Annual Report of HMVL - FY 2011-12 by Hindustan Times

www.hmvl.in

Hindustan

Media Ventures Limited

Chairperson’s Message pg 03

Management Discussion & Analysis pg 06

Listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited

corporate information BOARD OF DIRECTORS

Directors’ Report pg 08

Report on Corporate Governance pg 09

ANNUAL REPORT 2011-12

Financial Statements pg 14

TOTAL 28 PAGES INCLUDING 15 PAGES OF FINANCIAL STATEMENTS

Expanding and Entrenching

SMT. SHOBHANA BHARTIA Chairperson SHRI AJAY RELAN SHRI ASHWANI WINDLASS SHRI DIPAK C. JAIN SHRI PIYUSH G. MANKAD SHRI SHARDUL S. SHROFF SHRI PRIYAVRAT BHARTIA SHRI SHAMIT BHARTIA SHRI RAJIV VERMA SHRI BENOY ROYCHOWDHURY Whole time Director CHIEF EXECUTIVE OFFICER SHRI AMIT CHOPRA CHIEF FINANCIAL OFFICER SHRI AJAY KUMAR JAIN COMPANY SECRETARY SHRI TRIDIB BARAT AUDITORS S.R. BATLIBOI & Co. REGISTRAR & SHARE TRANSFER AGENT KARVY COMPUTERSHARE PRIVATE LIMITED Plot Nos. 17-24, Vithal Rao Nagar Madhapur Hyderabad - 500 086 Tel: +91-40-2342 0818 Fax: +91-40-2342 0814 Email: einward.ris@karvy.com REGISTERED OFFICE Budh Marg, Patna - 800 001 Tel: +91-612-222 3434 Fax: +91-612-222 1545

SOURCE: IRS Q1 2012, TR

CORPORATE OFFICE Hindustan Times House, 2nd Floor 18 - 20, Kasturba Gandhi Marg New Delhi - 110 001 Tel: +91-11-6656 1608 Fax: +91-11-6656 1445 Email: hmvlinvestor@hindustantimes.com Website: www.hmvl.in

industan Media Ventures Limited’s stellar performance in recent years is a result of the unwavering focus on expanding and entrenching the footprints of Hindustan, its flagship publication, in the states of Uttar Pradesh and Uttarakhand. As difficult as it may be to believe, until 2005, Hindustan’s presence in this region was limited to just two editions - Lucknow and Varanasi. Over the next six years, Hindustan ushered in an expansion strategy defined by immaculate planning and flawless execution. 10 new editions were rolled out in succession – Agra in July 2006, Kanpur in August 2006, Dehradun in May 2008, Meerut in October 2008, Haldwani and Allahabad in January 2009, Bareilly in

Hindustan has recorded a six-fold increase in its circulation in Uttar Pradesh and Uttarakhand from 2005 to 2012. October 2009, Gorakhpur in December 2010, Aligarh in December 2011 and Moradabad in February 2012. As a result, Hindustan has recorded a six-fold increase in its circulation in Uttar Pradesh and Uttarakhand from 2005 to 2012. With 12 editions, Hindustan now covers the entirety of these two states. All this while, the Company kept strengthening

NO.2 daily of India, 3.84 crore readers

its undisputed leadership position in Bihar and Jharkhand and also made rapid strides in the National Capital Region. Not surprising then, Hindustan has consistently ranked high amongst top-gainers in subsequent rounds of the Indian Readership Survey. Another strategic initiative during this phase was restaging of Hindustan. Responding to the pulse of youth, the newspaper adopted a refreshed and vibrant design coupled with more meaningful content. Several new content initiatives like Hindustan Money and Jaano English were launched, to the overwhelming appreciation of the readers. Another important focus has been on offering

Turn to pg04>

Hindustan Media Ventures Limited

Brands PROGRESS

THAT PAVE WAY TO

The ﬁrst step in every enterprise is to determine in clear terms its basic purpose, goals or aims. HMVL aims to keep its readers engaged with matters of public interest, socio-economic and other vital issues. We deploy a truly vibrant spectrum of brands which encompasses the needs and disposition of a wide range of people from different backgrounds. HINDUSTAN

NANDAN

Hindustan, the ﬂagship newspaper of the Company is amongst the most widely read newspapers in the country, in any language. It is a strong No. 2 among all newspapers, with a substantial total readership of 3.84 Crore country-wide; and No. 1 in Bihar and Jharkhand by a massive margin. Hindustan, this year, completed its expansion in the states of Uttar Pradesh and Uttarakhand and has now registered its footprint across the entirety of these two states with 12 editions. Hindustan is constantly working to empower readers with its credible, unbiased and informative content.

Another important publication in the Company’s portfolio is the children’s magazine Nandan, which commands huge popularity among growing children. Started in 1964, the magazine teaches children about the best of both traditional and modern cultures. The 48 - year old magazine continues to win the hearts of children today, in the same way it won the hearts of their parents and grandparents.

KADAMBINI Kadambini, a cultural and literary magazine, commands high respect in the Hindi heartland. A monthly magazine, it has a readership ranging from young to old and from common people to intellectuals. In an era in which several Hindi magazines have ceased to exist after decades of their popularity, Kadambini continues to hold a wide readership, and has already completed 52 years.

ANOKHI A supplement of Hindustan, Anokhi is a Hindi magazine for women, which addresses issues close to a woman’s heart. The magazine keeps its readers informed about issues of health, lifestyle, food, nutrition etc. As a complete package, it also touches upon mental and physical health, legal issues, parenting, diet and personality development.

Annual Report 2011-12

LIFE n‘ STYLE A weekly supplement that covers topics ranging from celebrity interviews, fashion, travelogues to restaurants and places to visit. This offering brings forth various insights about the capital city and engages the reader with its informative and innovative content.

MOVIE MAGIC Movie Magic is a supplement for those who are keen followers of Bollywood, Hollywood and Entertainment. It carries the latest happenings in the world of glamour, including the spicy gossips and latest news from tinsel town. The supplement also features interviews of movie stars. It is a complete guide for an entertainment buff.

JAANO ENGLISH A unique initiative by Hindustan, Jaano English aims at teaching the nuances of the English language to its readers. The publication carries a mix of Hindi and English language content. The aim is to help readers who are trying to learn English by introducing them to English words and their usage. The publication carries facts on the English language, riddles, grammar exercises, jokes and quizzes, which give the process of learning the language a fun element.

TANN MANN Dedicated to health and lifestyle, the supplement carries articles and information on diets, exercises and health trends prevalent around the world. A popular section of the supplement is the expert’s answers for readers’ questions.

NAYI DISHAYEN A supplement that offers insight into the world of education, be it higher studies or professional education. In order to give a post-education employment perspective, two new careers are showcased every week and deeply analysed by an expert to provide readers with information they can actually use. Targeted at the youth of today, it is an attempt at preparing them for success in their chosen profession.

Annual Report 2011-12

Hindustan Media Ventures Limited

CHAIRPERSON’S MESSAGE

Gains in UP & Uttarakhand are a game-changer Dear Shareholders,

REVENUE GREW BY AN IMPRESSIVE 17% OVER LAST YEAR TO TOUCH `6,173 MILLION IN 2011-12. ADVERTISING REVENUE GREW BY 17% TO `4,392 MILLION AND CIRCULATION REVENUE, 10% TO `1,348 MILLION.

Four years ago, it was the US economy that gave us all sleepless nights. Today, it is the Eurozone. The protracted period of global uncertainty – albeit with some sharp growth spikes locally – has even begun to have an impact on economies once considered immune to such factors. Russia, China and India are slowing. Brazil, the other constituent of the famed BRIC economies, is in marginal decline. Times are tough, but, as always, opportunities abound for companies with sound ideas and the wherewithal to see these to fruition. Those companies that identify and leverage these opportunities are the ones that will successfully weather the slowdown. FY 12 was a tough one for the Indian economy which expanded by 6.5%, the lowest in recent memory. The country received a double blow from the Eurozone crisis and its own inability to create an environment conducive to growth. Investment, both foreign and domestic, in India waned and the government seemed unable to curtail its swelling fiscal deficit. The rupee plunged sharply against the dollar, which emerged a safe-haven investment for investors scared by happenings in the Eurozone and emerging markets. The lack of a clear message from New Delhi on secondgeneration reforms, including foreign investment in key sectors, dampened investor sentiment further. Still, there are clear signs emerging now that the government is prepared to do what is needed to attract investment and improve business confidence.

The Media Story The media industry in India continued to grow. English language publications managed to hold on. Regional language ones expanded rapidly and new media acquired some traction. Print media remains a force to be reckoned with, accounting for 46% of the `300.1 billion spent on advertising (TV accounted for 39%, Internet, 5%, radio, 4%, and others, 6%). Despite trying economic conditions, your Company remained at the vanguard of the media industry in terms of performance. We also made key investments that will see us through the

slowdown. Our growth rate was higher than the industry’s – indication enough that our strategies are working. Our investment philosophy remains the same – plan for the future, invest in new growth engines, and cater to emerging customer needs.

Spirited Performance Despite a tough macro-economic environment, your Company registered a spirited performance. Revenue grew by an impressive 17% over last year to touch `6,173 million in 2011-12. Advertising revenue grew by 17% to `4,392 million and circulation revenue, 10% to `1,348 million. Our strong circulation push didn’t come at the cost of profitability. Our EBITDA margin expanded by 100 basis points to 19%, taking our EBITDA to `1,145 million. Our net profit margin too expanded by 100 basis points, despite a 14% increase in cost of raw material indicating astute cost and fiscal management. We ended the year with a net profit of `653 million and a net profit margin of 11%. Your Company’s annualized earnings per share stood at `8.90 and I am happy to share with you that the board of directors has recommended a dividend of 12% for shareholders’ approval in their ensuing Annual General Meeting (AGM).

Accomplishing Mission Expansion As many of you are aware, Hindustan has been pursuing a strategy of aggressive expansion over the past few years. Our objective has been to expand our footprint across the length and breadth of Uttar Pradesh and Uttarakhand. We have also worked towards further fortifying our undisputed leadership in Bihar and Jharkhand and consolidating our No.2 position in Delhi and NCR. With the launch of our 12th edition in Moradabad, Uttar Pradesh, we have accomplished this mission. We have made handsome gains across geographies and the true value of the gains from our investments and expansions will be wholly realized over the next four or ﬁve years.

readership grew 1%, to reach a readership share of 72% and 4.8 million readers. In Jharkhand, we have 1.76 million readers and a readership share of 49%. In Delhi and the National Capital Region, we remained a strong No.2 with 1.24 million readers. The gains in Uttar Pradesh and Uttarakhand promise to be a game-changer. I am delighted to share with you that according to the Q1 2012 round of the Indian Readership Survey, Hindustan is the fastest growing daily in Uttar Pradesh and Uttarakhand once again. Our readership in Uttar Pradesh and Uttarakhand has swelled to 4.43 million readers translating into a 11.7% yearon-year growth. With an exclusive readership of 2.87 million, the future looks very bright for Hindustan.

The Road Ahead With the mission of expansion complete, we do not have any signiﬁcant capital expenditure planned. At the same time, we are comfortably placed with a strong balance sheet and net cash of `2,341 million. This gives us the ability to pursue growth opportunities, both organic and inorganic. Our aim is to leverage the beneﬁts of scale and further enhance our operational efficiencies, strengthen our reach and build a strong leadership position across the entire IndoGangetic region. We are prepared to invest in our people, processes and brand.

Acknowledgment I would like to thank all our stakeholders, employees, shareholders, readers, advertisers, lenders, the central and state governments, and society at large for helping us come this far. I would like to invite you to accompany us in our quest to create and share sustained value. With best regards,

Readership Gains Our readership (AIR) grew by 3% in the course of the year to reach 12.15 million. In Bihar,

Shobhana Bhartia Chairperson

Overcoming challenges with ﬂying colours A

midst a challenging economic environment, when the Indian Rupee saw considerable depreciation against global currencies, consumers, retail, as well as corporate entities reoriented their focus towards preserving cash reserves. In light of increasing cost of capital, investments came to a virtual standstill. The Indian growth story appeared to ﬁzzle out as global perceptions about India and its ratings dampened. At 6.5%, India witnessed its lowest GDP growth in the last nine years. In spite of the severe global downturn, the Company emerged as a visionary leader in the industry and posted exceptional results. The Company’s second year of operations as a listed company was also a landmark year for its Uttar Pradesh and Uttarakhand expansion strategy. It navigated the dual challenges of forging ahead with expansion in the region on one hand, while weathering wide ranging economic challenges on the other. The crux of these challenges lies in balancing continued expansion with consequential increased operational expenditure as well as countering the existing notions of the print media business’ long gestation periods. Beset by challenges on both the global and regional fronts, the Company prepared itself

for a testing year. While the project team stayed focused on adding new geographies (read editions) as envisaged, the circulation team continued to exponentially augment the reader base in every existing edition, with special attention to the newer editions in Uttar Pradesh and Uttarakhand. The team at the helm of operations worked through various permutations and combinations in order to optimize cost and efficiency. The editorial team continued to cater to the readers with innovative content aligned to its quintessential belief and promise in “Tarakki Ko Chahiye Naya Nazariya” (Progress demands a

new perspective). At a time when advertisers were reducing their media spends signiﬁcantly in terms of volume and cementing their resolve to cut costs, the advertising team prevailed against all odds to register a commendable performance in recent times. In a nutshell, the Company posted a well orchestrated response to the challenging business environment posed by FY 12. Total revenues increased by 17% to reach `617 Crore from `526 Crore in the previous year, with a 17% increase in advertisement revenues and 10% increase in circulation revenues. EBITDA margins

expanded by a full 100 basis point to reach 19% and EBITDA increased to `114 Crore. These numbers were achieved despite the cost of raw material going up by 14%. Net profit margins also expanded by 100 basis points and stood tall at 11%. With net profit reaching `65 Crore, EPS (annualized) stood at `8.90. The Board of Directors recommended a dividend of 12% for shareholders’ approval at their Annual General Meeting. Note: The Company had acquired ‘Hindi Business’ of HT Media Limited (Holding Company) w.e.f. 1.12.2009 and hence, prior period data has been carved out from the financials of HT Media Limited.

Annual Report 2011-12

Hindustan Media Ventures Limited

Establishing connect, Expanding and Entrenching building relationships >From pg 01

customized activation solutions to the advertisers. During the year under review, a host of such activations were implemented to great effect. Some of these included - engineering counselling sessions and seminars for VIT University,

12 Edition 1.51 Crore Readers

he mainstream newspaper business in India is largely driven by advertising revenues. Advertisers, mostly through advertising agencies, choose the right newspapers in which to advertise their products and services. Newspapers attempt to better monetize their quantitative and qualitative reach in comparison to their peers. As aggregator, counsel and negotiator, advertising agencies play a vital role in growing the advertising business and act as a bridge between the advertiser and media organizations. The launch of the Aligarh and Moradabad editions in FY 12 marked the completion of Company’s expansion in the states of Uttar Pradesh and Uttarakhand. To celebrate this momentous feat, the Company initiated a coordinated campaign to communicate the reach and strength of Hindustan in Uttar Pradesh and Uttarakhand. The thought behind the campaign was to generate excitement, build connect and capture top of the mind recall, in turn establishing Hindustan as a medium encompassing the Uttar Pradesh and Uttarakhand belt with its 12 editions. It was the perfect time to familiarise agencies and trade partners with the strengthened and fast growing brand that is Hindustan. A unique B2B printed direct mailer, “Hindustan Sweeps Uttarakhand & Uttar Pradesh” was circulated to establish quick and effective recall. Aimed at creating interest amongst trade members, each city from where Hindustan is published was featured. In addition to reproducing the front page of the launch issues of respective editions, it carried the socio-economic proﬁling of each city – vital information for any advertiser. To make the mailer more interesting and interactive, a quiz on Hindustan and Uttar Pradesh was carried out through the mailer. The

communication was a huge success as the contest received innumerable responses. The objective of further communicating the reach of 12 editions was split into a three stage activation. To make it more interesting and interactive, food was used as a medium of engagement. In the ﬁrst phase a themed cake

The thought behind the campaign was to generate excitement, build connect and capture top of the mind recall, in turn establishing Hindustan as a medium encompassing the Uttar Pradesh and Uttarakhand belt with its 12 editions. was created to represent Hindustan’s reach in Uttar Pradesh and Uttarakhand. The cake cutting ceremony was held at twenty five top advertising agencies across Delhi, Mumbai and Bangalore. The second phase took place after an interval of fifteen days where a novel pizza was conceptualized with twelve slices, each representing one of the 12 editions of Hindustan. The final stage consisted of the distribution of customized chocolate bars where each piece was embossed with an edition name. This coordinated campaign was a huge success as it led to achieving great brand recall. The campaign also communicated to advertisers Hindustan’s emergence as a formidable newspaper reaching progressive and SEC A readers in the states of Uttar Pradesh and Uttarakhand.

‘A Fresh Face’ campaign for Dabur Gulabari, Tata Nano sponsorship for Hindustan Kisan Mela and Parle G sponsoring the Hindustan Pratibha Samman. Going forward, Hindustan is poised to strengthen its expertise in this domain. The consistent growth in Hindustan’s quantitative and qualitative reach has been translated into an equally impressive growth in advertising revenues over these years. In fact, advertising revenue has increased 2.6 times over the last four years. Hindustan is poised for robust growth, thanks to a consistent increase in circulation and readership across editions. It already enjoys a greater share of audience among high income groups. Furthermore, among its geographies of operations, Bihar and Jharkhand continue to remain the fastest growing states in India. Uttar Pradesh, with its newly elected government headed by the country’s youngest chief minister, appears set for a robust economic upswing. Hindustan has the momentum on its side to make the most of offered opportunities and continue its accelerated growth across the board.

