901,527,425
151,318,65113,874,026
Direct(O
OH
) M
edia Private
Limited
-13,236
132362,181,717
DB
Publications
Private Lim
ited-
6,6186618
130,551
DB
Malls P
rivate Lim
ited796,787
-796,787
271,445
Abhivyakti K
ala K
endra-
237,0921,321,292
1,455,514
Note:
In case of advances given to W
riters and Publishers P
rivate Limited,
the amount is repayable over a period of three years. In all other
cases, the amounts are repayable on dem
and.
13. Earnings per Share
ParticularsM
arch 31, 2011M
arch 31, 2010i) P
rofit for the year2,673,231,385
1,990,422,694
ii) Weighted average num
ber of E
quity Shares outstanding for
Basic E
PS
181,528,139172,206,180
iii) Basic E
arnings per share14.73
11.56
iv) On account of shares to be
issued under ES
OS
288,673162,389
v) Weighted average num
ber of E
quity Shares outstanding for
Diluted E
PS
181,816,812172,368,569
vi) Diluted E
arnings per share (R
s.)14.70
11.55
vii) Nom
inal value of shares (R
s.)10.00
10.00
14. Employee B
enefits
Defined C
ontribution Plan
During the year ended M
arch 31, 2011 and March 31, 2010; the
Com
pany contributed the following am
ounts to defined contribution plans:
ParticularsM
arch 31, 2011M
arch 31, 2010P
rovident Fund69,377,216
48,550,886
Em
ployees’ State Insurance
Corporation
19,234,8897100,764
Total88,612,105
55,651,650
Defined B
enefit Plan
A- G
ratuity
The Com
pany has a defined benefit gratuity plan. Every em
ployee w
ho has completed five years or m
ore of service gets a gratuity on departure at 15 days salary (last draw
n salary) for each completed
year of service. The scheme is funded w
ith an insurance company in
the form of a qualifying insurance policy.
B
- Leave Encashment
In accordance w
ith leave policy, the Com
pany has provided for leave entitlem
ent on the basis of an actuarial valuation carried out at the end of the year.
The follow
ing tables summ
aries the components of net benefit
expense recognized in the profit and loss account and the funded status and am
ounts recognized in the balance sheet for the respec-tive plan.
Profit and Loss A
ccount:
Net E
mployee benefit expense (recognized in E
mployee C
ost)
Particulars - Gratuity
March 31, 2011
March 31, 2010
Current service cost
12,303,56412,796,427
Interest cost on benefit obliga-tion
5,433,8264,535,207
Expected return on plan assets
(4,862,819) ( 3,605,018)
Net actuarial (gain) / loss recog-
nized in the year2,795,211
(8,953,208)
Closing B
alance
Maxim
um Am
ount O
utstanding during the year
47
Past service cost
--
Net benefit expense
15,669,782
4,773,407
Actual return on plan assets
3,653,6908,385,191
Balance Sheet
Details of P
rovision and fair value of plan assets
Particulars - Gratuity
March 31, 2011
March 31, 2010
Benefit obligation
81,867,70767,922,829
Fair value of plan assets74,060,336
60,785,240
(7,807,371)(7,137,589)
Less: Unrecognised past service
cost-
-
Net Liability
(7,807,371)(7,137,589)
Details of Experience A
djustments on plan assets and plan liabili-
ties
Particulars - Gratuity
March 31, 2011
March 31, 2010
Experience adjustm
ents on plan liabilities (G
ain)/Loss4,523,864
3,633,997
Experience adjustm
ents on plan A
ssets Gain/(Loss)
(1,209,129)4,780,173
Changes in the present value of the defined benefit obligation are
as follows:
Particulars - Gratuity
March 31, 2011
March 31, 2010
Opening
benefit obligation/net
liability 67,922,829
60,469,425
Interest cost5,433,826
4,535,207
Current service cost
12,303,56412,796,427
Benefits paid
(5,378,598)(5,705,195)
Actuarial (gains) / losses on obli-
gation1,586,082
(4,173,035)
Closing benefit obligation
81,867,70767,922,829
Changes in the fair value of plan assets are as follow
s:
Particulars - Gratuity
March 31, 2011
March 31, 2010
Opening fair value of plan assets
60,785,24048,066,911
Expected return
4,862,8193,605,018
Contributions by em
ployer15,000,000
10,038,333
Benefits paid
(5,378,598)(5,705,195)
Actuarial gains / (losses) on plan
assets(1,209,129)
4,780,173
Closing fair value of plan assets
74,060,33660,785,240
Actuarial gains / (losses) recog-
nized in the year(2,795,211)
8,953,208
The Com
pany expects to contribute Rs.10,000,000 (P
revious Year R
s.10,000,000) to gratuity fund during the annual period beginning after balance sheet date.
The major categories of plan assets as a percentage of the fair value of
total plan assets are as follows:
Particulars - Gratuity
March 31, 2011
March 31, 2010
%%
Investments w
ith insurer100
100
The overall expected rate of return on assets is determ
ined based on the m
arket prices prevailing on that date, applicable to the period over w
hich the obligation is to be settled.
The principal assumptions used in determ
ining gratuity obligations for the C
ompany’s plans are show
n below:
Particulars - Gratuity
March 31, 2011
March 31, 2010
Discount rate
8.25%8.00%
Expected rate of return on
assets8.25%
8.00%
Em
ployee turnover1%
age related + 6%
service related
1% age related
+ 6% service
related
Am
ounts for the current and previous three years are as follows:
March 31, 2011
March 31, 2010
March 31, 2009
March 31, 2008
Defined benefit
obligation81,867,704
67,922,82960,469,425
40,363,900
Plan assets
74,06,33660,785,240
48,066,91128,569,088
Surplus / (deficit)
(7,807,371)(7,137,589)
(12,402,514)(11,794,812)
Experience
adjustments on
plan liabilities (G
ain) / Loss
4,523,8643,633,997
7,687,3254,864,820
Experience
adjustments on
plan assets Gain /
(Loss)
(1,209,129)4,780,173
(1,427,487)308,687
The C
ompany has adopted A
ccounting Standard 15 (R
evised) from
April 01, 2007, thereby has not given disclosure for the follow
ing for financial year ended on M
arch 31, 2007:
(a)
The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan; and
(b) The experience adjustm
ents arising on plan liabilities and plan assets.
The estim
ates of future salary increases, considered in actuarial valu-ation, take account of inflation, seniority, prom
otion and other relevant factors, such as supply and dem
and in the employm
ent market
15. Employee Stock O
ption Scheme 2008 and 2010
The C
ompany has granted S
tock Options to its em
ployees as per its schem
e referred to as “DB
CL – E
SO
S 2008” and “D
BC
L- ES
OS
2010”. D
uring the year ended March 31, 2011 the follow
ing schemes
were in operation:
DB
CL – ESO
S 2008D
BC
L – ESOS 2010
Date of grant
January 5, 2009M
ay 10, 2010
Gratuity
48
Date of B
oard Approval
Decem
ber 23, 2008M
arch 02, 2010
Date of S
hareholder’s A
pprovalD
ecember 31, 2008
April 24, 2010
Num
ber of options granted
700,000 options have been approved by the B
oard and the share-holders, how
ever 413,427 have been granted till the year ended M
arch 31, 2011
600,000 options have been approved by the B
oard and the sharehold-ers, how
ever 491,203 have been granted till the year ended M
arch 31, 2011
Method of S
ettlement
Equity
Equity
Vesting Period
Options vest equally
over the period of five years from
the date of grant
Options vest equally over
the period of five years from
the date of grant
Exercise P
eriodW
ithin three years from
the date of vesting or listing, w
hichever is later
Within three years from
the date of vesting or list-ing, w
hichever is later
Exercise P
rice50%
discount to the average of first 30 days m
arket price post listing
Discount up to a m
axi-m
um of 30%
to the mar-
ket price.
Vesting Conditions
Option vest on contin-
ued association with the
Com
pany and achieve-m
ent of certain perfor-m
ance parameters
Option vest on continued
association with the
Com
pany and achieve-m
ent of certain perfor-m
ance parameters
The details of activity under DB
CL E
SO
S 2008 and E
SO
S 2010 are as
summ
arized below:
March 31, 2011
March 31, 2010
March 31, 2011
March 31, 2010
Outstanding at the
beginning of
the year
330,387413,427
--
Granted during
the year-
-491,203
-
Forfeited / C
ancelled during the year
19,17783,040
16,494-
Exercised during
the year36,126
--
-
Expired during the
year-
--
-
Outstanding at the
end of the year275,084
330,387474,709
-
Exercisable at the
end of the year88,358
66,077-
-
Weighted average
fair value
of options granted on the date of grant
101.31101.31
124.97-
The following table sum
marizes the year w
ise vesting % and the fair
value in respect of options outstanding:
YearVesting %
Fair ValueYear
Vesting %FairValue
January 5, 2010
20%90.51
May 10,
201120%
103.87
January 5, 2011
20%95.88
May 10,
201220%
115.57
January 5, 2012
20%101.29
May 10,
201320%
126.07
January 5, 2013
20%106.74
May 10,
201420%
135.47
January 5, 2014
20%112.14
May 10,
201520%
143.89
Stock Options granted
The weighted average fair value of stock options granted till date is R
s. 101.31 and R
s. 124.97 for ES
OS
-2008 and ES
OS
-2010 respectively. The B
lack and Scholes O
ptions Pricing m
odel has been used for comput-
ing the weighted average fair value considering the follow
ing inputs:
Weighted aver-
age share price101.31
124.97
Exercise P
rice50%
discount
to the
average of first 30 days closing
market
price post IP
O i.e. R
s. 124
Discount up to a m
axi-m
um of 30%
to the mar-
ket price. i.e. Rs. 168
Expected
Volatility0%
0%
Historical
Volatility0%
0%
Life of the options granted (Vesting and exercise period) in years
4.5 years4.5 years
Expected divi-
dends0%
0%
Average risk-free interest rate
5.24%7.10%
Expected divi-
dend rate0%
0%
The expected volatility w
as determined based on historical volatility
data, historical volatility includes early years of the companies life, the
company expects the volatility of its share price to reduce as its
natures to allow for the effects of early exercise. To allow
for effects of early exercise, it w
as assumed that the em
ployees will exercise
option after the vesting date, when share price w
as in excess of the exercise price.
H
ad Com
pensation cost been determined in accordance w
ith the fair value approach described in the G
uidance Note, the C
ompany’s net
profit as reported would have changed to am
ounts indicated below:
March
31, 2011M
arch 31, 2010Profit as reported
2,673,231,3851,990,422,694
Add: E
mployee stock com
pen-sation
under intrinsic
value m
ethod
31,664,62112,965,726
Less: Em
ployee stock compen-
sation under fair value method
47,820,49617,283,654
Proforma profit
2,657,075,5101,986,104,766
Earnings Per ShareB
asic
Num
ber of options
ES
OS
-2008
ES
OS
-2010
March 31, 2011
ES
OS
-2008
ES
OS
-2010
ES
OS
-2008
ES
OS
-2010
49
- As reported
14.7311.56
- As adjusted
14.6411.53
Diluted
- As reported
14.7011.55
- As adjusted
14.6111.52
16. Fixed Deposits
C
ash and Bank includes Fixed D
eposits having maturity period of
more than three m
onths amounting R
s. 696,987,121 (Previous year
Rs. 1,436,183,913).
17. Investments
a) The C
ompany has invested R
s. 5,775,000 in Equity shares and R
s 350,000,000 in Zero coupon Fully C
onvertible debentures of I Media
Corp Lim
ited [‘IMC
L’], which is a subsidiary com
pany. The said invest-m
ents are of a long term strategic nature. IM
CL is in the initial years
of comm
ercial operations and has accumulated losses (as per the
latest audited financial statements for the year ended M
arch 31, 2011) aggregating to R
s. 272,430,822. These being long term and
strategic investments and also in view
of the projected profitable operations of IM
CL, the m
anagement is of the view
that there is no dim
inution other than temporary in the value of these investm
ents.b) Investm
ent in Private Treaties
The Com
pany has strategically entered into arrangements w
ith vari-ous parties by investing in the securities of these parties. B
y these arrangem
ents, the said parties would also offer their advertisem
ents in the C
ompany’s print and non print m
edia periodically, for a speci-fied term
. Up to M
arch 31, 2011, the Com
pany has made provision of
Rs. 97,500,000 (P
revious year Rs. 52,500,000) in respect of dim
inu-tion, w
hich is other than temporary, in the value of these investm
ents. The m
anagement w
ill evaluate the value of these investments peri-
odically and required provision would be m
ade in respect of any dim
inution which is other than tem
porary.
18. Preoperative expenses included under Fixed A
ssets and Capital
Work-in-P
rogress are as under:
ParticularsM
arch 31, 2011M
arch 31, 2010O
pening Balance of Pre -
Operative Expenses
10,927,52178,935,822
Expenditure during the year :
Raw
Material C
onsumed
2,101,349-
Operating E
xpenditure3,649,569
360,082
Em
ployee Cost
115,6995,147,356
Other Indirect E
xpenditure 5,250,211
8,899,344
Loan Managem
ent Fees-
5,688,413
Bank C
harges-
3,033
Interest and Financial Charges
- 11,735,613
Total22,044,349
110,769,663Less:- C
apitalized during the year22,044,349
99,842,142
Closing B
alance of Pre-
Operative E
xpenses(D
isclosed as Capital W
ork-in-P
rogress)
-10,927,521
19. Details of dues to M
icro and Small Enterprises as per M
icro, Sm
all and Medium
Enterprises Developm
ent Act, 2006.
a) A
n amount of R
s. 6,554,207 (Previous Year R
s. Nil) and R
s. Nil
(Previous Year R
s. Nil) w
as due and outstanding to suppliers as at the end of the accounting year on account of P
rincipal and Interest respectively.
b) N
o interest was paid during the year to any supplier.
c) N
o interest was paid to suppliers for paym
ents made beyond the
appointed date during the accounting year.
d) N
o claims have been received at the end of the year for interest
under Micro, S
mall and M
edium E
nterprises Developm
ent Act,
2006.
e) N
o amount of interest w
as accrued and unpaid at the end of the accounting year.
The
above inform
ation regarding
Micro,
Sm
all and
Medium
E
nterprises has been determined to the extent such parties have
been identified on the basis of information available w
ith the C
ompany. This has been relied upon by the auditors.
20. Salaries, W
ages and Bonus include sitting fees paid to D
irectors Rs.
780,000 (Previous year R
s. 380,000).21. S
ince the segment inform
ation as per notified Accounting S
tandard 17 - S
egment R
eporting notified by the Com
panies (Accounting
Standards) R
ules, 2006 (as amended) is provided on the basis of
consolidated financial statements, the separate segm
ent information
based on standalone financial statements are not provided.
22. Previous Year Com
paratives
Current Year’s figures are not com
parable to previous year due to schem
e of restructuring (Refer N
ote 4A –Schem
e of arrangement).
The figures for the previous year presented have been regrouped w
here necessary to conform to this year classification.
As per our report of even date.
For S.R. B
atliboi & A
ssociates For G
upta Navin K
. & C
o. For and on behalf of the B
oard ofFirm
Registration num
ber 101049W
Firm R
egistration number 06263C
D
irectors of D.B
. Corp Lim
itedC
hartered Accountants
Chartered A
ccountants
per A
mit M
ajmudar
per Navin K
. Gupta
Managing D
irector D
irectorPartner
PartnerM
embership N
o. 36656 M
embership N
o. 75030 M
umbai
May 18, 2011
C
ompany Secretary
50
Statement pursuant to section 212 of the Companies Act, 1956 relating to subsidiary Companies
Name(s) of the Subsidiary Companies Synergy Media Entertainment Limited I Media Corp Limited
(A) The "Financial Year" of the Subsidiary Companies 31st March, 2011 31st March, 2011
(B) Shares of the subsidiary held by D.B. Corp Limitedon the above dates:
i) Number and face value 136800 Equity Shares of Rs. 10/- each* 577500 Equity shares of Rs. 10/- each
ii) Extent of holding 56.82% 55%
(C) The net aggregate of Profits/ Loss of the subsidiary's companies so far as it concerns the members of the D.B. Corp Limited:
(a) not dealt with in the accounts of D.B. Corp Limited for the Financial year 31st March, 2011
(i) For the Subsidiaries' fianancial year as in (A) Above Rs. 00.34 Crores Rs.(9.15) Crores(NOTE A) (NOTE B)
(ii) For the Previous financial years of the Subsidiaries since Rs. (10.46) Crores Rs.(5.77) Croresthey became the Holding Company's subsidiaries
(b) dealt with in the accounts of D.B. Corp Limited for the year ended 31st March, 2011 amounted to-
(i) For the Subsidiaries' fianancial year ended as in (A) above NIL NIL(ii) For the Previous financial years of the Subsidiaries since NIL NIL
they became the Holding Company's subsidiaries
*Pursuant to the Scheme of Arrangement between Synergy Media Entertainment Limited and D.B.Corp Limited
For and on behalf of the Board,
(Director) (Director)
NOTE A:Synergy Media Entertainment Limited
Net Profit/(Loss) for the year ended on 31/03/2011 Rs. 6,000,438
D.B. Corp Limited extent of holding 56.82%
Therefore, the net aggregate of Profit/Loss Rs. 6,000,438*56.82%of the subsidiary Companies so far asit concerns the members of D.B. Corp Limited Rs. 3,409,596not dealt with in the accounts of D.B. Corp Limited Rs. 00.34 Crores
NOTE B:I Media Corp Limited
Net Profit/(Loss) for the year ended on 31/03/2011 Rs.(91,512,744)
D.B. Corp Limited extent of holding 55.00%
Therefore, the net aggregate of Profit/Loss of Rs.(91,512,744)the subsidiary Companies so far asit concerns the members of D.B. Corp Limitednot dealt with in the accounts of D.B. Corp Limited Rs. (9.15) Crores
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 50
51
Th
e Bo
ard o
f Directo
rsD
.B. C
orp
Lim
ited
1.W
e have audited the attached Consolidated B
alance Sheet
of D.B
. Corp Lim
ited ('DB
CL') G
roup, as at March 31, 2011,
and also the Consolidated P
rofit and Loss account and theC
onsolidated Cash F
low S
tatement for the year ended on
that date annexed thereto. These financial statem
ents arethe responsibility of the D
BC
L's managem
ent and havebeen prepared by the m
anagement on the basis of separate
financial statements and other financial inform
ation regard-ing com
ponents. Our responsibility is to express an opinion
on these financial statements based on our audit.
2.W
e conducted our audit in accordance with the auditing
standards generally accepted in India. Those S
tandardsrequire that w
e plan and perform the audit to obtain rea-
sonable assurance about whether the financial statem
entsare free of m
aterial misstatem
ent. An audit includes exam
-ining, on a test basis, evidence supporting the am
ounts anddisclosures
in the
financial statem
ents. A
n audit
alsoincludes assessing the accounting principles used and sig-nificant estim
ates made by m
anagement, as w
ell as evalu-ating
the overall
financial statem
ent presentation.
We
believe that our audit provides a reasonable basis for ouropinion.
3.G
upta Navin K
. & C
o. did not audit the financial statements
of the subsidiaries, whose financial statem
ents reflect totala
ssets
of
Rs.1
22
,88
8,6
79
(P
revio
us
yea
rR
s.1,195,364,514) as at March 31, 2011, the total revenue
of Rs.54,202,236 (P
revious year Rs.408,587,339) and cash
Fo
r S.R
.Batlib
oi &
Asso
ciates F
or G
up
ta Navin
K.&
Co
Firm
Reg
istration
No
: 101049W
Firm
Reg
istration
No
: 06263CC
hartered Accountants
Chartered A
ccountants
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Partn
er P
artner
Mem
bership No : 36656
Mem
bership No : 75030
Mum
baiM
ay 18, 2011
Au
dito
r's Rep
ort
flow
s a
mo
un
ting
to
(R
s.24
,05
8,0
50
) (P
revio
us
yea
rR
s.8,869,977) for the year then ended. These financial
statements and other financial inform
ation have been audit-ed
solely by
one of
the joint
auditors S
.R.
Batliboi
&A
ssociates, whose reports have been furnished to G
uptaN
avin K &
Co. and our joint opinion is based on these
reports.
4.W
e report that the consolidated financial statements have
been prepared by the DB
CL's m
anagement in accordance
with the requirem
ents of Accounting S
tandard (AS
) 21 -"C
onsolidated Financial S
tatements" notified pursuant to
the Com
panies (Accounting S
tandards) Rules, 2006, (as
amended).
5.B
ased on our audit and on consideration of reports of otherauditor on separate financial statem
ents and on the otherfinancial inform
ation of the components, and to the best of
our information and according to the explanations given to
us, we are of the opinion that the attached consolidated
financial statements give a true and fair view
in conformity
with the accounting principles generally accepted in India:
(a)in the case of the consolidated balance sheet, of the stateof affairs of the D
BC
LG
roup as at March 31, 2011;
(b)in the case of the consolidated profit and loss account, ofthe profits of the D
BC
LG
roup for the year ended on thatdate; and
(c)in the case of the consolidated cash flow
statement, of the
cash flows of the D
BC
LG
roup for the year ended on thatdate.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 51
52
CO
NS
OL
IDA
TE
D B
AL
AN
CE
SH
EE
T A
S A
T M
AR
CH
31, 2011(Am
ou
nts in
Ind
ian R
up
ees)
Sch
edu
lesA
s At
As A
t M
arch 31, 2011
March
31, 2010
SO
UR
CE
S O
F F
UN
DS
Sh
areho
lders' F
un
ds
Share C
apital1
1,832,842,310 1,815,156,050
Stock O
ptions outstanding2
28,919,045 12,965,726
Reserves and S
urplus3
6,426,991,371 4,658,797,466
8,288,752,726 6,486,919,242
Lo
an F
un
ds
Secured Loans
42,081,725,340
2,966,297,834 U
nsecured Loans5
290,349,265 241,008,762
2,372,074,605 3,207,306,596
Deferred
Tax Liab
ilities (Net)
6694,657,385
608,762,958
Min
ority In
terest (Refer N
ote 7 o
f Sch
edu
le 25)3,791,742
44,386,825 TO
TAL
11,359,276,458 10,347,375,621
AP
PL
ICA
TIO
N O
F F
UN
DS
Fixed
Assets
7G
ross Block
8,407,506,035 7,165,494,087
Less : Accum
ulated depreciation / amortisation
1,729,494,637 1,304,898,967
Net B
lock6,678,011,398
5,860,595,120 C
apital Work-in-progress including C
apital Advances
680,090,624 614,282,768
7,358,102,022 6,474,877,888
Investm
ents
8162,811,000
205,011,000
Cu
rrent A
ssets, Lo
ans an
d A
dvan
cesInventories
9728,033,099
721,615,361 S
undry Debtors
102,400,812,822
1,934,309,475 C
ash and Bank B
alances11
1,730,959,004 1,926,409,752
Loans and Advances
121,057,873,193
1,032,026,318 A
5,917,678,118 5,614,360,906
Less : C
urren
t Liab
ilities and
Pro
vision
sC
urrent Liabilities13
1,648,080,088 1,706,012,977
Provisions
14541,061,488
366,557,767 B
2,189,141,576 2,072,570,744
Net C
urren
t Assets
(A-B
)3,728,536,542
3,541,790,162
Miscellan
eou
s Exp
end
iture
15109,826,894
125,696,571 (to the extent not w
ritten off or adjusted)TO
TAL
11,359,276,458 10,347,375,621
NO
TE
S TO
AC
CO
UN
TS
25
The S
chedules referred to above and Notes to A
ccounts form an integral part of the B
alance Sheet.
As per our R
eport of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or G
up
ta Navin
K. &
Co
.F
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WF
irm reg
istration
nu
mb
er: 06263CD
.B. C
orp
Lim
itedC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Man
agin
g D
irector
Directo
rP
artner
Partn
erM
embership N
o. 36656M
embership N
o. 75030
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 52
53
CO
NS
OL
IDA
TE
D P
RO
FIT
AN
D L
OS
S A
CC
OU
NT
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31, 2011(A
mo
un
ts in In
dian
Ru
pees)
Sch
edu
lesF
or th
e Year E
nd
ed
Fo
r the Y
ear En
ded
M
arch 31, 2011
March
31, 2010
INC
OM
E
Sales
162,316,963,389
2,271,908,452 Incom
e from E
vent Managem
ent175,305,407
148,077,147 A
dvertisement Incom
e10,016,147,636
8,085,350,865 O
ther Operating Incom
e17
144,022,823 124,416,631
12,652,439,255 10,629,753,095
EX
PE
ND
ITU
RE
Raw
Materials C
onsumed
183,839,083,276
3,278,675,591 Increase in S
tock of Finished G
oods(604,314)
(15,938)E
vent Expenses
160,203,482118,323,495
Operating E
xpenses19
1,319,362,565 1,318,711,356
Personnel E
xpenses20
1,845,638,366 1,318,112,012
General and A
dministrative E
xpenses21
781,891,703 565,695,858
Selling and D
istribution Expenses
22675,714,600
600,838,839 O
peratin
g P
rofit b
efore in
terest and
dep
reciation
4,031,149,577 3,429,411,882
Other Incom
e (Interest Income)
23141,762,180
111,523,413 F
inancial Expenses
24153,028,579
356,918,966 D
epreciation /amortisation
7432,844,418
378,349,362
Pro
fit Befo
re Tax3,587,038,760
2,805,666,967 Tax E
xpen
seC
urrent Tax 897,291,887
840,010,000 D
eferred Tax Charge
85,894,427 215,943,289
Provision for tax of earlier years
16,500,000 1,208,404
999,686,314 1,057,161,693
Pro
fit for th
e Year B
efore M
ino
rity Interest
2,587,352,446 1,748,505,274
Minority Interest in the (profits)/losses of S
ubsidiaries(2,590,845)
79,495,798
Pro
fit for th
e Year
2,584,761,601 1,828,001,072
Balance brought forw
ard from previous year
1,363,267,140 109,133,208
Pro
fit available fo
r Ap
pro
priatio
n3,948,028,741
1,937,134,280
Ap
pro
priatio
ns:
Interim D
ividend363,083,050
136,135,954 P
roposed Final D
ividend366,596,274
226,908,256 Tax on D
ividend119,774,637
60,822,930 Transfer to G
eneral Reserve
300,000,000 150,000,000
1,149,453,961 573,867,140
Balan
ce carried to
Balan
ce Sh
eet2,798,574,780
1,363,267,140
Earn
ing
s Per S
hare (R
efer No
te 17 of S
ched
ule 25)
Basic E
arning Per S
hare14.24
10.62 D
iluted Earning P
er Share
14.22 10.61
Nom
inal Value P
er Share
10 10
NO
TE
S TO
AC
CO
UN
TS
25
The S
chedules referred to above and Notes to A
ccounts form an integral part of the P
rofit and Loss Account.
As p
er o
ur R
ep
ort o
f eve
n d
ate
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or G
up
ta Navin
K. &
Co
.F
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WF
irm reg
istration
nu
mb
er: 06263CD
.B. C
orp
Lim
itedC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Man
agin
g D
irector
Directo
rP
artner
Partn
erM
embership N
o. 36656M
embership N
o. 75030
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 53
54
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees, except sh
are data)
As A
t A
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 1
SH
AR
E C
AP
ITAL
Authorised :
249,000,000 (Previous Year 249,000,000) E
quity Shares of R
s. 10 each2,490,000,000
2,490,000,000
1,000 (Previous Year 1,000), 0%
, Non- C
onvertible Redeem
able P
reference Shares of R
s. 10,000 each10,000,000
10,000,000
2,500,000,000 2,500,000,000
Issued
, Su
bscrib
ed an
d P
aid u
p :
183,283,231 (Previous Year 181,514,605) E
quity Shares of R
s.10 each fully paid up1,832,832,310
1,815,146,050
1 (Previous Year 1), 0%
, Non - C
onvertible Redeem
able Preference S
hare of R
s. 10,000 each10,000
10,000
No
tes:a) O
f the above, 166,652,850 (Previous Year 166,652,850) E
quity shares of Rs. 10 each,
fully paid up have been issued as bonus shares by capitalisation of General R
eserveb) O
f the above shares, 3,869,255 (Previous Year 2,136,755) E
quity shares have been issued for a consideration other than cash (R
efer Note 6A
of Schedule 25)
c) 1 (Previous Year 1) P
reference share of Rs. 10,000 has been issued for consideration
other than cashd) P
reference shares are redeemable at par after five years from
the date of allotment i.e.