* FY 05 Base = 100

Annual Report 2011-12

Hindustan Media Ventures Limited

Awakening electorate, honouring talent

s the nation’s demographics tilt towards the younger generation, it is becoming abundantly clear that the strength of Indian demography lies in its youth. Today’s youth is not merely a passive observer, they demand engagement. They don’t just want to read the news, they want to participate in the news; they want the news to be more than simple information disbursement. The newspaper must, in fact, be a source for their growth and progress. Hindustan has wholly embraced its responsibility as a partner in the advancement and development of its readers. The newspaper has consistently engaged its readers with a host of events and initiatives aimed at developing a well-informed and empowered populace, these include Aao Rajneeti Karein and Hindustan Pratibha Samman. In FY 12 the newspaper continued this grand tradition by undertaking landmark initiatives.

Aao Rajneeti Karein (Let’s participate in politics) Uttar Pradesh, despite its tremendous underlying potential, had witnessed a slowdown in its growth

THE IMPACT Ô Between January 2011 and

September 2011, 38 Lac and 1.5 Lac new voter registrations were recorded in Uttar Pradesh and Uttarakhand respectively Ô Registration campaign

witnessed record turnout between October 2011 to November 2011 with 1.44 Crore persons in Uttar Pradesh and 5.21 Lac persons in Uttarakhand Ô In Uttar Pradesh, poll

percentage increased to 59.4% in the 2012 elections, from 45.96% recorded in the previous elections Ô In Uttarakhand, poll

percentage increased to 67.22% in 2012 elections from 63.72% recorded in the previous elections Ô Turnout of women voters

in Uttar Pradesh and Uttarakhand increased by 18.36% and 9.39%, respectively, compared to the previous elections

momentum in recent times. The state was scheduled to undergo assembly elections during the year under review. Hindustan believed that the elected government of the state ought to have a greater role in shaping the economic and social development of its populace and that people should actively participate in bringing about the change they desire. The consistent decline in the poll percentage over the last four assembly elections in the state suggested increasing voter apathy to the electoral process. The lack of electorate engagement was one of the likely reasons behind the state governments falling short on economic development and political accountability. Given this context, Hindustan took it upon itself to champion the cause of democracy and revive interest and participation in the electoral process. It kicked off a seven month long, four phase electorate awareness campaign called Aao Rajneeti Karein. The ﬁrst phase was aimed at driving people’s participation in the voter registration process; Phase II generated dialogue and discussion around the attributes of an ideal candidate. In Phase III, Hindustan gave voice to the burning issues and aspirations of the electorate; and the ﬁnal Phase IV was aimed at encouraging greater voter turnout and judicious casting of votes. Hindustan conceived this campaign as a challenge to the murkiness surrounding politics. The campaign became a call-to-action for the electorate to become empowered and take a proactive part in the future of their states. Innovative deployment of the driving idea served to generate unprecedented impact. Through a combination of multiple touch-points external to the newspaper and a series of articles the campaign was able to engage a vast populace of readers and non-readers. Riding on increased visibility and tremendous goodwill and connect, Hindustan emerged as a thought leader in Uttar Pradesh and Uttarakhand. A thought leader

Pratibha Samman 2011 Hindustan’s engagement with the youth led to the creation of the Pratibha Samman programme in June 2006. This annual programme is conducted with the dual objectives of recognising achievers and empowering them to study further by awarding scholarships. During FY 12 the Company decided to increase the reach of this programme from 15 cities in FY 11 to 17 cities. Over one Lac students from schools in 17 cities of Delhi, UP, Uttarakhand, Bihar and Jharkhand applied that stood up for the citizens of the states and galvanized them into a powerful segment and acted as a channel for their opinion. The campaign placed special attention on increasing the turnout of women and youth voters. For the ﬁrst time in the history of these two states, a print media brand took responsibility for helping the cause of the Election Commission, to make the state assembly elections a fruitful exercise. In the last leg of the voter registration phase, Hindustan intensiﬁed its efforts with a hard-hitting editorial series, a provocative advertising campaign and on-ground voter registration camps across the state. The campaign also took on a social media

to participate in this year’s Pratibha Samman. Large events were organized in these cities, witnessing the participation of over 15,000 students, parents and teachers. Approximately 10,000 students from 2,000 schools were felicitated for their achievements. Scholarships worth `41.25 Lac were awarded to 125 students, of whom 41 came from economically weaker sections of the society. This was a momentous year for the Pratibha Samman Scholarship where more students than ever were offered the chance to follow their passions. aspect featuring live-chats with eminent political personalities.

The campaign was recognized for its invaluable contributions from all corners:

>>Hindustan was acknowledged at all levels of the Government for its role in the success of the Assembly Elections of Uttar Pradesh of 2012 >>Hindustan was a special invitee to the Social Marketing workshops held by the Election Commission >>The campaign’s principles were transplanted to two other states by the Election Commission.

Making rapid strides : Hindi speaking markets

he Hindi heartland is on the path of progress and Hindustan is its proud partner in growth. A vast majority in the northern regions of our country calls Hindi their mother tongue. Furthermore, the Hindi belt is seeing unprecedented levels of growth. The Hindi newspaper is perfectly positioned to, in turn, boost and benefit from this growth. By reaching out to a substantial number of people whose economic might is growing by leaps and bounds, Hindustan has the ability to shape opinions and influence behaviour. The numbers tell the story. Between 2006-07 and 2009-10, the average real growth rate of GDP of Bihar, Uttarakhand and Jharkhand has been 12.05%, 12.85% and 8.55% respectively. These numbers are even more impressive when measured against the national average of 8.41%. Over the last two fiscal years, Bihar has emerged as the fastest growing state when measured according to GDP growth. Social indicators are also on the uptick – the recent assembly elections in UP recorded a remarkable voter turnout of 59.4%; the literacy rate in Bihar rose by 16.82% from the 2001 to 2011. In the same period, literacy rate in Uttar Pradesh has increased by 13.45% while urban-rural gap in literacy narrowed down by 7.76%. On already healthy literacy rate of 71.62% in 2001, Uttarakhand further improved it by 8.01% in 2011. While English is seen as a language of aspiration, Hindi is the language of the masses. Many multinational

brands are noticing the beneﬁts of appealing to the Hindi heartland’s growing consumer power. With multiple epicenters of the country’s economic growth located in the Hindi heartland, we are sure to see a surge in prosperity and investment in the region. As the second largest read Hindi daily in India, Hindustan is the preferred newspaper of 3.84 Crore readers (total readership) spanning across the ﬁve

crucial states of Delhi, Uttar Pradesh, Uttarakhand, Bihar and Jharkhand. Published from 18 cities, it is instrumental in empowering readers with purposeful and credible information that will in turn shape their futures. The Hindi speaking market is the way forward and is a vital segment of our growth strategy.

MVL has been featured on the Forbes list of “Best Under A Billion” companies in the AsiaPaciﬁc region. It is one of 35 Indian companies and the only Indian media company to ﬁnd place on Forbes Asia’s list of 200. To qualify for the list a company must have annual revenue between $5 million and $1 billion and be publicly traded for at least a year. The inclusion of HMVL on this prestigious list is a testament to its commitment towards its readers and customers. We have cemented our place among some of the best, most prudent companies across the region and will continue in our objective of maintaining the highest standards of journalistic integrity and our goal of growing into the preferred daily across the Hindi-belt.

Annual Report 2011-12

Hindustan Media Ventures Limited

Management Discussion & Analysis

Source: FICCI-KPMG Indian Media and Entertainment Report 2012

In CY 2011, the Indian print industry hit the `200 billion revenue landmark. It grew at 8.3% from `192.9 billion in 2010 to `208.8 billion in 2011. While its growth was impacted by a depressed macroeconomic environment, long term growth prospects continue to be promising, with an estimated CAGR of 9% between CY 2011 and 2016. In terms of the revenue composition, advertising revenues gained 2% to reach 67% of overall revenues while the contribution of circulation revenues decreased by 2 percentage points to 33% as compared to last year. Newspapers continued to maintain a dominant revenue share of 94% in 2011 while the remaining 6% was contributed by magazines.

OVERVIEW OF ECONOMY Global Economy The global economy experienced uncertainties this year. The recent estimates of the International Monetary Fund (IMF) substantiate the slow down as the Global Economic Output growth rate came down to 3.9% in 2011 from 5.3% in 2010. Some of the key factors leading to the slowdown were high unemployment, declining growth prospects in developed countries, the sovereign debt crisis in Europe and high commodity prices which led to severe inﬂationary pressures in developing countries. Going forward, inﬂationary pressures are expected to moderate in the near future as a good harvest may ease food prices. However, we believe that these tough times for global economy will continue for a while before the recovery starts. The same is substantiated by the IMF in their report, ‘World Economic Outlook’ released in April 2012, which projected the global GDP growth rate to fall further to 3.5% in 2012 before improving to 4.1% in 2013.

Indian Economy

Commission of India recognizes the importance of signiﬁcant investments in the development of basic infrastructure. The Twelfth Five-year plan also aims to cover as many as 13 ﬂagship development programmes across the rural and urban sectors, health & family welfare, women & child development, school education and literacy, among them. The Indian government has allocated a budget estimate of `1,88,573 Crore for these development initiatives. The government’s focus is expected to yield positive results for the growth of the Indian economy.

LANGUAGE WISE REVENUE & READERSHIP SPLIT - CY 2011 LANGUAGE

REVENUE SPLIT (%)

AVERAGE ISSUE READERSHIP AIR (%)

ENGLISH

HINDI

VERNACULAR

Source: FICCI-KPMG Indian Media and Entertainment Report 2012

OVERVIEW OF INDUSTRY Indian Media & Entertainment Industry As per FICCI-KPMG Indian Media and Entertainment Report 2012, the industry is estimated to have grown at a rate of 11.7% in Calendar Year (CY) 2011, from `652 billion in 2010 to `728 billion. The report predicts the industry will continue its growth trajectory at a healthy compounded annual growth rate (CAGR) of 14.9% between CY 2011 and CY 2016 to reach `1,457 billion by CY 2016.

The pressures of the global slowdown impacted the Indian Economy as well. While India continued to grow at a healthy rate in Financial Year 2011-12 (FY 12) compared to many other emerging economies, the real GDP growth rate was at its slowest in the last nine years. In addition to external factors, a number of internal factors, such as slowdown in reform process due to lack of political consensus, failure to contain inﬂation within manageable limits, overall deceleration in construction and infrastructure development, sharp depreciation of the Indian Rupee against the US Dollar, and a monetary policy of high interest rates, adversely impacted the growth momentum of the Indian economy. As India prepares to adopt its Twelfth Five-year plan for the years 2012 to 2017, focus continues to be on enabling faster, sustainable and more inclusive growth. The approach paper of the Planning

The long term growth prospects of the print industry continue to be promising with the sector projected to grow at a CAGR of 9.1% and reach `323.4 billion by 2016. The increase in advertising spends will continue to drive the overall growth of the industry. Projected to grow at a CAGR of 11.5% from CY 2011 to 2016, advertising spends are expected to contribute 74% to the total print revenue pie by 2016. Circulation revenues are estimated to grow at a CAGR of 3.6% from CY 2011 to 2016 supported by increased penetration in regional markets. Additionally, as literacy levels, socio-economic proﬁles and penetration of regional newspapers continue to increase, advertising rates for regional language newspapers are expected to catch up with the advertising rates charged by their English counterparts, leading to exponentially faster growth for the regional segment compared to the English segment. According to the FICCI-KPMG Indian Media and Entertainment Report 2012, the regional segment is estimated to grow at a CAGR of 10.9% between CY 2011 and 2016 compared to the 6.3% predicted CAGR growth in the English segment for the same period. The FICCI-KPMG report projects the Print Industry to reach `323.4 billion by 2016 from `208.8 billion in 2011 at CAGR of 9%. Future Outlook for Print Media (` in Billion)

Source: FICCI-KPMG Indian Media and Entertainment Report 2012

In CY 2011, advertising revenues grew by 13.1% to reach `300.1 billion, taking their contribution to 41.1% of the overall Media & Entertainment industry revenues. The print segment commanded a dominant 46% share and contributed `139.4 billion to the advertising revenue pie. Advertising revenues are expected to grow at a CAGR of 14.3% between CY 2011 and 2016 to reach `586 billion by CY 2016.

Print Segment

Source: Central Statistical Office (CSO) and Planning Commission of India

The Print segment continues to expand, aided by the rapid growth of non-English newspapers. The increasing dominance of regional languages, including Hindi, is pumping a new lease of life in the industry which has continued to grow at a much faster rate than that witnessed for the rest of the economy.

Print media market

2011

2012p

2013p

2014p

2015p

2016p

CAGR (201116)

English Advertising Circulation Hindi Advertising Circulation Vernacular Advertising Circulation Total print market

83 57 26 62 41 22 63 42 21 209

88 61 27 68 45 23 70 48 23 226

94 66 27 75 51 23 78 55 24 247

100 72 28 83 58 24 87 63 25 270

106 78 28 91 66 25 98 71 26 295

113 84 29 101 74 26 109 82 27 323

6.3% 8.0% 2.0% 10.1% 12.9% 4.0% 11.6% 14.5% 5.0% 9.1%

Source: FICCI-KPMG Indian Media and Entertainment Report 2012

Annual Report 2011-12

Hindustan Media Ventures Limited

OPERATIONAL REVIEW The Company is the publisher of India’s second most read newspaper Hindustan, a popular children’s magazine Nandan and a leading literary magazine Kadambini. While these are the core traditional brands of the Company, it also owns various periodical supplements of Hindustan like Anokhi, Tann Mann, Life n’ Style, Movie Magic, Jaano English and Nayi Dishayen as well as websites like livehindustan.com, and online versions of Nandan and Kadambini.

Hindustan continues its growth momentum Hindustan continued to grow in FY 12 and consolidated its position as the 2nd largest daily across all languages with a total readership base of 3.84 Crore readers, backed by a re-design initiative undertaken in the earlier part of the year. It added an impressive 17.58 Lac readers in the Q1 2012 round of the Indian Readership Survey (IRS) out of a total addition of 44.65 Lac readers in the entire Hindi newspaper category. The most striking gains came from Uttar Pradesh, where the newspaper has grown its readership to 1.46 Crore readers, thereby garnering a readership share of 33%. With the launch of the Aligarh and Moradabad editions, the expansion in the state is now complete and should further add to Hindustan’s growing readership in subsequent IRS rounds. Additionally, in Uttrakhand, Hindustan grew by 31% to garner a 24% readership share with 7.69 Lac readers. Hindustan’s leadership in Bihar and Jharkhand continued with a market share of 82% and 67% respectively and a total readership of 1.50 Crore and 54.45 Lac readers respectively, resulting in a combined growth of 6% in the two states. Delhi-NCR contributed 24.23 Lac readers to the total Hindustan reader base. FY12 was also a year for Hindustan in terms of its reader engagement efforts as it successfully launched and executed two substantial initiatives - Aao Rajneeti Karein and Pratibha Samman 2011.

Leveraging IT to business advantage The Company is leveraging rapid advancements in Information Technology towards integrating its offline and online news content offerings. It is also deploying customized IT solutions which will help in enhancing the productivity of its editorial team and improving the connectivity between its business locations. During the year under review, the Company took its Content Management System, ‘NewsWrap’, to the next level via the implementation of its web version. It empowered the editorial staff in over 500 hinterland and small town locations with handheld devices, such as internet enabled netbooks and desktops, with the goal of facilitating the timely gathering of news, even from the remotest areas of the country. This system has signiﬁcantly improved the speed and quantum of news ﬂow. The Company is also working towards the complete integration of the print and online versions of the newspaper through further upgrades to ‘NewsWrap’. Furthermore, in order to improve the productivity and efficiency of email users, the entire communication system was migrated to the more effective Microsoft Exchange cloud platform. The Company has begun working on a digital archive of its image bank, at the end of which more than a million images will have been digitized.

FINANCIAL REVIEW The Company continued its growth trajectory and delivered a robust ﬁnancial performance in FY 12. Key aspects of the Company’s ﬁnancial performance are analyzed below.

Revenues

The Company’s total revenues increased to `617.3 Crore in FY 12, a growth of 17% over FY 11. Growth in advertisement revenue was the highest amongst Hindi newspapers at 17%, reaching `439.2 Crore. Circulation revenues registered a growth of 10% to reach `134.8 Crore, primarily aided by higher circulation.

(` in Crore) Particulars

FY 12

FY 11

Growth %

Total Revenue

617.3

525.9

17%

Advertisement Revenue

439.2

374.1

17%

Circulation Revenue

134.8

122.3

10%

EBITDA

114.5

97.1

18%

PBT

91.7

76.2

20%

PAT

65.3

53.6

22%

EPS (`)

8.90

7.80

14%

Total Expenditure

502.8

428.8

17%

Raw Material Cost

256.2

224.5

14%

Personnel Cost

73.4

63.6

15%

Sales & Marketing

25.2

22.2

14%

cost went up by 15% in FY 12. The launch of the Moradabad and Aligarh editions also contributed to higher sales & marketing as well as employee costs.