July 31, 2007e) F
or Em
ployee Stock O
ption Schem
e (Refer N
ote 19 of Schedule 25)
f) For S
hares issued pursuant to an Initial Public O
ffer (Refer N
ote 4 of Schedule 25)
1,832,842,310 1,815,156,050
Sch
edu
le 2
STO
CK
OP
TIO
NS
OU
TS
TAN
DIN
G(R
efer Note 19 of S
chedule 25)E
mployee S
tock Options outstanding
57,831,008 25,109,412
Less: Deferred E
mployee C
ompensation outstanding
26,166,387 12,143,686
31,664,621 12,965,726
Less: Value of E
mployee C
ompensation of options exercised
2,745,576 -
28,919,045 12,965,726
Sch
edu
le 3
RE
SE
RV
ES
AN
D S
UR
PL
US
Gen
eral Reserve
As per last B
alance Sheet
929,597,888 779,597,888
Add : Transferred from
Profit and Loss A
ccount300,000,000
150,000,000 A
dd: Adjusted pursuant to the schem
e of arrangement (R
efer Note 6A
of Schedule 25)
26,022,325 -
1,255,620,213 929,597,888
Secu
rities Prem
ium
Acco
un
tA
s per last Balance S
heet2,365,932,438
88,200 A
dd: Received on account of F
resh Issue of Equity shares (R
efer Note 4 of S
chedule 25)-
2,562,815,000 A
dd: Received on exercise of em
ployee stock options6,863,940
- Less: S
hare Issue expenses (Refer N
ote 4 of Schedule 25)
- 196,970,762
2,372,796,378 2,365,932,438
Pro
fit and
Lo
ss Acco
un
t2,798,574,780
1,363,267,140 6,426,991,371
4,658,797,466
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 54
55
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees, except sh
are data)
As A
t A
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 4
SE
CU
RE
D L
OA
NS
Term
Lo
ans
- R
upee Loans from B
anks480,000,000
897,666,852 -
Rupee Loans from
Financial Institution
- 77,777,758
- F
oreign Currency Loan from
Financial Institution
1,264,944,748 1,418,250,923
Wo
rking
Cap
ital Lo
an-
Cash C
redit Facilities from
Banks
51,612,055 121,698,805
- B
uyers' Credit from
Bank
285,168,537 450,903,496
(For S
ecurity Refer N
ote 9 of Schedule 25)
2,081,725,340 2,966,297,834
Sch
edu
le 5U
NS
EC
UR
ED
LO
AN
S
Security D
eposits Received
290,349,265 241,008,762
290,349,265 241,008,762
Sch
edu
le 6D
EF
ER
RE
D TA
X L
IAB
ILIT
IES
(NE
T)
Deferred
Tax Liab
ilitiesD
epreciation814,707,297
739,561,078 Term
Loan Processing fees
- -
814,707,297 739,561,078
Deferred
Tax Assets
Provision for D
oubtful Debts and A
dvances61,837,662
23,585,388 P
rovision for Gratuity and Leave E
ncashment
16,219,003 13,609,701
Provision for D
iminution in value of Investm
ent32,387,063
17,844,750 U
nabsorbed Depreciation and C
arried Forw
ard Losses (Refer N
ote below)
- 71,351,231
Provision for E
mployee S
tock Option S
cheme
9,606,184 4,407,050
120,049,912 130,798,120
Deferred
Tax Liab
ilities (Net)
694,657,385 608,762,958
Note: In case of subsidiaries, the recognition of deferred tax assets is restricted to the extent of deferred tax liabilities as at M
arch 31, 2011 and March 31, 2010.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 55
56
SCHEDULE FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2011(Amounts in Indian Rupees)
Schedule 7FIXED ASSETS
Assets Gross Block Accumulated Depreciation/Amortisation Net BlockAs At Additions Deductions As At Up To For the On Up To As At As At
April 1, 2010 during during March 31, 2011 April 1, 2010 Year deductions March 31, 2011 March 31, 2011 March 31, 2010the year the year
Tangible Assets
Land
- Freehold 37,737,900 24,496,413 - 62,234,313 - - - - 62,234,313 37,737,900
- Leasehold 11,192,602 18,754,976 - 29,947,578 411,916 400,124 - 812,040 29,135,538 10,780,686
Buildings
- Freehold 557,736,270 116,860,508 - 674,596,778 28,595,931 19,793,382 - 48,389,313 626,207,465 529,140,339
- Leasehold - 509,727,738 - 509,727,738 - 575,964 - 575,964 509,151,774 -
Leasehold Improvements 53,308,711 11,102,564 - 64,411,275 7,711,447 6,284,287 - 13,995,734 50,415,541 45,597,264
Plant and Machinery (Refer Note 2 Below) 4,859,575,205 374,974,211 11,852,244 5,222,697,172 710,291,508 261,933,422 3,042,422 969,182,508 4,253,514,664 4,149,283,697
Office Equipments 169,096,368 20,838,541 1,667,383 188,267,526 39,494,916 10,137,414 605,401 49,026,929 139,240,597 129,601,452
Vehicles 22,942,152 4,815,743 1,605,801 26,152,094 15,723,231 1,839,354 907,862 16,654,723 9,497,371 7,218,921
Furniture and Fixtures 227,820,901 27,096,524 67,698 254,849,727 60,198,257 16,249,300 39,861 76,407,696 178,442,031 167,622,644
Electric Fitting, Fans and Coolers 221,828,879 47,671,758 - 269,500,637 31,491,049 12,395,297 - 43,886,346 225,614,291 190,337,830
Computers 336,431,965 59,888,272 4,720,614 391,599,623 219,727,079 35,212,297 3,653,202 251,286,174 140,313,449 116,704,886
D.G.Sets 99,884,175 36,200,489 - 136,084,664 10,683,436 5,450,403 - 16,133,839 119,950,825 89,200,739
Intangible Assets
Computer Software 28,683,650 9,336,553 - 38,020,203 14,880,871 5,955,458 - 20,836,329 17,183,874 13,802,779
Goodwill 25,609,517 - - 25,609,517 18,149,608 5,030,979 - 23,180,587 2,428,930 7,459,909
Goodwill on Consolidation (Refer Note 5 of Schedule 25) 1,444,792 161,398 - 1,606,190 1,239,553 366,637 - 1,606,190 - 205,239
One Time License Fees 512,201,000 - - 512,201,000 146,300,165 51,220,100 - 197,520,265 314,680,735 365,900,835
Total 7,165,494,087 1,261,925,688 19,913,740 8,407,506,035 1,304,898,967 432,844,418 8,248,748 1,729,494,637 6,678,011,398 5,860,595,120
Capital Work-in-progress 680,090,624 614,282,768
(including Capital Advances)
(Refer Note 1, 3 and 4 Below)
7,358,102,022 6,474,877,888
Previous year ended March 31, 2010 4,694,684,043 2,486,557,091 15,747,047 7,165,494,087 931,887,966 378,349,362 5,338,361 1,304,898,967 5,860,595,120
Notes
1) For details of Pre operative expenses and borrowing cost capitalised Refer Note 22 of Schedule 25.
2 Plant and Machinery above include Common Transmitters Infrastructure which are Jointly held assets as at March 31, 2011:
Gross Block - Rs. 127,300,000 (Previous Year - Rs. 127,300,000)
Net Block - Rs.101,333,902 (Previous Year - Rs. 114,496,722)
% of Ownership - 30.26% (Previous year 30.26%)
3) Additions during the year and Capital Work-in-progress as at March 31, 2011 includes exchange differences Rs.442,492 [foreign exchange gain (net)] [Previous year Rs. 204,770,841 (foreign exchange gain (net))].
4) Additions during the year and Capital Work-in-progress as at March 31, 2011 includes Borrowing Cost capitalised Rs. Nil (Previous year Rs. 16,184,462).
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 56
57
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees, except sh
are data)
As A
t A
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 8
INV
ES
TM
EN
TS
L
on
g Term
Investm
ents (A
t cost)
Un
qu
oted
and
No
n Trad
e (Refer N
ote 16 o
f Sch
edu
le 25)
100,000 (P
revious Year 100,000) Equity S
hares of Rs. 10 each fully paid up
15,000,000 15,000,000
at a premium
of Rs. 140 per share of D
warkas G
ems Lim
ited
14,286 (P
revious Year 14,286) Equity S
hares of Rs. 10 each fully paid up
5,000,000 5,000,000
at a premium
of Rs. 340 per share of A
ayam H
erbal Private Lim
ited
375,000 (P
revious Year 375,000) Equity S
hares of Rs. 10 each full paid up
15,000,000 15,000,000
at a premium
of Rs. 30 per share of A
rvind Coirfoam
Private Lim
ited
100,000 (P
revious Year 100,000) Equity S
hares of Rs. 10 each fully paid up
40,000,000 40,000,000
at a premium
of Rs. 390 per share of M
icro Secure S
olution Limited (R
efer Note 2 below
)
81,085 (P
revious Year 81,085) Equity S
hares of Rs. 10 each fully paid up
30,000,000 30,000,000
at a premium
of Rs. 359.95 per share of N
aaptol Online Shopping Private Lim
ited (Refer N
ote 2 below)
230,415 (P
revious Year 230,415) Equity S
hares of Rs. 10 each fully paid up
50,000,000 50,000,000
at a premium
of Rs. 207 per share of N
eesa Leisure Limited
27,778 (P
revious Year 27,778) Equity S
hares of Rs. 10 each fully paid up at a prem
ium10,000,000
10,000,000 of R
s. 350 per share of Professionals C
oaching Com
pany Private Lim
ited
1 (P
revious Year 1) 0%, F
ully Convertible D
ebenture of Rs. 3 C
rores fully paid up30,000,000
30,000,000 of A
bbee Consum
ables and Peripherals S
shope Limited (R
efer Note 1 below
)
200,000 (P
revious Year 200,000) 0%, F
ully Convertible D
ebentures of Rs. 100 each fully paid up
20,000,000 20,000,000
of Cubit C
omputers P
rivate Limited (R
efer Note 2 below
)
Nil
(Previous Year 200,000) 14%
Non C
onvertible Debentures of R
s. 100 each fully paid up-
20,000,000 of E
veronn System
s India Limited
2,280,000 (Previous Year N
il) Zero C
oupon Fully C
onvertible Debentures of R
s. 10 each fully paid up22,800,000
- of E
veronn Education Lim
ited
100 ( P
revious year 100) Equity S
hares of Rs 100 each fully paid up of U
nited New
s of India10,000
10,000
10 (P
revious year 10) Equity S
hares of Rs. 100 each fully paid up of P
ress Trust of India1,000
1,000
Ag
greg
ate amo
un
t of U
nq
uo
ted in
vestmen
ts 237,811,000
235,011,000
Qu
oted
and
No
n-Trad
e (Refer N
ote 16 o
f Sch
edu
le 25)
300,000(P
revious Year 300,000) Equity S
hares of Rs. 10 each fully paid up
22,500,000 22,500,000
at a premium
of Rs. 65 per share of A
jcon Global S
ervices Limited
(Market V
alue as at March 31, 2011 is R
s. 6,330,000) (As at M
arch 31, 2010 Rs.2,994,000)
Ag
greg
ate amo
un
t of Q
uo
ted in
vestmen
ts 22,500,000
22,500,000
Aggregate M
arket value as at March 31, 2011 is R
s. 6,330,000 (As at M
arch 31, 2010 Rs.2,994,000)
260,311,000 257,511,000
Less: Provision for D
iminution in V
alue of Investments
97,500,000 52,500,000
162,811,000 205,011,000
No
tes :1) T
hese investments are yet to be transferred in the nam
e of the Com
pany.2) T
hese investments contain Lock-in-P
eriod of twelve m
onths from the date of subscription/allotm
ent.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 57
58
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees, except sh
are data)
As A
t A
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 9IN
VE
NTO
RIE
S (A
t low
er of co
st and
net realisab
le value)
Raw
Materials - N
ews P
rints (Including Stock in Transit R
s. 147,250,346)573,865,091
619,901,028 (P
revious Year Rs. 50,936,079)
Stores and S
pares129,561,869
71,959,244 M
agazines1,709,499
417,070
Gifts / P
romotional P
roducts22,896,640
29,338,019 728,033,099
721,615,361
Sch
edu
le 10S
UN
DR
YD
EB
TOR
S(R
efer Note 14 (a) of S
chedule 25)(U
nsecured)D
ebts outstanding for a period exceeding six months :
- C
onsidered Good
252,932,787 201,833,383
- C
onsidered Doubtful
128,057,034 69,389,197
380,989,821 271,222,580
Others D
ebts :-
Considered G
ood2,147,880,035
1,732,476,092 2,528,869,856
2,003,698,672
Less : Provision for D
oubtful Debts
128,057,034 69,389,197
2,400,812,822 1,934,309,475
Sch
edu
le 11C
AS
H A
ND
BA
NK
BA
LA
NC
ES
Cash on H
and17,154,498
12,734,463 C
heques on Hand/Transit
186,098,676 82,156,988
Balances w
ith Scheduled B
anks:O
n Current A
ccounts368,682,613
368,656,645 O
n Fixed D
eposit Account (R
efer Note 4 and 15 of S
chedule 25)1,159,023,217
1,462,861,656 1,730,959,004
1,926,409,752
Sch
edu
le 12L
OA
NS
AN
D A
DVA
NC
ES
(Refer N
ote 14 (b) of Schedule 25)
(Unsecured, considered good unless otherw
ise stated)
Loans and Advances to E
mployees
23,137,251 15,975,704
Advances recoverable in cash or kind or for value to be received
- C
onsidered Good
401,004,860 300,066,579
- C
onsidered Doubtful
5,679,338 -
Inter Corporate D
eposits359,839,548
461,036,398 D
eposit with G
overnment A
uthorities54,721,079
52,614,442 Inter C
orporate Deposit against Lease of P
roperties (Refer N
ote 14(b) of Schedule 25)
132,950,000132,950,000
Deposit w
ith Others
86,220,455 69,383,195
1,063,552,531 1,032,026,318
Less : Provision for D
oubtful Loans and Advances
5,679,338-
1,057,873,193 1,032,026,318
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 58
59
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees, except sh
are data)
As A
t A
s At
March
31, 2011M
arch 31, 2010
Sch
edu
le 13C
UR
RE
NT
LIA
BIL
ITIE
SS
undry Creditors (R
efer Note 13 of S
chedule 25)1,220,211,225
1,237,942,418 (Includes R
s. 26,405,159 for Capital G
oods) (Previous Year R
s. 96,478,418)
Advances from
Custom
ers366,944,400
402,855,684 B
ook Overdraft
- 10,753,125
Interest Accrued but not due on loans
1,822,950 2,239,584
Other Liabilities
59,101,513 52,222,167
1,648,080,088 1,706,012,977
Sch
edu
le 14P
RO
VIS
ION
S
Provision F
or Tax (Net of taxes paid R
s.2,689,297,806)58,421,055
55,299,259 (P
revious Year Rs. 1,754,723,061)
Provision F
or Fringe B
enefit Tax (Net of taxes paid R
s. 81,867,995)6,613,317
6,613,317 (P
revious Year Rs.81,867,995)
Provision F
or Wealth Tax
50,000 10,000
Provision F
or Gratuity (R
efer Note 18 of S
chedule 25)8,534,419
9,322,299 P
rovision For Leave E
ncashment (R
efer Note 18 of S
chedule 25)41,238,900
30,718,011 P
rovision For P
roposed Dividend
366,732,717 226,908,256
Tax on Proposed D
ividend 59,471,080
37,686,625 541,061,488
366,557,767
Sch
edu
le 15M
ISC
EL
LA
NE
OU
S E
XP
EN
DIT
UR
E
(to the extent not written off or adjusted)
Share Issue E
xpensesO
pening Balance
- 41,764,142
Additions during the Year
- 155,206,620
Less: Transferred to Securities P
remium
Account (R
efer Note 4 of S
chedule 25)-
196,970,762 -
-
Term L
oan
Pro
cessing
Fees
Opening B
alance125,696,571
175,106,651 Less: A
mortized during the Year
- C
harged to Profit and Loss A
ccount15,869,677
43,721,667 -
Transferred to Capital W
ork in Progress
- 5,688,413
109,826,894 125,696,571
109,826,894 125,696,571
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 59
60
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
PR
OF
IT A
ND
LO
SS
AC
CO
UN
T F
OR
TH
EY
EA
R E
ND
ED
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
M
arch 31, 2011
March
31, 2010
Sch
edu
le 16S
AL
ES
S
ale of New
spapers2,084,953,525
2,052,110,962 W
astage Sale
137,470,287 117,191,477
Sale of P
ower
10,418,972 15,637,552
Sale of M
agazines58,626,779
65,768,326 P
ortal and wireless revenue
25,493,826 21,200,135
2,316,963,389 2,271,908,452
Sch
edu
le 17O
TH
ER
OP
ER
AT
ING
INC
OM
EP
rinting Job Charges
91,351,789 72,222,345
Excess Liabilities / provisions w
ritten back40,755,423
24,785,048 F
oreign Exchange G
ain (Net)
609,893 8,838,385
Miscellaneous Incom
e11,305,718
18,570,853 144,022,823
124,416,631
Sch
edu
le 18R
AW
MA
TE
RIA
LS
CO
NS
UM
ED
New
s Prin
tsO
pening Inventories 619,901,028
631,818,955 A
dd: Purchases during the Year
3,793,047,339 3,266,757,664
4,412,948,367 3,898,576,619
Less: Closing Inventories
573,865,091 619,901,028
3,839,083,276 3,278,675,591
Sch
edu
le 19O
PE
RA
TIN
G E
XP
EN
SE
SC
onsumption of S
tores and Spares
587,046,859 514,905,721
Printing Job W
ork Expenses
109,959,802 172,183,645
New
s Collection E
xpenses159,041,008
210,023,380 B
inding Expenses
32,016,227 26,448,405
Electricity and W
ater Charges
154,613,559 137,350,005
Repairs and M
aintenance - Machinery
109,733,755 86,455,123
License Fees
23,749,449 22,202,846
Tower R
ent20,257,458
22,249,195 R
oyalty68,383,705
91,335,155 P
ortal and wireless E
xpenses11,580,351
7,304,351 O
ther Operating E
xpenses42,980,392
28,253,530 1,319,362,565
1,318,711,356
Sch
edu
le 20P
ER
SO
NN
EL
EX
PE
NS
ES
S
alaries, Wages and B
onus1,684,892,118
1,206,784,624 C
ontribution to Provident F
und and Other F
unds91,245,583
63,096,396 W
orkmen and S
taff Welfare E
xpenses69,500,665
48,230,992 1,845,638,366
1,318,112,012
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 60
61
SC
HE
DU
LE
S F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
PR
OF
IT A
ND
LO
SS
AC
CO
UN
T F
OR
TH
EY
EA
R E
ND
ED
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
M
arch 31, 2011
March
31, 2010
Sch
edu
le 21G
EN
ER
AL
AN
D A
DM
INIS
TR
AT
IVE
EX
PE
NS
ES
Electricity
50,159,413 43,375,326
Rent
96,810,134 78,384,701
Rates and Taxes
3,374,104 2,944,211
Insurance7,972,532
6,638,974 R
epair and Maintenance
- B
uilding6,213,960
8,967,412 -
Others
25,724,776 21,707,960
Legal and Professional C
harges115,550,154
70,912,003 P
ostage and Telegram8,600,929
7,186,228 C
omm
unication37,048,176
31,332,776 P
rinting and Stationery
25,747,992 19,202,926
Traveling 107,223,089
62,630,384 C
onveyance 6,796,110
5,869,889 V
ehicle Running and M
aintenance7,409,554
8,785,413 A
uditors Rem
uneration9,103,400
8,293,100 Loss on S
ale of fixed assets (Net)
1,801,825 3,460,203
Bad D
ebts written off
5,887,079 21,835,752
Less: Out of the P
rovision of earlier years(2,475,941)
3,411,138
Fixed assets w
ritten Off
- 728,332
Provision for dim
inution in value of Investments
45,000,000 45,000,000
Provision for doubtful debts
61,143,778 45,584,144
Provision for doubtful advances (including for C
apital advances)60,679,338
- M
iscellaneous Expenses
102,121,301 72,856,124
781,891,703 565,695,858
Sch
edu
le 22S
EL
LIN
G A
ND
DIS
TR
IBU
TIO
N E
XP
EN
SE
S
Advertisem
ent and Publicity
125,213,772 129,779,890
Distribution E
xpenses212,816,228
228,113,715 B
usiness Prom
otion149,844,277
122,831,310 S
urvey Expenses
187,840,323 120,113,924
675,714,600 600,838,839
Sch
edu
le 23O
TH
ER
INC
OM
E
Interest Income from
-B
ank Deposits (Tax deducted at source R
s. 8,578,017)86,750,399
32,595,249 (P
revious Year Rs. 3,452,542)
-O
ther Sundry deposits (Tax deducted at source R
s. 407,247)4,173,337
5,728,581 (P
revious Year Rs. 826,405)
-Intercorporate D
eposits (Tax deducted at source Rs. 5,083,844)
50,838,444 73,199,583
(Previous Year R
s. 11,029,073)141,762,180
111,523,413
Sch
edu
le 24F
INA
NC
IAL
EX
PE
NS
ES
Interest Expenses
-O
n Term Loans
79,492,865 257,150,248
-O
n Banks
23,033,206 17,279,862
-O
n Others
30,812,943 68,065,461
Exchange (G
ain) / Loss on Buyers' C
redit from B
anks (Net)
397,490 (39,711,687)
Bank C
harges19,292,075
54,135,082 153,028,579
356,918,966
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 61
62
CO
NS
OL
IDA
TE
D C
AS
H F
LO
W S
TAT
EM
EN
T F
OR
TH
E Y
EA
R E
ND
ED
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
M
arch 31, 2011
March
31, 2010
A.C
AS
H F
LO
W F
RO
M O
PE
RA
TIN
G A
CT
IVIT
IES
Profit before Taxation
3,587,038,760 2,805,666,967
Ad
justm
ent fo
r :Loss on sale of fixed assets (net)
1,801,825 3,460,203
Interest expense (net)(8,423,166)
245,395,553 D
epreciation / amortization
432,844,418 378,349,362
Miscellaneous E
xpenditure Written off
15,869,677 43,721,667
Provision for D
oubtful Loans and Advances
60,679,338 -
Provision for D
iminution in V
alue of Investments
45,000,000 45,000,000
Bad D
ebts Written O
ff3,411,138
21,835,752 P
rovision Written B
ack-
(6,448,217)P
rovision for Doubtful D
ebts61,143,778
45,584,144 U
nrealised Exchange R
ate Fluctuation
8,407,005 (11,191,950)
Op
erating
pro
fit befo
re wo
rking
capital ch
ang
es4,207,772,773
3,571,373,481 In
crease / Decrease in
Wo
rking
Cap
ital(Increase) in Inventories
(6,417,738)(10,796,437)
(Increase) in Sundry D
ebtors(531,058,266)
(227,945,383)D
ecrease/ (Increase) in Loans and Advances
(31,526,213)26,570,558
Increase in Current Liabilities
3,302,942 13,530,815
Increase in Provisions
9,733,009 359,145
Cash
gen
erated fro
m o
peratio
ns
3,651,806,507 3,373,092,179
Direct Taxes paid
(910,630,090)(1,013,322,482)
NE
T C
AS
H F
RO
M O
PE
RA
TIN
G A
CT
IVIT
IES
(A)
2,741,176,417 2,359,769,697
B
CA
SH
FL
OW
FR
OM
INV
ES
TIN
G A
CT
IVIT
IES
Purchase of F
ixed Assets
(1,433,099,453)(603,440,989)
Proceeds from
Sale of F
ixed Assets
9,863,167 6,948,483
Purchase of Investm
ents(22,800,000)
(70,000,000)S
ale of Investments
20,000,000 57,500,000
Interest received141,762,180
111,132,138 F
ixed Deposit w
ith maturity period m
ore than three months P
laced-
(1,372,926,739)F
ixed Deposit w
ith maturity period m
ore than three months R
eceived702,832,626
-
NE
T C
AS
H (U
SE
D IN
) INV
ES
TIN
G A
CT
IVIT
IES
(B)
(581,441,480)(1,870,787,107)
C
CA
SH
FL
OW
FR
OM
FIN
AN
CIN
G A
CT
IVIT
IES
Loan Taken - Secured
14,279,058 286,963,420
Repaym
ent of Loan - Secured
(898,851,552)(2,577,054,293)
Loan Taken - Unsecured
49,340,503 22,062,844
Dividend P
aid(589,854,863)
(220,530,758)D
ividend Distribution tax
(97,990,181)(37,479,202)
Interest Paid
(133,755,648)(396,343,454)
Shares Issue E
xpenses-
(155,206,620)P
roceeds from issuance of shares
4,479,624 -
Proceeds from
issuance of shares -
2,690,065,000
NE
T C
AS
H (U
SE
D IN
) FIN
AN
CIN
G A
CT
IVIT
IES
(C)
(1,652,353,059)(387,523,063)
Net In
crease in C
ash an
d C
ash E
qu
ivalents
(A)+(B
)+(C)
507,381,878 101,459,527
Cash and C
ash Equivalents at the beginning of the Year
464,590,005 363,130,478
Cash and C
ash Equivalents at the end of the Year
971,971,883 464,590,005
Net In
crease in C
ash an
d C
ash E
qu
ivalents
507,381,878 101,459,527
Fo
r Details o
f Co
mp
on
ents o
f Cash
and
Cash
Eq
uivalen
ts - Refer S
ched
ule - 11
Closing B
alance1,730,959,004
1,926,409,752 Less: F
ixed Deposit w
ith maturity period of m
ore than three months
758,987,121 1,461,819,747
(Refer N
ote 15 of Schedule 25)
Net C
ash an
d C
ash E
qu
ivalents at th
e end
of th
e year (As p
er no
tified A
S- 3)
971,971,883 464,590,005
Refer N
ote 6Aof S
chedule 25 for details of equity shares issued on account of scheme of dem
ergerA
s per our Report of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or G
up
ta Navin
K. &
Co
.F
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WF
irm reg
istration
nu
mb
er: 06263CD
.B. C
orp
Lim
itedC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Man
agin
g D
irector
Directo
rP
artner
Partn
erM
embership N
o. 36656M
embership N
o. 75030
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 62
63
SC
HE
DU
LE FO
RM
ING
PAR
T OF TH
E C
ON
SO
LIDA
TED
AC
CO
UN
TS A
S A
T AN
D FO
R TH
E Y
EA
R E
ND
ED
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
SC
HE
DU
LE
25C
ON
SO
LID
AT
ED
NO
TE
S TO
AC
CO
UN
TS
1.N
ature of Operations
D.B
. Corp Lim
ited ('the Com
pany') and its subsidiaries Synergy
Media E
ntertainment Lim
ited ("SM
EL") and I M
edia Corp Lim
ited("IM
CL") (together referred as "the G
roup") are mainly in the
business of
publishing of
newspapers,
Radio
broadcasting,E
vent Managem
ent and Internet. The major brands are 'D
ainikB
haskar' and 'Business B
haskar' (Hindi dailies), 'D
ivya Bhaskar'
and 'Saurashtra S
amachar' (G
ujarati dailies), 'DN
AE
nglish',(E
nglish daily) and monthly m
agazines such as 'Aha Zindagi'
and 'Bal B
haskar', etc. The Com
pany is also involved in the busi-ness of radio broadcasting w
ith the brand "My FM
", which is cur-
rently on
air in
17 cities.
SM
EL
is involved
in the
Event
Managem
ent Business. IM
CL
is involved in the internet busi-ness. The G
roup derives revenue mainly from
the sale of publi-cations and advertisem
ents published in those publications andaired on radio. The G
roup is also in the business of event man-
agement and w
ind energy.
2.B
asis of Consolidation
The consolidated financial statements ("C
FS") are related to the
Com
pany and
its subsidiary
companies
namely
SM
EL
andIM
CL.
a)B
asis of Accounting:
The CFS
has been prepared in accordance with A
ccountingStandard 21 (A
S 21) - "C
onsolidated Financial Statements" noti-
fied by
Com
panies (A
ccounting Standard)
Rules,
2006 (as
amended).
The subsidiaries considered in the preparation of the CFS
andthe shareholding of the C
ompany in these com
panies is as follow
s:
b)P
rinciples of consolidation:The C
FS has been prepared using uniform
accounting policies and on the follow
ing basis:i)
The financial statements of the C
ompany and its sub-
sidiary companies have been com
bined on a line to line basis by adding together like item
s of assets, liab
ilities
, incom
e and expenses. The intra group balances and intra group transactions and unrealized profits or losses have been fully elim
inated unless cost cannot be recovered. ii)
The excess of the cost to the Com
pany of its investment in
a subsidiary over the Com
pany's portion of equity of the
subsidiary, at the date on which the investm
ent in the subsidiary is m
ade, is accounted as goodwill; w
hen the cost to the C
ompany of its investm
ent in the subsidiary is less than the C
ompany's portion of equity of the subsidiary, at the
date on which investm
ent in the subsidiary is made, the dif
ference is accounted as capital reserve.iii)
Minority
interest in
the net
assets of
consolidated susidiaries consists of the am
ount of equity attributable to the m
inority shareholders at the date on which investm
entsare m
ade by the Com
pany in the subsidiary companies
and further movem
ents in their share in the equity subsequent to the date of investm
ents as stated above.c)
The CFS
are based, in so far as they are related to amounts
included in respect of subsidiaries, on the audited financialstatem
ents prepared for consolidation in accordance with the
requirements of notified A
S 21 by each of the included entities.
3.S
ignificant Accounting P
oliciesa)
Basis of P
reparationThe C
FS has been prepared to com
ply in all material respects
with
the A
ccounting S
tandards notified
by C
ompanies
(Accounting Standards) R
ules, 2006, (as amended) and the rel-
evant provisions of the Com
panies Act, 1956. The C
FS has
been prepared under the historical cost convention on an accru-al basis. The accounting policies have been consistently appliedby the G
roup and are consistent with those used in the previous
year.
b)U
se of Estim
ates The preparation of C
FS in conform
ity with generally accepted
accounting principles requires managem
ent to make estim
atesand assum
ptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of theC
FS and the results of operations during the reporting period.
Although these estim
ates are based upon managem
ent's bestknow
ledge of current events and actions, actual results coulddiffer from
these estimates.
c)Fixed A
ssetsFixed assets are stated at cost, less the accum
ulated deprecia-tion/am
ortization and impairm
ent losses, if any. Cost com
prisesthe purchase price and any attributable cost of bringing theasset to its w
orking condition for its intended use. Borrow
ingcosts relating to acquisition of fixed assets w
hich takes substan-tial period of tim
e to get ready for its intended use are alsoincluded to the extent they relate to the period till such assetsare ready to be put to use.E
xchange differences, in respect of accounting periods com-
mencing on or after D
ecember 7, 2006, arising on reporting of
long-term foreign currency m
onetary items at rates different from
those at which they w
ere initially recorded during the year, orreported in previous financial statem
ents, in so far as they relateto the acquisition of a depreciable fixed asset, are added to ordeducted from
the cost of the asset and are depreciated overthe balance life of the asset.
Percentage of O
wnership
interest as at March 31, 2011
56.82%
55%
Country of
Incorporation
India
India
Nam
e of S
ub
sidiary
Co
mpan
ies:
Synergy M
edia E
ntertainment Lim
itedI M
edia Corp Lim
ited
Sr.
No
1.2.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 63
64
d)D
epreciationD
epreciation is provided using the Straight Line Method at the
rates computed based on the estim
ated useful life of the assetsas estim
ated by the managem
ent, which are equal to the corre-
sponding rates prescribed in Schedule X
IV to the C
ompanies
Act, 1956.
Leasehold Improvem
ents are amortized on a straight line basis
over the shorter of the estimated useful life of the asset or the
lease term w
hich is 10 years.A
ssets individually costing below R
s.5,000 are fully depreciatedin the year of its acquisition.
e)IntangiblesG
oodwill
Goodw
ill is amortized on a straight-line basis over a period of
five years.G
oodwill on consolidation is am
ortized on a straight line basisover a period of five years.
One tim
e Entry Fees
One tim
e Entry fees represent am
ount paid for acquiring licens-es for new
radio stations and is amortized on a straight line basis
over a period of ten years i.e. period of Grant of P
ermission
Agreem
ent entered
into w
ith M
inistry of
Information
andB
roadcasting for each station, comm
encing from the date on
which the radio station becom
es operational.
Com
puter Softw
areC
omputer
Softw
are, being
the cost
of E
RP
License and
Installation, is amortised on a straight-line basis over a period of
five years.
f)E
xpenditure on new projects
Capital W
ork-in-Progress:
Expenditure
directly relating
to construction
activity is
capitalized.
Pre-operative E
xpenditure:Indirect expenditure incurred during construction period is capi-talized under the respective asset-head as part of the indirectconstruction cost, to the extent to w
hich the expenditure is indi-rectly
related to
the asset-head.
Other
indirect expenditure
incurred during the construction period, which is not related to
the construction activity or which is not incidental thereto is w
rit-ten off in the profit and loss account.Incom
e earned during the construction period and income from
trial runs is deducted from preoperative expenditure pending
allocation.
g) Impairm
ent of Assets
The carrying amounts of assets are review
ed at each balancesheet date if there is any indication of im
pairment based on
internal/external factors. An im
pairment loss is recognized w
her-ever the carrying am
ount of an asset exceeds its recoverableam
ount. The recoverable amount is the greater of the assets net
selling price and value in use. In assessing value in use, the esti-
mated future cash flow
s are discounted to their present valueusing a pre-tax discount rate that reflects current m
arket assess-m
ents of the time value of m
oney and risks specific to the asset.
h)Investm
entsInvestm
ents that are readily realisable and intended to be heldfor not m
ore than a year are classified as current investments.
All other investm
ents are classified as long-term investm
ents.C
urrent investments are carried at low
er of cost and fair valuedeterm
ined on an individual investment basis. Long-term
invest-m
ents are carried at cost. How
ever, provision for diminution in
value, if any, is made to recognise a decline other than tem
po-rary in the value of the investm
ents.
i)LeasesW
here the Com
pany is the lesseeLeases, w
here the lessor effectively retains substantially all therisks and benefits of ow
nership of the leased items are classified
as operating leases. Operating lease paym
ents are recognizedas an expense in the profit and loss account on a straight-linebasis over the lease term
.
j)InventoriesInventories are valued as follow
s:
Net realizable value is the estim
ated selling price in the ordinarycourse of business, less estim
ated costs of completion and esti-
mated costs necessary to m
ake the sale.
k)R
evenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits w
ill flow to the G
roup and the revenue can bereliably m
easured. Specifically, the following bases are adopted:
Advertisem
entsR
evenue is recognized as and when advertisem
ent is published/displayed
/aired and
is disclosed
net of
discounts and
service tax.
Sale of N
ewspaper, M
agazine, Waste P
aper and Scrap
Revenue is recognized w
hen the significant risks and rewards of
ownership have passed on to the buyer and is disclosed net of
sales return and discounts.
Printing Job W
orkR
evenue from printing job w
ork is recognized on the completion
of job work as per term
s of the agreement w
ith the customer.
Revenue from
Sales P
ortal and SM
SR
evenue is recognised as and when the related services are
(SC
HE
DU
LE
25) CO
NS
OL
IDA
TE
D N
OT
ES
TO A
CC
OU
NT
S (C
on
tinu
ed)
Raw
materials- N
ews P
rintand S
tores and Spares
Ma
ga
zine
a
nd
G
ifts /
Prom
otional Products
Lower of cost and net realizable value. H
owever,
material and other item
s held for use in the pro-duction of inventories are not w
ritten down below
cost if the finished products in which they w
ill beincorporated are expected to be sold at or abovecost. C
ost is determined on a w
eighted averagebasis.
Lower of cost and net
realizable value.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 64
65
rendered as per the terms of agreem
ent and are disclosed netof discounts.
Sale of pow
erR
evenue from sale of pow
er generated in the Wind E
nergy Unit
of the Com
pany is accounted on the basis of supply made to
Madhya P
radesh Paschim
Kshetra V.V. C
o. Limited, as per the
agreement.
Event
Revenue is recognized once the related event is organized and
completed.
InterestR
evenue is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend Incom
eR
evenue is recognized when the shareholders' right to receive
the payment is established by the B
alance sheet date.
l)Foreign currency transactionsInitial recognitionForeign currency transactions are recorded in Indian R
upees byapplying to the foreign currency am
ount, the exchange ratebetw
een the Indian Rupee and the foreign currency prevailing at
the date of the transaction.
Conversion
Foreign currency monetary item
s are reported using the closingrate. N
on-monetary item
s which are carried in term
s of historicalcost denom
inated in a foreign currency are reported using theexchange rate at the date of the transaction; and non-m
onetaryitem
s which are carried at fair value or other sim
ilar valuationdenom
inated in
a foreign
currency are
reported using
theexchange rates that existed w
hen the values were determ
ined.
Exchange differences
Exchange differences, in respect of accounting periods com
-m
encing on or after Decem
ber 7, 2006, arising on reporting oflong-term
foreign currency monetary item
s at rates differentfrom
those at which they w
ere initially recorded during the year,or reported in previous financial statem
ents, in so far as theyrelate to the acquisition of a depreciable fixed assets, areadded to or deducted from
the cost of the assets and depreci-ated over the balance life of the assets.E
xchange differences arising on the settlement of m
onetaryitem
not covered above, or on reporting such monetary item
sat rates different from
those at which they w
ere initially recov-ered during the year, or reported in previous financial state-m
ents, are recognized as income or as expense in the year in
which they arise.
Forward exchange contracts not intended for trading or
speculation purposesT
he premium
or discount arising at the inception of forward
exchange contracts is amortised as an expense or incom
eover the life of the contract. E
xchange differences on such con-
tracts are recognised in the statement of profit and loss in the
year in which the exchange rates change. A
ny profit or lossarising on cancellation or renew
al of forward exchange con-
tract is recognised as income or as expense for the year.
m) R
etirement and other E
mployee B
enefitsR
etirement benefits in the form
of Provident F
und are a definedcontribution schem
e and the contributions are charged to theprofit and loss account of the year w
hen the contributions to therespective funds are due. T
here are no other obligations otherthan the contribution payable to the respective funds. G
ratuity liability is a defined benefit obligation and is providedfor on the basis of an actuarial valuation done as per projectedunit credit m
ethod, carried out by an independent actuary atthe end of the year. T
he Com
pany makes contributions to a trust adm
inistered andm
anaged by the insurance company to fund the gratuity liabil-
ity. Under this schem
e, the obligation to pay gratuity remains
with the C
ompany, although the insurance com
pany administer
the scheme.
Short term
compensated absences are provided for based on
estimates. Long term
compensated absences are provided
based on actuarial valuation carried out by an independentactuary at the end of the year. T
he actuarial valuation is doneas per projected unit credit m
ethod.A
ctuarial gains/losses are imm
ediately taken to profit and lossaccount and are not deferred.
n)Incom
e TaxesT
ax expense comprises of current and deferred tax. C
urrentincom
e tax is measured at the am
ount expected to be paid tothe tax authorities in accordance w
ith the Income-tax A
ct, 1961enacted in India. D
eferred income taxes reflects the im
pact ofcurrent year tim
ing differences between taxable incom
e andaccounting incom
e for the year and reversal of timing differ-
ences of earlier years.
Deferred tax is m
easured based on the tax rates and the taxlaw
s enacted or substantively enacted at the balance sheetdate. D
eferred tax assets are recognised only to the extent thatthere
is reasonable
certainty that
sufficient future
taxableincom
e will be available against w
hich such deferred tax assetscan be realised. In situations w
here the company has unab-
sorbed depreciation or carry forward tax losses, all deferred tax
assets are recognised only if there is virtual certainty support-ed by convincing evidence that they can be realised againstfuture taxable profits.
At each balance sheet date, unrecognized deferred tax assets
of earlier years are re-assessed and recognized to the extentthat it has becom
e reasonably certain or virtually certain, as thecase m
ay be, that future taxable income w
ill be availableagainst w
hich such deferred tax assets can be realized. The
carrying amount of deferred tax assets are review
ed at eachbalance sheet date. T
he company w
rites-down the carrying
(SC
HE
DU
LE
25) CO
NS
OL
IDA
TE
D N
OT
ES
TO A
CC
OU
NT
S (C
on
tinu
ed)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 65
66
amount of a deferred tax asset to the extent that it is no longer
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income w
ill be available against which
deferred tax asset can be realized. Any such w
rite down is
reversed to the extent that it becomes reasonably certain or vir-
tually certain, as the case may be, that sufficient future taxable
income w
ill be available.
o)P
rovisionA
provision is recognized when an enterprise has a present
obligation as a result of past event; it is probable that an out-flow
of resources will be required to settle the obligation and in
respect of which a reliable estim
ate can be made. P
rovisionsare not discounted to its present value and are determ
inedbased on best estim
ate required to settle the obligation at thebalance sheet date. T
hese are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
p)D
eferred Revenue E
xpenditureT
erm loan processing fees incurred for raising loan funds are
amortised equally over the period of the loan.
q)E
arnings Per S
hareB
asic earnings per share are calculated by dividing the netprofit or loss for the year attributable to equity shareholders(after deducting preference dividends and attributable taxes, ifany) by the w
eighted average number of equity shares out-
standing during the year. The w
eighted average number of
equity shares outstanding during the year are adjusted forevents of bonus issue; bonus elem
ent in a rights issue to exist-ing shareholders; share split; and reverse share split (consoli-dation of shares) (if any).F
or the purpose of calculating diluted earnings per share, thenet profit or loss for the year attributable to equity shareholdersand the w
eighted average number of shares outstanding dur-
ing the year are adjusted for the effects of all dilutive potentialequity shares.
r)C
ash and Cash equivalents
Cash and C
ash equivalents in the cash flow statem
ent com-
prise cash at bank and in hand and short term investm
ents with
an original maturity of three m
onths or less.
s)S
egment Inform
ationIdentification of segm
ents T
he Group's operating businesses are organized and m
an-aged separately according to the nature of products and ser-vices provided, w
ith each segment representing a strategic
business unit that offers different products and serves differentm
arkets. There are no geographical reportable segm
ents sincethe G
roup caters to the Indian market only and does not dis-
tinguish any reportable regions within India.
Inter segment Transfers
The G
roup generally accounts for intersegment sales and
transfers as if the sales or transfers were to third parties at cur-
rent market prices.
Allocation of com
mon costs
Com
mon
allocable costs
are allocated
to each
segment
according to the relative contribution of each segment to the
total comm
on costs.
Unallocated item
sIncludes general corporate incom
e and expense items w
hichare not allocated to any business segm
ent.
Segm
ent Policies
The G
roup prepares its segment inform
ation in conformity w
iththe accounting policies adopted for preparing and presentingthe financial statem
ents of the Group as a w
hole.
t) E
mployee S
tock Com
pensation Cost
Measurem
ent and disclosure of the employee share-based
payment plans is done in accordance w
ith the Securities and
Exchange B
oard of India (Em
ployee Stock O
ption Schem
e andE
mployee
Stock
Purchase
Schem
e) G
uidelines 1999
andG
uidance N
ote on
Accounting
for E
mployee
Share-based
Paym
ents, issued by the Institute of Chartered A
ccountants ofIndia. T
he Com
pany measures com
pensation cost relating toem
ployee stock
options using
the intrinsic
value m
ethod.C
ompensation expense is am
ortized over the vesting period ofthe option on a straight line basis.
4. Initial P
ublic Offer
During the previous year, the C
ompany com
pleted an InitialP
ublic Offer (IP
O) of its 18,175,000 E
quity Shares of R
s.10/-each for cash at a price of R
s.210 each for Retail Investors and
Rs. 212 each for other than retail investors. O
ut of total shareslisted, 12,725,000 fresh equity shares w
ere issued by theC
ompany and an offer for sale of 5,450,000 equity shares of
the Com
pany was m
ade by Cliffrose Investm
ents Limited.
The prem
ium of R
s.200 per share for Retail Investors and
Rs.202 each for other than retail investors, am
ounting to totalR
s.2,562,815,000 w
as credited
to S
ecurities P
remium
Account. T
he Share Issue expenses incurred by the C
ompany
amounting to R
s.196,970,762 were debited against S
ecuritiesP
remium
Account.
Pursuant to the P
ublic Issue, shares of the Com
pany were list-
ed on Bom
bay Stock E
xchange and National S
tock Exchange
with effect from
January 6, 2010.
(SC
HE
DU
LE
25) CO
NS
OL
IDA
TE
D N
OT
ES
TO A
CC
OU
NT
S (C
on
tinu
ed)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 66
67
(SC
HE
DU
LE
25) CO
NS
OL
IDA
TE
D N
OT
ES
TO A
CC
OU
NT
S (C
on
tinu
ed)
The
total IP
O
proceeds received
by the
Com
pany w
ereR
s.2,690,065,000. Follow
ing are the details of utilization of IPO
proceeds till March 31, 2011.
No
te:1)
As per the provisions in the P
rospectus, the managem
ent ofthe C
ompany has the discretion to change the allocation as
well as reschedule the utilization of IP
O proceeds proposed
in the prospectus depending on the business scenario andfunding requirem
ents. Accordingly, the m
anagement has
reallocated the proposed utilization as follows:
a)T
he proceeds
allocated tow
ards S
ales and
marketing
expenses and IPO
expenses and lying unutilized would be
used for setting up publishing units and upgrading the exist-ing plant and m
achinery;b
)T
he proceeds would be utilized for setting up publishing
units as well as upgrading the existing plant and m
achineryat locations / states in addition to the num
ber of locations /states m
entioned in the prospectus.T
he Audit C
omm
ittee as well as the B
oard of Directors of
the Com
pany in the meeting held on M
ay 18, 2011 hasapproved the revised allocation and resultant utilisation ofproceeds of IP
O till M
arch 31, 2011.2)
Pending utilization, as at M
arch 31, 2011, the funds aretem
porarily held in:
Particu
larsA
mo
un
ts
Fixed D
eposit580,000,000
Balance in C
urrent Account
12,738,075To
tal592,738,075
5. G
oo
dw
ill on
Co
nso
lidatio
nT
he excess of the cost to the Com
pany of its investment in
SM
EL
over the Com
pany's portion of equity of SM
EL, at the
date on which the investm
ent was m
ade, was accounted as
goodwill aggregating to R
s.1,444,792. The said goodw
illw
as accounted during the year ended March 31, 2007.
6.S
chem
e of A
rrang
emen
t:A
)D
em
erg
er
of
Ra
dio
d
ivision
o
f S
yne
rgy
Me
dia
En
terta
inm
en
t L
imite
d
(SM
EL
) a
nd
m
erg
er
with
th
eC
ompany
a)T
he C
ompany
along w
ith its
subsidiary S
ynergy M
ediaE
ntertainment Lim
ited had filed the Schem
e of Dem
erger('the S
cheme') w
ith the Hon'ble high C
ourt with Judicature
at Madhya P
radesh ("Madhya P
radesh High C
ourt") andH
on'ble high Court w
ith Judicature at Gujarat ("G
ujarat High
Court") for dem
erger of Radio division of S
ME
Land m
ergerw
ith the Com
pany.
The S
cheme of A
rrangement w
as approved by Madhya
Pradesh H
igh Court and G
ujarat High C
ourt vide their orderdated January 13, 2011 and January 17, 2011 respectively.T
he certified order copy of the Madhya P
radesh High C
ourtand
Gujarat
High
court dated
January 29,
2011 and
February 2, 2011 respectively w
ere filed with the R
egistrarof C
ompanies on F
ebruary 15, 2011 and February 16, 2011
respectively.
As prescribed in the S
cheme, the M
inistry of Information
and B
roadcasting, G
overnment
of India
accorded their
approval vide
letter N
o. 212/30(33)/2006-F
M(V
ol.II)/120dated M
arch 30, 2011.
Accordingly, after the approval by the M
inistry of Information
and B
roadcasting, G
overnment
of India,
the S
cheme
became effective on M
arch 30, 2011 with appointed date
April 1, 2010.
As per the schem
e, with effect from
April 1, 2010, all the
assets and liabilities of the Radio division of S
ME
Las at
March 31, 2010 have been transferred to the C
ompany at
their respective book values.
b)
As per the S
cheme, the C
ompany has issued and allotted
1,732,500 fully paid equity shares of Rs.10 each at par in
the ratio of one equity share of the Com
pany for every tenequity shares of S
ME
Las on record date to the sharehold-
ers of SM
EL.
c)T
he difference
between
the M
inority interest
in the
netassets of R
adio division as at March 31, 2010 and the face
value of equity share capital issued by the Com
pany to theM
inority Shareholders is credited to the G
eneral reserve bythe C
ompany in the C
onsolidated Financial S
tatements for
the year ended March 31, 2011.
d)
As per C
lause 4.8 of the Schem
e, the unabsorbed depreci-ation and accum
ulated tax losses of SM
EL
till March 31,
2010 have been transferred to the Com
pany which has
been set off by the Com
pany while com
puting the Current
Tax provision for the year ended March 31, 2011.
Am
ou
nt to
be
utilized
as per
Pro
spectu
s
600,000,000
Actu
al Utilizatio
n till
March
31, 2011
448,361,906
Balance to be utilized/
(excess utilized) as onM
arch 31, 2011
151,638,094
Particu
lars
Setting
up new
publishing units
305,000,000392,122,896
(87,122,896)U
pgradingexisting plantand m
achinery
501,000,0003,804,070
497,195,930S
ales and m
arketing
41,460,00041,460,000
-R
educing work-
ing capital loans
1,100,000,0001,100,000,000
-P
repaying exist-ing term
loans
142,605,000111,578,053
31,026,947Issue E
xpensespaid out of IP
OP
roceeds
Total
2,690,065,0002,097,326,925
592,738,075
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 67
68
(SC
HE
DU
LE
25) CO
NS
OL
IDA
TE
D N
OT
ES
TO A
CC
OU
NT
S (C
on
tinu
ed)
Follow
ing table summ
arizes the major changes arising due
to the
scheme
referred above
and their
impact
on the
Consolidated P
rofit after Tax:
B)
Dem
erger o
f Intern
et divisio
n o
f Ind
iainfo
.com
:a)
As per the S
cheme of A
rrangement relating to take over of
the Internet Division of Indiainfo.com
Limited, the C
ompany
had to issue 25 (twenty five) fully paid equity shares of R
s.10 each and 10 (Ten) fully paid preference shares of R
s.10,000 each to the equity shareholders of Indiainfo.comLim
ited on the effective date i.e. July 31, 2007. Out of these
shares, 4 equity shares and 1 preference share were allot-
ted and
the balance
was
to be
allotted subsequent
toobtaining the F
oreign Investment P
romotion B
oard (FIP
B)
approval. How
ever subsequent to the filing of the scheme
with the H
igh Courts, the R
eserve Bank of India issued a
press release which restricts issue of non-convertible secu-
rities to
non-resident shareholders
in par
with
External
Com
mercial B
orrowings (E
CB
). Accordingly, as a m
atter ofabundant precaution and to avoid any am
biguity it was con-
sidered appropriate to modify the form
and terms of consid-
era
tion
p
ursu
an
t to
cla
use
1
4
of
the
sch
em
e
of
Arrangem
ent. Accordingly it w
as decided by the Board of
Directors in its m
eeting dated October 25, 2007, to issue
180 equity shares of Rs.10 each in lieu of 9 preference
shares at a total value of Rs. 90,000. F
urther the Com
panydeclared bonus shares during the year ended M
arch 31,2008. T
he shares to be issued (including bonus shares)am
ounting to Rs.106,590 w
ere shown under S
hare sus-pense
account for
the year
ended M
arch 31,
2008.S
ubsequently, the Com
pany has issued all the balance1,839 equity shares on June 7, 2008 and the securities pre-m
ium am
ounting to Rs.88,200 on 180 equity shares issued
in lieu of 9 preference shares is shown under securities pre-
mium
account. b
) T
he Com
pany has been legally advised that it shall be ableto set off the unabsorbed losses of Internet D
ivision ofIn
dia
info
.com
L
imite
d
ag
ain
st its
taxa
ble
in
com
e.
Accordingly, the C
ompany has considered and adjusted the
unabsorbed tax
losses and
unabsorbed depreciation
oferstw
hile Internet Division of Indiainfo.com
Limited in its tax-
able income for the year ended M
arch 31, 2007, as permis-
sible under the relevant provisions of Income Tax A
ct, 1961.
The m
anagement is confident that all the conditions stipu-
lated under Section 72A
of the Income Tax A
ct, 1961 shallbe fulfilled w
ithin stipulated time period.