EBITDA Despite an increase in the cost of operations due to two new editions, the Company posted an impressive growth of 18% in EBITDA for FY 12, with an improvement in margin from 18% in FY 11 to 19% in FY 12. The improved operating results signify considerable progress in the Company’s stated aim of attaining sustained growth and proﬁtability.

EPS

EPS (basic as well as diluted) grew to `8.90 for the year under review, recording a growth of 14% over corresponding ﬁgures of `7.80 for the previous year.

Fixed Assets

Gross Block, as on 31st March, 2012, increased to `228.83 Crore from `188.39 Crore as at the same time last year. The Company continued to expand its printing capacity by adding new facilities in Aligarh, Moradabad and Varanasi and increasing installed capacities in Kanpur, Gorakhpur, Bareilly and Allahabad during the year. Capital Work-in-Progress increased to `7.27 Crore from `0.62 Crore, as on 31st March, 2011. Work on a new production facility in Gaya and augmentation of existing capacity in Lucknow is on track.

Investments

Investments, as on 31st March, 2012, increased to `212.66 Crore from `189.01 Crore, as at 31st March, 2011. The increase was primarily attributable to surplus funds from operational proﬁts.

Inventories

Inventories increased to `31.53 Crore from `24.22 Crore, as on 31st March, 2011, primarily led by an increase in scale of operations.

Trade receivables

Trade receivables, as on 31st March, 2012, increased to `78.00 Crore from `77.08 Crore in the previous year, primarily on account of an increase in turnover by 17%. Daily Sales Outstanding decreased to 47 days from 54 days for the previous year, reﬂecting an improvement in collection of receivables.

Working Capital

With no change during the year, working capital stood at `26 Crore, as on 31st March, 2012.

RISK MANAGEMENT AND INTERNAL CONTROL

Newsprint cost went up by 13% primarily on account of higher commodity prices (per unit), which increased to an average of `32,166 per tonne compared to `28,616 per tonne in the previous year plus increase in volumes due to higher circulation. Production

The Company has in place a well-established framework for internal audits and risk management. The internal audit function regularly examines and evaluates the adequacy of controls, policies and procedures within the organization. Regular and exhaustive audits

SOURCE: IRS Q1 2012, TR

Expenditure

The undisputed NO.1 daily of Bihar

across all locations are carried out to assess the existence and effectiveness of checks and balances as well as compliance with applicable statutes. The Management exercises control through a well defined budget monitoring process along with other standard operating procedures and guidelines. These controls have been designed to provide reasonable assurance with regard to: Accuracy, timeliness and reliability of financial reporting Adherence to laid down internal control systems Protection of assets from unauthorized use or disposition Compliance with legal and statutory regulations Risk assessment and its management is an integral part of all key management decision making processes. During the year, the Company carried out in-depth Risk Based Audits at corporate and other key locations. Simultaneously, all business processes were mapped to identify key process risks together with their respective mitigation mechanisms. An Information Security Assessment was also conducted at the group level to examine the adequacy of controls in information systems and related operations. All key audit findings are periodically deliberated over by senior management and the Audit Committee of the Board for any possible oversights and necessary corrective actions.

HUMAN RESOURCE INITIATIVES The Company strongly believes that attracting and retaining high quality talent has a direct bearing on its current and future growth prospects. In line with its ﬁve core values of Courage, Responsibility, Empowerment, Continuous Self Renewal and People Centricity, the Company constantly endeavors to engage its talent pool, and keep them motivated through a suitable reward and recognition mechanism. The Company’s strategy has been to maintain a vibrant talent pool, in addition to attracting the best accessible talent from different industries. An attempt is made that most of positions are ﬁlled internally with high potential employees, thereby providing growth opportunities to existing talent. Company’s HR function endeavors at facilitating and upgrading employee skills so as to allow them to take on increased responsibility. As on 31st March, 2012, the Company employed 2,183 people.

OUTLOOK The Company has a positive outlook for FY 13 and beyond. With promising growth prospects for the print industry in years to come, advertising spends will continue to drive the overall growth of the industry. The Hindi print segment is projected to grow at a CAGR of 10.1% touching `101 billion in 2016. With expansion now complete in Uttar Pradesh and Uttarakhand, and a continued undisputed leadership position in Bihar and Jharkhand, the Company is well positioned to claim a signiﬁcant share of this growth. Speciﬁcally in FY 13, the overall progress in socio-economic indicators in the states of Bihar and Jharkhand should lead to higher allocation of spends by advertisers and higher readership in UP and Uttarakhand should translate into higher realizations in advertising revenue.

CAUTIONARY STATEMENT Certain statements in this Annual Report may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Hindustan Media Ventures Limited will not, in any way, be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reﬂect subsequent events or circumstances.

Annual Report 2011-12

Hindustan Media Ventures Limited

DIRECTORS’ REPORT Dear Shareholders, Your Directors are pleased to present their Report, together with the Audited Statement of Accounts for the ﬁnancial year ended on 31st March, 2012.

FINANCIAL RESULTS Your Company’s performance during the ﬁnancial year ended on 31st March, 2012, is summarized below: (` in Lac) Particulars Total Income Earnings before interest, tax, depreciation and amortization (EBITDA) Less: Depreciation and amortization expense Less: Finance costs 3URÀW EHIRUH 7D[ Less: Current Tax Less: Deferred Tax charge 3URÀW IRU WKH \HDU Add: %DODQFH DV SHU ODVW ÀQDQFLDO VWDWHPHQWV Amount available for appropriation Appropriations 3URSRVHG HTXLW\ GLYLGHQG 7D[ RQ SURSRVHG HTXLW\ GLYLGHQG 7UDQVIHU WR *HQHUDO 5HVHUYH 1HW VXUSOXV LQ WKH VWDWHPHQW RI SURÀW ORVV

2011-12 61,730.54 11,445.82

2010-11 52,586.06 9,707.18

1,941.57 330.01 9,174.24 2,498.58 140.79 6,534.87 6,046.92 12,581.79

1,644.69 445.88 7,616.61 1,728.59 528.67 5,359.35 1,540.57 6,899.92

880.73 142.88 165.00 11,393.18

733.94 119.06 0.00 6,046.92

DIVIDEND

Your Directors are pleased to recommend a dividend of `1.20/- per Equity Share of `10/- each i.e., 12% (previous year – `1/- per Equity Share i.e. @ 10%) for the ﬁnancial year ended on 31st March, 2012 and seek your approval for the same. The proposed dividend payment, including Corporate Dividend Distribution Tax would entail an outﬂow of `1023.61 Lac (previous year `853 Lac).

COMPANY PERFORMANCE AND FUTURE OUTLOOK A detailed analysis and insight into the ﬁnancial performance and operations of your Company for the year under review and future outlook, is appearing in the Management Discussion and Analysis, which forms part of the Annual Report.

ii. such accounting policies have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31st March, 2012; and of the proﬁt of the Company for the year ended on 31st March, 2012; iii. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and iv. the Annual Accounts have been prepared on a going concern basis.

ACKNOWLEDGEMENT Your Directors place on record their sincere appreciation for the co-operation extended by all stakeholders including Ministry of Information & Broadcasting and other government authorities, shareholders, investors, readers, customers, banks, vendors and suppliers. Your Directors also place on record their deep appreciation of the committed services of the executives and employees of the Company. For and on behalf of the Board Place: New Delhi Date: 18th May, 2012

(Shobhana Bhartia) Chairperson

ANNEXURE – A TO DIRECTORS’ REPORT CERTIFICATE OF COMPLIANCE OF CORPORATE GOVERNANCE To The Members of Hindustan Media Ventures Limited I have examined the compliance of conditions of Corporate Governance by Hindustan Media Ventures Limited, for the year ended on 31st March, 2012, as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the management. My examination was limited to the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the ﬁnancial statements of the Company. In my opinion and to the best of my information and according to the explanations given to me, I certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

BORROWINGS AND DEBT SERVICING During the year under review, your Company has met all its obligations towards repayment of principal and interest on the loans availed.

DEPOSITS

Sd/N.C. Khanna Company Secretary-in-Practice CP No. 5143

New Delhi 18th May, 2012

Your Company has not accepted any Public Deposits during the year.

DIRECTORS During the year under review, Shri Piyush G. Mankad and Shri Shamit Bhartia were inducted on the Board as Additional Directors w.e.f. 19th December, 2011. In terms of the applicable provisions of the Companies Act, 1956, Shri Piyush G. Mankad and Shri Shamit Bhartia hold office till the ensuing Annual General Meeting. As required under Section 257 of the Companies Act, 1956, the Company has received notice alongwith requisite deposit from a member proposing the candidature of both Shri Piyush G. Mankad and Shri Shamit Bhartia for appointment as Directors of the Company liable to retire by rotation. Further, Shri Ajay Relan, Shri Ashwani Windlass and Shri Shardul S. Shroff, Directors; retire from office by rotation at the ensuing Annual General Meeting and being eligible, have offered themselves for re-appointment. A brief resume, details of expertise and other directorships / committee memberships held by the above Directors, form part of the notice convening the Annual General Meeting.

AUDITORS The Statutory Auditors of your Company, M/s. S.R. Batliboi and Co., are due to retire at the conclusion of the ensuing Annual General Meeting and being eligible, have offered themselves for re-appointment. In terms of the requirements under Section 224 (1B) of the Companies Act, 1956 the retiring Auditors have given a certiﬁcate regarding their eligibility for re-appointment as Statutory Auditors of the Company.

CORPORATE GOVERNANCE REPORT The Report on Corporate Governance in terms of Clause 49 of the Listing Agreement, forms part of the Annual Report. The certiﬁcate issued by a Company Secretary-in-Practice, in terms of the requirements of the Listing Agreement is annexed as Annexure – A.

PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956

ANNEXURE – B TO DIRECTORS’ REPORT ANNEXURE TO THE DIRECTORS’ REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO AS PER SECTION 217 (1) (e) OF THE COMPANIES ACT, 1956 READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988

A. CONSERVATION OF ENERGY:(a) Energy conservation measures taken: The following energy conservation measures were taken during the year under review: 8lkfdXk`fe f] ;> j\kj ]fi jpeZ_ife`qè^ Xe[ cfX[ j_Xiè^# kf i\[lZ\ [`\j\c Zfejldgk`fe% 9l`c[è^ jki\\kc`^_kj n\i\ Xkfd`q\[ n`k_ k`d\ij# ]fi \ù\Zk`m\ lk`c`qXk`fe f] [Xpc`^_k% ?`^_ \øZ`\eZp c`^_kè^ Ôokli\j Xi\ è lj\# kf i\[lZ\ gfn\i Zfejldgk`fe% @ejkXccXk`fe f] ZXgXZ`kfi YXebj Ôck\ij# ]fi `dgifm\d\ek f] gfn\i ]XZkfi% (b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy: @ejkXccXk`fe f] X[[`k`feXc ZXgXZ`kfi YXebj Xe[ Ôck\ij kf dXèkXè k_\ gfn\i ]XZkfi fe X[[`k`feXc cfX[% (c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: K_\ d\Xjli\j n\i\ `dgc\d\ek\[ Xj jki\kZ_ kXi^\kj Xe[ XZ_`\m\[ \oZ\cc\ek i\jlckj% DXèkXè\[ gfn\i ]XZkfi kfnXi[j le`kp Xcc @e[`X Xe[ ^fk èZ\ek`m\j fe \e\i^p Y`ccj kf k_\ kle\ f] - %

Information pursuant to Section 217 (1)(e) of the Companies Act, 1956 on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo, is annexed to this Report as Annexure – B. The particulars of employees pursuant to Section 217(2A) of the Companies Act, 1956 and the rules thereunder, are annexed to this Directors’ Report as Annexure – C. However, pursuant to the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the Annual Report is being sent to all the shareholders of the Company without the above information. Any shareholder interested in obtaining such particulars may write to the Company Secretary at the Registered Office address of the Company.

(d) Total energy consumption and energy consumption per unit of production: Not applicable

DIRECTORS’ RESPONSIBILITY STATEMENT

(f) Activities relating to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans: Not applicable

Pursuant to Section 217(2AA) of the Companies Act 1956, your Directors report that: i.

in the preparation of the annual accounts for the ﬁnancial year ended on 31st March, 2012, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

B. TECHNOLOGY ABSORPTION:(e) Efforts made in technology absorption: Not applicable

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:-

(g) Total foreign exchange used and earned: Foreign exchange expenditure Foreign exchange earned -

`4,681.56 Lac `0.20 Lac

Annual Report 2011-12

Hindustan Media Ventures Limited

REPORT ON CORPORATE GOVERNANCE Hindustan Media Ventures Limited is relentlessly pursuing the goal of sustainable value creation for its stakeholders. The twin values of â&#x20AC;&#x2DC;Trusteeshipâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;Accountabilityâ&#x20AC;&#x2122; are the underlining principles of all HMVL initiatives. As a responsible corporate citizen and media house, your Company is committed to promoting and practicing the principles of good â&#x20AC;&#x2DC;Corporate Governanceâ&#x20AC;&#x2122; and balanced care of all stakeholders. A report on Corporate Governance at HMVL, as outlined in the terms of the Listing Agreement requirements, is featured below.

BOARD OF DIRECTORS Composition of the Board In accordance with the requirements of Clause 49 of the Listing Agreement of stock exchanges (Clause 49), more than one-half of the Board of Directors comprises of Non-executive Directors. Our Company also complies with the requirement of at least one-half of the Board to comprise of Independent Directors. The Chairperson of the Board is a Non-executive Promoter Director. The composition of the Board of Directors is as follows Date of appointment 5HODWLRQVKLS EHWZHHQ Directors, inter-se

Name of the Director

Director ,GHQWLĂ&#x20AC;FDWLRQ 1XPEHU ',1

NON- EXECUTIVE PROMOTER DIRECTORS 6PW 6KREKDQD %KDUWLD Chairperson

6th -DQXDU\

0RWKHU RI 6KUL 3UL\DYUDW Bhartia and Shri Shamit Bhartia

00020648

6KUL 3UL\DYUDW %KDUWLD

27th August, 2010

Â&#x2021; 6RQ RI 6PW 6KREKDQD Bhartia Â&#x2021; %URWKHU RI 6KUL 6KDPLW Bhartia

00020603

19th 'HFHPEHU Â&#x2021; 6RQ RI 6PW 6KREKDQD Bhartia Â&#x2021; %URWKHU RI 6KUL 3UL\DYUDW Bhartia

Shri Shamit Bhartia

00020623

22nd )HEUXDU\ None

00002632

6KUL $VKZDQL :LQGODVV

22nd )HEUXDU\ None

00042686

Shri Dipak C. Jain

27th August, 2010

None

00228513

6KUL 3L\XVK * 0DQNDG

19 'HFHPEHU None

00005001

Shri Shardul S. Shroff

22nd )HEUXDU\ None

00009379

NON-EXECUTIVE DIRECTOR 6th -DQXDU\

None

00017110

WHOLE-TIME DIRECTOR 6KUL %HQR\ 5R\FKRZGKXU\

6th -DQXDU\

None

6PW 6KREKDQD Bhartia 6KUL $MD\ 5HODQ 6KUL $VKZDQL :LQGODVV Shri Dipak C. Jain 6KUL 3L\XVK * 0DQNDG Shri Shardul S. Shroff 6KUL 3UL\DYUDW Bhartia Shri Shamit %KDUWLD 6KUL 5DMLY 9HUPD 6KUL %HQR\ 5R\FKRZGKXU\

No. of other Committee position held in other Directorships companies^ held Chairperson 0HPEHU

Yes

6KUL 3L\XVK * 0DQNDG DQG 6KUL 6KDPLW %KDUWLD ZHUH FR RSWHG DV $GGLWLRQDO 'LUHFWRUV Z H I th 'HFHPEHU 1$ GHQRWHV Âś1RW $SSOLFDEOHÂˇ DV 6KUL 3L\XVK * 0DQNDG DQG 6KUL 6KDPLW %KDUWLD MRLQHG WKH %RDUG RQ th 'HFHPEHU A 2QO\ WZR FRPPLWWHHV YL] $XGLW &RPPLWWHH DQG 6KDUHKROGHUVÂˇ ,QYHVWRUVÂˇ *ULHYDQFH &RPPLWWHH DUH FRQVLGHUHG

As stipulated by Clause 49, none of the Directors was a member of more than 10 committees or chairperson of more than 5 committees, across all companies in which he/she is a director. The Directors of the Company are provided with all the information and details required for taking informed decisions at the Board meetings and agenda papers are circulated well in advance of the meeting. In cases where it is not practicable to forward the document(s) with the agenda papers, the same are circulated before the meeting/placed at the meeting. The information provided to the Board from time to time covers the items mentioned in Annexure â&#x20AC;&#x201C; IA to Clause 49.

Details of remuneration paid to Directors

6KUL $MD\ 5HODQ

6KUL 5DMLY 9HUPD

Board meetings Attendance at attended WKH ODVW $*0 during held on 15th FY 2011-12 -XO\

Information supplied to the Board

NON-EXECUTIVE INDEPENDENT DIRECTORS

Name of the Director

00816822

*:KROH WLPH 'LUHFWRU Z H I IURP )HEUXDU\ rd

Our Directors are eminent professionals from diverse ďŹ elds. The Non-executive Directors do not hold any shares/convertible instruments of the Company, except Shri Priyavrat Bhartia and Shri Shamit Bhartia who hold 6,719 and 5,017 Equity Shares of the Company, respectively.