7. Min
ority In
terestP
ursuant to scheme of arrangem
ent between S
ME
Land
the Com
pany the amount payable to m
inority has changedfrom
Rs. 44,386,825 to R
s. 3,791,742.The m
ovement is as
below:
8.(a) R
elated P
arties Disclo
sure
Related
party disclosures,
as required
by A
ccountingS
tandard 18 - "Related P
arty Disclosures" notified by the
Com
panies (A
ccounting S
tandards) R
ules, 2006,
(asam
ended) are given below:
Particu
larsR
elated P
artyK
ey Managem
ent Personnel
- S
hri Sudhir A
garwal,
Managing D
irector -
Shri G
irish Agarw
al, D
irector
- S
hri Ram
esh Chandra A
garwal
- S
mt. K
asturi Devi A
garwal
- S
hri Paw
an Agarw
al-
Sm
t. Jyoti Sudhir A
garwal
- S
mt. N
amita G
irish Agarw
al -
Sm
t. Nikita P
awan A
garwal
- A
ll Season E
vents (P) Lim
ited-
D B
Partners E
nterprises P
rivate Limited
- W
riters and Publishers P
rivate Limited
-B
haskar Phototype S
etter - Bhopal*
-B
haskar Printing
Press - R
ajasthan-
Bhaskar P
rinting Press - M
PC
G-
Bhaskar P
rinting Press - C
PH
2-
Bhaskar P
rinting Press - G
ujarat-
RC
Phototype S
etter - Raipur*
- R
.C. P
rinter - Raipur
- B
haskar Publication and A
llied Industries P
rivate Limited
- N
ew E
ra Publications P
rivate Limited
- B
haskar Infrastructure Limited
- B
haskar Industries Limited
- B
haskar Multinet Lim
ited-
Bhaskar E
xxoil Private Lim
ited-
Diligent M
edia Corporation Lim
ited-
Direct (O
OH
) Media P
rivate Limited
- S
titex Global Lim
ited-
Divya P
rabhat Publications P
rivate Limited
-B
haskar Venkatesh P
roducts Private Lim
ited-
Sharda S
olvent Limited
- D
B M
alls Private Lim
ited.-
Bhaskar S
amachar S
eva-
Jaipur Printing P
ress *-
Bikaner P
rinting Press*
- Jaipur P
hototype Setter*
- A
jmer P
rinting House*
- U
daipur Printing P
ress*-
New
Jodhpur Printer*
- N
ew K
ota Printers*
- B
haskar Process H
ouse*-
India Interactive Technologies Limited
- D
B P
ublication Private Lim
ited-
Abhivyakti K
ala Kendra
- B
haskar Food P
rivate Limited
* Up to M
arch 31, 2010
Particu
larsA
mo
un
tP
rofit After Tax as reported
2,584,761,601Less:- Im
pact on current and deferred tax on account of unabsorbed depreciation and accum
ulated tax losses of S
ME
Ltill M
arch 31, 2010 in accordance w
ith the Schem
e268,728,360
Add:-
Reduction in share of m
inority interest in the losses of radio business
46,977,668P
rofit After Tax w
ithout considering the impact
of above adjustments arising due to the schem
e.2,363,010,909
Particu
larsA
mo
un
tB
alance as at April 1, 2010
44,386,825Less:- R
eduction pursuant to scheme
(43,185,928)of arrangem
ent A
dd:- Share of profit for current year
2,590,845B
alance as at March 31, 2011
3,791,742
Relatives of key m
anagement
personnel
Enterprises ow
ned or significantly influenced by K
ey managem
ent personnel or their relatives
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 68
69
SC
HE
DU
LE
AN
NE
XE
D TO
AN
D F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
AC
CO
UN
TS
AS
AT
AN
D F
OR
TH
E Y
EA
R E
ND
ED
ON
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
8. (b)
Details o
f transactio
ns w
ith related
parties:
Transactio
ns
Am
ou
nt receivab
le (payable)
Year en
ded
A
s at
March
31, 2011M
arch 31, 2010
March
31, 2011M
arch 31, 2010
Ad
vertisemen
t Inco
me
Writers and P
ublishers Private Lim
ited18,006,363
41,861,638 1,113,197
6,922,547 A
bhivyakti Kala K
endra-
9,194,275 -
- B
haskar Industries Limited
159,162 2,313,160
32,932 14,816
Bhaskar M
ultinet Limited
78,853 510,322
7,639 24,968
Sharda S
olvent Limited
12,901 8,344,170
- 9,720
Bhaskar E
xxoil Private Lim
ited21,996
7,477,988 -
- B
haskar Food P
rivate Limited
- 7,426,028
- -
D B
Malls P
rivate Limited
120,516 25,639,495
98,960 662,922
Bhaskar V
enkatesh Products P
rivate Limited
1,748,641 -
1,348,641 -
Sale o
f Mag
zine
Bhaskar P
ublication and Allied Industries P
rivate Limited
342,686 405,213
223,207 171,744
Sale o
f New
spaper
Bhaskar P
ublication and Allied Industries P
rivate Limited
7,789,674 8,366,520
7,299,995 -
Sale o
f Po
rtal and
SM
SD
iligent Media C
orporation Limited
6,070,248 2,360,479
1,248,013 1,178,358
Po
rtal Exp
enses
Diligent M
edia Corporation Lim
ited-
980,000 -
- India Interactive Technologies Lim
ited-
133,902 -
-
Prin
ting
Job
Ch
arges
Bhaskar P
ublication and Allied Industries P
rivate Limited
3,976,509 4,262,153
280,445 -
Salaries, W
ages an
d B
on
us
Shri S
udhir Agarw
al, Managing D
irector 3,600,000
3,600,000 -
(7,441,123)
Ren
t Inco
me
Bhaskar P
ublication and Allied Industries P
rivate Limited
1,020,000 -
- -
Ren
t Paid
Writers and P
ublishers Private Lim
ited28,679,176
19,203,211 -
- B
haskar Industries Limited
144,000 159,997
- (89,109)
Bhaskar P
ublication and Allied Industries P
rivate Limited
100,000 100,000
- -
Bhaskar Infrastructure Lim
ited3,829,260
4,055,761 -
- R
.C. P
rinter, Raipur
1,654,500 1,816,320
- -
Shri G
irish Agarw
al, Director
100,000 100,000
- (176,907)
New
s Co
llection
Exp
enses
Bhaskar S
amachar S
eva37,648,538
69,716,165 (12,731,331)
(10,429,064)D
iligent Media C
orporation Limited
1,886,478 1,572,792
(650,422)(1,867,580)
Prin
ting
Job
Wo
rk Exp
ense
M P
Printer (a unit of W
riters and Publishers P
rivate Limited)
48,891,299 52,499,220
(4,780,453)(12,741,845)
Diligent M
edia Corporation Lim
ited7,489,292
7,659,526 (173,948)
(1,342,631)B
haskar Printing P
ress Rajasthan
6,734,372 32,783,800
(3,445,339)(5,920,767)
Bhaskar P
rinting Press M
PC
G13,582,184
12,145,451 (3,450,417)
(8,359,576)B
haskar Printing P
ress CP
H2
5,863,675 6,719,342
(338,542)(556,362)
Bhaskar P
rinting Press G
ujarat11,326,685
13,671,085 (3,305,883)
(3,123,127)R
.C. P
rinter, Raipur
685,833 4,616,373
(223,493)(293,023)
Ro
yalty D
iligent Media C
orporation Limited
3,970,979 2,550,000
- (144,310)
Ad
vertisemen
t and
Pu
blicity E
xpen
sesB
haskar Multinet Lim
ited-
641,952 -
(462,295)A
bhivyakti Kala K
endra720,000
- -
- M
PP
rinter (a unit of Writers and P
ublishers Private Lim
ited)4,902,095
- -
-
Interest In
com
e from
Dep
osits
Writers and P
ublishers Private Lim
ited33,264,382
57,383,219 513,770
860,611 B
haskar Multinet Lim
ited20,132,499
18,116,322 6,847,886
4,545,294
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 69
70
SC
HE
DU
LE
AN
NE
XE
D TO
AN
D F
OR
MIN
G PA
RT
OF
TH
E C
ON
SO
LID
AT
ED
AC
CO
UN
TS
AS
AT
AN
D F
OR
TH
E Y
EA
R E
ND
ED
ON
MA
RC
H 31, 2011
(Am
ou
nts in
Ind
ian R
up
ees)
8. (b)
Details o
f transactio
ns w
ith related
parties:
Transactio
ns
Am
ou
nt receivab
le (payable)
Year en
ded
A
s at
March
31, 2011M
arch 31, 2010
March
31, 2011M
arch 31, 2010
Sale o
f Fixed
Assets
Bhaskar P
ublication and Allied Industries P
rivate Limited
5,625,852 -
5,625,852 -
Pu
rchase o
f Fixed
Assets
Bhaskar P
ublication and Allied Industries P
rivate Limited
18,823 -
- -
Lo
an / A
dvan
ces Given
/ (Repaid
by party)
Bhaskar M
ultinet Limited
15,816,658 13,255,534
170,750,252 155,082,667
Writers and P
ublishers Private Lim
ited(116,666,668)
(116,666,668)204,166,662
320,833,330
Ad
vance received
/ (repaid) fo
r pu
blicatio
n o
f advertisem
ent
Writers and P
ublishers Private Lim
ited-
78,968,141 (54,396,376)
(83,477,055)(204,272,633)
- -
Ad
vances g
iven d
urin
g th
e year for in
vestmen
t in eq
uity sh
aresW
riters and Publishers P
rivate Limited
- 40,000,000
80,000,000 80,000,000
Facto
ring
of R
ecievables / ad
vances
Writers and P
ublishers Private Lim
ited-
6,185,441 -
-
Secu
rity Dep
osit g
iven ag
ainst lease o
f pro
perties
Writers and P
ublishers Private Lim
ited-
- 132,950,000
132,950,000
Secu
rity Dep
osit R
eceivedB
haskar Publication and A
llied Industries Private Lim
ited-
10,000,000 (10,000,000)
(10,000,000)
Sale o
f Investm
ents
Writers and P
ublishers Private Lim
ited-
- 60,000,000
60,000,000 S
hri Sudhir A
garwal, M
anaging Director
- -
- 77,500
Shri G
irish Agarw
al, Director
- -
50,000 50,000
New
s prin
t loan
given
/ (taken)
M P
Printer (a unit of W
riters and Publishers P
rivate Limited)
20,894,894 6,806,277
15,517,265 6,766,924
Diligent M
edia Corporation Lim
ited21,279,228
19,558,103 1,220,197
5,911 D
ivya Prabhat P
ublications Private Lim
ited113,129
1,348,102 -
2,615,694 B
haskar Publication and A
llied Industries Private Lim
ited(27,879,307)
15,380,846 7,144,565
27,833,360
Balan
ce ou
tstand
ing
at the year en
dM
PP
rinter (a unit of Writers and P
ublishers Private Lim
ited)-
- (2,080,011)
(5,442)D
iligent Media C
orporation Limited
- -
(227,270)(5,274,331)
Bhaskar Industries Lim
ited-
- 1,590,148
- D
B M
alls Private Lim
ited-
- 796,787
- India Interactive Technologies Lim
ited-
- -
(4,059,891)B
haskar Multinet Lim
ited-
- 339,214
(138,622,946)R
.C. P
rinter, Raipur
- -
363,205 456,787
Divya P
rabhat Publications P
rivate Limited
- -
(854,155)(3,944,739)
Writers and P
ublishers Private Lim
ited-
- (11,287,503)
(12,365,745)B
haskar Publication and A
llied Industries Private Lim
ited-
- 72,885,625
(26,305,936)D
irect (OO
H) M
edia Private Lim
ited-
- -
13,236 B
haskar Infrastructure Limited
- -
- 183,678
D B
Publication P
rivate Limited
- -
- 6,618
Abhivyakti K
ala Kendra
- -
- 237,092
Shri P
awan A
garwal, D
irector-
- -
784,774
Note: F
or details of guarantees given by related parties, Refer N
ote 9 of Schedule 25.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 70
71
9.Term
Loans, Cash C
redit facilities, Foreign C
urrency loanand B
uyers Credit facilities consist of:
a)T
he Term
Lo
ans are secu
red b
y:i)
First C
harge on Plant and M
achinery situated at all locations (other than G
ujarat) of the Com
pany;ii)
Second C
harge on all current assets;iii)
Pe
rson
al
Gu
ara
nte
e
of
dire
ctors
ag
gre
ga
ting
to
R
s. 60,000,000 [S
hri Ram
esh Chandra A
garwal]
iv)C
orporate G
uarantees of
Writers
and P
ublishers P
rivate Limited aggregating to
Rs. 480,000,000.
v)ID
BI
Ba
nk:
Exclu
sive
Ch
arg
e
on
th
e
Pla
nt
an
d
Machinery being acquired out of the financial assis-
tance. Second charge on all the fixed assets of the
Com
pany.vi)
IDB
I Bank: F
irst pari passu Charge w
ith other lenders on up gradation P
roject Assets.
Second C
harge on Imm
ovable housing property of W
riters and Publishers P
rivate Limited at various units.
b)
Cash
Cred
it Facilities are secu
red b
y:i)
First charge on the entire current assets and;
ii)S
econd charge on the other movable properties (other
than current assets) of the Com
pany.iii)
Personal
Guarantee
of D
irectors aggregating
to R
s. 71,607,191 [ S
hri Ram
esh Chandra A
garwal, S
hri S
udhir Agarw
al , Shri G
irish Agarw
al , Shri P
awan
Agarw
al ]iv)
Corporate
Guarantees
of W
riters and
Publishers
Private Lim
ited.c) F
oreig
n C
urren
cy Lo
an is secu
red b
y: i)
AG
CO
Finance G
mbH
: First pari passu C
harge with
other lenders on up gradation Project A
ssets.d
)B
uyers C
redit F
acilities are secured
by:
i)S
tandard chartered bank: First C
harge on the current assets of the C
ompany.
ii)H
SB
C
Bank:
First
Pari
passu C
harge over
current assets of the C
ompany.
Second C
harge over Plant and M
achinery of the Com
panyand C
orporate guarantee of Writers and P
ublishers Private
Limited.
10.L
easesR
ental expenses in respect of operating leases are recog-nized as an expense in the profit and loss account, on astraight-line basis over the lease term
.
Op
erating
Lease (fo
r assets taken o
n L
ease)a)
The G
roup has taken various residential, office and godown
premises under operating lease agreem
ents. These are
generally renewable by m
utual consent;b
)Lease paym
ents for the year are R
s. 117,067,592 (P
reviousyear
Rs. 100,633,896)
c)T
he future minim
um lease paym
ents under non-cancellableoperating leases;
�not later than one year is
Rs. 118,798,210 (P
revious yearR
s. 90,837,132)
�later
than one
year but
not later
than five
years is
Rs.5,081,55,199 (P
revious year R
s. 379,293,807).
�later than five years
Rs.
59,302,817 (Previous year
Rs.
80,513,042).d
)T
here are no restrictions imposed in these lease agree-
ments. T
here are escalation clauses in agreement w
ithsom
e parties. There are no sub leases.
11.C
apital C
om
mitm
ents
Estim
ated amount of contracts rem
aining to be executed oncapital
account and
not provided
for R
s.
148,479,849(P
revious year R
s. 138,612,551).
12.C
on
ting
ent L
iabilities n
ot p
rovid
ed fo
r:a)
Guarantees issued by bank on behalf of the C
ompany
Rs.
18,122,375 (Previous year
Rs. 16,392,375).
b)
Corporate
Guarantee
issued by
the C
ompany
of R
s.
450,000,000 in favour of Export D
evelopment C
anada onbehalf of B
haskar Exxoils P
rivate Limited.
c)T
he Indian Perform
ing Rights S
ociety Limited (IP
RS
) hadfiled a suit against S
ME
Lon M
ay 27, 2006 before the High
Court of D
elhi contesting against the refusal by SM
EL
toobtain a license from
the IPR
S w
ith regards to broadcast-ing
/ perform
ing its
copyrighted w
orks. T
he IP
RS
has
prayed for a permanent injunction restraining the R
adioD
ivision from infringing any of the copyrights ow
ned by theIP
RS
as well as for dam
ages in favour of the IPR
S. T
hem
atter is pending before the Hon'ble court, as the court
has reserved the order after hearing to both the parties.T
he managem
ent is confident that the case would be set-
tled in the favor of the Com
pany, however, pending the
result of the suit, as a matter of abundant precaution, the
Co
mpa
ny
ha
s p
rovid
ed
o
n
be
st ju
dg
me
nt
ba
sis`10,579,831 for the year ended M
arch 31, 2011 (Previous
year `12,354,321) tow
ards the royalty payable to IPR
S.
The m
anagement believes that the provision m
ade in thebooks is sufficient to take care of the final liability for royal-ty, if any, w
hich would be confirm
ed only after the result ofthe suit.
d)
Alegal S
uit was filed by S
ME
Lon July 28, 2008 against
Phonographic P
erformance Lim
ited (PP
L) before the Copy
Right B
oard against the exorbitant rates proposed by PP
Lfor grant of com
pulsory licenses. The C
opy Right B
oardpassed the O
rder on August 25, 2010. A
s per the Order,
Particu
larsM
arch 31, 2011
March
31, 2010R
up
ee Term L
oan
s
480,000,000660,000,000
IDB
I Bank
-77,777,758
Rabo India F
inance Private
Limited
-141,515,360
The J&
K B
ank Limited
-96,151,492
Corporation B
ank
Cash
Cred
it Facilities
21,626,44311,329,189
State B
ank of Hyderabad
-48,348,046
State B
ank of Indore
29,985,61262,021,570
Bank of M
aharashtra
USD
28,304,872 equivalentto R
s. 1,264,944,748U
SD 31,572,817 equivalent
to Rs.
1,418,250,923A
GC
O F
inance Gm
bH
US
D 754,498 equivalent
to Rs. 33,718,527
USD
2,495,452 equivalentto R
s. 112,095,712S
tandard Chartered B
ank
US
D 5,625,420 equiva-
lent to Rs. 251,450,010
US
D 7,542,471 equivalent
to Rs. 338,807,784
HS
BC
Bank
Fo
reign
Cu
rrency L
oan
Bu
yers Cred
it Facilities
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 71
72
PP
Lis supposed to get a proportionate am
ount (as per them
usic played) out of the kitty of 2% of the net revenue. T
heC
ompany is accordingly paying to P
PL
since then. T
he Com
pany has asked for a refund of R
s.
4,011,858 fromP
PL
out of the deposit paid to them after adjusting the
amount payable for the period prior to the O
rder, as per therates specified in the O
rder. PP
Lhas been claim
ing theprevious period am
ount at a higher rate. PP
Lhas subse-
quently filed a summ
ary suit in Bom
bay High C
ourt towards
recovery of the said amount. A
t present the matter is pend-
ing before the Bom
bay High C
ourt. The m
anagement is
confident that the case would be settled in the favor of the
Com
pany, however, pending the result of the suit, as a
matter of abundant precaution, the C
ompany has provided
on best judgment basis
Rs.
7,794,055 for the year endedM
arch 31, 2011 (Previous year
Rs.
19,920,360) towards
the royalty payable to PP
L. The m
anagement believes that
the provision made in the books is sufficient to take care of
the final liability for royalty, if any, which w
ould be con-firm
ed only after the result of the suit.
e)T
here are several defamation and other legal cases pend-
ing against the Com
pany and its directors. These include
criminal and civil cases. T
here are certain employee relat-
ed cases also pending against the Com
pany. In view of
large number of cases, it is im
practicable to disclose thedetails of each case.
The estim
ated amount of claim
s against the Com
pany inrespect of these cases is
` 16,835,528 (P
revious year `
12,187,682). T
he estim
ated contingency
in respect
ofsom
e cases cannot be ascertained. Based on discussions
with the solicitors and also the past trend in respect of such
cases, the Com
pany believes that there is fair chance ofdecisions in its favour in respect of above and hence noprovision is considered necessary against the sam
e.
14.R
eceivables from C
ompanies under the sam
e manage
ment as required under C
lause 32 of the listing agreement.
(a) Sundry debtors include the follow
ing amounts receivable
from the com
panies under the same m
anagement:
(b) Loans,
Advances
and D
eposits include
the follow
ingam
ounts receivable from the com
panies under the same
managem
ent:
No
te:In case of advances given to W
riters and Publishers P
rivateLim
ited, the amount is repayable over a period of three
years. In all other cases, the amounts are repayable on
demand.
15.F
ixed D
epo
sitsC
ash and Bank includes F
ixed Deposits having m
aturityp
erio
d
of
mo
re
tha
n
thre
e
mo
nth
s a
mo
un
ting
Rs.758,987,121 (P
revious year Rs.1,461,819,747).
16. Investm
ent in
Private Treaties
The G
roup has strategically entered into arrangements w
ithvarious parties by investing in the securities of these par-ties. B
y these arrangements, the said parties w
ould alsooffer their advertisem
ents in the Group's print and non print
media periodically, for a specified term
. Up to M
arch 31,2011,
the G
roup has
made
provision of
Rs.97,500,000
(Previous
year R
s.52,500,000) in
respect of
diminution,
which is other than tem
porary, in the value of these invest-m
ents. The m
anagement w
ill evaluate the value of these
13.D
erivative Instru
men
tsP
articulars of unhedged foreign currency exposure as at thebalance sheet date:
Particu
lars
Sundry C
reditors
Sundry C
reditors
1,057,623
-
Am
ount inforeign
currency
Am
ount inR
s.
46,378,006
-
Am
ount inforeign
currency3,039,710
45,700
Am
ou
nt in
R
s.
136,543,772
2,767,444
March
31, 2011M
arch 31, 2010
Curr
ency
US
D
EU
R
754,49833,718,527
2,495,452112,095,712
US
DS
tandard Chartered
Bank B
uyers Credit
5,625,420251, 450, 010
7,542,471338,807,784
28,304,8721,264,944,748
31,572,8171,418,250,923
US
D
US
D
HS
BC
Bank B
uyersC
redit
AG
CO
Finance Gm
bH
--
1,84782,967
US
DS
undry Debtors
Nam
e of th
e Co
mpan
yC
losin
g b
alance
Maxim
um
amo
un
t ou
tstanding during the year
March
31 M
arch 31
March
31 M
arch 31
2011 2010
20112010
Bhaskar Industries Lim
ited32,932
14,81641,154
2,030,181B
haskar Multinet Lim
ited7,639
338,18945,699
1,016,709B
haskar Exxoil P
rivate Limited
--
21,9967,477,988
Bhaskar V
enktesh Products
1,348,641 -
1,348,641-
Private Lim
itedD
ivya Prabhat P
ublication -
--
1,758,158P
rivate Limited
Sharda S
olvent Limited
-9,720
21,0858,325,788
DB
Malls P
rivate Limited
98,960662,922
729,35423,439,331
Abhivyakti K
ala Kendra
--
-21,622,608
Diligent M
edia Corporation Lim
ited1,248,013
2,292,5281,248,013
2,804,541W
riters and Publishers
Private Lim
ited1,113,197
6,922,5474,163,551
6,922,547
Writers and P
ublishers P
rivate Limited
466,342,929582,278,196
738,180,658732,863,795
Bhaskar M
ultinet Limited
177,937,352159,885,177
178,005,015160,076,407
Bhaskar E
xxoil Limited
--
16,00010,578
Diligent M
edia Corporation
Limited
1,220,197-
1,220,19724,909,243
Divya P
rabhat Publications
Private Lim
ited-
--
8,592,331B
haskar Infrastructure Lim
ited-
183,678-
183,678B
haskar Publication &
Allied
Industries Private Lim
ited80,030,190
1,527,425151,318,651
13,874,026B
haskar Industries Limited
1,590,148-
1,590,148-
Direct(O
OH
) Media P
rivate Lim
ited-
13,23613,236
2,181,717D
B P
ublications Private
Limited
-6,618
6,618130,551
DB
Mall P
rivate Limited
796,787-
796,787271,445
Abhivyakti K
ala Kendra
-237,092
1,321,2921,455,514
Nam
e of th
e Co
mpan
yC
losin
g B
alance
Maxim
um A
mount
Outstanding during the year
March
31 M
arch 31
March
31 M
arch 31
20112010
20112010
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 72
73
investments periodically and required provision w
ould bem
ade in respect of any diminution w
hich is other than tem
porary.
17.E
arnin
g P
er Sh
are ('EP
S')
18.E
mp
loyee B
enefits
Defin
ed C
on
tribu
tion
Plan
During the year ended M
arch 31, 2011 and March 31, 2010;
the Group contributed the follow
ing amounts to defined con-
tribution plans:
Particu
larsM
arch 31, 2011
March
31, 2010P
rovident Fund
71,751,22855,665,650
Em
ployees' State
Insurance Corporation
19,494,3557,430,746
Total
91,245,58363,096,396
Defin
ed B
enefit P
lans
A-G
ratuity
The
Group
has a
defined benefit
gratuity plan.
Every
employee w
ho has completed five years or m
ore of servicegets a gratuity on departure at 15 days salary (last draw
nsalary) for each com
pleted year of service. The schem
e ofthe C
ompany is funded w
ith an insurance company in the
form of a qualifying insurance policy.
B- L
eave En
cashm
ent
In accordance with leave policy, the G
roup has provided forleave entitlem
ent on the basis of an actuarial valuation car-ried out at the end of the year.T
he following tables sum
maries the com
ponents of net ben-efit expense recognized in the profit and loss account andthe funded status and am
ounts recognized in the balancesheet for the respective plan.
Pro
fit and
Lo
ss Acco
un
t:
Net E
mployee benefit expense (recognized in E
mployee C
ost)
Particu
lars - Gratu
ityM
arch 31, 2011
March
31, 2010
Current service cost
12,667,998 14,473,679
Interest cost on benefit obligation
5,462,022 4,693,980
Expected return on plan assets
(4,862,819)(3,605,018)
Net actuarial (gain) / loss recognized
in the year2,777,182
(10,653,255) P
ast service cost-
- N
et benefit expense16,044,383
4,909,386 A
ctual return on plan assets3,653,690
8,385,191
Balan
ce Sh
eetD
etails of P
rovisio
n an
d fair valu
e of p
lan assets
Particu
lars - Gratu
ityM
arch 31, 2011
March
31, 2010B
enefit obligation82,594,755
70,107,539F
air value of plan assets74,060,336
60,785,240 (8,534,419)
(9,322,299) Less: U
nrecognized past service cost-
- N
et (Liability) / asset(8,534,419)
(9,322,299)
Details o
f Exp
erience A
dju
stmen
ts on
plan
assets and
plan
liabilities
Particu
lars - Gratu
ityM
arch 31, 2011
March
31, 2010E
xperience adjustments on plan
liabilities (Gain)/Loss
4,548,6121,589,625
Experience adjustm
ents on plan A
ssets Gain/(Loss)
(1,209,129)4,780,173
Ch
ang
es in th
e presen
t value o
f the d
efined
ben
efit ob
liga-
tion
are as follo
ws:
Particu
lars - Gratu
ityM
arch 31, 2011
March
31, 2010
Opening benefit obligation/net liability
68,275,27662,518,153
Interest cost5,462,022
4,693,983 C
urrent service cost12,667,998
14,473,679 B
enefits paid(5,378,598)
(5,705,195)A
ctuarial (gains) / losses on obligation1,568,053
(5,873,082) C
losing benefit obligation82,594,755
70,107,539
Ch
ang
es in th
e fair value o
f plan
assets are as follo
ws:
Particu
lars - Gratu
ityM
arch 31, 2011
March
31, 2010
Opening fair value of plan assets
60,785,24048,066,911
Expected return
4,862,819 3,605,018
Contributions by em
ployer15,000,000
10,038,333 B
enefits paid(5,378,598)
(5,705,195)A
ctuarial gains / (losses) on plan assets(1,209,129)
4,780,173C
losing fair value of plan assets74,060,336
60,785,240 A
ctuarial gains / (losses) to be recognized(2,813,240)
8,953,208
The C
ompany expects to contribute R
s.10,000,000 (Previous
year Rs. 10,000,000) to gratuity fund during the annual period
beginning after balance sheet date.
Th
e majo
r catego
ries of p
lan assets as a p
ercentag
e of th
efair valu
e of to
tal plan
assets are as follo
ws:
Particu
lars - Gratu
ityM
arch 31, 2011
March
31,2010%
%Investm
ents with insurer
100100
The overall expected rate of return on assets is determ
ined based on the m
arket prices prevailing on that date, applicable tothe period over w
hich the obligation is to be settled.
Th
e prin
cipal assum
ptio
ns u
sed in
determ
inin
g g
ratuity
ob
ligatio
ns fo
r the G
rou
p's p
lans are sh
ow
n b
elow
:
Particu
lars - Gratu
ityM
arch 31, 2011
March
31,2010D
iscount rate8.25%
8.00%
Expected rate of return on assets8.25%
8.00%
Em
ployee turnover1%
at each age+6%
1%
at each age+6%
service relatedservice related
Particu
larsM
arch 31, 2011
March
31, 2010i)
Profit after taxation
2,584,761,6011,828,001,072
ii) W
eighted average number of equity
shares outstanding for Basic E
PS
181,528,139172,206,180
iii) B
asic Earnings per share
14.24 10.62
iv) On account of shares to be issued
under ES
OS
288,673162,389
v) W
eighted average number of equity
shares outstanding for Diluted E
PS
181,816,812172,368,569
vi) Diluted E
arnings per share 14.22
10.61 vii) N
ominal value of share
10.0010.00
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 73
74
The estim
ates of future salary increases, considered in actuari-al valuation, take account of inflation, seniority, prom
otion andother
relevant factors,
such as
supply and
demand
in the
employm
ent market.
Am
ounts for the current and previous three years are as follows:
Gratu
ityM
arch 31, 2011 March 31, 2010 M
arch 31, 2009 March 31, 2008
Defined benefit
obligation82,594,755
70,107,53962,518,153
40,363,900
Plan assets
74,060,3366,0785,240
48,066,91128,569,088
Surplus / (deficit)
(8,534,419)(9,322,299)
(14,451,242)(11,794,812)
Experience adjustm
ents
on plan liabilities (Gain) /
Loss4,548,612
1,589,6255,647,004
4,864,820
Experience adjustm
ents
on plan assets Gain /
(Loss)(1,209,129)
4,780,173(1,427,487)
308,687
The G
roup has adopted Accounting S
tandard 15 (Revised) from
April 01, 2007, thereby has not given disclosure for the follow
-ing for financial years ended on M
arch 31, 2007:(a)
The present value of the defined benefit obligation, the fair
value of the plan assets and the surplus or deficit in theplan; and
(b)
The experience adjustm
ents arising on plan liabilities andplan assets.
19. Em
plo
yee Sto
ck Op
tion
Sch
eme 2008 an
d 2010
The C
ompany has granted S
tock Options to its em
ployeesas per its schem
e referred to as "DB
CL
- ES
OS
2008" and"D
BC
L- ES
OS
2010". During the year ended M
arch 31,2011 the follow
ing schemes w
ere in operation:
The details of activity under D
BC
LE
SO
S 2008 and E
SO
S 2010
are as summ
arized below:
Nu
mb
er of o
ptio
ns
ES
OS
-2008E
SO
S-2010
March 31, 2011 M
arch 31,2010 March 31, 2011 M
arch 31, 2010
Outstanding at the
beginning of the year330,387
413,427-
-G
ranted during the year-
-491,203
-F
orfeited / Cancelled
during the year19,177
83,04016,494
-E
xercised during the year 36,126
--
-E
xpired during the year -
--
-O
utstanding at the end of the year
275,084330,387
474,709-
Exercisable at the end
of the year 88,358
66,077-
-W
eighted average fair value of options granted on the date of grant
101.31101.31
124.97-
The follow
ing table summ
arizes the year wise vesting %
and thefair value in respect of options outstanding:
ES
OS
-2008E
SO
S-2010
Year
Vestin
g %
Fair V
alue
Year
Vestin
g %
Fair V
alue
January 5, 201020%
90.51M
ay 10, 201120%
103.87January 5, 2011
20%95.88
May 10, 2012
20%115.57
January 5, 201220%
101.29M
ay 10, 201320%
126.07January 5, 2013
20%106.74
May 10, 2014
20%135.47
January 5, 201420%
112.14M
ay 10, 201520%
143.89
Sto
ck Op
tion
s gran
tedT
he weighted average fair value of stock options granted till
date is R
s.
101.31 and R
s.
124.97 for ES
OS
-2008 andE
SO
S-2010 respectively. T
he Black and S
choles Options
Pricing m
odel has been used for computing the w
eightedaverage fair value considering the follow
ing inputs:
DB
CL
- ES
OS
2008D
BC
L- E
SO
S 2010
Date of grant
January 5, 2009M
ay 10, 2010D
ate of Board A
pprovalD
ecember 23, 2008
March 02, 2010
Date of S
hareholder's Approval
Decem
ber 31, 2008A
pril 24, 2010
Num
ber of options granted7
00
,00
0
op
tion
s h
ave
be
en
a
pp
rove
d
by
the
Board and the sharehold-
ers,
ho
we
ver
41
3,4
27
have been granted till theye
ar
en
de
d
Ma
rch
31
,2011
60
0,0
00
o
ptio
ns
ha
veb
ee
n
ap
pro
ved
b
y th
eB
oard and the sharehold-e
rs, h
ow
eve
r 4
91
,20
3have been granted till theye
ar
en
de
d
Ma
rch
31
,2011
Method of S
ettlement
Equity
Equity
Vesting P
eriodO
ptions vest equally overthe
period of
five years
from the date of grant
Options vest equally over
the period
of five
yearsfrom
the date of grant
Exercise P
eriodW
ithin three
years from
the date of vesting or list-ing, w
hichever is later
Within
three years
fromthe date of vesting or list-ing, w
hichever is later
Exercise P
rice50%
discount to the aver-age of first 30 days m
arketprice post listing
Discount up to a m
aximum
of
30
%
to
the
m
arke
tprice.
Vesting C
onditionsO
ption vest on continueda
ssocia
tion
w
ith
the
Co
mpa
ny
an
d
ach
ieve
-m
en
t o
f ce
rtain
p
erfo
r-m
ance parameters
Option vest on continued
asso
ciatio
n
with
th
eC
om
pan
y a
nd
a
chie
ve-
me
nt
of
certa
in
pe
rfor-
mance param
eters
March
31, 2011E
SO
S-2008
ES
OS
-2010W
eighted average share price101.31
124.97E
xercise Price
50% discount to the
average of first 30days closing m
arketprice post IP
O i.e.