Directorsâ&#x20AC;&#x2122; attendance record and Directorships held During the ďŹ nancial year ended on 31st March, 2012, ďŹ ve Board meetings were held. The details are as follows: Date of Board Meeting

Board strength

1XPEHU RI 'LUHFWRUV present

1XPEHU RI ,QGHSHQGHQW Directors present

28.04.2011

1 out of 4

16.05.2011

2 out of 4

14.07.2011

4 out of 4

20.10.2011

3 out of 4

19.01.2012

4 out of 5

Attendance record of the Directors at the above Board Meetings and at the last Annual General Meeting (AGM); and details of other Directorships/Committee positions held by them in Indian public limited companies, are as follows:

The Non-executive Directors are paid sitting fee at the rate of ` 20,000/- per meeting, for attending meetings of the Board/Committee(s) thereof. The Non-executive Independent Directors are eligible for commission not exceeding 1% of the net proďŹ ts of the Company for the ďŹ nancial year, subject to a limit of `5 Lac per director per annum. The details of sitting fee and commission paid for FY 2011-12 are as under â&#x20AC;&#x201C; (` in Lac) Name of the Director 6PW 6KREKDQD %KDUWLD 6KUL $MD\ 5HODQ #

Sitting Fee Nil

Commission Nil

Total Nil

Nil

6KUL $VKZDQL :LQGODVV

1.80

5.00

6.80

Shri Dipak C. Jain

0.40

5.00

5.40

6KUL 3L\XVK * 0DQNDG

0.20

5.00

5.20

Shri Shardul S. Shroff

0.80

5.00

5.80

6KUL 3UL\DYUDW %KDUWLD

Nil

6KUL 6KDPLW %KDUWLD

Nil

6KUL 5DMLY 9HUPD

Nil

7KHVH 'LUHFWRUV KDYH YROXQWDULO\ RSWHG QRW WR DFFHSW DQ\ VLWWLQJ IHH 7KHVH 'LUHFWRUV ZHUH LQGXFWHG RQ WKH %RDUG Z H I th 'HFHPEHU # 6KUL $MD\ 5HODQ KDV RSWHG QRW WR DFFHSW FRPPLVVLRQ

Shri Benoy Roychowdhury was appointed as Whole- time Director w.e.f. 23rd February, 2010 for a period of ďŹ ve years. The details of remuneration paid to him for the ďŹ nancial year ended on 31st March, 2012, are as under: (` in Lac) Name of the Director 6KUL %HQR\ 5R\FKRZGKXU\

6DODU\ $OORZDQFHV

3HUTXLVLWHV

5HWLUHPHQW EHQHĂ&#x20AC;WV

109.62

15.58

7.26

Notes: 5HWLUHPHQW EHQHĂ&#x20AC;WV LQFOXGH FRQWULEXWLRQ WR 3URYLGHQW )XQG 7KH &RPSDQ\ GLG QRW KDYH DQ\ SHQVLRQ VFKHPH GXULQJ WKH \HDU 6KUL %HQR\ 5R\FKRZGKXU\ KDV QRW EHHQ JUDQWHG VWRFN RSWLRQV SXUVXDQW WR DQ\ VWRFN RSWLRQV VFKHPH IUDPHG E\ WKH &RPSDQ\ 3HUTXLVLWHV LQFOXGH FDU WHOHSKRQH PHGLFDO UHLPEXUVHPHQWV FOXE IHH HWF FDOFXODWHG DV SHU ,QFRPH 7D[ UXOHV 5HPXQHUDWLRQ H[FOXGHV SURYLVLRQ IRU OHDYH HQFDVKPHQW DQG JUDWXLW\ 7KHUH LV QR VHSDUDWH SURYLVLRQ IRU SD\PHQW RI VHYHUDQFH IHHV 6DODU\ $OORZDQFHV LQFOXGH ` RI YDULDEOH SD\ YL] (QWHUSULVH *RDO $ZDUG (*$ ZKLFK LV OLQNHG WR WKH VDOHV SURĂ&#x20AC;WV RI WKH &RPSDQ\ IRU HDFK TXDUWHU

Annual Report 2011-12

Hindustan Media Ventures Limited

During the year under review, none of the Non-executive Directors had any material pecuniary relationship or transactions vis-Ă -vis the Company, other than payment of sitting fee and commission as mentioned above.

BOARD COMMITTEES As at year end, there were three standing committees of the Board of Directors, which were delegated requisite powers to discharge their functions, and they meet as often as required. During the year, â&#x20AC;&#x2DC;IPO Committeeâ&#x20AC;&#x2122; of the Board was dissolved. The standing committees of the Board are as follows (a) Audit Committee (b) Investorsâ&#x20AC;&#x2122; Grievance Committee (c) Investment and Banking Committee The role and composition of the standing committees, including the number of meetings held during the ďŹ nancial year ended on 31st March, 2012 and attendance of Directors thereat, are given hereunder.

(a) AUDIT COMMITTEE

During the year, the Investment and Banking Committee met ďŹ ve times. The composition of Investment and Banking Committee and attendance of the Directors at the meetings is as follows: Name of the Director

Position in the Committee

6KUL $MD\ 5HODQ 6KUL 3UL\DYUDW Bhartia 6KUL 5DMLY 9HUPD 6KUL %HQR\ 5R\FKRZGKXU\

Presence of directors at the meetings

Chairman 0HPEHU

05.07.11 9

30.08.11 9 -

16.09.11 9 -

24.10.11 9 9

19.01.12 9 9

0HPEHU

The Company Secretary acts as the Secretary to the Committee.

GENERAL BODY MEETINGS

The Audit Committee of the Board has been constituted in accordance with the requirements prescribed under Section 292A of the Companies Act, 1956 and Clause 49. The terms of reference of the Audit Committee are in accordance with the Companies Act, 1956 and Listing Agreement of stock exchanges.

Meetings During the ďŹ nancial year ended on 31st March, 2012, ďŹ ve meetings of the Audit Committee were held. The composition of Audit Committee, date on which the meetings were held and attendance of Directors at the above meetings is as follows: Name of the Director Position in the Committee

Meetings

13.05.11

Presence of directors at the meetings 16.05.11 14.07.11 20.10.11 19.01.12

6KUL $VKZDQL :LQGODVV

Chairman

6KUL $MD\ 5HODQ

0HPEHU

Shri Shardul S. Shroff 0HPEHU

6KUL 3UL\DYUDW %KDUWLD 0HPEHU

The Chairman of the Audit Committee is a Non-executive Independent Director and has attended the last Annual General Meeting of the Company held on 15th July, 2011. All the members of the Audit Committee are ďŹ nancially literate and are Non-executive Directors. The Audit Committee satisďŹ es the criteria that two-third of its members are Independent Directors. The Chief Executive Officer, Chief Financial Officer, Internal Auditor and the Statutory Auditors are invitees to the meetings of Audit Committee. The Company Secretary acts as the Secretary to the Committee.

(b) INVESTORSâ&#x20AC;&#x2122; GRIEVANCE COMMITTEE The Investorsâ&#x20AC;&#x2122; Grievance Committee of the Board has been constituted in accordance with Clause 49 to supervise and look into the redressal of investor requests / complaints pertaining to transfer of shares, non-receipt of declared dividends etc. The terms of reference of the Investorsâ&#x20AC;&#x2122; Grievance Committee are in accordance with the Listing Agreement of stock exchanges.

Meetings During the ďŹ nancial year ended on 31st March, 2012, three meetings of the Investorsâ&#x20AC;&#x2122; Grievance Committee were held. The composition of Investorsâ&#x20AC;&#x2122; Grievance Committee and attendance of Directors at the above meetings is as follows: Name of the Director

Position in the Committee

Presence of directors at the meetings 24.10.11 02.01.12 24.01.12

6KUL $MD\ 5HODQ

Chairman

6KUL 5DMLY 9HUPD

0HPEHU

6KUL %HQR\ 5R\FKRZGKXU\ 0HPEHU

Shri Tridib Kumar Barat, Company Secretary is the Compliance Officer of the Company. During the year, 12 investor queries/requests were received, all of which were redressed/replied to the satisfaction of the investors. There were no outstanding investor complaints as on 31st March, 2012. The status on reply/ redressal of investorsâ&#x20AC;&#x2122; complaints is reported to the Board of Directors from time to time.

(c) INVESTMENT AND BANKING COMMITTEE The Investment and Banking Committee of the Board is responsible for following functions â&#x20AC;&#x201C; Â&#x203A; I\Zfdd\e[è^ kf k_\ 9fXi[ ]fi XggifmXc# gifgfjXc j f] gifjg\Zk`m\ X[m\ik`j\i j Yf[p ZfigfiXk\ j # to invest in their share capital Â&#x203A; 8ggifmè^ gifgfjXcj f] gifjg\Zk`m\ X[m\ik`j\ij kf XZhlì\ dfmXYc\&`ddfmXYc\ gifg\ikp `\j fne\[& developed by them, subject to a maximum limit of ` 25 Crore in a single proposal comprising of one or more units of properties Â&#x203A; Kf fg\e# fg\iXk\ Xe[ Zcfj\ Xcc kpg\j f] YXeb XZZflekj# n_\k_\i :lii\ek# JXmè^j fi =ò\[ ;\gfj`kj# Interest/Dividend account or any other accounts as may be required to be opened in the name of the Company at any place in India/abroad with any bank. The Committee shall also be entitled to operate or delegate powers to operate such accounts Â&#x203A; Kf efdèXk\# Xlk_fi`j\ ]ifd k`d\ kf k`d\# fĂ¸Z\ij f] k_\ :fdgXep kf fg\iXk\ k_\ jX`[ YXeb XZZflekj Â&#x203A; Kf Xd\e[# df[`]p# mXip fi i\mfb\# k_\ Xlk_fi`kp f] k_\ g\ijfej Xlk_fi`j\[ kf fg\iXk\ YXeb XZZflekj Â&#x203A; Kf \ek\i èkf ]fi\`ê \oZ_Xe^\ kiXejXZk`fej ]ifd k`d\ kf k`d\ Â&#x203A; Kf \ek\i èkf èm\jkd\ek kiXejXZk`fej ]ifd k`d\ kf k`d\ Â&#x203A; Kf Yfiifn Xep jld fi jldj f] dfe\p ]ifd k`d\ kf k`d\# Xj dXp Y\ g\id`kk\[ Yp cXn# ]fi k_\ business of the Company Â&#x203A; Kf \ek\i èkf fg\iXkè^ c\Xj\ Ă&#x201D;eXeZè^ kiXejXZk`fej ]ifd k`d\ kf k`d\# ]fi Ă&#x201D;eXeZè^ ZXg`kXc expenditure

Details of date, time and venue of the last three Annual General Meetings are as under: 'DWH 7LPH 15th -XO\ 4th June, 2010 at 3.00 p.m at 11.00 a.m. Venue +RWHO 0DXU\D 6RXWK 5HJLVWHUHG 2IĂ&#x20AC;FH DW %XGK *DQGKL 0DLGDQ Marg, Patna-800 001, India Patna-800 001, India Special None Â&#x2021; $XWKRUL]LQJ SD\PHQW Resolution(s) of commission to one RU PRUH 1RQ H[HFXWLYH passed, if DQ\ 'LUHFWRUV RI WKH &RPSDQ\ Â&#x2021; $XWKRUL]LQJ LQYHVWPHQWV RYHU DQG DERYH RI WKH &RPSDQ\ÂˇV SDLG XS share capital and free UHVHUYHV RU RI WKH &RPSDQ\ÂˇV IUHH UHVHUYHV ZKLFKHYHU LV PRUH IRU DQ amount upto ` 300 Crore

29th 6HSWHPEHU at 4.00 p.m. 5HJLVWHUHG 2IĂ&#x20AC;FH DW %XGK 0DUJ Patna-800 001, India

Â&#x2021; 5H DSSRLQWPHQW RI 6KUL 6 0 $JDUZDO DV :KROH WLPH Director Â&#x2021; $PHQGPHQW RI $UWLFOHV RI Association Â&#x2021; 2IIHU DQG LVVXH RI (TXLW\ 6KDUHV ZLWK 'LIIHUHQWLDO 5LJKWV L H Â´&ODVV % (TXLW\ Sharesâ&#x20AC;? (Series-1) of ` HDFK RQ SUHIHUHQWLDO EDVLV WR WKH KROGLQJ FRPSDQ\ L H +7 0HGLD Limited.

Postal Ballot During the ďŹ nancial year ended on 31st March, 2012, no special resolution was passed by the Company which required use of postal ballot process.

DISCLOSURES During the ďŹ nancial year ended on 31st March, 2012, there were no materially signiďŹ cant transactions with related parties viz. promoters, relatives, senior management etc. that may have a potential conďŹ&#x201A;ict with the interest of the Company at large. The required disclosures on related parties and transactions with them, is appearing in Note no. 32 of the Accounts. No penalty or stricture was imposed on the Company by any stock exchange, statutory authority or SEBI in any matter related to capital markets, for non-compliance by the Company. The Company has prepared the ďŹ nancial statements to comply in all material aspects with the Accounting Standards notiďŹ ed under the Companies (Accounting Standards) Rules, 2006 (as amended) and relevant provisions of the Companies Act, 1956. The Company discloses to the Audit Committee, the uses/applications of proceeds/funds raised from its IPO, as part of quarterly review of its ďŹ nancial results. The CEO/CFO certiďŹ cate in terms of Clause 49(V) has been placed before the Board. The Company is complying with all mandatory requirements of Clause 49 and quarterly compliance report in the prescribed format has been submitted to the concerned stock exchanges. The Company has complied with some of the non-mandatory requirements of Listing Agreement on Corporate Governance. The aggregate tenure of none of the Independent Directors on the Board exceeds nine years. The Independent Directors have the requisite qualiďŹ cations and experience, which would be of use to the Company and which, in the opinion of the Company, would enable them to contribute effectively to the Company in capacity of an Independent Director. The Company has adopted a Whistle Blower Policy wherein a mechanism has been put in place to make employees to report to the management their concerns about unethical behaviour, actual or suspected fraud or violation of the Companyâ&#x20AC;&#x2122;s Code of Conduct. The policy provides for adequate safeguards against victimization of employees, who avail of the mechanism besides offering direct access to the Chairman of the Audit Committee. The Policy has been posted on the Companyâ&#x20AC;&#x2122;s intranet viz., myht.in. During the year, no personnel were denied access to the Audit Committee.

Code of Conduct for Directors and Key Managerial Personnel In terms of the requirements of Clause 49 (I) (D), a â&#x20AC;&#x153;Code of Conduct for Directors and Key Managerial Personnelâ&#x20AC;? (the â&#x20AC;&#x153;Codeâ&#x20AC;?) governing the conduct of Directors and Key Managerial Personnel of the Company, is hosted on the website of the Company i.e., www.hmvl.in. The Directors and Key Managerial Personnel are responsible and committed to adhere to the Code and have accordingly affirmed compliance of the same. Further, a declaration by Whole-time Director regarding compliance of the Code is appearing at the end of this report as Annexure â&#x20AC;&#x201C; A.

Code of Conduct for Prevention of Insider Trading In terms of the requirement of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, a â&#x20AC;&#x153;Code of Conduct for Prevention of Insider Tradingâ&#x20AC;? (Insider Code) is posted on the intranet of the Company for compliance by the designated employees. The purpose of the Insider Code is to prevent misuse of unpublished price sensitive information for individual beneďŹ t, by those who have access to such information by virtue of their employment or association with the Company. Further, internal systems are in place to exercise control and ensure that the Designated Employees do not engage themselves in sale/purchase of shares of the Company during the period when the trading window is closed.

Annual Report 2011-12

Hindustan Media Ventures Limited

National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business The Ministry of Corporate Affairs has issued these guidelines as reďŹ nement over the earlier guidelines on this subject released in December, 2009. These guidelines represent the basic requirements for businesses to function responsibly, thereby ensuring a wholesome and inclusive process of economic growth. As a responsible corporate citizen, your Company is committed to the principles enshrined in the Guidelines. The activities undertaken by the Company conforming to the principles in these Guidelines have been reported at suitable places in this Annual Report. Your Company will evaluate and endeavour to adopt the other provisions of these Guidelines in a phased manner.

MEANS OF COMMUNICATION

Listing of Equity Shares on Stock Exchanges and Stock Codes The Equity Shares of the Company are listed on the following Stock Exchanges: 1DPH RI WKH 6WRFN ([FKDQJH Stock Code %RPED\ 6WRFN ([FKDQJH /LPLWHG %6(

533217 3KLUR]H -HHMHHEKR\ 7RZHUV 'DODO 6WUHHW 0XPEDL 1DWLRQDO 6WRFN ([FKDQJH RI ,QGLD /LPLWHG 16(

+09/ ([FKDQJH 3OD]D 3ORW 1R & * %ORFN %DQGUD .XUOD &RPSOH[ %DQGUD (DVW 0XPEDL The annual listing fee for the ďŹ nancial year 2012-13 has been paid to both BSE and NSE.

Â&#x203A; Financial results - The quarterly and annual ďŹ nancial results of the Company are published in â&#x20AC;&#x2DC;Hindustanâ&#x20AC;&#x2122; (Hindi newspaper), â&#x20AC;&#x2DC;Hindustan Timesâ&#x20AC;&#x2122; (English newspaper) and â&#x20AC;&#x2DC;Mintâ&#x20AC;&#x2122; (English Business newspaper). The ďŹ nancial results are also forwarded to the investors by e-mail, in cases where e-mail address is available. Investors may avail this service / facility by providing their e-mail Id to the Company. Â&#x203A; Companyâ&#x20AC;&#x2122;s Website â&#x20AC;&#x201C; Important shareholdersâ&#x20AC;&#x2122; information such as Annual Report of the Company and the ďŹ nancial results are displayed on the website i.e., www.hmvl.in. Â&#x203A; Official news releases, presentations etc. â&#x20AC;&#x201C; Official news releases, shareholding pattern, press releases and presentations made to Financial Analysts etc. are also available at the Companyâ&#x20AC;&#x2122;s website. Â&#x203A; Investor Conference Calls - Every quarter, post the announcement of ďŹ nancial results, conference calls are held with institutional investors and analysts. These calls are addressed by the CEO, CFO and Chief Financial Strategist. Transcripts of the calls are also posted on the website of the Company. Â&#x203A; Management Discussion and Analysis - Management Discussion and Analysis covering the operations of the Company, forms part of this Annual Report. Â&#x203A; Designated E-mail Id â&#x20AC;&#x201C; The Company has designated the E-mail Id viz. hmvlinvestor@hindustantimes.com, for sending investor requests/ complaints.

The ISIN of the Equity Shares of the Company is â&#x20AC;&#x2DC;INE871K01015â&#x20AC;&#x2122;.

Stock Price Data %6( MONTH

+09/

126.20 19811.14 18976.19

149.80

130.05

5944.45

5693.25

173.00

135.00 19253.87 17786.13

165.00

136.00

5775.25

5328.70

Jun. â&#x20AC;&#x2DC;11

154.80

130.00 18873.39 17314.38

150.20

130.05

5657.90

5195.90

Jul. â&#x20AC;&#x2DC;11

147.90

129.25 19131.70 18131.86

143.90

129.00

5740.40

5453.95

GENERAL SHAREHOLDER INFORMATION

Aug. â&#x20AC;&#x2DC;11

154.70

126.10 18440.07 15765.53

155.50

120.20

5551.90

4720.00

Second Annual General Meeting after listing

Sep. â&#x20AC;&#x2DC;11

156.95

128.10 17211.80 15801.01

153.00

125.10

5169.25

4758.85

Oct. â&#x20AC;&#x2DC;11

142.10

125.00 17908.13 15745.43

138.60

125.20

5339.70

4728.30

1RY Âś

147.95

102.25 17702.26 15478.69

141.00

102.10

5326.45

4639.10

Dec. â&#x20AC;&#x2DC;11

136.00

117.05 17003.71 15135.86

138.00

116.00

5099.25

4531.15

Jan. â&#x20AC;&#x2DC;12

140.75

106.65 17258.97 15358.02

141.30

108.60

5217.00

4588.05

)HE Âś

143.95

113.20 18523.78 17061.55

147.95

112.40

5629.95

5159.00

Mar. â&#x20AC;&#x2DC;12

152.45

123.15 18040.69 16920.61

149.40

126.95

5499.40

5135.95

Wednesday, the 5th September, 2012 at 11.00 a.m. Hotel Maurya, South Gandhi Maidan, Patna â&#x20AC;&#x201C; 800 001, Bihar (India)

Financial Year 1st April of each year to 31st March of next year

Financial Calendar (Tentative) 5HVXOWV IRU TXDUWHU HQGLQJ th June, 2012 5HVXOWV IRU TXDUWHU KDOI \HDU HQGLQJ th 6HSWHPEHU 5HVXOWV IRU TXDUWHU HQGLQJ st 'HFHPEHU 5HVXOWV IRU \HDU HQGLQJ st March, 2013 $QQXDO *HQHUDO 0HHWLQJ L H QH[W \HDU

0LG -XO\ (QG 2FWREHU (QG -DQXDU\ (QG 0D\ (QG $XJXVW

Apr. â&#x20AC;&#x2DC;11

152.00

0D\ Âś

6 3 &1; 1,)7< High /RZ

/RZ (in `)

: :

/RZ (in `)

+09/ High (in `)

Day, Date & Time Venue

High (in `)

16( 6(16(; High /RZ

Performance in comparison to broad-based indices

Book Closure The Book Closure period for the purpose of payment of dividend for the ďŹ nancial year 2011-12 is from Wednesday, the 29th August, 2012 to Wednesday, the 5th, September, 2012 (both days inclusive).

Dividend Payment Date (Tentative)

The Board of Directors of the Company have recommended payment of dividend @ `1.20/- per Equity Share of ` 10/- each (i.e. @ 12% ) for the ďŹ nancial year ended on 31st March, 2012, subject to the approval of the shareholders at the ensuing Annual General Meeting. The dividend, if approved, shall be paid on or after 7th September, 2012.

Registrar and Share Transfer Agent Karvy Computershare Private Limited Unit: Hindustan Media Ventures Limited Plot Nos. 17-24, Vithal Rao Nagar, Madhapur, Hyderabad â&#x20AC;&#x201C; 500 086 (India) Tel : + 91-40-2342 0818 Fax: + 91-40-2342 0814 E-mail : einward.ris@karvy.com

Distribution of Shareholding by size as on 31st March, 2012

Share Transfer System

1R RI (TXLW\ Shares held Upto 500 501 â&#x20AC;&#x201C; 1000 1001 â&#x20AC;&#x201C; 5000 5001 â&#x20AC;&#x201C; 10000 DERYH TOTAL

The shares of the Company are compulsorily traded in demat form. All requests for transfer of shares in physical form are processed and the duly transferred share certiďŹ cates are returned to the transferee within the time prescribed by law in the said behalf, subject to the share transfer documents being valid and complete in all respects. The Board has authorised the Investorsâ&#x20AC;&#x2122; Grievance Committee to sub-delegate its powers to the officers of the Company for prompt redressal of investor requests/complaints. As required under Clause 47 (c) of Listing Agreement of Stock Exchanges, the Company obtains a CertiďŹ cate on half yearly basis from a Company Secretary-in-Practice regarding share transfer formalities, copy of which is ďŹ led with the Stock Exchanges.

No. of Shareholders 3,501 400 133 24 55 4,113

The largest selling Hindi womenâ&#x20AC;&#x2122;s magazine in India Over 67 lakh affluent and discerning readers across India Reach of a Newspaper, Ambience of a Magazine

RI 7RWDO QR RI Shareholders 85.12 9.73 3.23 0.58 1.34 100.00

No. of Shares held 3,69,305 2,52,573 2,96,187 1,72,137 7,23,03,568 7,33,93,770

RI 7RWDO QR of Shares 0.50 0.34 0.41 0.23 98.52 100.00

Annual Report 2011-12

Hindustan Media Ventures Limited

COMPLIANCE

Category of Shareholders as on 31st March, 2012 (in both physical and demat form) &DWHJRU\ Promoters Banks, Financial Institutions and Insurance Companies )RUHLJQ ,QVWLWXWLRQDO ,QYHVWRUV ),,V

Mutual Funds Non-residents Bodies Corporate 3XEOLF &OHDULQJ 0HPEHUV HUF Others (Trusts) TOTAL

No. of Shares held 5,70,17,005 5,83,666

RI 6KDUHKROGLQJ 77.69 0.80

9,28,275 93,80,007 1,71,771 30,42,463 22,31,212 8,477 29,473 1,421 7,33,93,770

1.26 12.78 0.23 4.15 3.04 0.01 0.04 0.00 100.00

6KDUHV KHOG LQ 3K\VLFDO IRUP TOTAL

ADDITIONAL INFORMATION FOR SHAREHOLDERS (1) Payment of dividend Shareholders may kindly note the following: (a) National Electronic Clearing Services (NECS)/ Electronic Clearing Services (ECS) facility: Shareholders holding shares in electronic form and desirous of availing NECS/ ECS facility, are requested to ensure that their correct bank details alongwith 9 digit MICR code of the bank is noted in the records of the Depository Participant (DP). Shareholders holding shares in physical form may please contact the R&T Agent. (b) Payment by Dividend Warrants: In order to prevent fraudulent encashment of dividend warrants, holders of shares in demat and physical form, are requested to provide their correct bank account details, to the DP or R&T Agent, as the case may be. The R&T Agent and/or the Company will not entertain requests for noting of change of address/bank details/NECS/ECS Mandate in case of shares held in demat form.

Dematerialization of Shares and liquidity as on 31st March, 2012 &DWHJRU\ Shares held in Demat form

A certiďŹ cate dated 18th May, 2012 of Shri N.C. Khanna, Company Secretary-in-Practice, regarding compliance of conditions of â&#x20AC;&#x2DC;Corporate Governanceâ&#x20AC;&#x2122; as stipulated under Clause 49, is annexed to the Directorsâ&#x20AC;&#x2122; Report.

No. of Shares held 7,33,71,145

RI 6KDUHKROGLQJ 99.97

22,625

0.03

7,33,93,770

100.00

(2) Nomination facility In terms of Section 109A of the Companies Act, 1956, shareholders holding shares in demat and physical form may, in their own interest, register their nomination with the DP or R&T Agent, as the case may be.

Plant Locations (as on 31st March, 2012) &LW\

Address

As on 31st March, 2012, there were no shares allotted in the IPO, which remained unclaimed/uncredited. There are 36 cases of unclaimed refund orders representing ` 57,680/- as on 31st March, 2012, in respect of the IPO and the list has been posted on the web-site of the Company.

$*5$

3ORW 1R 6KDVWULSXUDP &URVVLQJ 6LNDQGUD $UWRQL $JUD 0DWKXUD 5RDG $JUD Â˛

$/,*$5+

1HDU -' $\XUYHGLF &ROOHJH 9LOODJH %KDNKDULNKDV *7 5RDG $OLJDUK Â˛

Details of unclaimed shares (issued in physical form pre-IPO) lying in Demat Suspense Account

ALLAHABAD ) ,QGXVWULDO $UHD 1DLQL $OODKDEDG Â˛

Particulars

No. of Shareholders $JJUHJDWH QXPEHU RI VKDUHKROGHUV DQG WKH RXWVWDQGLQJ VKDUHV O\LQJ 209 LQ WKH XQFODLPHG VXVSHQVH DFFRXQW DW WKH EHJLQQLQJ RI WKH \HDU 1XPEHU RI VKDUHKROGHUV ZKR DSSURDFKHG WKH &RPSDQ\ IRU WUDQVIHU Nil RI VKDUHV IURP WKH XQFODLPHG VXVSHQVH DFFRXQW GXULQJ WKH \HDU 1XPEHU RI VKDUHKROGHUV WR ZKRP VKDUHV ZHUH WUDQVIHUUHG IURP WKH Nil XQFODLPHG VXVSHQVH DFFRXQW GXULQJ WKH \HDU $JJUHJDWH QXPEHU RI VKDUHKROGHUV DQG WKH RXWVWDQGLQJ VKDUHV O\LQJ 209 LQ WKH XQFODLPHG VXVSHQVH DFFRXQW DW WKH HQG RI WKH \HDU

1R RI (TXLW\ Shares 61,483 Nil Nil 61,483

%$5(,//<

3ORW 1RV 0DWKXUDSXU 5DPSXU 5RDG %DUHLOO\ Â˛

'(+5$'81

( 6HODTXL ,QGXVWULDO $UHD 6HODTXL 'HKUDGXQ Â˛

DHANBAD

9LOODJH %KHODWDQG 32 1DJQDJDU 36 %DUEDGGD %KHOD 7DQG 5RDG 'KDL\D 'KDQEDG Â˛

-$06+('385 1+ 9LOODJH 7ROD .XPUXP 3RVW .DSDOL 1HDU 0DQJR 7HOHSKRQH ([FKDQJH 0DQJR Jamshedpur â&#x20AC;&#x201C; 831012 .$1385 Plot No. D-9, Site - III, Panki Industrial Area, Kanpur â&#x20AC;&#x201C; 208022 /8&.12:

3RFNHW 9LEKXWL .KDQG *RPWL 1DJDU /XFNQRZ Â˛

0((587

.KDVUD 1R .0 3DUWDSXU %\ SDVV 2SS .DOND 'HQWDO &ROOHJH 0HHUXW Â˛

025$'$%$' 0LQL %\ SDVV /DNUL )D]DOSXU 1HDU 3ROLFH 3RVW 0RUDGDEDG Â˛ PATNA

Â&#x2021; %XGK 0DUJ 32 *32 36 .RWZDOL 3DWQD Â˛

5$1&+,

Â&#x2021; 9LOODJH %KDJZDWLSXU 32 1HXUD 36 6KDKSXU 'DQDSXU 1DXEDWSXU 5RDG 1HDU 6KLYDOD &KRZN 'DQDSXU 3DWQD Â˛ 801113 .RNDU ,QGXVWULDO $UHD 32 36 .RNDU 5DQFKL Â˛

No GDRs/ADRs/Warrants or any convertible instruments have been issued by the Company.

9$5$1$6,

$UD]L 1R 0DX]D .RLUDMSXU 3DUJDQD $WKDJDZD 7HKVLO 3LQGUD 9DUDQDVL Â˛

Company Registration Details

1RWH 7KH DERYH OLVW GRHV QRW LQFOXGH ORFDWLRQV ZKHUH SULQWLQJ RI WKH &RPSDQ\ÂˇV SXEOLFDWLRQV LV GRQH RQ MRE ZRUN EDVLV

Note: 7KH DIRUHVDLG GDWD UHSUHVHQWV XQFODLPHG ERQXV VKDUHV LVVXHG LQ SK\VLFDO IRUP E\ WKH &RPSDQ\ LQ )HEUXDU\ 7KHVH VKDUHV DUH O\LQJ LQ 'HPDW 6XVSHQVH $FFRXQW DV SHU &ODXVH $ RI WKH /LVWLQJ $JUHHPHQW 7KH YRWLQJ ULJKWV LQ UHVSHFWV RI WKHVH VKDUHV VKDOO UHPDLQ IUR]HQ WLOO WKH ULJKWIXO RZQHUV FODLP WKH VKDUHV

Number of outstanding GDRs/ADRs/Warrants or any convertible instruments

The Company is registered in the office of Registrar of Companies, Bihar & Jharkhand. The Corporate Identity Number (CIN) allotted to the Company by the Ministry of Corporate Affairs (MCA) is L21090BR1918PLC000013.

Address for correspondence Company Secretary Hindustan Media Ventures Limited Hindustan Times House (2nd Floor) 18-20, Kasturba Gandhi Marg New Delhi - 110 001 (India) Tel: + 91 - 11 - 6656 1608 Fax: + 91 - 11 - 6656 1445 Website: www.hmvl.in

ANNEXURE â&#x20AC;&#x201C; A

DECLARATION OF COMPLIANCE WITH â&#x20AC;&#x2DC;CODE OF CONDUCT FOR DIRECTORS AND KEY MANAGERIAL PERSONNELâ&#x20AC;&#x2122; OF THE COMPANY I, Benoy Roychowdhury, Wholetime Director of the Company, do hereby conďŹ rm that all the Board members and Key Managerial Personnel have complied with the â&#x20AC;&#x2DC;Code of Conduct for Directors and Key Managerial Personnelâ&#x20AC;&#x2122;, during the ďŹ nancial year 2011-12. This declaration is based on and is in pursuance of the individual affirmations received in writing from the Board members and the Key Managerial Personnel of the Company.

Compliance Officer Shri Tridib Kumar Barat, Company Secretary Tel: + 91 -11 - 6656 1608

Date: 18th May, 2012 Place: New Delhi

Sd/(Benoy Roychowdhury) Wholetime Director

ÂłFÂšFF

Â¸FZSe QbdÂłFÂšFF AÂťFÂŚF W` Â¸FZSF ÂłFÂŞFdSÂšFF ÂłFÂšFF W`

ÂšFbUFAFZĂ&#x201D; I F AÂ´FÂłFF AJÂśFFS

Annual Report 2011-12

Hindustan Media Ventures Limited

Annual Report 2011-12

Hindustan Media Ventures Limited

Auditorsâ&#x20AC;&#x2122; Report To

referred to as the Order), are not applicable to the Company and hence not commented upon.

The Members of Hindustan Media Ventures Limited 1.