Rs. 124
Discount up to a
maxim
um of 30%
tothe m
arket price. i.e. R
s. 168
Expected V
olatility0%
0%H
istorical Volatility
0%0%
Life of the options granted 4.5 years
4.5 years(V
esting and exercise period) in yearsE
xpected dividends0%
0%A
verage risk-free interest rate5.24%
7.10%E
xpected dividend rate0%
0%
The
expected volatility
was
determined
based on
historicalvolatility data, historical volatility includes early years of the com
-panies life, the com
pany expects the volatility of its share priceto reduce as its natures to allow
for the effects of early exercise.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 74
75
To allow for effects of early exercise, it w
as assumed that the
employees w
ill exercise option after the vesting date, when
share price was in excess of the exercise price.
Had C
ompensation cost been determ
ined in accordance with
the fair value approach described in the Guidance N
ote, theC
ompany's
net profit
as reported
would
have changed
toam
ounts indicated below:
March
31, 2011 March
31, 2010
Pro
fit as repo
rted2,584,761,601
1,828,001,072A
dd: Em
ployee stock compensation under
31,664,62112,965,726
intrinsic value method
Less: Em
ployee stock compensation under
47,820,49617,283,654
fair value method
Pro
form
a pro
fit2,568,605,726
1,823,683,144E
arnin
gs P
er Sh
areB
asic- A
s reported14.24
10.62- A
s adjusted14.15
10.60D
iluted- A
s reported14.22
10.61- A
s adjusted14.13
10.58
20. Go
ing
Co
ncern
Co
ncep
t
IMC
Lhas incurred losses during the year and the accum
u-lated losses of IM
CL
at the close of the year exceed its paidup capital and reserves. IM
CL
is in the initial years of itsoperations. F
urther, the Com
pany has provided assurancethat it intends to provide adequate financial support to IM
CL
to enable it to continue its operations for the year endingM
arch 31, 2012. With the internet m
arket in India booming
and internet penetration increasing every year, the man-
agement expects continuous grow
th in the business andprofitability in the future years. IM
CL
is therefore beingview
ed as a going concern and accounts have been pre-pared under the going concern assum
ption.
21. Seg
men
t Info
rmatio
n:
a) F
or the
purposes of
Segm
ent inform
ation, printing/
publishing segment includes new
spaper, magazines,
printing job work, etc. R
adio Segm
ent includes broadcasting of R
adio. Event includes event m
anagement.
Others include P
ower and Internet business.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 75
76
(SCHEDULE 25) CONSOLIDATED NOTES TO ACCOUNTS (Continued)
SCHEDULE FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2011
21. (b) Segment Information as at and for the year ended March 31, 2011
Particulars Printing / Publishing Radio Event Others Inter Segment Elimination Consolidation
Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10
RevenueExternal Revenue 11,976,300,761 10,106,087,809 463,823,199 341,443,599 175,305,407 148,077,202 37,009,888 34,144,485 - - 12,652,439,255 10,629,753,095 Inter segmental Revenue 25,402,823 28,554,905 5,656,867 8,148,795 - - 3,132,468 3,389,062 (34,192,158) (40,092,762) - -
Total 12,001,703,584 10,134,642,714 469,480,066 349,592,394 175,305,407 148,077,202 40,142,356 37,533,547 (34,192,158) (40,092,762) 12,652,439,255 10,629,753,095
Segment Results 3,691,571,860 3,189,415,479 (22,330,239) (119,048,459) 12,033,113 23,300,372 (73,499,539) (34,188,629) - - 3,607,775,195 3,059,478,763
Less : Unallocated Corporate Expenses 9,470,037 8,416,243 net of Unallocated Income
Operating Profit 3,598,305,159 3,051,062,520
Less : Financial Expenses (Net of Interest Income) 11,266,399 245,395,553
Less : Prior Period Expenditure - -
Less : Tax Expenses 999,686,314 1,057,161,693
Profit for the year 2,587,352,446 1,748,505,274
Other Information
Depreciation 310,494,621 256,858,326 107,535,167 107,086,072 150,963 188,572 14,663,666 14,216,392 - - 432,844,418 378,349,362
Non - cash expenses other than depreciation 167,482,368 106,070,830 1,468,777 4,597,240 - - 3,084,934 1,073,376 - - 172,036,079 111,741,446
Particulars Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10
Segment Assets 11,695,122,240 10,428,948,949 947,518,031 965,389,201 13,345,132 10,154,226 259,955,188 216,082,893 - - 12,915,940,592 11,620,575,269
Unallocated Corporate Assets 522,650,548 673,674,525
Segmental Liabilities 3,810,639,138 4,504,673,958 189,336,399 383,061,655 (801,714) 3,998,003 20,980,868 21,585,957 - - 4,020,154,692 4,913,319,573
Unallocated Corporate Liabilities 1,235,718,873 975,320,725
Minority Interest 3,791,742 44,386,825
Capital Expenditure 1,254,260,746 2,481,004,498 5,971,005 2,047,999 - 11,000 1,693,937 3,493,594 - - 1,261,925,688 2,486,557,091
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 76
77
22.P
reoperative expenses included under Fixed A
ssets andC
apital Work-in-P
rogress are as under:
Particu
larsM
arch 31,2011
March
31,2010
Op
enin
g B
alance o
f Pre -
Op
erative Exp
enses
10,927,52178,935,822
Exp
end
iture d
urin
g th
e year :
Raw
Materials C
onsumed
2,101,349-
Operating E
xpenditure3,649,569
360,082
Em
ployee Cost
115,6995,147,356
Other Indirect E
xpenditure5,250,211
8,899,344
Loan Managem
ent Fees
-5,688,413
Bank C
harges-
3,033
Interest and Financial C
harges-
11,735,613
Total
22,044,349110,769,663
Less:- Capitalized during the year
22,044,34999,842,142
Closing B
alance of Pre- Operative Expenses
-10,927,521
(Disclosed as C
apital Work-in-Progress)
As per our R
eport of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or G
up
ta Navin
K. &
Co
.F
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WF
irm reg
istration
nu
mb
er: 06263CD
.B. C
orp
Lim
itedC
hartered
Acco
un
tants
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
per N
avin K
. Gu
pta
Man
agin
g D
irector
Directo
rP
artner
Partn
erM
embership N
o. 36656M
embership N
o. 75030
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
23. Salaries, W
ages and Bonus include sitting fees paid to
Directors
Rs.
780,000 (Previous Year
Rs.
380,000)
24. Previo
us Y
ear com
parativesP
revious year figures have been regrouped where neces-
sary to confirm to current years' classification.
(SC
HE
DU
LE
25) CO
NS
OL
IDA
TE
D N
OT
ES
TO A
CC
OU
NT
S (C
on
tinu
ed)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 77
78
BA
LA
NC
E S
HE
ET
AB
ST
RA
CT
AN
D C
OM
PAN
Y'S
GE
NE
RA
LB
US
INE
SS
PR
OF
ILE
1. Reg
istration
Details:
Registration N
o. :047208
State C
ode :04
Balance S
heet Date : 31-03-2011
Date of Incorporation :
27-10-1995
2. Cap
ital Raised
du
ring
the year (A
mo
un
t in R
s.
Th
ou
sand
)
Public Issue
NIL
Rights Issue
NIL
Bonus Issue
NIL
Private P
lacement
NIL
3. Po
sition
of M
ob
ilisation
and
Dep
loym
ent o
f Fu
nd
s (Am
ou
nt in
R
s.
Th
ou
sand
)
Total Liabilities R
s.13,792,627
Total Assets
Rs. 13,792,627
4. So
urces o
f Fu
nd
s (Am
ou
nt in
R
s.
Th
ou
sand
)
Paid up C
apital R
s.
1,832,842R
eserves and Surplus
Rs.
6,691,449S
ecured Loans R
s.
2,081,725U
nsecured Loans R
s.
290,349 D
eferred Tax LiabilityR
s.
694 ,597
5. Ap
plicatio
n o
f Fu
nd
s (Am
ou
nt in
R
s.
Th
ou
sand
)
Net F
ixed Assets
Rs.
6,651,614Investm
entsR
s.
520,327N
et Current A
ssets R
s.
3,658,022M
isc. Expenses
Rs.
109,826A
ccumulated Losses
NIL
6. Perfo
rman
ce of C
om
pany (A
mo
un
t in R
s.
Th
ou
sand
s)
Turnover (include other income)
Rs.
12,616,375Total E
xpenditure R
s.
8,946,617P
rofit / (Loss) Before tax
Rs.
3,669,758P
rofit/(Loss) After Tax
Rs.
2,673,231E
arning per share in Rs
Rs.
14.73D
ividend Rate %
40
7. Gen
eric Nam
e of P
rincipal P
rod
uct / S
ervice of C
om
pany
Item C
ode No. (IT
C C
ode)N
AP
roduct Description
NA
Fo
r and
on
beh
alf of th
e Bo
ard
Mum
bai M
ay 18 2011M
anag
ing
Directo
rD
irector
D.B
. Co
rp L
imited
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 78
79
Dear S
hareh
old
ers,
Your directors have pleasure in presenting to you their Sixth
Annual R
eport together with the accounts of the C
ompany for
the year ended 31st March 2011. T
he summ
arized financialresults are as under-
FIN
AN
CIA
LH
IGH
LIG
HT
S:
The financial results of the C
ompany for the year ended 31st
March, 2011 are as under:
(In Rs.)
DE
ME
RG
ER
OF
RA
DIO
BU
SIN
ES
S :
During the year under review
, your company has received all the
statutory approvals and sanction from the H
on'ble High C
ourt ofM
adhya Pradesh and H
on'ble High C
ourt of Gujarat, to the
Schem
e of Arrangem
ent in the nature of demerger of radio busi-
ness of the company into the D
.B. C
orp Limited and restructur-
ing of share capital of the company under section 391 to 394
read with sections 78, 100 to 104 of the C
ompanies A
ct, 1956.A
s a result, the said Schem
e of Arrangem
ent has become oper-
ative with A
pril 01, 2010 as the Appointed date and M
arch 30,2011, as the E
ffective Date.
FU
TU
RE
OU
TL
OO
K :
As you m
ay be aware, the com
pany is already doing fairly goodbusiness in event m
anagement services, and considering the
tremendous
opportunities and
good grow
th potential
in this
area, more focus w
ould be given on the same in future.
Event M
anagement is a fast-grow
ing industry in organized sec-tor, grow
ing rapidly all over the world, w
ith mega show
s, eventshosted regularly, and this has becom
e a media to connect peo-
ple
/bra
nd
s. In
du
stry in
clud
es
field
s su
ch
as
the
M
ICE
(Meetings, Incentives, C
onventions and Events), exhibitions,
conferences and seminars as w
ell as live music and sporting
events. In order to tap the growing potential of this industry, your
company has initiated necessary steps in this direction.
Particu
lars2010-11
2009-10
Gross R
evenue23,835,976
38,67,71,272
Profit (Loss) B
efore Depreciation
92,92,679(76,860,320)
& A
mortization
Less: Depreciation
133,539 10,72,53,324
Profit / (Loss) B
efore Tax9,159,140
(18,41,13,644)
Less: Tax Expenses
Deferred Tax C
harge / (Credit)
59,758 -
Provision for Incom
e Tax3,098,944
-
Profit / (Loss) A
fter Tax before prior period item
s6,000,438
(18,41,13,644)
Less: Prior P
eriod Expenditure
--
Net P
rofit / (Loss) for the Year6,000,438
(18,41,13,644)
DIV
IDE
ND
:
In view of the absence of adequate profits for the year under
review, your D
irectors refrain from recom
mending any dividend
for the year ended 31st March, 2011.
DIR
EC
TOR
AT
E :
Shri. S
udhir Agarw
al, Director of the com
pany is liable to retireby rotation at the forthcom
ing Annual G
eneral Meeting of the
company and being eligible, offers him
self for re-appointment.
AU
DIT
CO
MM
ITT
EE
:
The C
ompany has an A
udit comm
ittee pursuant to Section 292A
of the Com
panies Act, 1956 and the follow
ing Directors of the
company are the m
embers of the A
udit Com
mittee:-
1.S
hri Sudhir A
garwal
-C
hairman
2.S
hri Girish A
garwal
-M
ember
3.S
hri Paw
an Agarw
al-
Mem
ber
AU
DITO
RS
:
M/s
S.
R.
Batliboi
&
Associates.,
Chartered
Accountants,
Mum
bai, the Statutory A
uditors of the company, w
ill retire at theconclusion of the forthcom
ing Annual G
eneral Meeting of your
Com
pany and being eligible, offer themselves to hold office as
auditors from the conclusion of the ensuing A
nnual General
meeting until the conclusion of the next A
nnual General M
eetingof the C
ompany.
AU
DITO
RS
' RE
PO
RT
:
The
Auditors'
Report
read w
ith notes
to accounts
is self-
explanatory and hence, needs no further clarification.
PU
BL
IC D
EP
OS
ITS
:
The C
ompany has not accepted any public deposits and, as
such, no amount on account of principal or interest on public
deposits was outstanding on the date of the balance S
heet.
HU
MA
N R
ES
OU
RC
ES
:
Your company alw
ays focuses on nurturing talent through bestavailable training &
development program
s with an objective of
building better and more efficient resources.
Your Directors w
ould like to place on record their deep appreci-ation for all em
ployees, at all levels, for their relentless service.D
uring the year under review, the industrial relations have been
very cordial.
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DD
IRE
CTO
RS
' RE
PO
RT
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 79
80
None of the em
ployees of the company are covered under the
provisions of Section 217(2A
) of the Com
panies Act, 1956, read
with C
ompanies (P
articulars of Em
ployees) Rules, 1975, as
amended.
CO
NS
ER
VAT
ION
O
F
EN
ER
GY,
TE
CH
NO
LO
GY
AB
SO
RP
-T
ION
AN
D F
OR
EIG
N E
XC
HA
NG
E E
AR
NIN
GS
AN
D O
UT
GO
:
The C
ompany has taken adequate m
easures relating to con-servation of energy, Technology absorption w
herever possible.T
here is no foreign exchange earnings and total outgo is Nil dur-
ing the current year as compared to R
s 0.60 Lacs during theprevious year.
DIR
EC
TOR
S' R
ES
PO
NS
IBIL
ITY
STA
TE
ME
NT
:
As required under section 217(2A
A) of the C
ompanies A
ct,1956the D
irectors hereby confirm that:
1.in the preparation of the annual accounts, the applicableaccounting standards have been follow
ed;2.
the directors had selected such accounting policies andapplied them
consistently and made judgm
ents and esti-m
ates that are reasonable and prudent so as to give a trueand fair view
of the state of affairs of the company at the
end of the financial year and of the profit of the company
for the year under review;
3.the directors had taken proper and sufficient care for them
aintenance of adequate accounting records in accor-dance w
ith the provisions of Com
panies Act, 1956, for
safeguarding the assets of the company and for preventing
and detecting frauds and other irregularities. 4.
the directors had prepared the annual accounts for thefinancial year ended on M
arch 31, 2011, on a "going con-cern" basis.
AC
KN
OW
LE
DG
EM
EN
T :
Your Directors gratefully acknow
ledge the wholehearted support
and help extended by bankers and other government bodies.
Your Directors w
ish to place on record their deep sense ofappreciation for the devoted services rendered by the em
ploy-ees of the C
ompany.
BY
OR
DE
R O
F T
HE
BO
AR
D
PLA
CE
: Mu
mb
aiD
AT
ED
: May 18, 2011
Directo
rD
irector
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 80
81
To
The Mem
bers of Synergy Media Entertainm
ent Limited Lim
ited
1.W
e have audited the attached Balance S
heet of Synergy
Media E
ntertainment Lim
ited ('the Com
pany') as at March
31, 2011 and also the Profit and Loss account and the
Cash F
low S
tatement for the year ended on that date
annexed thereto.
These
financial statem
ents are
theresponsibility of the C
ompany's m
anagement. O
ur respon-sibility is to express an opinion on these financial state-m
ents based on our audit.2.
We conducted our audit in accordance w
ith auditing stan-dards
generally accepted
in India.
T
hose standards
require that we plan and perform
the audit to obtain rea-sonable assurance about w
hether the financial statements
are free of material m
isstatement. A
n audit includes exam-
ining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. A
n audit alsoincludes assessing the accounting principles used and sig-nificant estim
ates made by m
anagement, as w
ell as evalu-ating
the overall
financial statem
ent presentation.
W
ebelieve that our audit provides a reasonable basis for ouropinion.
3.A
s required by the Com
panies (Auditor's R
eport) Order,
2003 (as amended) ('the O
rder') issued by the Central
Governm
ent of India in terms of sub-section (4A
) of Section
227 of the Com
panies Act, 1956 ('the A
ct'), we enclose in
the Annexure a statem
ent on the matters specified in para-
graphs 4 and 5 of the said Order.
4.F
urther to
our com
ments
in the
Annexure
referred to
above, we report that:
i.W
e have obtained all the information and explana
tions, which to the best of our know
ledge and belief w
ere necessary for the purposes of our audit;ii.
In our opinion, proper books of account as required bylaw
have been kept by the Com
pany so far as appearsfrom
our examination of those books;
iii.T
he balance sheet, profit and loss account and cash flow
statement dealt w
ith by this report are in agreem
ent with the books of account;
iv.In
our opinion,
the balance
sheet, profit
and loss
account and cash flow statem
ent dealt with by this
report comply w
ith the accounting standards referred to in sub-section (3C
) of section 211 of the Act;
v.O
n the basis of the written representations received
from the directors, as on M
arch 31, 2011, and taken onrecord by the B
oard of Directors, w
e report that none of the directors is disqualified as on M
arch 31, 2011 from
being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act;
vi.In our opinion and to the best of our inform
ation and according to the explanations given to us, the said accounts give the inform
ation required by the Act, in
the manner so required and give a true and fair view
inconform
ity w
ith the
accounting principles
generally accepted in India;a)
in the case of the balance sheet, of the state of affairs of the C
ompany as at M
arch 31, 2011; b)
in the case of the profit and loss account, of the profit for the year ended on that date; and
c)in the case of cash flow
statement, of the cash
flows for the year ended on that date.
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
irm reg
istration
nu
mb
er: 101049W
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
Partn
er M
embership N
o.: 36656
Mum
baiM
ay 18, 2011
An
nexu
re referred to
in parag
raph
3 of o
ur rep
ort o
f evend
ate Re: S
ynerg
y Med
ia En
tertainm
ent L
imited
(i) (a) T
he Com
pany has maintained adequate records show
ing full particulars, including quantitative details and situation of fixed assets.
(b)F
ixed assets have been physically verified by the man
agement during the year and as explained no m
aterial discrepancies w
ere identified on such verification.(c)
There w
as no substantial disposal of fixed assets duing the year.
(ii)D
ue to the nature of business, the provisions of clause 4(ii)of the O
rder are not applicable to the Com
pany.(iii)
(a)A
s informed, the C
ompany has not granted any loans,
secured or unsecured to companies, firm
s or other parties covered in the register m
aintained under section 301 of the A
ct, accordingly, clause (iii)(b), (iii)(c) and
(iii)(d) of
the O
rder are
not applicable
to the
Com
pany.(b)
As inform
ed, the Com
pany has not taken any loans, secured or unsecured from
companies, firm
s or other parties covered in the register m
aintained under section 301 of the A
ct, accordingly clause (iii)(f) and (iii)(g)of the O
rder are not applicable.(iv)
In our opinion and according to the information and expla-
nations given to us, there is an adequate internal controlsystem
comm
ensurate with the size of the C
ompany and
the nature of its business, for the purchase of fixed assetsand for the sale of services. D
uring the course of our audit,no m
ajor weakness has been noticed in the internal control
system
in respect
of these
areas, and
we
have not
observed any continuing failure to correct major w
eaknessin internal control system
of the company.
(v)(a)
According to the inform
ation and explanations provided by the m
anagement, w
e are of the opinion that theparticulars of contracts or arrangem
ents referred to insection 301 of the A
ct that need to be entered into the register m
aintained under section 301 have been so entered.
(b) In respect of the transactions m
ade in pursuance of the such contracts or arrangem
ents exceeding value of R
upees five lakhs entered into during the financial year, because of the unique and specialized nature of the item
s involved and absence of any comparable
prices, we are unable to com
ment w
hether the tranac-
Au
dito
rs' Rep
ort
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 81
82
tions were m
ade at prevailing market prices at the relevant
time.
(vi) T
he Com
pany has not accepted any deposits from the
public.
(vii)In our opinion, the C
ompany has an internal audit system
comm
ensurate with the size and nature of its business.
(viii) To the best of our knowledge and as explained, the C
entralG
overnment
has not
prescribed m
aintenance of
costrecords under clause (d) of sub-section (1) of section 209of the A
ct for the services of the Com
pany.
(ix)(a)
The C
ompany is generally regular in depositing w
ith appropriate
authorities undisputed
statutory dues
including provident fund, employees' state insurance,
income-tax, service tax, sales tax, w
ealth tax, cess and other m
aterial statutory dues applicable to it. The
provisions relating investor education and protection fund, custom
s duty and excise duty are not applicable to the C
ompany.
Further, since the C
entral Governm
ent has till date notprescribed the am
ount of cess payable under section 441 A
of the Act, w
e are not in a position to comm
ent upon the regularity or otherw
ise of the Com
pany in depositing the sam
e.
(b)A
ccording to the information and explanations given to
us, no undisputed amounts payable in respect of prov
ident fund, employees' state insurance, incom
e-tax, w
ealth tax
service tax,
sales-tax, cess
and other
undisputed statutory dues were outstanding, at the
year end, for a period of more than six m
onths from
the date they became payable. T
he provisions relating investor education and protection fund, custom
s duty and excise duty are not applicable to the C
ompany.
(c)A
ccording to the information and explanation given to
us, there are no dues of income tax, sales tax, w
ealth tax, service tax and cess w
hich have not been deposited on account of any dispute. T
he provisions relating custom
s duty and excise duty are not applicable to the C
ompany.
(x) T
he Com
pany has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the cur-rent and im
mediately preceding financial year.
(xi) Based on our audit procedures and as per the inform
ationand explanations given by the m
anagement, w
e are of theopinion that the C
ompany has not defaulted in repaym
entof dues to bank. T
he Com
pany did not have any outstand-ing debentures and has no outstanding dues in respect ofa financial institution during the year.
(xii)A
ccording to the information and explanations given to us
and based on the documents and records produced to us,
the Com
pany has not granted loans and advances on thebasis of security by w
ay of pledge of shares, debenturesand other securities.
(xiii)In our opinion, the C
ompany is not a chit fund or a nidhi /
mutual benefit fund / society. T
herefore, the provisions ofclause
4(xiii) of
the O
rder are
not applicable
to the
Com
pany.
(xiv)In our opinion, the C
ompany is not dealing in or trading in
shares, securities,
debentures and
other investm
ents.A
ccordingly, the provisions of clause 4(xiv) of the Order are
not applicable to the Com
pany.
(xv)A
ccording to the information and explanations given to us,
the Com
pany has not given any guarantee for loans takenby others from
bank or financial institutions.
(xvi) The C
ompany did not have any term
loans outstanding dur-ing the year.
(xvii)According to the inform
ation and explanations given to usand on an overall exam
ination of the balance sheet of theC
ompany, w
e report that no funds raised on short-termbasis have been used for long-term
investment.
(xviii)The C
ompany has not m
ade any preferential allotment of
shares to parties or companies covered in the register
maintained under section 301 of the A
ct.
(xix)T
he Com
pany did not have any outstanding debenturesduring the year.
(xx)T
he Com
pany has not raised any money through public
issue.
(xxi)Based upon the audit procedures perform
ed for the pur-pose of reporting the true and fair view
of the financialstatem
ents and as per the information and explanations
given by the managem
ent, we report that no fraud on or by
the Com
pany has been noticed or reported during thecourse of our audit.
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
irm reg
istration
nu
mb
er: 101049W
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
Partn
er M
embership N
o.: 36656
Mum
baiM
ay 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 82
83
Sch
edu
lesA
s At
As A
t M
arch 31, 2011
March
31, 2010R
s.
Rs.
SO
UR
CE
S O
F F
UN
DS
Sh
areho
lders' F
un
dS
hare Capital
12,407,500
401,250,000 R
eserves and Surplus
26,374,238
472,000,000 8,781,738
873,250,000
Lo
an F
un
ds
Secured Loans
3-
237,666,852 U
nsecured Loans4
- 646,383,134
- 884,049,986
Deferred
Tax Liab
ility (Net)
559,758
- 8,841,496
1,757,299,986
AP
PL
ICA
TIO
N O
F F
UN
DS
Fixed
Assets
6
Gross B
lock1,405,666
1,064,948,239 Less : A
ccumulated D
epreciation / Am
ortisation422,465
294,236,703 N
et Block
983,201 770,711,536
Cu
rrent A
ssets, Lo
ans an
d A
dvan
ces
Sundry D
ebtors7
4,966,797 98,095,764
Cash and B
ank Balances
84,072,437
53,599,121 Loans and A
dvances9
6,122,079 223,578,152
15,161,313 375,273,037
Less : C
urren
t Liab
ilities and
Pro
vision
s
Current Liabilities
104,204,074
154,724,686 P
rovisions 11
3,098,944 4,409,247
7,303,018 159,133,933
Net C
urren
t Assets
7,858,295 216,139,103
Pro
fit and
Lo
ss Acco
un
t-
770,449,346
8,841,496 1,757,299,986
NO
TE
S TO
AC
CO
UN
TS
18
The S
chedules referred to above and Notes to accounts form
an integral part of the Balance S
heet.
As per our R
eport of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WC
hartered
Acco
un
tants
Syn
ergy M
edia E
ntertain
men
t Lim
ited
Per A
mit M
ajmu
dar
Directo
rD
irector
Partn
erM
embership N
o. 36656
Mum
baiM
ay, 2011C
om
pany S
ecretary
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DB
AL
AN
CE
SH
EE
T A
S A
T M
AR
CH
31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 83
84
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
S
ched
ules
March
31, 2011M
arch 31, 2010
Rs.
Rs.
INC
OM
E
Advertisem
ent Revenue
- 349,592,394
Event R
evenue23,835,976
37,178,878 23,835,976
386,771,272E
XP
EN
DIT
UR
ELicense F
ee-
22,202,846 E
vent Expenses
11,400,200 15,890,972
Operating E
xpenses12
- 133,467,829
Personnel E
xpenses13
2,200,815 136,071,584
Adm
inistration Expenses
14754,489
44,913,481 M
arketing and Branding E
xpenses15
- 32,955,962
Op
erating
Pro
fit befo
re dep
reciation
9,480,472 1,268,598
Other Incom
e16
- 18,454,133
Financial E
xpenses17
187,793 96,583,051
Depreciation / A
mortisation
6133,539
107,253,324
Pro
fit/ (Lo
ss) Befo
re Taxation
9,159,140
(184,113,644)
Tax Exp
enses
Deferred Tax C
harge59,758
- P
rovision for Income Tax
3,098,944 3,158,702
- P
rofit/ (L
oss) fo
r the year
6,000,438 (184,113,644)
(Loss) brought forward from
previous year-
(586,335,702)
Balan
ce carried to
Balan
ce Sh
eet6,000,438
(770,449,346)E
arnin
g P
er Sh
are (Refer N
ote 10 o
f Sch
edu
le 18)
Basic E
arning Per S
hare24.92
(4.59)D
iluted Earning P
er Share
24.92 (4.59)
Nom
inal Value P
er Share
10 10
NO
TE
S TO
AC
CO
UN
TS
18
The schedules refered to above and notes to account form
an itegrated part of the profit and loss Account.
As per our report of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WS
ynerg
y Med
ia En
tertainm
ent L
imited
Ch
artered A
ccou
ntan
ts
Per A
mit M
ajmu
dar
Directo
rD
irector
Partn
erM
embership N
o. 36656
Mum
baiM
ay, 2011C
om
pany S
ecretary
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DP
RO
FIT
AN
D L
OS
S A
CC
OU
NT
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 84
85
As A
tA
s At
March
31, 2011M
arch 31, 2010
Rs.
Rs.