We have audited the attached Balance Sheet of Hindustan Media Ventures Limited (â&#x20AC;&#x2DC;the &RPSDQ\Âˇ DV DW 0DUFK DQG DOVR WKH 6WDWHPHQW RI 3URĂ&#x20AC;W DQG /RVV DQG WKH &DVK )ORZ 6WDWHPHQW IRU WKH \HDU HQGHG RQ WKDW GDWH DQQH[HG WKHUHWR 7KHVH Ă&#x20AC;QDQFLDO VWDWHPHQWV DUH WKH responsibility of the Companyâ&#x20AC;&#x2122;s management. Our responsibility is to express an opinion on WKHVH Ă&#x20AC;QDQFLDO VWDWHPHQWV EDVHG RQ RXU DXGLW

:H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ ,QGLD 7KRVH 6WDQGDUGV UHTXLUH WKDW ZH SODQ DQG SHUIRUP WKH DXGLW WR REWDLQ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU WKH Ă&#x20AC;QDQFLDO VWDWHPHQWV DUH IUHH RI PDWHULDO PLVVWDWHPHQW $Q DXGLW LQFOXGHV H[DPLQLQJ RQ D WHVW EDVLV HYLGHQFH VXSSRUWLQJ WKH DPRXQWV DQG GLVFORVXUHV LQ WKH Ă&#x20AC;QDQFLDO VWDWHPHQWV $Q DXGLW DOVR LQFOXGHV DVVHVVLQJ WKH DFFRXQWLQJ SULQFLSOHV XVHG DQG VLJQLĂ&#x20AC;FDQW HVWLPDWHV PDGH E\ PDQDJHPHQW DV ZHOO DV HYDOXDWLQJ WKH RYHUDOO Ă&#x20AC;QDQFLDO VWDWHPHQW presentation. We believe that our audit provides a reasonable basis for our opinion. $V UHTXLUHG E\ WKH &RPSDQLHV $XGLWRUÂˇV 5HSRUW 2UGHU DV DPHQGHG LVVXHG E\ WKH &HQWUDO *RYHUQPHQW RI ,QGLD LQ WHUPV RI VXE VHFWLRQ $ RI 6HFWLRQ RI WKH &RPSDQLHV $FW ZH HQFORVH LQ WKH $QQH[XUH D VWDWHPHQW RQ WKH PDWWHUV VSHFLĂ&#x20AC;HG LQ SDUDJUDSKV DQG of the said Order. )XUWKHU WR RXU FRPPHQWV LQ WKH $QQH[XUH UHIHUUHG WR DERYH ZH UHSRUW WKDW L

ZH KDYH REWDLQHG DOO WKH LQIRUPDWLRQ DQG H[SODQDWLRQV ZKLFK WR WKH EHVW RI RXU NQRZOHGJH DQG EHOLHI ZHUH QHFHVVDU\ IRU WKH SXUSRVHV RI RXU DXGLW

LL LQ RXU RSLQLRQ SURSHU ERRNV RI DFFRXQW DV UHTXLUHG E\ ODZ KDYH EHHQ NHSW E\ WKH &RPSDQ\ VR IDU DV DSSHDUV IURP RXU H[DPLQDWLRQ RI WKRVH ERRNV LLL WKH %DODQFH 6KHHW 6WDWHPHQW RI 3URĂ&#x20AC;W DQG /RVV DQG &DVK )ORZ 6WDWHPHQW GHDOW ZLWK E\ WKLV UHSRUW DUH LQ DJUHHPHQW ZLWK WKH ERRNV RI DFFRXQW LY LQ RXU RSLQLRQ WKH %DODQFH 6KHHW 6WDWHPHQW RI 3URĂ&#x20AC;W DQG /RVV DQG &DVK )ORZ 6WDWHPHQW GHDOW ZLWK E\ WKLV UHSRUW FRPSO\ ZLWK WKH DFFRXQWLQJ VWDQGDUGV UHIHUUHG WR LQ VXE VHFWLRQ & RI 6HFWLRQ RI WKH &RPSDQLHV $FW Y

,Q RXU RSLQLRQ WKHUH DUH QR FRQWUDFWV RU DUUDQJHPHQWV WKDW QHHG WR EH HQWHUHG LQ WKH UHJLVWHU PDLQWDLQHG XQGHU 6HFWLRQ RI WKH &RPSDQLHV $FW $FFRUGLQJO\ WKH SURYLVLRQV RI FODXVH Y E RI WKH 2UGHU LV QRW DSSOLFDEOH WR WKH &RPSDQ\ DQG KHQFH QRW FRPPHQWHG XSRQ

(vi)

The Company has not accepted any deposits from the public.

YLL ,Q RXU RSLQLRQ WKH &RPSDQ\ KDV DQ LQWHUQDO DXGLW V\VWHP FRPPHQVXUDWH ZLWK WKH VL]H RI WKH Company and nature of its business. YLLL :H KDYH EURDGO\ UHYLHZHG WKH ERRNV RI DFFRXQW PDLQWDLQHG E\ WKH &RPSDQ\ SXUVXDQW WR the rules made by the Central Government for the maintenance of cost records under section G RI WKH &RPSDQLHV $FW UHODWHG WR WKH SULQWLQJ DQG SXEOLVKLQJ RI QHZV SDSHU FDWDORJXHV ERRNV PDJD]LQHV HWF DQG DUH RI WKH RSLQLRQ WKDW SULPD IDFLH WKH SUHVFULEHG accounts and records have been made and maintained. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, HPSOR\HHVÂˇ VWDWH LQVXUDQFH LQFRPH WD[ VDOHV WD[ ZHDOWK WD[ VHUYLFH WD[ FXVWRPV GXW\ FHVV DQG RWKHU PDWHULDO VWDWXWRU\ GXHV KDYH JHQHUDOO\ EHHQ UHJXODUO\ GHSRVLWHG ZLWK WKH DSSURSULDWH authorities. The provisions relating to excise duty are not applicable to the Company.

E $FFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV QR XQGLVSXWHG DPRXQWV SD\DEOH in respect of provident fund, investor education and protection fund, employeesâ&#x20AC;&#x2122; state LQVXUDQFH LQFRPH WD[ ZHDOWK WD[ VHUYLFH WD[ VDOHV WD[ FXVWRPV GXW\ FHVV DQG RWKHU PDWHULDO VWDWXWRU\ GXHV ZHUH RXWVWDQGLQJ DW WKH \HDU HQG IRU D SHULRG RI PRUH WKDQ VL[ months from the date they became payable. The provisions relating to excise duty are not applicable to the Company.

F $FFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV WKHUH DUH QR GXHV RI LQFRPH WD[ VDOHV WD[ ZHDOWK WD[ VHUYLFH WD[ FXVWRPV GXW\ H[FLVH GXW\ DQG FHVV ZKLFK KDYH QRW been deposited on account of any dispute. The provisions relating to excise duty are not applicable to the Company.

in the case of the Balance Sheet, of the state of affairs of the Company as at 0DUFK

[

7KH &RPSDQ\ KDV QR DFFXPXODWHG ORVVHV DW WKH HQG RI WKH Ă&#x20AC;QDQFLDO \HDU DQG LW KDV QRW LQFXUUHG FDVK ORVVHV LQ WKH FXUUHQW DQG LPPHGLDWHO\ SUHFHGLQJ Ă&#x20AC;QDQFLDO \HDU

E LQ WKH FDVH RI WKH 6WDWHPHQW RI 3URĂ&#x20AC;W DQG /RVV RI WKH SURĂ&#x20AC;W IRU WKH \HDU HQGHG RQ WKDW GDWH DQG

(xi)

Based on our audit procedures and as per the information and explanations given by the PDQDJHPHQW ZH DUH RI WKH RSLQLRQ WKDW WKH &RPSDQ\ KDV QRW GHIDXOWHG LQ UHSD\PHQW RI GXHV WR EDQNV 7KH &RPSDQ\ KDV QR RXWVWDQGLQJ GXHV LQ UHVSHFW RI GHEHQWXUHV RU Ă&#x20AC;QDQFLDO LQVWLWXWLRQ

LQ WKH FDVH RI &DVK )ORZ 6WDWHPHQW RI WKH FDVK Ă RZV IRU WKH \HDU HQGHG RQ that date. For S.R. Batliboi & Co. )LUP UHJLVWUDWLRQ QXPEHU ( &KDUWHUHG $FFRXQWDQWV

3ODFH 1HZ 'HOKL 'DWH 0D\

per Manoj Gupta 3DUWQHU 0HPEHUVKLS 1R

Annexure referred to in paragraph 3 of our report of even date 5H +LQGXVWDQ 0HGLD 9HQWXUHV /LPLWHG ÂśWKH &RPSDQ\Âˇ

LY ,Q RXU RSLQLRQ DQG DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV WKHUH LV DQ DGHTXDWH LQWHUQDO FRQWURO V\VWHP FRPPHQVXUDWH ZLWK WKH VL]H RI WKH &RPSDQ\ DQG WKH QDWXUH RI LWV EXVLQHVV IRU WKH SXUFKDVH RI LQYHQWRU\ DQG Ă&#x20AC;[HG DVVHWV DQG IRU WKH VDOH RI JRRGV DQG VHUYLFHV 'XULQJ WKH FRXUVH RI RXU DXGLW ZH KDYH QRW REVHUYHG DQ\ PDMRU ZHDNQHVV RU FRQWLQXLQJ IDLOXUH WR FRUUHFW DQ\ PDMRU ZHDNQHVV LQ WKH LQWHUQDO FRQWURO V\VWHP RI WKH &RPSDQ\ in respect of these areas.

2Q WKH EDVLV RI WKH ZULWWHQ UHSUHVHQWDWLRQV UHFHLYHG IURP WKH GLUHFWRUV DV RQ 0DUFK DQG WDNHQ RQ UHFRUG E\ WKH %RDUG RI 'LUHFWRUV ZH UHSRUW WKDW QRQH RI WKH GLUHFWRUV LV GLVTXDOLĂ&#x20AC;HG DV RQ 0DUFK IURP EHLQJ DSSRLQWHG DV D GLUHFWRU LQ WHUPV RI FODXVH J RI VXE VHFWLRQ RI 6HFWLRQ RI WKH &RPSDQLHV $FW

YL ,Q RXU RSLQLRQ DQG WR WKH EHVW RI RXU LQIRUPDWLRQ DQG DFFRUGLQJ WR WKH H[SODQDWLRQV JLYHQ WR XV WKH VDLG DFFRXQWV JLYH WKH LQIRUPDWLRQ UHTXLUHG E\ WKH &RPSDQLHV $FW LQ WKH PDQQHU VR UHTXLUHG DQG JLYH D WUXH DQG IDLU YLHZ LQ FRQIRUPLW\ ZLWK WKH DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ ,QGLD

E $FFRUGLQJ WR LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV WKH &RPSDQ\ KDV QRW WDNHQ DQ\ ORDQ VHFXUHG RU XQVHFXUHG IURP FRPSDQLHV Ă&#x20AC;UPV RU RWKHU SDUWLHV FRYHUHG LQ WKH UHJLVWHU PDLQWDLQHG XQGHU VHFWLRQ RI WKH &RPSDQLHV $FW $FFRUGLQJO\ WKH SURYLVLRQV RI FODXVH LLL H WR J RI WKH 2UGHU DUH QRW DSSOLFDEOH WR WKH &RPSDQ\ DQG KHQFH QRW commented upon.

D 7KH &RPSDQ\ KDV PDLQWDLQHG SURSHU UHFRUGV VKRZLQJ IXOO SDUWLFXODUV LQFOXGLQJ TXDQWLWDWLYH GHWDLOV DQG VLWXDWLRQ RI Ă&#x20AC;[HG DVVHWV E $OO Ă&#x20AC;[HG DVVHWV KDYH QRW EHHQ SK\VLFDOO\ YHULĂ&#x20AC;HG E\ WKH PDQDJHPHQW GXULQJ WKH \HDU EXW WKHUH LV D UHJXODU SURJUDPPH RI YHULĂ&#x20AC;FDWLRQ ZKLFK LQ RXU RSLQLRQ LV UHDVRQDEOH KDYLQJ UHJDUG WR WKH VL]H RI WKH &RPSDQ\ DQG WKH QDWXUH RI LWV DVVHWV 1R PDWHULDO GLVFUHSDQFLHV ZHUH QRWLFHG RQ VXFK YHULĂ&#x20AC;FDWLRQ

F 7KHUH ZDV QR GLVSRVDO RI D VXEVWDQWLDO SDUW RI Ă&#x20AC;[HG DVVHWV GXULQJ WKH \HDU

D 7KH PDQDJHPHQW KDV FRQGXFWHG SK\VLFDO YHULĂ&#x20AC;FDWLRQ RI LQYHQWRU\ DW UHDVRQDEOH LQWHUYDOV during the year.

E 7KH SURFHGXUHV RI SK\VLFDO YHULĂ&#x20AC;FDWLRQ RI LQYHQWRU\ IROORZHG E\ WKH PDQDJHPHQW DUH reasonable and adequate in relation to the size of the Company and the nature of its business.

[LL $FFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV DQG EDVHG RQ WKH GRFXPHQWV DQG records produced before us, the Company has not granted loans and advances on the basis of VHFXULW\ E\ ZD\ RI SOHGJH RI VKDUHV GHEHQWXUHV DQG RWKHU VHFXULWLHV [LLL ,Q RXU RSLQLRQ WKH &RPSDQ\ LV QRW D FKLW IXQG RU D QLGKL PXWXDO EHQHĂ&#x20AC;W IXQG VRFLHW\ 7KHUHIRUH WKH SURYLVLRQV RI FODXVH [LLL RI WKH 2UGHU DUH QRW DSSOLFDEOH WR WKH &RPSDQ\ [LY ,Q RXU RSLQLRQ WKH &RPSDQ\ LV QRW GHDOLQJ LQ RU WUDGLQJ LQ VKDUHV VHFXULWLHV GHEHQWXUHV DQG RWKHU LQYHVWPHQWV $FFRUGLQJO\ WKH SURYLVLRQV RI FODXVH [LY RI WKH 2UGHU DUH QRW DSSOLFDEOH to the Company. [Y $FFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV WKH &RPSDQ\ KDV QRW JLYHQ DQ\ JXDUDQWHH IRU ORDQV WDNHQ E\ RWKHUV IURP EDQN RU Ă&#x20AC;QDQFLDO LQVWLWXWLRQV (xvi) The Company did not have any term loans outstanding during the year. [YLL $FFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV DQG RQ DQ RYHUDOO H[DPLQDWLRQ RI WKH EDODQFH VKHHW RI WKH &RPSDQ\ ZH UHSRUW WKDW QR IXQGV UDLVHG RQ VKRUW WHUP EDVLV KDYH EHHQ XVHG IRU ORQJ WHUP LQYHVWPHQW (xviii) The Company has not made any preferential allotment of shares to parties or companies FRYHUHG LQ WKH UHJLVWHU PDLQWDLQHG XQGHU VHFWLRQ RI WKH &RPSDQLHV $FW (xix) The Company did not have any outstanding debentures during the year. [[ :H KDYH YHULĂ&#x20AC;HG WKDW WKH HQG XVH RI PRQH\ UDLVHG E\ SXEOLF LVVXH DV GLVFORVHG LQ WKH 1RWH QR WKH )LQDQFLDO 6WDWHPHQWV (xxi) We have been informed, by the management that an employee of the Company had misappropriated funds amounting to `2 lacs (approx.) during the year under audit. ,QYHVWLJDWLRQV LQ WKH PDWWHU KDYH DOUHDG\ EHHQ FRPSOHWHG DQG WKH HPSOR\HH KDV UHVLJQHG from the services of the Company. The Company has provided for the same appropriately in WKH ERRNV GXULQJ WKH \HDU XQGHU DXGLW For S.R. Batliboi & Co. )LUP UHJLVWUDWLRQ QXPEHU ( &KDUWHUHG $FFRXQWDQWV

(c) The Company is maintaining proper records of inventory and no material discrepancies ZHUH QRWLFHG RQ SK\VLFDO YHULĂ&#x20AC;FDWLRQ LLL D $FFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV WKH &RPSDQ\ KDV QRW JUDQWHG DQ\ ORDQV VHFXUHG RU XQVHFXUHG WR FRPSDQLHV Ă&#x20AC;UPV RU RWKHU SDUWLHV FRYHUHG LQ WKH UHJLVWHU PDLQWDLQHG XQGHU VHFWLRQ RI WKH &RPSDQLHV $FW $FFRUGLQJO\ WKH SURYLVLRQV RI FODXVH LLL D WR G RI WKH &RPSDQLHV $XGLWRUÂˇV 5HSRUW 2UGHU DV DPHQGHG KHUHLQ

3ODFH 1HZ 'HOKL 'DWH 0D\

per Manoj Gupta 3DUWQHU 0HPEHUVKLS 1R

Annual Report 2011-12

Hindustan Media Ventures Limited

BALANCE SHEET As at 31 March, 2012

STATEMENT OF PROFIT AND LOSS For the year ended 31 March, 2012 (` in Lacs) 1RWH 1R

Particulars I

EQUITY AND LIABILITIES 1 Shareholdersâ&#x20AC;&#x2122; funds (a) Share capital

$V DW 31 March 2012

(` in Lacs)

$V DW 31 March 2011

43,407.07

37,895.81

1RWH 1R

Particulars I

E 5HVHUYHV DQG VXUSOXV

Year ended 31 March 2012

Year ended 31 March 2011

Income a 5HYHQXH IURP RSHUDWLRQV

b 2WKHU ,QFRPH

1,912.51

61,730.54

52,586.06

7RWDO ,QFRPH

2 Non-current liabilities D 'HIHUUHG WD[ OLDELOLWLHV 1HW

E /RQJ WHUP SURYLVLRQV

5 6

3 Current liabilities D 6KRUW WHUP ERUURZLQJV (b) Trade payables (c) Other current liabilities G 6KRUW WHUP SURYLVLRQV

TOTAL II. ASSETS 1 Non-current assets D )L[HG DVVHWV (i) Tangible assets LL ,QWDQJLEOH DVVHWV LLL &DSLWDO ZRUN LQ SURJUHVV LY ,QWDQJLEOH DVVHWV XQGHU GHYHORSPHQW E 1RQ FXUUHQW LQYHVWPHQWV F /RQJ WHUP ORDQV DQG DGYDQFHV G 2WKHU QRQ FXUUHQW DVVHWV 2 Current assets (a) Current investments E ,QYHQWRULHV (c) Trade receivables G &DVK DQG EDQN EDODQFHV H 6KRUW WHUP ORDQV DQG DGYDQFHV (f) Other current assets TOTAL 6XPPDU\ RI VLJQLÃ&#x20AC;FDQW DFFRXQWLQJ SROLFLHV

745.05

519.54

13,999.12 58,151.24

2,052.22 14,877.88 53,293.23

532.02 20,253.38

10 10

11 12 13

15 16 19

612.00 37,897.86 58,151.24

17,146.90 2,925.93 36,146.33 53,293.23

2.1

Expenses &RVW RI UDZ PDWHULDOV FRQVXPHG

,QFUHDVH GHFUHDVH LQ LQYHQWRULHV

(PSOR\HH EHQHÃ&#x20AC;W H[SHQVH

Other expenses

50,284.72

42,878.88

11,445.82

9,707.18

([FHSWLRQDO LWHPV Total expenses III Earnings before interest, tax, depreciation and amortisation (EBITDA) (I-II) 'HSUHFLDWLRQ DQG DPRUWLVDWLRQ H[SHQVH

)LQDQFH FRVWV

330.01

IV 3URÃ&#x20AC;W EHIRUH WD[ V

Tax expense &XUUHQW WD[ > 1HW RI WD[ FUHGLW RI ` ODFV UHODWLQJ WR SUHYLRXV \HDU Previous Year `55.39 lacs pertaining to earlier years) 'HIHUUHG WD[ FKDUJH Total tax expense

VI 3URÃ&#x20AC;W IRU WKH \HDU IURP FRQWLQXLQJ operations

6,534.87

5,359.35

VII Earnings per share [Nominal value of share `10 each ( PY `10 each)] %DVLF 'LOXWHG

6XPPDU\ RI VLJQLÃ&#x20AC;FDQW DFFRXQWLQJ SROLFLHV

2.1

7KH DFFRPSDQ\LQJ QRWHV DUH DQ LQWHJUDO SDUW RI WKH Ã&#x20AC;QDQFLDO VWDWHPHQWV

$V SHU RXU UHSRUW RI HYHQ GDWH

For S. R. Batliboi & Co. )LUP 5HJLVWUDWLRQ 1XPEHU ( &KDUWHUHG $FFRXQWDQWV

)RU DQG RQ EHKDOI RI WKH %RDUG RI 'LUHFWRUV RI Hindustan Media Ventures Limited

per Manoj Gupta 3DUWQHU 0HPEHUVKLS 1R

Shobhana Bhartia &KDLUSHUVRQ

Benoy Roychowdhury :KROH 7LPH 'LUHFWRU

Tridib Kumar Barat &RPSDQ\ 6HFUHWDU\

Sachin Sharma 2IÃ&#x20AC;FLDWLQJ &KLHI )LQDQFLDO 2IÃ&#x20AC;FHU

For S. R. Batliboi & Co. )LUP 5HJLVWUDWLRQ 1XPEHU ( &KDUWHUHG $FFRXQWDQWV

)RU DQG RQ EHKDOI RI WKH %RDUG RI 'LUHFWRUV RI Hindustan Media Ventures Limited

per Manoj Gupta 3DUWQHU 0HPEHUVKLS 1R

Shobhana Bhartia &KDLUSHUVRQ

SOURCE: IRS Q1 2012, AIR Edition Numbers

3ODFH 1HZ 'HOKL 'DWH 0D\

Tridib Kumar Barat &RPSDQ\ 6HFUHWDU\

Benoy Roychowdhury :KROH 7LPH 'LUHFWRU Sachin Sharma 2IÃ&#x20AC;FLDWLQJ &KLHI )LQDQFLDO 2IÃ&#x20AC;FHU

Rajiv Verma 'LUHFWRU

3ODFH 1HZ 'HOKL 'DWH 0D\

NO.2 Hindi Daily in Lucknow

Rajiv Verma 'LUHFWRU

Annual Report 2011-12

Hindustan Media Ventures Limited

CASH FLOW STATEMENT for the year ended March 31, 2012

NOTES TO FINANCIAL STATEMENTS for the year ended March 31, 2012 (` in Lacs)

Particulars &DVK Ă RZ IURP RSHUDWLQJ DFWLYLWLHV 1HW 3URĂ&#x20AC;W EHIRUH WD[DWLRQ 1RQ FDVK DGMXVWPHQW IRU UHFRQFLOLQJ SURĂ&#x20AC;W EHIRUH WD[ WR QHW FDVK Ă RZV 'HSUHFLDWLRQ $PRUWL]DWLRQ FKDUJH /RVV RQ GLVSRVDO RI Ă&#x20AC;[HG DVVHWV QHW

8QUHDOL]HG IRUHLJQ H[FKDQJH JDLQ ORVV (PSOR\HH VWRFN RSWLRQ VFKHPH 8QFODLPHG EDODQFHV XQVSHQW OLDELOLWLHV ZULWWHQ EDFN QHW

,QFRPH IURP LQYHVWPHQWV EDQN GHSRVLWV DQG RWKHUV ,QWHUHVW H[SHQVH Provision for diminution in long term investments (net) 'LYLGHQG ,QFRPH Provision for doubtful debts and advances 2SHUDWLQJ SURĂ&#x20AC;W EHIRUH ZRUNLQJ FDSLWDO FKDQJHV 0RYHPHQWV LQ ZRUNLQJ FDSLWDO ,QFUHDVH 'HFUHDVH LQ WUDGH UHFHLYDEOHV ,QFUHDVH 'HFUHDVH LQ LQYHQWRULHV ,QFUHDVH 'HFUHDVH LQ ORDQV DGYDQFHV DQG RWKHU FXUUHQW DVVHWV ,QFUHDVH 'HFUHDVH LQ WUDGH SD\DEOHV RWKHU OLDELOLWLHV DQG SURYLVLRQV Cash generated from operations 'LUHFW WD[HV SDLG QHW RI UHIXQGV

1HW FDVK IURP XVHG LQ RSHUDWLQJ DFWLYLWLHV $

&DVK Ă RZV IURP LQYHVWLQJ DFWLYLWLHV 3XUFKDVH RI Ă&#x20AC;[HG DVVHWV 3URFHHGV IURP VDOH RI Ă&#x20AC;[HG DVVHWV Purchase of investments 6DOH PDWXULW\ RI LQYHVWPHQWV 'LYLGHQG UHFHLYHG ,QFRPH IURP LQYHVWPHQWV EDQN GHSRVLWV DQG RWKHUV 'HSRVLWV PDGH ZLWK EDQNV 1HW FDVK IURP XVHG LQ LQYHVWLQJ DFWLYLWLHV %

&DVK Ă RZV IURP Ă&#x20AC;QDQFLQJ DFWLYLWLHV Proceeds from issuance of share capital (including Securities Premium) Share issue expenses 'LYLGHQG SDLG RQ HTXLW\ VKDUHV Tax on equity dividend paid 5HSD\PHQW RI WHUP ORDQ ,QWHUHVW SDLG 6KRUW WHUP ERUURZLQJV WDNHQ QHW

1HW FDVK IURP XVHG LQ Ă&#x20AC;QDQFLQJ DFWLYLWLHV &

Net Increase in cash and cash equivalents (A + B + C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Components of cash and cash equivalents as at end of the year Cash and cheques on hand :LWK 6FKHGXOHG EDQNV RQ FXUUHQW DFFRXQWV RQ GHSRVLW DFFRXQW RQ XQSDLG GLYLGHQG DFFRXQW &DVK %DQN EDODQFHV /HVV 'HSRVLWV QRW FRQVLGHUHG DV FDVK HTXLYDOHQW 1RQ &XUUHQW DVVHWV

&DVK &DVK HTXLYDOHQWV LQ &DVK )ORZ 6WDWHPHQW

Corporate Information

Year ended 31 March 2012

Year ended 31 March 2011

+LQGXVWDQ 0HGLD 9HQWXUHV /LPLWHG Â´+09/Âľ RU Â´WKH &RPSDQ\Âľ LV D 3XEOLF /LPLWHG &RPSDQ\ UHJLVWHUHG LQ ,QGLD LQFRUSRUDWHG XQGHU WKH SURYLVLRQ RI WKH &RPSDQLHV $FW ,WV VKDUHV DUH OLVWHG RQ %RPED\ 6WRFN ([FKDQJH %6( 1DWLRQDO 6WRFN ([FKDQJH 16(

19.31 32.03 (10.59)

12.10

(21.05) (699.20)

102.99

7KH &RPSDQ\ LV D VXEVLGLDU\ RI +7 0HGLD /LPLWHG Â´+ROGLQJ &RPSDQ\Âľ 7KH &RPSDQ\ LV HQJDJHG LQ WKH EXVLQHVV RI SXEOLVKLQJ Âś+LQGXVWDQÂˇ D +LQGL 'DLO\ DQG WZR PRQWKO\ +LQGL PDJD]LQHV Âś1DQGDQ DQG .DGDPEDQLÂˇ

Basis of preparation

7KH Ă&#x20AC;QDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ KDYH EHHQ SUHSDUHG LQ DFFRUGDQFH ZLWK JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV LQ ,QGLD ,QGLDQ *$$3 7KH &RPSDQ\ KDV SUHSDUHG WKHVH Ă&#x20AC;QDQFLDO VWDWHPHQWV WR FRPSO\ LQ DOO PDWHULDO DVSHFWV ZLWK WKH $FFRXQWLQJ 6WDQGDUGV QRWLĂ&#x20AC;HG XQGHU WKH &RPSDQLHV $FFRXQWLQJ 6WDQGDUGV 5XOHV DV DPHQGHG DQG WKH UHOHYDQW SURYLVLRQV RI WKH &RPSDQLHV $FW 7KH Ă&#x20AC;QDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG RQ DQ accrual basis and under the historical cost convention.

7KH DFFRXQWLQJ SROLFLHV DGRSWHG LQ WKH SUHSDUDWLRQ RI Ă&#x20AC;QDQFLDO VWDWHPHQWV DUH FRQVLVWHQW ZLWK WKRVH RI SUHYLRXV \HDU H[FHSW IRU WKH FKDQJH LQ DFFRXQWLQJ SROLF\ H[SODLQHG EHORZ

(506.91)

(1,592.59)

(665.26)

(1,912.91)

13.52

2.22

125.26

(119.06)

26,999.99

6XPPDU\ RI 6LJQLĂ&#x20AC;FDQW DFFRXQWLQJ SROLFLHV

31.66 31.66

(13,500.00)

,QFOXGHV GHSRVLW UHFHLSW SOHGJHG ZLWK EDQNV DQG KHOG DV PDUJLQ PRQH\ RI `31.66 lacs (Previous Year ` ODFV

a. Change in accounting policy Presentation and disclosure of financial statements

b. Use of estimates

)L[HG $VVHWV DUH VWDWHG DW FRVW OHVV DFFXPXODWHG GHSUHFLDWLRQ DQG LPSDLUPHQW ORVVHV LI DQ\ &RVW FRPSULVHV WKH SXUFKDVH SULFH ERUURZLQJ FRVWV LI FDSLWDOL]DWLRQ FULWHULD DUH PHW DQG DQ\ GLUHFWO\ DWWULEXWDEOH FRVW RI EULQJLQJ WKH DVVHW WR LWV ZRUNLQJ FRQGLWLRQ IRU WKH LQWHQGHG XVH $Q\ WUDGH GLVFRXQWV DQG UHEDWHV DUH GHGXFWHG LQ DUULYLQJ DW WKH SXUFKDVH SULFH

9DOXHV RI Ă&#x20AC;[HG DVVHWV DFTXLUHG IURP WKH 3DUHQW &RPSDQ\ LQ DQ HDUOLHU \HDU DUH DOORFDWHG based on fair valuation carried out by an independent expert.

6XEVHTXHQW H[SHQGLWXUH UHODWHG WR DQ LWHP RI Ă&#x20AC;[HG DVVHW LV DGGHG WR LWV ERRN YDOXH RQO\ LI LW LQFUHDVHV WKH IXWXUH EHQHĂ&#x20AC;WV IURP WKH H[LVWLQJ DVVHW EH\RQG LWV SUHYLRXVO\ DVVHVVHG VWDQGDUG RI SHUIRUPDQFH $OO RWKHU H[SHQVHV RQ H[LVWLQJ Ă&#x20AC;[HG DVVHWV LQFOXGLQJ GD\ WR day repair and maintenance expenditure and cost of replacing parts, are charged to the VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV IRU WKH SHULRG GXULQJ ZKLFK VXFK H[SHQVHV DUH LQFXUUHG

/HDVHKROG LPSURYHPHQWV UHSUHVHQW H[SHQVHV LQFXUUHG WRZDUGV FLYLO ZRUNV LQWHULRU furnishings, etc on the leased premises at various locations.

d. Depreciation

/HDVHKROG /DQG LV DPRUWLVHG RQ D VWUDLJKW OLQH EDVLV RYHU WKH SULPDU\ SHULRG RI OHDVH ZKLFK LV EHWZHHQ \HDUV

/HDVHKROG ,PSURYHPHQWV DUH DPRUWL]HG RYHU WKH XVHIXO OLIH RI XSWR \HDUV RU XQH[SLUHG SHULRG RI OHDVH ZKLFKHYHU LV ORZHU RQ D VWUDLJKW OLQH EDVLV

,Q UHVSHFW RI Ă&#x20AC;[HG DVVHWV DFTXLUHG IURP WKH +ROGLQJ &RPSDQ\ LQ DQ HDUOLHU \HDU depreciation is provided at rates as per the useful lives of the assets estimated by an LQGHSHQGHQW YDOXHU 7KHVH UDWHV DV PHQWLRQHG EHORZ DUH JUHDWHU WKDQ RU HTXDO WR WKH FRUUHVSRQGLQJ UDWHV SUHVFULEHG LQ 6FKHGXOH ;,9 RI WKH &RPSDQLHV $FW

$V SHU RXU UHSRUW RI HYHQ GDWH For S. R. Batliboi & Co. )LUP 5HJLVWUDWLRQ 1XPEHU ( &KDUWHUHG $FFRXQWDQWV

)RU DQG RQ EHKDOI RI WKH %RDUG RI 'LUHFWRUV RI Hindustan Media Ventures Limited

Per Manoj Gupta 3DUWQHU 0HPEHUVKLS 1R

Shobhana Bhartia &KDLUSHUVRQ

Benoy Roychowdhury :KROH 7LPH 'LUHFWRU

Tridib Kumar Barat &RPSDQ\ 6HFUHWDU\

Sachin Sharma 2IĂ&#x20AC;FLDWLQJ &KLHI )LQDQFLDO 2IĂ&#x20AC;FHU

3ODFH 1HZ 'HOKL 'DWH 0D\

7KH SUHSDUDWLRQ RI Ă&#x20AC;QDQFLDO VWDWHPHQWV LQ FRQIRUPLW\ ZLWK ,QGLDQ *$$3 UHTXLUHV WKH PDQDJHPHQW WR PDNH MXGJPHQWV HVWLPDWHV DQG DVVXPSWLRQV WKDW DIIHFW WKH UHSRUWHG amounts of assets and liabilities and disclosure of contingent liabilities, at the date of WKH Ă&#x20AC;QDQFLDO VWDWHPHQWV DQG RI WKH UHVXOWV RI RSHUDWLRQV GXULQJ WKH UHSRUWLQJ SHULRG $OWKRXJK WKHVH HVWLPDWHV DUH EDVHG XSRQ PDQDJHPHQWÂˇV EHVW NQRZOHGJH RI FXUUHQW events and actions, uncertainty about these assumptions and estimates could result in the RXWFRPHV UHTXLULQJ D PDWHULDO DGMXVWPHQW WR WKH FDUU\LQJ DPRXQWV RI DVVHWV RU OLDELOLWLHV in future periods.

c. Tangible Assets

7KH &RPSDQ\ FDQ XWLOL]H WKHVH EDODQFHV RQO\ WRZDUGV VHWWOHPHQW RI WKH UHVSHFWLYH XQFODLPHG GLYLGHQG 1RWH 7KH DERYH &DVK )ORZ 6WDWHPHQW KDV EHHQ SUHSDUHG XQGHU WKHÂľ,QGLUHFW 0HWKRGÂľ DV VWDWHG LQ $FFRXQW LQJ 6WDQGDUG RQ &DVK )ORZ 6WDWHPHQW

'XULQJ WKH \HDU HQGHG 0DUFK WKH UHYLVHG 6FKHGXOH 9, QRWLĂ&#x20AC;HG XQGHU WKH &RPSDQLHV $FW KDV EHFRPH DSSOLFDEOH WR WKH &RPSDQ\ IRU SUHSDUDWLRQ DQG SUHVHQWDWLRQ RI LWV Ă&#x20AC;QDQFLDO VWDWHPHQWV ([FHSW DFFRXQWLQJ IRU GLYLGHQG RQ LQYHVWPHQWV LQ VXEVLGLDU\ FRPSDQLHV WKH DGRSWLRQ RI UHYLVHG 6FKHGXOH 9, GRHV QRW LPSDFW UHFRJQLWLRQ DQG PHDVXUHPHQW SULQFLSOHV IROORZHG IRU SUHSDUDWLRQ RI Ă&#x20AC;QDQFLDO VWDWHPHQWV +RZHYHU LW KDV VLJQLĂ&#x20AC;FDQW LPSDFW RQ SUHVHQWDWLRQ DQG GLVFORVXUHV PDGH LQ WKH Ă&#x20AC;QDQFLDO VWDWHPHQWV 7KH &RPSDQ\ KDV DOVR UHFODVVLĂ&#x20AC;HG WKH SUHYLRXV \HDU Ă&#x20AC;JXUHV LQ DFFRUGDQFH ZLWK WKH requirements applicable in the current year.