Sch
edu
le 1S
HA
RE
CA
PITA
L:
Au
tho
rised :
50,000,000 (Previous Year 50,000,000) E
quity Shares of R
s. 10/- each500,000,000
500,000,000
500,000,000 500,000,000
Issued
, Su
bscrib
ed an
d P
aid u
p :
240,750 (Previous Year 40,125,000) E
quity Shares
of Rs. 10/- each fully paid up
2,407,500 401,250,000
2,407,500 401,250,000
Sch
edu
le 2R
ES
ER
VE
S A
ND
SU
RP
LU
S :
Securities P
remium
Account
Balance at the beginning of the year
472,000,000 472,000,000
Less: Reduction pursuant to the S
cheme of arrangem
ent (Refer N
ote 2 of Schedule 18)
(471,626,200)-
Balance at the end of the year
373,800 472,000,000
Profit and Loss A
ccountB
alance at the beginning of the year(770,449,346)
- Less: R
eduction pursuant to the Schem
e of arrangement (R
efer Note 2 of S
chedule 18)770,449,346
--
Add: B
alance carried from P
rofit and Loss account 6,000,438
- B
alance at the end of the year6,000,438
-
6,374,238 472,000,000
Sch
edu
le 3S
EC
UR
ED
LO
AN
S :
Term Loans
- Rupee Loans from
Banks
- 237,666,852
- Interest Accrued and dues
- -
(For S
ecurity Refer N
ote 4 of Schedule 18)
- 237,666,852
Sch
edu
le 4U
NS
EC
UR
ED
LO
AN
S :
From
Holding C
ompany
- 646,383,134
- 646,383,134
Sch
edu
le 5D
EF
ER
RE
D TA
X L
IAB
ILIT
Y(N
ET
):
Deferred
Tax Liab
ilityD
epreciation59,758
73,627,390 59,758
73,627,390
Deferred
Tax Asset
- P
rovision for Doubtful D
ebts-
1,858,803 P
rovision for Gratuity and Leave E
ncashment
- 1,464,751
Unabsorbed D
epreciation and Carry F
orward Losses
- 70,303,836
- 73,627,390
Deferred
Tax Liab
ility (Net)
59,758 -
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
ES
FO
RM
ING
PAR
T O
F T
HE
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 85
86
SYNERGY MEDIA ENTERTAINMENT LIMITEDSCHEDULE FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2011
Schedule 6FIXED ASSETS :
Assets Gross Block Accumulated Depreciation / Amortisation Net Block
Tangible Assets
Leasehold Improvements 2,941,561 2,941,561 - - - 514,975 514,975 - - - - 2,426,586
Plant and Machinery 442,098,801 442,098,801 - - - 120,407,875 120,407,875 - - - - 321,690,926 (Refer Note Below)Office Equipments 4,209,324 4,209,324 - - - 1,222,017 1,222,017 - - - - 2,987,307
Vehicles 3,182,247 1,776,581 - - 1,405,666 616,424 327,499 133,539 - 422,465 983,201 2,565,823
Furniture and Fixtures 52,544,397 52,544,397 - - - 9,294,900 9,294,900 - - - - 43,249,497
Electric Fitting,Fans and Coolers 12,613,319 12,613,319 - - - 3,511,364 3,511,364 - - - - 9,101,955
Computers 19,087,437 19,087,437 - - - 7,980,965 7,980,965 - - - - 11,106,472
Air Conditioners 16,070,153 16,070,153 - - - 4,388,018 4,388,018 - - - - 11,682,135 Intangible Assets
One Time Entry Fees 512,201,000 512,201,000 - - - 146,300,165 146,300,165 - - - - 365,900,835
Total 1,064,948,239 1,063,542,573 - - 1,405,666 294,236,703 293,947,777 133,539 - 422,465 983,201 770,711,536
Previous year 1,065,040,676 - 2,058,999 2,151,436 1,064,948,239 187,353,429 - 107,253,324 370,050 294,236,703 770,711,536 -
As AtApril 1, 2010
Transfer out inaccordancewith
scheme ofarrangement
AdditionsDuring
The Period
DeductionsDuring
The Period
For theThe Period
OnDeductio
ns
As AtMarch 31,
2011
Up ToApril1, 2010
Up ToMarch 31,
2011
As AtMarch ,31
2011
Up ToMarch 31,
2010
Transfer out inaccordance-
with scheme ofarrangement
Notes:
Plant and Machinery above includes Common Transmitters Infrastructure which are Jointly held assets and amounting to Gross Block - Rs. Nil (Previous Year - 127,300,000)Net Block - Rs. Nil (Previous Year - Rs. 101,333,902)% of Ownership - Nil (Previous year 30.26%)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 86
87
As A
tA
s At
March
31, 2011M
arch 31, 2010
Rs.
Rs.
Sch
edu
le 7S
UN
DR
YD
EB
TOR
S :
(Unsecured)
Debts outstanding for a period exceeding six m
onths :- C
onsidered Good
65,127 10,161,288
- Considered D
oubtful-
5,595,435 65,127
15,756,723 O
thers D
ebts:
- Considered G
ood4,901,670
87,934,476 4,966,797
103,691,199
Less : Provision for D
oubtful Debts
- 5,595,435
4,966,797 98,095,764
Sundry D
ebtors include dues from C
ompanies under the sam
e managem
ent :
D B
Corp Lim
ited-
6,424,637 [M
aximum
balance outstanding during the year Rs N
IL(P
revious Year Rs. 8,576,386)]
Bhaskar M
ultinet Limited
- 313,221
[Maxim
um balance outstanding during the year R
s NIL
(Previous Year R
s. 317, 272)]
Sch
edu
le 8C
AS
H A
ND
BA
NK
BA
LA
NC
ES
C
ash in Hand
- 1,137,714
Cheques on H
and491,421
- B
alances with S
cheduled Banks:
On C
urrent Accounts
3,581,016 26,825,573
On D
eposit Accounts (R
efer Note 12 of S
chedule 18)-
25,635,834 4,072,437
53,599,121 S
ched
ule 9
LO
AN
S A
ND
AD
VAN
CE
S :
(Unsecured, considered good)
Loans and Advances to E
mployees
- 2,103,628
Advances recoverable in cash or kind or for value to be received
5,938,649 3,549,038
Inter Corporate D
eposits-
139,342,457 D
eposit with G
overnment A
uthorities-
21,448,471 S
ecurity Deposit against Lease of P
roperties-
4,698,862 D
eposit with O
thers-
9,586,016 S
ervice Tax Input / Cenvat R
eceivable19,666
410,814 Tax D
educted at Source R
eceivable163,764
20,577,738 P
re Paid E
xpenses-
14,439,239 A
ccrued Interest-
7,421,889 6,122,079
223,578,152 Loans and A
dvances include dues from C
ompanies under the sam
e managem
ent:B
haskar Multinet Lim
ited-
139,342,457 [M
aximum
balance outstanding during the year Rs N
IL(P
revious Year Rs139,342,457)]
Sch
edu
le 10C
UR
RE
NT
LIA
BIL
ITIE
S :
Sundry C
reditors (Refer N
ote 13 of schedule 18)2,972,868
138,264,958 A
dvances from C
ustomers
334,907 3,057,887
Other Liabilities
896,299 13,401,841
4,204,074154,724,686
Sch
edu
le 11P
RO
VIS
ION
S :
for Gratuity
- 1,832,263
for Leave Encashm
ent-
2,576,984 P
rovision For Taxation
3,098,944 -
3,098,944 4,409,247
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
ES
FO
RM
ING
PAR
T O
F T
HE
BA
LA
NC
E S
HE
ET
AS
AT
MA
RC
H 31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 87
88
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
March
31, 2011M
arch 31, 2010
Rs.
Rs.
Sch
edu
le 12O
PE
RA
TIN
G E
XP
EN
SE
S :
Rent to P
rasar Bharti
- 22,249,195
Royalty
- 87,595,155
Electricity expenses
- 13,031,797
Softw
are License Fees
- 3,571,626
Frequency allocation charges
- 1,241,000
Link charges-
1,067,762 O
ther Operating charges
- 4,711,294
-133,467,829
Sch
edu
le 13P
ER
SO
NN
EL
EX
PE
NS
ES
Salaries, W
ages and Bonus
2,074,253 126,749,212
Contribution to P
rovident Fund and O
ther Funds
95,039 6,289,170
Workm
en and Staff W
elfare Expenses
31,523 3,033,202
2,200,815 136,071,584
Sch
edu
le 14A
DM
INIS
TR
AT
ION
EX
PE
NS
ES
Electricity expenses
225,484 11,641,097
Rent
- 7,333,585
Traveling -
3,837,522 R
epair and Maintenance
- Others
- 2,952,410
Telephone 42,891
1,982,531 P
rovision for doubtful debts-
3,293,624 Legal and P
rofessional Charges
- 2,924,302
Vehicle R
unning and Maintenance
353,795 862,387
Insurance-
974,607 P
rinting and Stationery
17,695 834,308
Conveyance
- 627,647
Paym
ent to auditors-A
s Auditors
- -
Audit F
ee50,000
400,000 P
ostage and Telegram-
207,410 R
ates and Taxes-
16,970 Loss on sale of fixed assets (net)
- 1,303,616
Bad D
ebts Written off
- 1,037,235
Sundry O
ffice Expenses
64,624 4,684,230
754,489 44,913,481
Sch
edu
le 15M
AR
KE
TIN
G A
ND
BR
AN
DIN
G E
XP
EN
DIT
UR
EA
dvertisement and P
ublicity-
31,718,169 B
usiness Prom
otion-
1,237,793 -
32,955,962 S
ched
ule 16
OT
HE
R IN
CO
ME
Interest Income
Bank D
eposits (TD
S - R
s. Nil; P
revious Year - Rs. 242,102)
- 2,210,974
Intercorporate Deposits (T
DS
- Rs. N
il (Previous Year R
s. 2,560,829)-
15,816,364 Loans to E
mployees (T
DS
- Nil; P
revious Year - Nil)
- 93,015
Provision no longer required-w
ritten back-
333,780 -
18,454,133 S
ched
ule 17
FIN
AN
CIA
LE
XP
EN
SE
S :
Interest- O
n Term loans
- 32,897,404
- Others
177,578 63,057,055
Bank C
harges10,215
628,592 187,793
96,583,051
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
ES
FO
RM
ING
PAR
T O
F T
HE
PR
OF
IT A
ND
LO
SS
AC
CO
UN
T F
OR
TH
E Y
EA
R E
ND
ED
MA
RC
H 31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 88
89
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
March
31, 2011M
arch 31, 2010
Rs.
Rs.
Sch
edu
le 12O
PE
RA
TIN
G E
XP
EN
SE
S :
Rent to P
rasar Bharti
- 22,249,195
Royalty
- 87,595,155
Electricity expenses
- 13,031,797
Softw
are License Fees
- 3,571,626
Frequency allocation charges
- 1,241,000
Link charges-
1,067,762 O
ther Operating charges
- 4,711,294
-133,467,829
Sch
edu
le 13P
ER
SO
NN
EL
EX
PE
NS
ES
Salaries, W
ages and Bonus
2,074,253 126,749,212
Contribution to P
rovident Fund and O
ther Funds
95,039 6,289,170
Workm
en and Staff W
elfare Expenses
31,523 3,033,202
2,200,815 136,071,584
Sch
edu
le 14E
lectricity expen
ses225,484
11,641,097 R
ent-
7,333,585 Traveling
- 3,837,522
Repair and M
aintenance - O
thers-
2,952,410 Telephone
42,891 1,982,531
Provision for doubtful debts
- 3,293,624
Legal and Professional C
harges-
2,924,302 V
ehicle Running and M
aintenance353,795
862,387 Insurance
- 974,607
Printing and S
tationery 17,695
834,308 C
onveyance -
627,647 P
ayment to auditors
-As A
uditors-
- A
udit Fee
50,000 400,000
Postage and Telegram
- 207,410
Rates and Taxes
- 16,970
Loss on sale of fixed assets (net)-
1,303,616 B
ad Debts W
ritten off -
1,037,235 Less: already provided for
- -
Sundry O
ffice Expenses
64,624 4,684,230
754,489 44,913,481
Sch
edu
le 15M
AR
KE
TIN
G A
ND
BR
AN
DIN
G E
XP
EN
DIT
UR
EA
dvertisement and P
ublicity-
31,718,169 B
usiness Prom
otion-
1,237,793 -
32,955,962 S
ched
ule 16
OT
HE
R IN
CO
ME
Interest Income
Bank D
eposits (TD
S - R
s. Nil; P
revious Year - Rs. 242,102)
- 2,210,974
Intercorporate Deposits (T
DS
- Rs. N
il (Previous Year R
s. 2,560,829)-
15,816,364 Loans to E
mployees (T
DS
- Nil; P
revious Year - Nil)
- 93,015
Provision no longer required-w
ritten back-
333,780 -
18,454,133 S
ched
ule 17
FIN
AN
CIA
LE
XP
EN
SE
S :
Interest- O
n Term loans
- 32,897,404
- Others
177,578 63,057,055
Bank C
harges10,215
628,592 187,793
96,583,051
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
ES
FO
RM
ING
PAR
T O
F T
HE
PR
OF
IT A
ND
LO
SS
AC
CO
UN
T F
OR
TH
E Y
EA
R E
ND
ED
MA
RC
H 31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 89
90
Fo
r the Y
ear En
ded
Fo
r the Y
ear En
ded
M
arch 31, 2011
March
31, 2010R
s.
Rs.
A.
CA
SH
FL
OW
FR
OM
OP
ER
AT
ING
AC
TIV
ITIE
S
Profit/ (Loss) before Taxation
9,159,140 (184,113,644)
Ad
justm
ent fo
r :Loss on S
ale of Fixed A
ssets-
1,303,616 Interest E
xpense (net)187,793
78,128,916 D
epreciation / Am
ortisation133,539
107,253,324 P
rovision for doubtful debts3,293,624
Op
erating
Pro
fit /(Lo
ss) befo
re wo
rking
capital ch
ang
es9,480,472
5,865,836 In
crease / Decrease in
Wo
rking
Cap
ital(Increase) in S
undry Debtors
(790,637)(5,351,518)
(Increase) in Loans and Advances
(5,958,315)(15,671,107)
Increase in Current Liabilities
156,708 9,006,822
Increase/ (Decrease) in P
rovisions(187,793)
353,939 C
ash fro
m/ (u
sed in
) op
eration
s2,700,435
(5,796,028)Taxes P
aid (163,764)
(766,220)N
ET
CA
SH
FR
OM
/ (US
ED
IN) O
PE
RA
TIN
G A
CT
IVIT
IES
(A)
2,536,671 (6,562,248)
BC
AS
H F
LO
W F
RO
M IN
VE
ST
ING
AC
TIV
ITIE
SD
eletion/(Additions) to F
ixed Assets
- (2,058,999)
Proceeds from
Sale of F
ixed Assets
- 477,770
Interest Received
- 12,904,375
Fixed D
eposit with m
aturity period of more than three m
onths-
937,750 N
ET
CA
SH
FR
OM
INV
ES
TIN
G A
CT
IVIT
IES
(B)
- 12,260,896
CC
AS
H F
LO
W F
RO
M F
INA
NC
ING
AC
TIV
ITIE
SR
epayment of Loan - S
ecured-
(78,857,636)Loan taken- U
nsecured -
169,040,116 R
epayment of Loan - U
nsecured-
(21,673,123)Interest P
aid-
(67,144,279)
NE
T C
AS
H F
RO
M F
INA
NC
ING
AC
TIV
ITIE
S (C
)-
1,365,078
Net In
crease in C
ash an
d C
ash E
qu
ivalents (A
)+(B)+(C
)2,536,671
7,063,726
Cash and C
ash Equivalents at the beginning of the year
27,963,287 20,899,561
Less: Transfer pursuant to the scheme of arrangem
ent(26,427,521)
-C
ash and Cash E
quivalents at the end of the year4,072,437
27,963,287 N
et Increase in
Cash
and
Cash
Eq
uivalen
ts2,536,671
7,063,726 -
Cash and C
ash Equivalents (A
s per Schedule 8)
4,072,437 53,599,121
Less:- Fixed D
eposit with m
aturity period for more than three m
onths-
25,635,834 N
et Cash
and
Cash
Eq
uivalen
ts at the en
d o
f the Y
ear (As p
er no
tified A
S-3)
4,072,437 27,963,287
As per our report of even date
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WS
ynerg
y Med
ia En
tertainm
ent L
imited
Ch
artered A
ccou
ntan
ts
Per A
mit M
ajmu
dar
Directo
rD
irector
Partn
erM
embership N
o. 36656
Mum
baiM
ay 18 , 2011C
om
pany S
ecretary
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DC
AS
H F
LO
W S
TAT
EM
EN
T F
OR
TH
E Y
EA
R E
ND
ED
MA
RC
H 31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 90
91
SC
HE
DU
LE
18N
OT
ES
TO A
CC
OU
NT
S:
1.N
ature o
f Op
eration
sS
ynergy Media E
ntertainment Lim
ited ("the Com
pany") is acom
pany registered under the Com
panies Act, 1956. ("the
Act"). T
he Com
pany is engaged in the business of organiz-ing events.
2.S
chem
e of arran
gem
ent
a)T
he Com
any along with D
.B. C
rop Limited had filed the
Com
posite Schem
e of Dem
erger and Restructuring of
Share capital (‘the S
cheme’) w
ith the Hon’ble high
Court w
ith Judicature at Madhya P
radesh (“ Madhya
Pradesh
High
Court”)
and H
on’ble high
Court
with
Judicature at
Gujrat
(“Gujrat
High
Court”)
for the
demerger of R
adio division of SM
EL
and restructuring of share capital subsequently.T
he scheme w
as approved by Madhya P
radesh High
Court and G
ujrat High C
ourt vide their orders dated January 13, 2011 and January 17, 2011 respectively. T
he certified order copy of the Madhya P
radesh High
Court and G
ujrat High C
ourt dated January 29, 2011 and F
abruary 2, 2011 respectively ware field w
ith the R
egistrar of the Com
panies on Fabruary 15, 2011 and
Fabruary 16, 2011 respectively.
As
pre
scribe
d,
in
the
sch
em
e,
the
M
inistry
of
Information
and B
roadcasting.Governm
ent of
India accorded their approval vide letter N
o. 212/30(33)/2006-F
M(V
ol.II)/120 dated March 30,2011.
Accordingly, after the approval by the m
inistry of the Inform
ation and Broadcasting, G
overnment of India,
the Schem
e become effective on M
arch 30,2011 with
appointed date April 1,2010.
In accordance with the S
cheme, the assets and liabili
ties of radio division (net assete) of the company w
are transferred at their respective book values to D
.B. C
ropLim
ited and the deficit was debited to P
rofit and Loss account. F
urther, issued, subscribed and paid up equity share capital of the C
ompny w
as reduced by Rs.
398,842,500 proportionately
amongest
the equity
shareholders to Rs. 2,407,500. T
he credit arising on account of reduction of share capital and the debit balance of P
rofit and Loss account is adjusted against the S
ecurities Prem
ium account. T
he net assets transferred are as under.
Particu
larsA
mo
un
tA
mo
un
t
1.Transfer o
f assets and
liabilities
Assets tran
sferredF
ixed Assets
769,594,796 C
urrent Assets
369,561,1111,139,155,907
Liab
ilities transferred
Liabilities155,086,567
Secured loans
237,666,852U
nsecured loans646,383,134
1,039,136,553N
et Assets tran
sferred
(Deb
ited to
pro
fit and
loss)
100,019,354
3.S
tatemen
t of sig
nifican
t accou
ntin
g p
olicies
a)B
asis of P
reparation
The financial statem
ents have been prepared to com-
ply in
all m
aterial respects
with
the A
ccounting S
tan
da
rds
no
tified
b
y C
om
pan
ies
(Acco
un
ting
S
tandards) Rules, 2006, (as am
ended) and the relevant provisions of the A
ct. The financial statem
ents have been prepared under the historical cost conven-tion on an accrual basis. T
he accounting policies havebeen consistently applied by the C
ompany and are
consistent with those used in the previous year.
b)
Use o
f estimates
The preparation of financial statem
ents in conformity
with generally accepted accounting principles requires
managem
ent to make estim
ates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statem
ents and the results of operations dur-ing the reporting period end. A
lthough these estimates
are based upon managem
ent's best knowledge of cur-
rent events and actions, actual results could differ from
these estimates.
c)F
ixed assets
Fixed
assets are
stated at
cost less
accumulated
depreciation and impairm
ent losses, if any. Cost com
-prises the purchase price and any attributable cost of bringing the asset to its w
orking condition for its intended use. B
orrowing costs relating to acquisition of fixed
assets w
hich takes
substantial period
of tim
e to
get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.
d)
Dep
reciation
Depreciation is provided on S
traight Line Method at the
rates computed based on estim
ated useful life of the assets, w
hich are equal to the corresponding rates prescribed in S
chedule XIV
to the Act.
Leasehold Im
provements
are am
ortized over
the shorter of the estim
ated useful life of the asset or the lease term
.A
ssets costing individually below R
s. 5,000 are fully depreciated in the year of acquisition.
e)In
tang
ibles
On
e Time E
ntry F
ees (OT
EF
)O
ne time E
ntry Fees represent am
ount paid for acquiring licenses for new
radio stations and is amortised on
a Straight Line B
asis over a period of ten years com-
mencing from
the date on which the radio station
becomes operational.
f)E
xpen
ditu
re on
new
pro
jectsC
apital W
ork-in
-Pro
gress:
Expenditure directly relating to construction activity is
capitalized.
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
E F
OR
MIN
G PA
RT
OF
TH
E A
CC
OU
NT
S A
S A
T A
ND
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 91
92
Pre-o
perative E
xpen
ditu
re:Indirect expenditure incurred during construction period iscapitalized under the respective asset-head as part of theindirect construction cost, to the extent to w
hich the expen-diture is indirectly related to the asset-head. O
ther indirectexpenditure incurred during the construction period, w
hichis not related to the construction activity or w
hich is not inci-dental thereto is w
ritten off in the profit and loss account.
Income earned during the construction period is deducted
from preoperative expenditure pending allocation.
g)
Impairm
ent
The carrying am
ounts of assets are reviewed at each bal-
ance sheet date if there is any indication of impairm
entbased on internal/external factors. A
n impairm
ent loss, ifany is recognized w
herever the carrying amount of an asset
exceeds its recoverable amount. T
he recoverable amount is
the greater of the assets net selling price and value in use.In assessing value in use, the estim
ated future cash flows
are discounted to their present value at the weighted aver-
age cost of capital.
h)
Leases
Wh
ere the C
om
pany is th
e lessee
Leases where the lessor effectively retains substantially all
the risks and benefits of ownership of the leased item
, areclassified as operating leases. O
perating lease payments
are recognized as an expense in the profit and loss accounton a straight-line basis over the lease term
.
i)R
evenu
e recog
nitio
nR
evenue is recognized to the extent that it is probable thatthe econom
ic benefits will flow
to the Com
pany and the rev-enue can be reliably m
easured.A
dvertisem
ent R
evenu
eR
evenue is recognized as and when advertisem
ent is airedand is disclosed net of discounts and service tax. E
vent R
evenu
eR
evenue is recognized once the related event is organizedand com
pleted.
Interest
Revenue is recognized on a tim
e proportion basis takinginto account the am
ount outstanding and the rate applica-ble.
j)F
oreig
n cu
rrency tran
saction
Initial R
ecog
nitio
nF
oreign currency
transactions are
recorded in
IndianR
upees by applying to the foreign currency amount, the
exchange rate between the Indian R
upee and the foreigncurrency prevailing at the date of the transaction.C
on
version
Foreign currency m
onetary items are reported using the
closing rate. Non-m
onetary items w
hich are carried in terms
of historical cost denominated in a foreign currency, are
reported using the exchange rate at the date of the trans-action; and non-m
onetary items w
hich are carried at fairvalue or other sim
ilar valuation denominated in a foreign
currency are reported using the exchange rates that exist-ed w
hen the values were determ
ined.
Exch
ang
e Differen
ces
Exchange differences arising on the settlem
ent of monetary
and non-monetary item
s at rates different from those at
which they w
ere initially recorded during the year, or report-ed
in previous
financial statem
ents, are
recognized as
income or as expense in the year in w
hich they arise. E
xchange differences
arising in
respect of
fixed assets
acquired from outside India before accounting period com
-m
encing on or after Decem
ber 7, 2006 are capitalized as apart of fixed asset.
k)R
etiremen
t and
oth
er emp
loyee b
enefits
Retirem
ent benefits in the form of provident fund are a
defined contribution
scheme
and the
contributions are
charged to the profit and loss account of the year when the
contributions to the respective funds are due. There are no
other obligations other than the contribution payable to therespective trusts.
Gratuity liability is a defined benefit obligation and is provid-
ed for on the basis of an actuarial valuation done as per pro-jected unit credit m
ethod, carried out by an independentactuary at the end of the year.
Short term
compensated absences are provided for based
on estimates. Long term
compensated absences are pro-
vided based on actuarial valuation carried out by an inde-pendent actuary at the end of the year. T
he actuarial valua-tion is done as per projected unit credit m
ethod.A
ctuarial gains/losses are imm
ediately taken to profit andloss account and are not deferred.
l)In
com
e taxesTax
expense com
prises current
tax and
deferred tax.
Current incom
e tax is measured at the am
ount expected tobe
paid to
the tax
authorities in
accordance w
ith the
Income-tax A
ct, 1961 enacted in India. Deferred incom
etaxes reflects the im
pact of current year timing differences
between taxable incom
e and accounting income for the
year and reversal of timing differences of earlier years.
Deferred tax is m
easured based on the tax rates and the taxlaw
s enacted or substantively enacted at the balance sheetdate. D
eferred tax assets are recognised only to the extentthat there is reasonable certainty that sufficient future tax-able incom
e will be available against w
hich such deferredtax
assets can
be realised.
In situations
where
theC
ompany has unabsorbed depreciation or carry forw
ard taxlosses, all deferred tax assets are recognised only if there isvirtual certainty supported by convincing evidence that theycan be realised against future taxable profits. A
t each Balance S
heet date, unrecognized deferred tax
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
E F
OR
MIN
G PA
RT
OF
TH
E A
CC
OU
NT
S A
S A
T A
ND
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 92
93
sales and transfers as if the sales or transfers were to
third parties at current market prices.
iii. A
llocation of comm
on costs:C
omm
on allocable costs are allocated to each segm
ent according to the relative contribution of each segm
ent to the total comm
on costs.
iv. S
egment P
olicies:T
he company prepares its segm
ent information in con-
formity w
ith the accounting polices adopted for prepar-ing
and presenting
the financial
statements
of the
Com
pany as a whole.
q)
Licen
se feesLicence fees are charged to revenue at the rate of 4%
ofgross revenue for the year or 10%
of Reserve O
ne Time
Entry F
ees (RO
TE
F) for the concerned city, w
hichever ishigher (R
OT
EF
means 2.5%
of highest valid bid in the city).G
ross Revenue is revenue on the basis of billing rates inclu-
sive of any taxes and without deduction of any discount
given to the advertiser and any comm
ission paid to adver-tising agencies.
Barter advertising contracts are included in the gross rev-
enue on the basis of relevant billing rates
4.Term
loan
s con
sist of:
assets of earlier years are re-assessed and recognized tothe extent that it has becom
e reasonably certain or virtuallycertain, as the case m
ay be, that future taxable income w
illbe available against w
hich such Deferred Tax A
ssets can berealized. T
he carrying amount of deferred tax assets are
reviewed at each balance sheet date. T
he Com
pany writes-
down the carrying am
ount of a deferred tax asset to theextent that it is no longer reasonably certain or virtually cer-tain, as the case m
ay be, that sufficient future taxableincom
e will be available against w
hich deferred tax assetcan be realised.
m)
Pro
vision
Aprovision is recognized w
hen an enterprise has a presentobligation as a result of past event; it is probable that an out-flow
of resources will be required to settle the obligation and
in respect
of w
hich a
reliable estim
ate can
be m
ade.P
rovisions are not discounted to its present value and aredeterm
ined based on best estimate required to settle the
obligation at the balance sheet date. These are review
ed ateach balance sheet date and adjusted to reflect the currentbest estim
ates.
n)
Earn
ing
s per sh
areB
asic earnings per share are calculated by dividing the netprofit or loss for the year attributable to equity shareholders(after
deducting preference
dividends and
attributabletaxes, if any) by the w
eighted average number of equity
shares outstanding during the year. The w
eighted averagenum
ber of equity shares outstanding during the year isadjusted for events of bonus issue; bonus elem
ent in arights
issue to
existing shareholders;
share split;
andreverse share split (consolidation of shares), if any.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity share-holders and the w
eighted average number of shares out-
standing during the year are adjusted for the effects of alldilutive potential equity shares.
O)C
ash an
d cash
equ
ivalents
Cash and C
ash equivalents in the cash flow statem
ent com-
prise cash at bank and in hand and short term investm
entsw
ith an original maturity of three m
onths or less.
p)
Seg
men
t info
rmatio
ni.
Identification of Segm
ents:T
he Com
pany's operating businesses are organized and m
anaged separately according to the nature of services provided, w
ith each segment representing a
strategic business unit that offers different products and serves different m
arkets. The C
ompany sells its
services within India w
ith insignificant export income
and does not have any operations in economic envi
ronments w
ith different risks and returns hence, it is considered
operating in
a single
geographical seg
ment.
ii. Inter segm
ental Transfers
The
Com
pany generally
accounts for
intersegment
Particu
larsR
up
ee Term L
oan
sM
arch 31, 2011M
arch 31, 2010J&
K B
ank Limited (N
ote 1)N
il141,515,360
Corporation B
ank Limited (N
ote 2)N
il96,151,492
Total
Nil
237,666,852
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
E F
OR
MIN
G PA
RT
OF
TH
E A
CC
OU
NT
S A
S A
T A
ND
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31, 2011
No
te 1: T
he Term Loan is secured by:
Hypothecation of plant and m
achinery including equipments
and studio, furniture and fixtures and other movables of the
Com
pany at all its locations, being pari passu first chargew
ith other bank.
No
te 2:T
he Term Loan is secured by:
Hypothecation of all types of receivables and others current
assets of the Com
pany. First P
ari-Passu C
harge on allassets
including com
mon
transmission
infrastructures,transm
itters, furniture, fixture and other equipments (both
present and future) of the Com
pany. Corporate G
uaranteeof
Writers
and P
ublishers P
rivate Lim
ited and
personalguarantees of all directors of the C
ompany viz., M
r. Sudhir
Agarw
al, Mr. G
irish Agarw
al and Mr. P
awan A
garwal.
5.T
he
C
om
pan
y is
en
ga
ge
d
in
the
b
usin
ess
of
Eve
nt
Managem
ent which is considered to constitute on single pri-
mary
segment
in the
context of
Notified
Accounting
Standard 17 S
egmental R
eporting issued by the Central
Governm
ent. There are no geographical reportable seg-
ments since the C
ompany caters to the Indian m
arket onlyand does not distinguish any reportable regions w
ithin India.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 93
94
10.E
arnin
gs p
er share
Particu
larsM
arch 31, 2011
March
31, 2010
i)Profit/ (Loss) for the year (R
s.)6,000,438
(184,113,644)ii) W
eighted average number of E
quity S
hares outstanding for Basic E
PS
240,75040,125,000
iii) Basic E
arnings per share ( Rs.)
24.92(4.59)
iv) Weighted average num
ber of Equity
Shares outstanding for D
iluted EP
S240,750
40,125,000v) D
iluted Earnings per share ( R
s.)24.92
(4.59)vi) N
ominal value of shares (R
s.)10
10
9.A
dd
ition
al info
rmatio
n p
ursu
ant to
the p
rovisio
ns o
fparag
raph
s 3, 4B, 4C
, 4D o
f Part II o
f the S
ched
ule V
I of
the A
ctN
ote: As the liabilities for gratuity and leave encashm
ent are
provided on an actuarial basis for the Com
pany as a whole,
the amounts pertaining to the C
hief Operating O
fficer arenot included above.
12.F
ixed d
epo
sitsC
ash and bank includes fixed deposits having maturity peri-
od of more than three m
onths amounting R
s.N
il (Previous
year Rs.
25,635,834).13.
Dues to M
icro and Sm
all Enterprises
The C
ompany has sent a request to its suppliers for confir-
mation
of their
status under
Micro,
Sm
all and
Medium
Enterprises D
evelopment A
ct, 2006. Pending responses
from the suppliers, the disclosures have not been m
ade.14.
Previous year com
parativesP
revious year's figures have been regrouped / rearrangedw
here necessary to conform to this year classification.
a) Exp
end
iture in
foreig
n cu
rrency (o
n accru
al basis)
Particu
larsM
arch 31, 2011
March
31, 2010R
s.R
s.A
dvertisement and P
ublicityN
ilN
ilP
rogramm
ing Expenses
(Audio C
D's )
Nil
59,519
6.(a) R
elated parties d
isclosu
reR
elated party
disclosures, as
required by
A
ccountingS
tandard 18 - "Related P
arty Disclosures" notified by the
Com
panies (A
ccounting S
tandards) R
ules, 2006,
(asam
ended) are given below:
7.L
easesR
ental expenses in respect of operating leases are recog-nized as an expense in the profit and loss account, on astraight-line basis over the lease term
.O
perating lease (for assets taken on lease) a)
The C
ompany has taken various residential and offices
under operating lease agreements. T
hese are generally renew
able by mutual consent;
b)Lease paym
ents for the year are Rs. N
il (Previous year
Rs. 29,582,780);
c)T
he future minim
um lease paym
ents under non-cancelable operating leases;
�not later than one year is R
s. Nil (P
revious year Rs.
26,493,142)�
Later than one year but not later than five years is Rs.
Nil (P
revious year Rs. 110,241,154)
�Later than five years R
s.Nil (P
revious year Rs.
76,388,735)d
)T
here are no restrictions imposed in these lease agree
ments. T
here are no sub leases.8.
Co
ntin
gen
t liabilities n
ot p
rovid
ed fo
rG
uarantees issued by bank on behalf of the Com
pany: Rs.
Nil (P
revious year Rs. 16,392,375).
Particulars
Related P
arty
Holding C
ompany
D. B
. Corp Lim
itedFellow
Subsidiary C
ompany
I Media C
orp Limited
Key M
anagement P
ersonnel- S
hri Sudhir A
garwal, D
irector (SA
)- S
hri Girish A
garwal, D
irector (GA
)- S
hri Paw
an Agarw
al, Director (PA
)R
elatives of key managem
ent personnel
- Shri R
amesh C
handra Agarw
al (RC
A)
- Sm
t. Kasturi D
evi Agarw
al (KD
A)
- Sm
t. Jyoti Sudhir A
garwal (JS
A)
- Sm
t. Nam
ita Girish A
garwal (N
GA
)- S
mt. N
ikita Paw
an Agarw
al (NPA
)
Enterprises ow
ned or significantly influenced by key m
anagement
personnel or their relatives- W
riters & P
ublishers Private Lim
ited (W
.P.L.) - B
hasker Multinet Lim
ited-
India Interactive Technologies Lim
ited (I.I.T.L.)
11.M
anag
erial Rem
un
eration
Particu
larsM
arch 31, 2011
March
31, 2010R
s.R
s.S
alariesN
il5,109,572
Perquisites
Nil
1,849,310C
ontribution to provident fundN
il208,320
Nil
7,167,202
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
DS
CH
ED
UL
E F
OR
MIN
G PA
RT
OF
TH
E A
CC
OU
NT
S A
S A
T A
ND
FO
R T
HE
YE
AR
EN
DE
D M
AR
CH
31, 2011
As per our report of even date
Fo
r S.R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm R
egistratio
n N
um
ber.: 101049W
Syn
ergy M
edia E
ntertain
men
t Lim
itedC
hartered
Acco
un
tants
per A
mit M
ajmu
dar
Directo
r D
irector
Partn
erM
embership N
o. 36656
Mum
baiM
ay 18, 2011C
om
pany S
ecretary
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 94
95
SYNERGY MEDIA ENTERTAINMENT LIMITEDSCHEDULE FORMING PART OF THE ACCOUNTS AS AT MARCH 31, 2011
6. (b) Related Parties DisclosureTransactions with Related Parties are given below :
Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10
D.B. Corp Limited - - - 209,511,956 - - - 7,377,047 - 20,641,182 - - - (645,241,014)- - - (33,823,285) - (63,057,055) - - - - - - - -
I Media Corp Limited - - - - - - - - - 137,387 - 1,575,934 - 478,476 - - - - - - - - - - - - - -
Writers & PublishersPrivate Limited - - - - - - - - - - - - - -
- - - - - - - - - - - - - - Bhaskar Multinet Ltd. - 13,255,534 - - - 15,816,364 - - - 471,731 - - - 138,880,161
- - - - - - - - - - - - - - India Interactive Technologies Limited - - - - - - - - - - - - - -
- - - - - - - - - - - - - -
Note:For the personal Guarantees given by the directors for the Term Loans taken by the Company, refer note 4 of Schedule 18
Related Party Name Loan/Advance Given Loan/Advance Taken Receiving of Services/ Amount Outstanding (net)
(Repaid) (Repaid) (Interest Received (Paid) Revenue Purchases Recovery of Expenses Debit / (Credit)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 95
96
BA
LA
NC
E S
HE
ET
AB
ST
RA
CT
AN
D C
OM
PAN
Y'S
GE
NE
RA
LB
US
INE
SS
PR
OF
ILE
1.Reg
istration
Details :
Registration N
o. : 018039
State C
ode : 10
Balance S
heet Date :
31-03-2011D
ate of Incorporation : 17-10-2005
2.Cap
ital Raised
du
ring
the year (A
mo
un
t in R
s. T
ho
usan
d)
Public Issue
NIL
Rights Issue
NIL
Bonus Issue
NIL
Private P
lacement
NIL
3.Po
sition
of M
ob
ilisation
and
Dep
loym
ent o
f Fu
nd
s (Am
ou
nt in
R
s. T
ho
usan
d)
Total LiabilitiesR
s.
16,145Total A
ssets R
s.
16,145
4.So
urces o
f Fu
nd
s (Am
ou
nt in
R
s. T
ho
usan
d)
Paid up C
apital R
s.
2,408R
eserves and Surplus
Rs.
6,374S
ecured Loans N
ILU
nsecured Loans NIL
Deferred Tax Liability
NIL
5.Ap
plicatio
n o
f Fu
nd
s (Am
ou
nt in
R
s. T
ho
usan
d)
Net F
ixed Assets
Rs.
983Investm
ents N
ILN
et Current A
ssets R
s.
7,858M
isc. Expenses
NIL
Accum
ulated Losses N
IL
6.Perfo
rman
ce of C
om
pany (A
mo
un
t in R
s. T
ho
usan
ds)
Turnover (include other income)
Rs.
23,836Total E
xpenditure R
s.
14,678P
rofit / (Loss) Before tax
Rs.
9,159P
rofit/(Loss) After Tax
Rs.
6,000E
arning per share in Rs.
Rs.
24.92D
ividend Rate %
N
A
7.Gen
eric Nam
e of P
rincipal P
rod
uct / S
ervice of C
om
pany
Item C
ode No. (IT
C C
ode)N
AP
roduct Description
NA
Fo
r and
on
beh
alf of th
e Bo
ard
Mum
bai M
ay 18 2011D
irector
Directo
r
SY
NE
RG
YM
ED
IAE
NT
ER
TAIN
ME
NT
LIM
ITE
D
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 96
97
Dear S
hareh
old
ers,
The D
irectors have pleasure in presenting the Fifth A
nnual Report and
the Audited S
tatement of A
ccounts of the company for the Year E
nded31st M
arch, 2011.
FIN
AN
CIA
LH
IGH
LIG
HT
S :
The financial results of the C
ompany for the year ended 31st M
arch,2011 are as under:
(in Rs.)
RE
VIE
W O
F P
ER
FO
RM
AN
CE
:
The com
pany is operating internet and mobile interactive services and
also e-papers are provided by the company in com
bine look of the print-ed versions w
ith the interactivity of the web and this netw
ork technologyprovides a w
ide spectrum to the advertisers for prom
oting their productsand services on the w
ebsites, for reaching different types of audienceand also to track the grow
th.
Besides, the com
pany's SM
S portal services provides interactive activi-
ties and information consisting of new
s, entertainment, sports, and
weather reports on a subscription basis, in both E
nglish and Hindi.
FU
TU
RE
PR
OS
PE
CT
S :
The
company
has local
content, custom
er relationships,
news
andadvertising sales force and the prom
otional vehicle in place and allthese are potential to strategically avail the advantages of offering pack-aged advertising products to cater to the need of advertisers.
All the editions of D
ainik Bhaskar and D
ivya Bhaskar are available
online and going forward, considering fast penetration of internet ser-
vices across the country, the company is ready to expand in this area
whenever m
arket so demands. C
onsidering the increasing demand, the
company has trem
endous potential for growth in its chosen areas of
business.
DIV
IDE
ND
:
In view of the absence of any profits for the year under review
, the
Particu
lars2010-11
2009-10
Inco
me
30,366,260 21,816,067
Exp
end
iture
121,879,004 79,496,700
Pro
fit/(Lo
ss) for th
e year
befo
re tax(91,512,744)
(57,680,633)
Less: Deferred tax Liability/
--
(Assets) F
ringe Benefit Tax
--
Pro
fit /(Lo
ss) after tax(91,512,744)
(57,680,633)
Balance B
ought forward from
previous year(180,918,078)
(12,32,37,445)
Balance carried forw
ard to
Balance sheet
(272,430,822)(180,918,078)
Directors refrain from
recomm
ending any dividend for the year ended31st M
arch, 2011.
ISS
UE
OF
3,50,000 CO
MP
UL
SO
RY
CO
VE
RT
IBL
E
DE
BE
NT
UR
ES
(CC
D'S
):
During
the year
under review
3,50,000
Com
pulsory C
onvertibleD
ebentures (CC
D's) of R
s. 1,000/- each were issued on 24th January,
2011 to D. B
. Corp Lim
ited, the holding Com
pany on such terms and
conditions mentioned in D
ebenture Subscription A
greement
DIR
EC
TOR
AT
E :
In term
s of
the Articles
of Association
of the
company,
Mrs.
JyotiA
garwal, D
irector of the company, retires by rotation at the forthcom
ingA
nnual General M
eeting and being eligible, offers herself for re-appoint-m
ent.
STA
TU
TOR
YA
UD
ITOR
S :
M/s S
. R. B
atliboi & A
ssociates., Chartered A
ccountants, Mum
bai, theS
tatutory Auditors of the com
pany, will retire at the conclusion of the
forthcoming A
nnual General M
eeting of the Com
pany and being eligible,they offer them
selves to hold office as auditors from the conclusion of
the ensuing Annual G
eneral meeting until the conclusion of the next
Annual G
eneral Meeting of the C
ompany.
AU
DITO
RS
RE
PO
RT
:
The A
uditors' Report read w
ith notes to accounts is self-explanatory andhence, needs no further clarification.
PU
BL
IC D
EP
OS
ITS
:
The C
ompany has not invited and/ or accepted any deposits, w
ithin them
eaning of Section 58-A
of the Com
panies Act,1956, read w
ith theC
ompanies (A
cceptance of Deposits) R
ules,1975 made there under.
INT
ER
NA
LC
ON
TR
OL
SY
ST
EM
:
The C
ompany's internal control system
is comm
ensurate with the nature
and size of its business. The C
ompany has w
ell documented proce-
dures for functional areas, which address the internal controls ade-
quately.
PAR
TIC
UL
AR
S R
EG
AR
DIN
G C
ON
SE
RVA
TIO
N O
F
EN
ER
GY, T
EC
HN
OL
OG
YA
BS
OR
PT
ION
AN
D F
OR
EIG
NE
XC
HA
NG
E E
AR
NIN
GS
AN
D O
UT
GO
:
Since IM
CL
does not own any m
anufacturing facility the other particu-lars relating to conservation of energy and technology absorption asstipulated in the C
ompanies (D
isclosure of Particulars in the R
eport ofthe B
oard of Directors) R
ules, 1988 are not applicable.
SE
CR
ETA
RIA
LC
OM
PL
IAN
CE
CE
RT
IFIC
AT
E :
Pursuant to the proviso to S
ection 383A(1) of the C
ompanies A
ct, 1956read
with
the C
ompanies
(Com
pliance C
ertificate) R
ules, 2001,
aS
ecretarial Com
pliance Certificate, is attached to this R
eport.
I ME
DIA
CO
RP
LIM
ITE
DD
IRE
CTO
RS
' RE
PO
RT
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 97
98
them consistently and m
ade judgments and estim
ates that are rea-sonable and prudent so as to give a true and fair view
of the stateof affairs of the com
pany at the end of the financial year and of theprofit of the com
pany for the year under review;
3.the directors had taken proper and sufficient care for the m
ainte-nance of adequate accounting records in accordance w
ith the pro-visions of C
ompanies A
ct, 1956 for safeguarding the assets of thecom
pany and for preventing and detecting frauds and other irregu-larities
4.the directors had prepared the annual accounts for the financialyear ended 31st M
arch, 2011 on a "going concern" basis;
AC
KN
OW
LE
DG
EM
EN
T :
Directors w
ish to express their grateful appreciation for the assistanceand co-operation to the valued custom
ers, suppliers, bankers, andfinancial institutions for their continued support, co-operation and guid-ance. D
irectors also wish to thank the em
ployees and executives at alllevels for their invaluable contribution.
HU
MA
N R
ES
OU
RC
E &
IND
US
TR
IAL
RE
LA
TIO
NS
:
Directors of the C
ompany w
ould like to place on record their deepappreciation for all em
ployees, at all levels, for their relentless service.D
uring the year under review, the industrial relations have been very
cordial.
None of the em
ployees of the company are covered under the provi-
sions of
Section
217(2A)
of the
Com
panies A
ct, 1956,
read w
ithC
ompanies (P
articulars of Em
ployees) Rules, 1975, as am
ended.
DIR
EC
TOR
S' R
ES
PO
NS
IBIL
ITY
STA
TE
ME
NT
:
Pursuant to the requirem
ent under Section 217(2A
A) of the C
ompanies
Act, 1956 w
ith respect to Directors' R
esponsibility Statem
ent, it is here-by confirm
ed:
1.in the preparation of the annual accounts, the applicable account-ing standards have been follow
ed;2.
the directors had selected such accounting policies and applied
Place: M
umbai
Dated: M
ay 18, 2011
By O
rder o
f the B
oard
Director
Director
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 98
99
To
Th
e Mem
bers o
f I Med
ia Co
rp L
imited
1.W
e have audited the attached Balance S
heet of I Media C
orpLim
ited ('the Com
pany') as at March 31, 2011 and also the P
rofitand Loss account and the C
ash Flow
Statem
ent for the yearended on that date annexed thereto. T
hese financial statements
are the responsibility of the Com
pany's managem
ent. Our respon-
sibility is to express an opinion on these financial statements
based on our audit.
2.W
e conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that w
e planand
perform
the audit
to obtain
reasonable assurance
aboutw
hether the financial statements are free of m
aterial misstatem
ent.A
n audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statem
ents. An audit
also includes assessing the accounting principles used and signif-icant estim
ates made by m
anagement, as w
ell as evaluating theoverall financial statem
ent presentation. We believe that our audit
provides a reasonable basis for our opinion.
3.A
s required by the Com
panies (Auditor's R
eport) Order, 2003 (as
amended) ('the O
rder') issued by the Central G
overnment of India
in terms of sub-section (4A
) of Section 227 of the C
ompanies A
ct,1956 ('the A
ct'), we enclose in the A
nnexure a statement on the
matters specified in paragraphs 4 and 5 of the said O
rder.
4.F
urther to our comm
ents in the Annexure referred to above, w
ereport that:i.
We have obtained all the inform
ation and explanations, which
to the best of our knowledge and belief w
ere necessary for the purposes of our audit;
ii.In our opinion, proper books of account as required by law
have been kept by the C
ompany so far as appears from
our exam
ination of those books;iii.
The balance sheet, profit and loss account and cash flow
statem
ent dealt with by this report are in agreem
ent with the
books of account;iv.
In our opinion, the balance sheet, profit and loss account andcash flow
statement dealt w
ith by this report comply w
ith the accounting standards referred to in sub-section (3C
) of section 211 of the A
ct;v.
On the basis of the w
ritten representations received from the
directors, as on March 31, 2011, and taken on record by the
Board of D
irectors, we report that none of the directors is dis
qualified as on March 31, 2011 from
being appointed as a director in term
s of clause (g) of sub-section (1) of section 274 of the A
ct;vi.
In our opinion and to the best of our information and accord
ing to the explanations given to us, the said accounts give theinform
ation required by the Act, in the m
anner so required and give a true and fair view
in conformity w
ith the accounting principles generally accepted in India;a)
in the case of the balance sheet, of the state of affairs of the C
ompany as at M
arch 31, 2011; b)
in the case of the profit and loss account, of the loss forthe year ended on that date; and
c)in the case of cash flow
statement, of the cash flow
s forthe year ended on that date.
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
irm reg
istration
nu
mb
er: 101049W
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
Partn
erM
embership N
o.: 36656
Mum
baiM
ay 18, 2011
An
nexu
re referred to
in parag
raph
3 of o
ur rep
ort o
feven
date R
e: I Med
ia Co
rp L
imited
('the C
om
pany')
(i)(a)
The C
ompany has m
aintained adequate records showing full
particulars, including quantitative details and situatio
n
of
fixed assets.
(b)A
ll fixed assets have not been physically verified by the man
agement during the year but there is a regular program
me of
verification which, in our opinion, is reasonable having regard
to the size of the Com
pany and the nature of its assets. No
material discrepancies w
ere noticed on such verification.
(c)T
here was no substantial disposal of fixed assets during the
year.
(ii)T
he Com
pany does not have any inventory and therefore clauses4(ii)(a), 4(ii)(b) and 4(ii)(c) of the O
rder are not applicable to theC
ompany.
(iii)(a)
According to the inform
ation and explanation given to us, theC
ompany has not granted any loans, secured or unsecured
to companies, firm
s or other parties covered in the register m
aintained under section 301 of the Act. A
ccordingly clauses 4(iii)(b),
4(iii)(c) and
4(iii)(d) are
not applicable
to the
Com
pany.
(b)T
he Com
pany had taken loan from one com
pany covered inthe register m
aintained under section 301 of the Act. T
he m
aximum
am
ount involved
during the
year w
as
Rs.
350,000,000 and the year-end balance of loans taken from
such party was R
s. 350,000,000.
(c)In our opinion and according to the inform
ation and explanations given to us, the rate of interest and other term
s and conditions for such loan are not prim
a facie prejudicial to the interest of the C
ompany.
(d)In respect of loans taken, repaym
ent of the principal amount
is as stipulated and payment of intrest has been regular.
(iv)In our opinion and according to the inform
ation and explanations given to us, there is an adequate internal control systemcom
mensurate w
ith the size of the Com
pany and the nature of itsbusiness, for the purchase of fixed assets and for the sale of ser-vices. D
uring the course of our audit, no major w
eakness hasbeen noticed in the internal control system
in respect of these
I ME
DIA
CO
RP
LIM
ITE
DA
ud
itors' R
epo
rt
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 99
100
(xi)B
ased on our audit procedures and as per the information and
explanations given by the managem
ent, we are of the opinion that
the Com
pany has not defaulted in repayment of dues to bank or
debenture holders.
(xii) A
ccording to the information and explanations given to us and
based on
the docum
ents and
records produced
to us,
theC
ompany has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securi-
ties.
(xiii) In our opinion, the C
ompany is not a chit fund or a nidhi / m
utualbenefit fund / society. T
herefore, the provisions of clause 4(xiii) ofthe O
rder are not applicable to the Com
pany.
(xiv) In our opinion, the C
ompany is not dealing in or trading in shares,
securities, debentures and other investments. A
ccordingly, theprovisions of clause 4(xiv) of the O
rder are not applicable to theC
ompany.
(xv) A
ccording to the information and explanations given to us, the
Com
pany has not given any guarantee for loans taken by othersfrom
bank or financial institutions.
(xvi) The C
ompany did not have any term
loans outstanding during theyear.
(xvii) According to the inform
ation and explanations given to us and onan overall exam
ination of the balance sheet of the Com
pany, we
report that no funds raised on short-term basis have been used for
long-term investm
ent.
(xviii) The C
ompany has not m
ade any preferential allotment of shares
to parties or companies covered in the register m
aintained undersection 301 of the A
ct.
(xix) The C
ompany has unsecured debentures outstanding during the
year on which no security or charge is required to be created.
(xx)T
he Com
pany has not raised any money through public issue.
(xxi) Based upon the audit procedures perform
ed for the purpose ofreporting the true and fair view
of the financial statements and as
per the information and explanations given by the m
anagement,
we report that no fraud on or by the C
ompany has been noticed or
reported during the course of our audit.
Fo
r S. R
. Batlib
oi &
Asso
ciatesF
irm reg
istration
nu
mb
er: 101049W
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
Partn
er M
embership N
o.: 36656
Mum
baiM
ay 18, 2011
areas. During the course of our audit, w
e have not observed anycontinuing failure to correct m
ajor weakness in internal control sys-
tem of the C
ompany.
(v)(a)
According to the inform
ation and explanations provided by the m
anagement, w
e are of the opinion that the particulars of contracts or arrangem
ents referred to in section 301 of the A
ct that need to be entered into the register maintained under
section 301 have been so entered.
(b)In respect of transactions m
ade in pursuance of such contracts or arrangem
ents exceeding value of Rupees five lakhs
entered into during the financial year, because of the unique and specialized nature of the item
s involved and absence of any com
parable prices, we are unable to com
ment w
hether the transactions w
ere made at prevailing m
arket prices at the relevant tim
e.
(vi)T
he Com
pany has not accepted any deposits from the public.
(vii)In our opinion, the C
ompany has an internal audit system
com-
mensurate w
ith the size and nature of its business.
(viii)To
the best
of our
knowledge
and as
explained, the
Central
Governm
ent has
not prescribed
maintenance
of cost
recordsunder clause (d) of sub-section (1) of section 209 of the A
ct for theservices of the C
ompany.
(ix)(a)
The
Com
pany is
regular in
depositing w
ith appropriate
authorities undisputed
statutory dues
including provident
fund, employees' state insurance, incom
e-tax, service tax, custom
s duty, cess and other material statutory dues appli
cable to it. The provisions relating to investor education and
protection fund, wealth-tax, sales-tax and excise duty are not
applicable to the Com
pany. F
urther, since the Central G
overnment has till date not pre
scribed the amount of cess payable under section 441 A
of the A
ct, we are not in a position to com
ment upon the regu
larity or otherwise of the C
ompany in depositing the sam
e.
(b)A
ccording to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund,
employees' state insurance, incom
e-tax, service tax, customs
duty, cess and other undisputed statutory dues were out
standing, at the year end, for a period of more than six
months from
the date they became payable. T
he provisions relating to investor education and protection fund, w
ealth-tax,sales-tax and excise duty are not applicable to the C
ompany.
(c)A
ccording to the information and explanation given to us,
there are no dues of income tax, service tax, custom
s duty and cess w
hich have not been deposited on account of any dispute.T
he provisions relating to investor education and protection fund, w
ealth-tax, sales-tax and excise duty are not applicable to the C
ompany.
(x)T
he Com
pany has been registered for a period of less than fiveyears and hence w
e are not required to comm
ent on whether or
not the accumulated losses at the end of the financial year are fifty
per cent or more of its net w
orth and whether it has incurred cash
losses in such financial year and in the imm
ediately precedingfinancial year.
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 100
101
I Med
ia Co
rp L
imited
Balan
ce Sh
eet as at March
31, 2011
Sch
edu
lesA
s At
As A
t M
arch 31, 2011
March
31, 2010R
s.
Rs.
SO
UR
CE
S O
F F
UN
DS
Sh
areho
lders' F
un
dS
hare capital1
10,500,000 10,500,000
Lo
an fu
nd
sD
ebentures2
350,000,000-
Unsecured loan from
the holding company
- 200,728,007
Deferred tax liabilities (net) (R
efer Note 8 of S
chedule 14)-
-
Total
360,500,000 211,228,007
AP
PL
ICA
TIO
N O
F F
UN
DS
Fixed
assets3
Gross block
41,310,377 39,777,838
Less: Accum
ulated depreciation15,896,459
11,187,916
Net b
lock
25,413,918 28,589,922
Cu
rrent assets, lo
ans an
d ad
vances
Sundry debtors
410,153,635
12,797,348 C
ash and bank balances5
65,265,436 3,432,637
Loans and advances6
5,911,176 4,560,034
(A)
81,330,247 20,790,019
Less: C
urren
t liabilities an
d p
rovisio
ns
Current liabilities
717,208,328
18,430,635 P
rovisions8
1,466,659 639,377
(B)
18,674,987 19,070,012
Net C
urren
t Assets
(A-B
)62,655,260
1,720,007
Pro
fit and
loss acco
un
t272,430,822
180,918,078
Total
360,500,000 211,228,007
No
tes to acco
un
ts14
The S
chedules referred to above and notes to accounts form an integral part of the balance sheet.
As per our R
eport of even date
Fo
r S.R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WI M
edia C
orp
Lim
itedC
hartered
Acco
un
tants
per A
mit M
ajmu
dar
Directo
rD
irector
Partn
erM
embership N
o.: 36656
Mum
baiM
ay 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 101
102
I Med
ia Co
rp L
imited
Pro
fit and
loss acco
un
t for th
e year end
ed M
arch 31, 2011
Sch
edu
lesF
or th
e year end
ed
Fo
r the year en
ded
M
arch 31, 2011
March
31, 2010R
s.
Rs.
INC
OM
ES
ales28,626,294
21,200,135
Other incom
e9
1,739,966 615,932
Total
30,366,260 21,816,067
EX
PE
ND
ITU
RE
Operating and other expenses
10 11,580,351
7,304,351
Personnel expenses
1145,964,758
24,373,162
Adm
inistration and Selling expenses
1235,863,277
22,831,678
Depreciation
34,708,543
4,560,959
Financial expenses
1323,762,075
20,426,550
Total
121,879,004 79,496,700
Lo
ss befo
re tax(91,512,744)
(57,680,633)
Pro
vision
for Taxatio
nC
urrent Tax-
-
Deferred Tax (R
efer Note 8 of S
chedule 14)-
-
- -
Loss for the year(91,512,744)
(57,680,633)(Loss) brought forw
ard from the previous year
(180,918,078)(123,237,445)
Balance carried to balance sheet
(272,430,822)(180,918,078)
Earnings per share (R
efer Note 5 of S
chedule 14)
Basic and D
iluted(87.15)
(54.93)
Nom
inal Value per share
10 10
No
tes to acco
un
ts14
The S
chedules referred to above and notes to accounts form an integral part of the profit and loss account.
As per our R
eport of even date
Fo
r S.R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WI M
edia C
orp
Lim
itedC
hartered
Acco
un
tants
per A
mit M
ajmu
dar
Directo
rD
irector
Partn
erM
embership N
o.: 36656
Mum
baiM
ay 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 102
103
I Media Corp LimitedSchedules forming part of the balance sheet as at March 31, 2011
As at As atMarch 31, 2011 March 31, 2010
Rs. Rs.
Schedule 1: Share capitalAuthorised capital5,000,000 (Previous year: 5,000,000) equity shares of `10 each 50,000,000 50,000,000
Issued, subscribed and paid-up capital1,050,000 (Previous year: 1,050,000) equity shares of Rs.10 each fully paid up 10,500,000 10,500,000 Of the above, 577,500 (Previous year: 577,500) shares are held by D.B. Corp Limited, the Holding Company.
10,500,000 10,500,000 Schedule 2: Unsecured loans350,000 (Previous year: Nil) 0% unsecured compulsorily convertible debentures of `1,000 each reedemable at the end of five years from the date of allotment, viz, date, or earlier, but not before the end of three years from the date of allotment
350,000,000 -
350,000,000 - Schedule 3: Fixed assets
Assets Gross block Depreciation Net blockAs at Additions Deletions/ As at As at For the Deletions/ As at As at As at
1-Apr-10 Adjustments 31-Mar-11 1-Apr-10 Year Adjustments 31-Mar-11 31-Mar-11 31-Mar-10Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Leasehold improvements 2,566,018 - - 2,566,018 1,427,395 853,815 - 2,281,210 284,808 1,138,623
Computers 14,733,895 1,079,573 - 15,813,468 6,231,720 2,535,677 - 8,767,397 7,046,071 8,502,175
Furniture and fixtures 14,422,518 162,421 - 14,584,939 2,855,271 921,458 - 3,776,729 10,808,210 11,567,247
Office equipments 8,055,407 290,545 - 8,345,952 673,530 397,593 - 1,071,123 7,274,829 7,381,877
Total 39,777,838 1,532,539 - 41,310,377 11,187,916 4,708,543 - 15,896,459 25,413,918 28,589,922
Previous Year 38,753,304 2,411,884 1,387,350 39,777,838 7,285,975 4,560,959 659,018 11,187,916 28,589,922
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 103
104
I Med
ia Co
rp L
imited
Sch
edu
les form
ing
part of th
e balan
ce sheet as at M
arch 31, 2011
As A
tA
s At
March
31, 2011M
arch 31, 2010
Rs.
Rs.
Sch
edu
le 4: Su
nd
ry deb
tors
(Unsecured)
Deb
ts ou
tstand
ing
for a p
eriod
exceedin
g six m
on
ths
Considered good
2,865,467 2,206,558
Considered doubtful
2,576,480 1,073,376
Oth
er deb
tsC
onsidered good7,288,168
10,590,790
12,730,115 13,870,724
Less: Provision for doubtful debts
2,576,480 1,073,376
10,153,635 12,797,348
Su
nd
ry deb
tors in
clud
e du
es from
com
panies u
nd
er the sam
e man
agem
ent:
D.B
. Corp Lim
ited -
- (M
aximum
balance outstanding during the year R
s.
587,617 previous year R
s.
1,271,153)D
iligent Media C
orporation Limited
2,004,306 2,292,528
(Maxim
um balance outstanding during the year
Rs.
3,091,982 previous year R
s.
2,938,711)S
ynergy Media E
ntertainment Lim
ited-
- (M
aximum
balance outstanding during the year R
s.
103,014 previous year R
s.
137,837)
Sch
edu
le 5: Cash
and
ban
k balan
cesC
ash on hand11,740
2,670 B
alances with scheduled banks:
- on current accounts3,218,600
3,398,058 - on deposit accounts
62,035,096 31,909
65,265,436 3,432,637
Sch
edu
le 6: Lo
ans an
d ad
vances
(Unsecured, considered good)
Tax deducted at source 3,458,626
2,865,282 S
ecurity deposits1,595,352
1,545,252 A
dvances to employees
247,122 149,500
Interest accrued but not due on fixed deposits433,905
- P
repaid expenses176,171
-
5,911,176 4,560,034
Sch
edu
le 7: Cu
rrent liab
ilities S
undry creditors (Refer N
ote 6 of Schedule 14)
6,637,192 11,711,787
Accrued expenses
8,532,789 3,726,952
Other liabilities
2,038,347 2,991,896
17,208,328 18,430,635
Sch
edu
le 8: Pro
vision
sP
rovision for gratuity (Refer N
ote 7 of Schedule 14)
727,048 352,447
Provision for leave encashm
ent739,611
286,930
1,466,659 639,377
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 104
105
I Med
ia Co
rp L
imited
Sch
edu
les form
ing
part of th
e pro
fit and
loss acco
un
t for th
e year end
ed M
arch 31, 2011
Fo
r the year en
ded
Fo
r the year en
ded
March
31, 2011M
arch 31, 2010
Rs.
Rs.
Sch
edu
le 9: Oth
er inco
me
Interest from bank deposits
485,302 2,900
(Tax deducted at source - R
s.
48,211, Previous year - N
il)U
nclaimed balances w
ritten back1,194,696
- B
ad debts recovered-
139,716 M
iscellaneous income
59,968 473,316
1,739,966 615,932
Sch
edu
le 10: Op
erating
and
oth
er expen
sesP
ortal direct expenses10,255,533
5,579,924 S
MS
direct expenses1,324,818
1,724,427
11,580,351 7,304,351
Sch
edu
le 11: Perso
nn
el expen
sesS
alaries, wages and bonus
42,192,655 22,603,346
Contribution to provident and other funds
2,538,439 1,155,576
Workm
en and staff welfare expenses
1,233,664 614,240
45,964,758 24,373,162
Sch
edu
le 12: Ad
min
istration
and
selling
expen
sesS
ales and marketing
17,462,982 10,527,415
Subcontractors charges
6,166,080 3,274,672
Traveling and conveyance 2,265,884
1,391,398 R
ecruitment charges
1,019,917 773,093
Rent
1,224,014 1,131,711
Provision for doubtful debts
2,576,4801,073,376
Fixed assets w
ritten off-
728,332 C
omm
unication expenses658,567
590,019 B
ad debts written off
1,581,830 Less: A
lready provided for(1,073,376)
508,454 565,672
Gas, w
ater and electricity 830,997
550,442 Legal and professional fees
900,087 530,830
Sundry office expenses
648,352 482,099
Repairs and m
aintenance:- O
ffice equipments
344,455 197,561
- Buildings
2,434 36,000
- Others
406,193 196,393
Printing and stationery
171,971 189,955
Rates and taxes
- 139,305
Exchange difference (net)
262,606 107,425
As A
uditor:- A
udit fees100,000
100,000 S
ecurity charges129,676
84,048 P
ostage and courier76,908
54,859 Insurance charges
10,454 47,497
Miscellaneous expenses
96,766 59,576
35,863,277 22,831,678
Sch
edu
le 13 : Fin
ancial exp
enses
Interest-O
thers23,758,435
20,422,232B
ank charges3,640
4,318
23,762,075 20,426,550
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 105
106
I Med
ia Co
rp L
imited
Cash
Flo
w S
tatemen
t for th
e year end
ed M
arch 31, 2011
March
31, 2011M
arch 31, 2010
Rs.
Rs.
A.
Cash
Flo
w fro
m O
peratin
g A
ctivitiesLoss before Tax :
(91,512,744)(57,680,633)
Adjustm
ents for:D
epreciation4,708,542
4,560,959 F
ixed assets written off
- 728,332
Interest expenses and other financial charges23,762,075
20,426,550 B
ad debts written off
508,454 565,672
Interest income
(485,302)-
Provision for doubtful debt and advances
2,576,480 1,073,376
Op
erating
loss b
efore w
orkin
g cap
ital chan
ges
(60,442,494)(30,325,744)
Mo
vemen
ts in w
orkin
g cap
ital(Increase) /decrease in sundry debtors
(441,220)(5,860,326)
Decrease /(increase) in loans and advances
(323,893)46,066
(Decrease)/ increase in C
urrent liabilities and provisions(3,95,025)
4,879,563
Cash
gen
erated fro
m o
peratio
ns
(61,602,632)(31,260,441)
Direct taxes paid (including fringe benefit tax)
(593,344)(485,852)
Net cash
from
op
erating
activities (A)
(62,195,976)(31,746,294)
B.
Cash
flow
from
investin
g activities
Purchases of fixed assets
(1,532,539)(2,411,884)
Interest received51,397
- F
ixed deposits placed(62,000,000)
-
Net cash
(used
in) in
vesting
activities (B)
(63,481,142)(2,411,884)
C.
Net cash
from
finan
cing
activitiesP
roceeds from issue of debentures
350,000,000 -
Unsecured loan taken
55,892,475 56,361,969
Unsecured loan repaid
(256,620,483)-
Interest paid(23,762,075)
(20,426,550)
Net cash
from
finan
cing
activities (C)
125,509,917 35,935,419
Net in
crease in cash
and
cash eq
uivalen
ts (A+B
+C)
167,201 1,777,242
Cash
and
cash eq
uivalen
ts at the b
egin
nin
g o
f the year
3,432,637 1,655,395
Cash
and
cash eq
uivalen
ts at the en
d o
f the year
3,265,436 3,432,637
Co
mp
on
ents o
f cash an
d cash
equ
ivalent at th
e end
of th
e yearC
ash and bank balances [Refer schedule 5]
65,265,436 3,432,637
Less: Bank deposits having m
aturity of more than 90 days
(62,000,000)-
Total
3,265,436 3,432,637
1) Previous year's figures have been regrouped w
herever necessary
As per our R
eport of even date
Fo
r S.R
. Batlib
oi &
Asso
ciatesF
or an
d o
n b
ehalf o
f the B
oard
of D
irectors o
fF
irm reg
istration
nu
mb
er: 101049WI M
edia C
orp
Lim
itedC
hartered
Acco
un
tants
per A
mit M
ajmu
dar
Directo
rD
irector
Partn
erM
embership N
o.: 36656
Mum
baiM
ay 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 106
107
I Med
ia Co
rp L
imited
SC
HE
DU
LE
AN
NE
XE
D TO
AN
D F
OR
MIN
G PA
RT
OF
TH
E A
CC
OU
NT
S A
S A
T A
ND
FO
R T
HE
Y
EA
R E
ND
ED
MA
RC
H 31, 2011
Sch
edu
le 14: No
tes to acco
un
ts
1.N
ature o
f Op
eration
s I M
edia Corp Lim
ited ("the Com
pany") is a company regis-
tered under the Com
panies Act, 1956 ("the A
ct") T
he Com
pany is engaged in the business of brand market-
ing through
interactive w
ireless m
edium
like, M
obile,Internet.
2.S
ign
ificant acco
un
ting
po
licies
2.1.B
asis of p
reparation
T
he financial statements have been prepared to com
ply inall m
aterial respects with the accounting standard notified
by Com
panies (Accounting S
tandards) Rules, 2006 (as
amended) and the relevant provisions of the A
ct. The finan-
cial statements have been prepared under the historical
cost convention on an accrual basis. The accounting poli-
cies have been consistently applied by the Com
pany andare consistent w
ith those used in the previous year.
2.2.U
se of estim
atesT
he preparation of financial statements in conform
ity with
generally accepted accounting principles requires man-
agement to m
ake estimates and assum
ptions that affectthe reported am
ounts of assets and liabilities and disclo-sure of contingent liabilities at the date of the financialstatem
ents and the results of operations during the report-ing year. A
lthough these estimates are based upon m
an-agem
ent's best knowledge of current events and actions,
actual results could differ from these estim
ates.
2.3.F
ixed assets
Fixed assets are stated at cost, less accum
ulated depreci-ation and im
pairment losses, if any. C
ost comprises the
purchase price and any attributable cost of bringing theasset
to its
working
condition for
its intended
use.B
orrowing
costs relating
to acquisition
of fixed
assetsw
hich takes substantial period of time to get ready for its
intended use are also included to the extent they relate tothe period till such assets are ready to be put to use.
2.4.D
epreciatio
n / am
ortizatio
n :
Depreciation is provided based on estim
ated useful life ofthe assets as estim
ated by the managem
ent, using theS
traight Line Method (S
LM) at the rates w
hich are pre-scribed in S
chedule XIV
of the Act.
Fixed assets individually costing up to `5,000 are fully
depreciated in the year of acquisition. Depreciation on
assets acquired or disposed off during the year is providedon a pro-rata basis from
/up to the month of acquisition/dis-
posal. Leasehold Im
provement is am
ortized over the shorter ofestim
ated useful life of the asset or the lease term.
2.5.Im
pairmen
t of assets
The carrying am
ounts of assets are reviewed at each bal-
ance sheet date if there is any indication of impairm
entbased on internal/external factors. A
n impairm
ent loss, if
any is recognized wherever the carrying am
ount of anasset exceeds its recoverable am
ount. The recoverable
amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value at
the weighted average cost of capital.
2.6.R
evenu
e recog
nitio
nR
evenue is recognized to the extent that it is probable thatthe econom
ic benefits will flow
to the Com
pany and therevenue can be reliably m
easured.
Sale o
f Ad
vertisemen
t:R
evenue is recognized as and when advertisem
ent is pub-lished /displayed and confirm
ed by the customer and is dis-
closed net of discounts. S
ale of services:
Revenue is recognized as and w
hen the related servicesare rendered as per the term
s of the agreement and are
disclosed net of discount. Sales are accounted exclusive of
service tax.
Interest:
Revenue is recognised on a tim
e proportion basis takinginto account the am
ount outstanding and the rate applica-ble.
2.7.R
etiremen
t ben
efits
a)P
rovident fund is a defined contribution scheme and the
Com
pany has no further obligation beyond the contribu-tions m
ade to the fund. Contributions are charged to profit
and loss account in the year in which they accrue.
b)G
ratuity liability is a defined benefit obligation and is pro-vided for on the basis of an actuarial valuation done as perprojected unit credit m
ethod, carried out by an independentactuary at the end of the year. A
ctuarial gains/losses areim
mediately taken to profit and loss account and are not
deferred.
c)S
hort term com
pensated absences are provided for basedon estim
ates. Long term com
pensated absences are pro-vided based on actuarial valuation carried out by an inde-pendent actuary at the end of the year. T
he actuarial valu-ation is done as per projected unit credit m
ethod.
2.8.F
oreig
n cu
rrency tran
saction
(i)In
itial Reco
gn
ition
Foreign currency transactions are recorded in the reporting
currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the for-
eign currency at the date of the transaction.
(ii)C
on
version
Foreign currency m
onetary items are reported using the
closing rate.
Non-m
onetary item
s w
hich are
carried in
terms of historical cost denom
inated in a foreign currency
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 107
108
are reported using the exchange rate at the date of thetransaction.
(iii)E
xchan
ge D
ifferences
Exchange differences arising on the settlem
ent of mone-
tary items or on reporting C
ompany's m
onetary items at
rates different
from
those at
which
they w
ere initially
recorded during the year, or reported in previous financialstatem
ents, are recognised as income or as expenses in
the year in which they arise.
2.9.L
easesW
here C
om
pany is th
e lessee:Leases w
here the lessor effectively retains substantially allthe risks and benefits of ow
nership of the leased item, are
classified as operating leases. Operating lease paym
entsare
recognized as
an expense
in the
profit and
lossaccount on a straight-line basis over the lease term
.
2.10. Inco
me taxes
Tax expense comprises current and deferred tax. C
urrentincom
e tax is measured at the am
ount expected to be paidto the tax authorities in accordance w
ith the Income-tax
Act, 1961 enacted in India. D
eferred income tax reflects the
impact of current year tim
ing differences between taxable
income and accounting incom
e for the year and reversal oftim
ing differences of earlier years.D
eferred tax is measured using 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 tax-able incom
e will be available against w
hich such deferredtax
assets can
be realised.
In situations
where
theC
ompany has unabsorbed depreciation or carry forw
ardtax losses, all deferred tax assets are recognised only ifthere is virtual certainty supported by convincing evidencethat they can be realised against future taxable profits.A
t each balance sheet date, unrecognized deferred taxassets of earlier years are re-assessed and recognized tothe extent that it has becom
e reasonably certain or virtual-ly certain, as the case m
ay be, that sufficient future taxableincom
e will be available against w
hich such deferred taxassets can be realized. T
he carrying amount of deferred
tax assets are reviewed at each balance sheet date. T
heC
ompany w
rites-down the carrying am
ount of a deferredtax asset to the extent that it is no longer reasonably cer-tain or virtually certain, as the case m
ay be, that sufficientfuture
taxable incom
e w
ill be
available against
which
deferred tax asset can be realized.
2.11.Earn
ing
s per sh
areB
asic earnings per share are calculated by dividing the netprofit or loss for the year attributable to equity shareholders
(after deducting
preference dividends
and attributable
taxes, if any) by the weighted average num
ber of equityshares outstanding during the year. T
he weighted average
number of equity shares outstanding during the year is
adjusted for events of bonus issue, bonus element in a
rights issue
to existing
shareholders, share
split, and
reverse share split (consolidation of shares), if any.F
or the purpose of calculating diluted earnings per share,the net profit or loss for the year attributable to equityshareholders and the w
eighted average number of shares
outstanding during the year are adjusted for the effects ofall dilutive potential equity shares.
2.12. Pro
vision
sA
provision is recognized when the C
ompany has a present
obligation resulting from past events and it is probable that
an outflow of resources w
ill be required to settle the obli-gation
for w
hich a
reliable estim
ate can
be m
ade.P
rovisions are not discounted to its present value and arebased
on m
anagement's
best estim
ate of
the am
ountrequired to settle the obligation at the balance sheet date.P
rovisions are reviewed at each balance sheet date and
adjusted to reflect revision in estimates
2.13. Cash
and
cash eq
uivalen
tsC
ash and cash equivalents in the cash flow statem
entcom
prise cash at bank and in hand and short-term invest-
ments w
ith an original maturity of three m
onths or less.
3. (a) Related
party disclo
sure
Disclosure as required by notified A
ccounting Standard 18
(AS
-18) 'Related P
arty Disclosures' issued by the C
entralG
overnment is as follow
s:
Relatio
nsh
ipN
ame o
f Related
Party
Ho
ldin
g C
om
pany
D.B
. Corp Lim
itedF
ellow
sub
sidiary
Synergy M
edia Entertainm
ent Lim
itedE
nterp
rise over w
hich
India Interactive Technologies
Directo
r and
/or h
is relativesLim
itedh
as sign
ificant in
fluen
ceD
iligent Media C
orporation Lim
ited
Key M
anag
emen
t Perso
nn
elM
r. Sudhir A
garwal (D
irector)('K
MP
') M
rs. Jyoti Agarw
al (Director)
Mr. P
awan A
garwal (D
irector)
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 108
109
I Media Corp LimitedSchedule annexed and forming part of the accounts as at and for the year ended March 31, 2011
3.(b) Details of transactions with related parties:
Related Party Name Loan/Advance Taken (Repaid) Interest Received (Paid) Issue of Debentures Receiving of Services Rendering of Services Amount Outstanding Debit / (Credit)
Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Mar-10
D. B. Corp Ltd 55,892,475 56,361,969 (23,758,435) (20,421,506) 350,000,000 - 14,198,423 13,388,427 3,132,910 3,654,617 (728,585) (205,907,829)
(278,003,073) - - - - - - - - - - -
Synergy Media - - - - - - 49,979 1,575,934 301,444 137,387 (54,024) (478,476)Entertainment Limited - - - - - - - - - - -
Diligent Media - - - - - - - 980,000 6,070,248 2,360,479 1,248,013 1,178,358Corporation Limited
India Interactive Technologies Limited - - - - - - - 133,902 - - - -
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 109
110
4. Leases
In case o
f assets taken o
n lease
Op
erating
lease :T
he Com
pany has taken certain office premises under operating
lease agreements. T
hese agreements are generally renew
ableby m
utual consent. Som
e of the lease agreements have a price
escalation clause. There are no restrictions im
posed in theselease agreem
ents. Lease paym
ents for the year ended March 31, 2011 aggregated
to `1,224,014 (previous year `1,131,711).T
he future
minim
um
lease paym
ents under
non-cancellableoperating leases:
6. Du
es to M
icro an
d S
mall E
nterp
risesA
s informed, the C
ompany does not have any dues outstanding
to the Micro and S
mall E
nterprises as defined in Micro, S
mall
and Medium
Enterprise D
evelopment A
ct, 2006. The identifica-
tion of Micro, S
mall and M
edium E
nterprises is based on infor-m
ation available with the m
anagement regarding the status of
these parties which is being relied upon by the auditors.
7. Em
plo
yee Ben
efit Ob
ligatio
nD
efined
Co
ntrib
utio
n P
lanD
uring the year ended March 31, 2011 and M
arch 31, 2010; theC
ompany contributed the follow
ing amounts to defined contri-
bution plans:
Perio
dM
arch 31, 2011
March
31, 2010R
s.
Rs.
Not later than one year
3,518,0383,350,511
Later than one year but 8,224,187
562,886not later than five years
11,742,2253,913,397
5. Earn
ing
s per sh
are
Perio
dM
arch 31, 2011
March
31, 2010R
s.
Rs.
Net loss after tax for
(91,512,744)(57,680,633)
equity shareholdersW
eighted average num
ber of equity shares outstanding during the year for the purpose of com
putation of Basic and
diluted earnings per share1,050,000
1,050,000
Basic and diluted
earnings per share (`)(87.15)
(54.93)
Face Value P
er Share (`)
1010
Particu
larsM
arch 31, 2011
March
31, 2010R
s.
Rs.
Provident F
und2,278,973
1,155,576
Em
ployees State
Insurance Corporation
259,466-
Total
2,538,4391,155,576
Defin
ed b
enefit p
lan
A- L
eave En
cashm
ent
In accordance with leave policy, the com
pany has providedfor leave entitlem
ent on the basis of actuarial valuation car-ried out at the end of the year.
B- G
ratuity
The C
ompany has a defined benefit gratuity plan. E
veryem
ployee who has com
pleted five years or more of service
gets a gratuity on departure at 15 days salary (last drawn
salary) for each completed year of service.
The follow
ing tables summ
arize the components of net
benefit expense recognised in the profit and loss accountand the funded status and am
ounts recognized in the bal-ance sheet for the respective plans.T
he amounts recognised in the profit and loss account for
the year ended March 31, 2011 are as follow
s:
Particu
larsM
arch 31, 2011
March
31, 2010R
s.
Rs.
Current service cost
364,434198,000
Interest cost28,196
12,724E
xpected return on plan assets
--
Recognized net actuarial
(18,029)(22,461)
(gain) lossTotal included in
374,601188,263
'employee benefit expense'
The am
ounts recognized in the balance sheet are as follows:
Particu
larsM
arch 31, 2011
March
31, 2010R
s.
Rs.
Present value of funded
727,048352,447
obligations
Details of E
xperience Adjustm
ents on plan assets and plan liabilities
Particulars
March 31, 2011
March 31, 2010
Gratuity
Rs.
Rs.
Experience adjustments
24,748(4,051)
on plan liabilities (Gain)/Loss
Changes in present value of defined benefit obligation representing
reconciliation of opening and closing balances thereof are as follows:
Particu
larsM
arch 31, 2011
March
31, 2010R
s.
Rs.
Defined benefit obligation
352,447164,184
at beginning of the yearC
urrent service cost364,434
198,000Interest cost
28,19612,724
Benefits paid
--
Actuarial (gain) loss
(18,029)(22,461)
Defined benefit obligation
727,048352,447
at end of the year
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 110
111
Th
e prin
cipal assum
ptio
ns u
sed in
determ
inin
g g
ratuity
ben
efit ob
ligatio
ns fo
r the C
om
pany's p
lans are sh
ow
nb
elow
:
Particu
larsM
arch 31, 2011
March
31, 2010D
iscount rate8.25%
8.00%W
ithdrawal R
ate1%
at each age1%
at each ageF
uture Salary R
ise6.00%
6.00%
The estim
ates of future salary increases, considered in actuar-ial valuation, take account of inflation, seniority, prom
otion andother relevant factors, such as supply and dem
and in theem
ployment m
arket.
8. Deferred
Tax
Particu
larsM
arch 31, 2011
March
31, 2010R
s.
Rs.
Deferred
Tax Liab
ilityarisin
g fro
m- D
epreciation(2,154,568)
2,799,393
Deferred
Tax Asset
arising
from
- Carried forw
ard losses and unabsorbed depreciation
905,2382,230,417
- Provision for gratuity
and leave encashment
453,198212,401
- Provision for doubtful
debts796,132
356,575N
et Deferred
Tax L
iability/ (A
sset)-
-
The C
ompany has deferred tax assets in respect of unab-
sorbed depreciation and carried forward business loss. A
sthere is no virtual certainty about the realization of thedeferred tax assets against the future taxable profits, thedeferred tax asset has been recognized only to the extentof deferred tax liability as at M
arch 31, 2011.
9.T
he Com
pany is engaged in the business of brand market-
ing through interactive wireless m
edium w
hich is consid-ered to constitute on single prim
ary segment in the context
of
no
tified
A
ccou
ntin
g
Sta
nd
ard
1
7
on
S
eg
me
nta
lR
eporting issued by the Central G
overnment. T
here are nogeographical
reportable segm
ents since
the C
ompany
caters to the Indian market only and does not distinguish
any reportable regions within India.
10.T
he Com
pany has incurred losses during the year and theaccum
ulated losses of the Com
pany at the close of theyear exceed its paid up capital. T
he Com
pany is in the ini-tial years of its operations. F
urther, the parent company
has provided assurances that it intends to provide ade-quate financial support to the C
ompany to enable it to con-
tinue its operations for the year ending March 31, 2012.
With the internet m
arket in India booming and internet pen-
etration increasing every year, the managem
ent expectscontinuous grow
th in the business and profitability in thefuture years. T
he Com
pany is therefore being viewed as a
going concern and accounts have been prepared under thegoing concern assum
ption.
11.P
reviou
s Year co
mparatives
Previous year's figures have been regrouped w
herevernecessary to conform
to this years' classification.
Fo
r and
on
beh
alf of B
oard
of D
irectors o
f I Med
ia Co
rpL
imited
Directo
r Directo
r
As per our report of even date
Fo
r S.R
. Batlib
oi &
Asso
ciatesF
irm reg
istration
nu
mb
er: 101049W
Ch
artered A
ccou
ntan
ts
per A
mit M
ajmu
dar
Partn
erM
embership N
o.: 36656
Mum
baiM
ay 18, 2011
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 111
112
BA
LA
NC
E S
HE
ET
AB
ST
RA
CT
AN
D C
OM
PAN
Y'S
GE
NE
RA
LB
US
INE
SS
PR
OF
ILE
1. Reg
istration
Details:
Registration N
o. : 018676
State C
ode : 10
Balance S
heet Date :
31-03-2011D
ate of Incorporation : 01-06-2006
2. Cap
ital Raised
du
ring
the year (A
mo
un
t in R
s.
Th
ou
sand
)
Public Issue
NIL
Rights Issue
NIL
Bonus Issue
NIL
Private P
lacement
NIL
3. Po
sition
of M
ob
ilisation
and
Dep
loym
ent o
f Fu
nd
s (Am
ou
nt in
R
s.
Th
ou
sand
)
Total Liabilities R
s.
379,175Total A
ssetsR
s.
379,175
4. So
urces o
f Fu
nd
s (Am
ou
nt in
R
s.
Th
ou
sand
)
Paid up C
apitalR
s.
10,500R
eserves and Surplus
NIL
Secured Loans
NIL
Unsecured Loans
NIL
Deferred Tax Liability
NIL
5. Ap
plicatio
n o
f Fu
nd
s (Am
ou
nt in
R
s.
Th
ou
sand
)
Net F
ixed Assets
Rs.
25,414Investm
ents N
ILN
et Current A
ssets R
s.
62,655M
isc. Expenses
NIL
Accum
ulated Losses R
s.
272,431
6. Perfo
rman
ce of C
om
pany (A
mo
un
t in R
s.
Th
ou
sand
s)
Turnover (include other income)
Rs.
30,366Total E
xpenditure R
s.
121,879P
rofit / (Loss) Before tax
Rs.
(91,513) P
rofit/(Loss) After Tax
Rs.
(91,513) E
arning per share in R
s.
Rs.
(87.15)D
ividend Rate %
N
A
7. Gen
eric Nam
e of P
rincipal P
rod
uct / S
ervice of C
om
pany
Item C
ode No. (IT
C C
ode)N
AP
roduct Description
NA
Fo
r and
on
beh
alf of th
e Bo
ard
Mum
bai M
ay 18 2011D
irector
Directo
r
I Med
ia Co
rp L
imited
DB-ANNUAL-REP2011-5.qxd 6/12/2011 3:25 AM Page 112