Rajiv Verma 'LUHFWRU

Particulars 6/0 5DWHV 6FKHGXOH ;,9 5DWHV 6/0

Plant and Machinery WR %XLOGLQJV )DFWRU\

WR )XUQLWXUH DQG )LWWLQJV WR ,7 (TXLSPHQWV WR 2IĂ&#x20AC;FH (TXLSPHQW WR Vehicles 'HSUHFLDWLRQ RQ DVVHWV H[FHSW IRU WKHVH DFTXLUHG IURP KROGLQJ &RPSDQ\ DUH SURYLGHG

Annual Report 2011-12

Hindustan Media Ventures Limited

FDSLWDOL]HG DV SDUW RI WKH FRVW RI WKH UHVSHFWLYH DVVHW $OO RWKHU ERUURZLQJ FRVWV DUH H[SHQVHG LQ the period they occur.

on Straight Line Method at the rates computed based on estimated useful life of the asset, ZKLFK DUH HTXDO WR RU JUHDWHU WKDQ WKH FRUUHVSRQGLQJ UDWHV SUHVFULEHG LQ 6FKHGXOH ;,9 WR WKH &RPSDQLHV $FW

$VVHWV FRVWLQJ EHORZ `5,000 each, are fully depreciated in the year of acquisition.

i. Impairment

7KH &RPSDQ\ DVVHVVHV DW HDFK UHSRUWLQJ GDWH ZKHWKHU WKHUH LV DQ LQGLFDWLRQ WKDW DQ DVVHW PD\ EH LPSDLUHG ,I DQ\ LQGLFDWLRQ H[LVWV RU ZKHQ DQQXDO LPSDLUPHQW WHVWLQJ IRU DQ DVVHW LV UHTXLUHG WKH &RPSDQ\ HVWLPDWHV WKH DVVHWÂˇV UHFRYHUDEOH DPRXQW $Q DVVHWÂˇV UHFRYHUDEOH DPRXQW LV WKH KLJKHU RI DQ DVVHWÂˇV RU WKH FDVK JHQHUDWLQJ XQLWÂˇV &*8 QHW VHOOLQJ SULFH DQG YDOXH LQ XVH 7KH recoverable amount is determined for an individual asset, unless the asset does not generate FDVK LQĂ RZV WKDW DUH ODUJHO\ LQGHSHQGHQW RI WKRVH IURP RWKHU DVVHWV RU JURXSV RI DVVHWV Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is FRQVLGHUHG LPSDLUHG DQG LV ZULWWHQ GRZQ WR LWV UHFRYHUDEOH DPRXQW ,Q DVVHVVLQJ YDOXH LQ XVH WKH HVWLPDWHG IXWXUH FDVK Ă RZV DUH GLVFRXQWHG WR WKHLU SUHVHQW YDOXH XVLQJ D SUH WD[ GLVFRXQW UDWH WKDW UHĂ HFWV FXUUHQW PDUNHW DVVHVVPHQWV RI WKH WLPH YDOXH RI PRQH\ DQG WKH ULVNV VSHFLĂ&#x20AC;F WR WKH DVVHW ,Q GHWHUPLQLQJ QHW VHOOLQJ SULFH UHFHQW PDUNHW WUDQVDFWLRQV DUH WDNHQ LQWR DFFRXQW LI DYDLODEOH ,I QR VXFK WUDQVDFWLRQV FDQ EH LGHQWLĂ&#x20AC;HG DQ DSSURSULDWH YDOXDWLRQ PRGHO LV XVHG

$IWHU LPSDLUPHQW GHSUHFLDWLRQ LV SURYLGHG RQ WKH UHYLVHG FDUU\LQJ DPRXQW RI WKH DVVHW RYHU LWV remaining useful life.

e. Intangibles

,QWDQJLEOH DVVHWV DFTXLUHG VHSDUDWHO\ DUH PHDVXUHG RQ LQLWLDO UHFRJQLWLRQ DW FRVW )ROORZLQJ initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

9DOXH IRU LQGLYLGXDO VRIWZDUH OLFHQVH DFTXLUHG IURP WKH +ROGLQJ &RPSDQ\ LQ DQ HDUOLHU \HDU LV allocated based on the valuation carried out by an independent expert.

,QWDQJLEOH DVVHWV DUH DPRUWL]HG RQ D VWUDLJKW OLQH EDVLV RYHU WKH HVWLPDWHG XVHIXO HFRQRPLF OLIH ,QWDQJLEOH DVVHWV QRW \HW DYDLODEOH IRU XVH DUH WHVWHG IRU LPSDLUPHQW DQQXDOO\ HLWKHU LQGLYLGXDOO\ RU DW WKH FDVK JHQHUDWLQJ XQLW OHYHO $OO RWKHU LQWDQJLEOH DVVHWV DUH DVVHVVHG IRU LPSDLUPHQW ZKHQHYHU WKHUH LV DQ LQGLFDWLRQ WKDW WKH LQWDQJLEOH DVVHW PD\ EH LPSDLUHG

7KH DPRUWL]DWLRQ SHULRG DQG WKH DPRUWL]DWLRQ PHWKRG RI WKH ,QWDQJLEOH DVVHWV DUH UHYLHZHG DW HDFK Ă&#x20AC;QDQFLDO \HDU HQG IRU LWV H[SHFWHG XVHIXO OLIH LI WKHUH LV D VLJQLĂ&#x20AC;FDQW FKDQJH LQ WKH H[SHFWHG XVHIXO OLIH RU WKH H[SHFWHG SDWWHUQ RI HFRQRPLF EHQHĂ&#x20AC;WV WKH DPRUWL]DWLRQ SHULRG PHWKRG LV DGMXVWHG WR UHĂ HFW WKH FKDQJH 6XFK FKDQJHV DUH DFFRXQWHG IRU LQ DFFRUGDQFH ZLWK $6 1HW 3URĂ&#x20AC;W RU /RVV IRU WKH 3HULRG 3ULRU 3HULRG ,WHPV DQG &KDQJHV LQ $FFRXQWLQJ 3ROLFLHV

j. Investments

Gains or losses arising from derecognition of an intangible asset are measured as the difference EHWZHHQ WKH QHW GLVSRVDO SURFHHGV DQG WKH FDUU\LQJ DPRXQW RI WKH DVVHW DQG DUH UHFRJQL]HG LQ WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV ZKHQ WKH DVVHW LV GHUHFRJQL]HG

6RIWZDUH OLFHQVHV DFTXLUHG IURP WKH +ROGLQJ &RPSDQ\ ZKLFK DUH HVWLPDWHG WR KDYH ORZHU UHVLGXDO OLYHV WKDQ WKDW HQYLVDJHG DERYH DUH DPRUWLVHG RYHU VXFK HVWLPDWHG ORZHU UHVLGXDO OLYHV

$ VXPPDU\ RI DPRUWL]DWLRQ SROLFLHV DSSOLHG WR WKH &RPSDQ\ÂˇV LQWDQJLEOH DVVHWV LV DV EHORZ ,QWDQJLEOH $VVHWV :HEVLWH 'HYHORSPHQW 6RIWZDUH /LFHQVHV

Useful life (in years) 6

6RIWZDUH OLFHQVHV FRVWLQJ EHORZ `5,000 each are fully depreciated in the year of acquisition.

f. Expenditure on new projects and substantial expansion

([SHQGLWXUH GLUHFWO\ UHODWLQJ WR FRQVWUXFWLRQ DFWLYLW\ LV FDSLWDOL]HG ,QGLUHFW H[SHQGLWXUH LQFXUUHG during construction period is capitalized as part of the indirect construction cost to the extent ZKLFK WKH H[SHQGLWXUH LV LQGLUHFWO\ UHODWHG WR FRQVWUXFWLRQ RU LV LQFLGHQWDO WKHUHWR 2WKHU LQGLUHFW H[SHQGLWXUH LQFOXGLQJ ERUURZLQJ FRVWV LQFXUUHG GXULQJ WKH FRQVWUXFWLRQ SHULRG ZKLFK LV QRW UHODWHG WR WKH FRQVWUXFWLRQ DFWLYLW\ QRU LV LQFLGHQWDO WKHUHWR LV FKDUJHG WR WKH 3URĂ&#x20AC;W /RVV $FFRXQW ,QFRPH HDUQHG GXULQJ FRQVWUXFWLRQ SHULRG LV DGMXVWHG DJDLQVW WKH WRWDO RI WKH LQGLUHFW expenditure.

$OO GLUHFW FDSLWDO H[SHQGLWXUH LQFXUUHG RQ H[SDQVLRQ LV FDSLWDOL]HG $V UHJDUGV LQGLUHFW H[SHQGLWXUH RQ H[SDQVLRQ RQO\ WKDW SRUWLRQ LV FDSLWDOL]HG ZKLFK UHSUHVHQWV WKH PDUJLQDO increase in such expenditure involved as a result of capital expansion. Both direct and indirect expenditure are capitalized only if they increase the value of the asset beyond its originally assessed standard of performance.

)LQDQFH OHDVHV ZKLFK HIIHFWLYHO\ WUDQVIHU WR WKH &RPSDQ\ VXEVWDQWLDOO\ DOO WKH ULVNV DQG EHQHĂ&#x20AC;WV LQFLGHQWDO WR RZQHUVKLS RI WKH OHDVHG LWHP DUH FDSLWDOL]HG DW WKH LQFHSWLRQ RI WKH OHDVH WHUP DW WKH ORZHU RI WKH IDLU YDOXH RI WKH OHDVHG SURSHUW\ DQG SUHVHQW YDOXH RI WKH PLQLPXP OHDVH SD\PHQWV /HDVH SD\PHQWV DUH DSSRUWLRQHG EHWZHHQ WKH Ă&#x20AC;QDQFH FKDUJHV DQG UHGXFWLRQ RI the lease liability so as to achieve a constant rate of interest on the remaining balance of the OLDELOLW\ )LQDQFH FKDUJHV DUH UHFRJQL]HG DV Ă&#x20AC;QDQFH FRVW LQ WKH VWDWHPHQW RI SURĂ&#x20AC;W ORVV /HDVH management fees, legal charges and other initial direct costs of lease are capitalised. $ OHDVHG DVVHW LV GHSUHFLDWHG RQ D VWUDLJKW OLQH EDVLV RYHU WKH XVHIXO OLIH RI WKH DVVHW RU WKH XVHIXO OLIH HQYLVDJHG LQ 6FKHGXOH ;,9 WR WKH &RPSDQLHV $FW ZKLFKHYHU LV ORZHU +RZHYHU LI WKHUH LV QR UHDVRQDEOH FHUWDLQW\ WKDW WKH &RPSDQ\ ZLOO REWDLQ WKH RZQHUVKLS E\ WKH HQG RI WKH OHDVH WHUP WKH FDSLWDOL]HG OHDVHG DVVHWV DUH GHSUHFLDWHG RQ D VWUDLJKW OLQH EDVLV RYHU WKH shorter of the estimated useful life of the asset, the lease term or the useful life envisaged in 6FKHGXOH ;,9 WR WKH &RPSDQLHV $FW /HDVH ZKHUH WKH OHVVRU HIIHFWLYHO\ UHWDLQV VXEVWDQWLDOO\ DOO WKH ULVNV DQG EHQHĂ&#x20AC;WV RI RZQHUVKLS RI WKH OHDVHG LWHP DUH FODVVLĂ&#x20AC;HG DV RSHUDWLQJ OHDVHV 2SHUDWLQJ OHDVH SD\PHQWV UHFHLSWV DUH UHFRJQL]HG DV DQ H[SHQVH LQ WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV RQ D VWUDLJKW OLQH EDVLV RYHU WKH lease term.

h. Borrowing costs

%RUURZLQJ FRVW LQFOXGHV LQWHUHVW DPRUWL]DWLRQ RI DQFLOODU\ FRVWV LQFXUUHG LQ FRQQHFWLRQ ZLWK WKH DUUDQJHPHQW RI ERUURZLQJV DQG H[FKDQJH GLIIHUHQFHV DULVLQJ IURP IRUHLJQ FXUUHQF\ ERUURZLQJV WR WKH H[WHQW WKH\ DUH UHJDUGHG DV DQ DGMXVWPHQW WR WKH LQWHUHVW FRVW %RUURZLQJ FRVWV GLUHFWO\ DWWULEXWDEOH WR WKH DFTXLVLWLRQ FRQVWUXFWLRQ RU SURGXFWLRQ RI DQ DVVHW WKDW QHFHVVDULO\ WDNHV D VXEVWDQWLDO SHULRG RI WLPH WR JHW UHDG\ IRU LWV LQWHQGHG XVH RU VDOH DUH

,QYHVWPHQWV ZKLFK DUH UHDGLO\ UHDOL]DEOH DQG LQWHQGHG WR EH KHOG IRU QRW PRUH WKDQ RQH \HDU IURP WKH GDWH RQ ZKLFK VXFK LQYHVWPHQWV DUH PDGH DUH FODVVLĂ&#x20AC;HG DV FXUUHQW LQYHVWPHQWV $OO RWKHU LQYHVWPHQWV DUH FODVVLĂ&#x20AC;HG DV ORQJ WHUP LQYHVWPHQWV On initial recognition, all investments are measured at cost. The cost comprises purchase price DQG GLUHFWO\ DWWULEXWDEOH DFTXLVLWLRQ FKDUJHV VXFK DV EURNHUDJH IHHV DQG GXWLHV ,I DQ LQYHVWPHQW is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued.

&XUUHQW LQYHVWPHQWV DUH FDUULHG LQ WKH Ă&#x20AC;QDQFLDO VWDWHPHQWV DW ORZHU RI FRVW DQG IDLU YDOXH GHWHUPLQHG RQ DQ LQGLYLGXDO LQYHVWPHQW EDVLV /RQJ WHUP LQYHVWPHQWV DUH FDUULHG DW FRVW +RZHYHU SURYLVLRQ IRU GLPLQXWLRQ LQ YDOXH LV PDGH WR UHFRJQL]H D GHFOLQH RWKHU WKDQ WHPSRUDU\ in the value of the investments.

2Q GLVSRVDO RI DQ LQYHVWPHQW WKH GLIIHUHQFH EHWZHHQ LWV FDUU\LQJ DPRXQW DQG QHW GLVSRVDO SURFHHGV LV FKDUJHG RU FUHGLWHG WR WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV

N ,QYHQWRULHV

g. Leases ( Where the Company is the lessee)

,QYHQWRULHV DUH YDOXHG DV IROORZV 5DZ PDWHULDOV VWRUHV DQG VSDUHV

/RZHU RI FRVW DQG QHW UHDOL]DEOH YDOXH +RZHYHU material and other items held for use in the production RI LQYHQWRULHV DUH QRW ZULWWHQ GRZQ EHORZ FRVW LI WKH Ă&#x20AC;QLVKHG SURGXFWV LQ ZKLFK WKH\ ZLOO EH LQFRUSRUDWHG DUH expected to be sold at or above cost. Cost is determined RQ D ZHLJKWHG DYHUDJH EDVLV

:RUN LQ SURJUHVV

/RZHU RI FRVW DQG QHW UHDOL]DEOH YDOXH &RVW UHSUHVHQWV GLUHFW PDWHULDOV FRVW &RVW LV GHWHUPLQHG RQ D ZHLJKWHG average basis.

Scrap and Waste papers

$W QHW UHDOL]DEOH YDOXH

1HW UHDOL]DEOH YDOXH LV WKH HVWLPDWHG VHOOLQJ SULFH LQ WKH RUGLQDU\ FRXUVH RI EXVLQHVV OHVV HVWLPDWHG FRVWV RI FRPSOHWLRQ DQG HVWLPDWHG FRVWV QHFHVVDU\ WR PDNH WKH VDOH

l. Revenue recognition

5HYHQXH LV UHFRJQL]HG WR WKH H[WHQW WKDW LW LV SUREDEOH WKDW WKH HFRQRPLF EHQHĂ&#x20AC;WV ZLOO Ă RZ WR WKH &RPSDQ\ DQG WKH UHYHQXH FDQ EH UHOLDEO\ PHDVXUHG 6SHFLĂ&#x20AC;FDOO\ WKH IROORZLQJ EDVLV LV DGRSWHG

$GYHUWLVHPHQWV 5HYHQXH LV UHFRJQL]HG DV DQG ZKHQ DGYHUWLVHPHQW LV SXEOLVKHG GLVSOD\HG DQG LV GLVFORVHG QHW of discounts.

6DOH RI 1HZV 3XEOLFDWLRQV :DVWH 3DSHU DQG 6FUDS 5HYHQXH LV UHFRJQL]HG ZKHQ WKH VLJQLĂ&#x20AC;FDQW ULVNV DQG UHZDUGV RI RZQHUVKLS KDYH SDVVHG RQ WR the buyer and is disclosed net of sales return and discounts.

3ULQWLQJ -RE :RUN 5HYHQXH IURP SULQWLQJ MRE ZRUN LV UHFRJQL]HG RQ WKH FRPSOHWLRQ RI MRE ZRUN DV SHU WHUPV RI WKH agreement.

,QWHUHVW ,QFRPH IURP LQYHVWPHQWV 5HYHQXH LV UHFRJQL]HG RQ D WLPH SURSRUWLRQ EDVLV WDNLQJ LQWR DFFRXQW WKH DPRXQW RXWVWDQGLQJ DQG WKH UDWH DSSOLFDEOH ,QFRPH RQ LQYHVWPHQWV PDGH LQ WKH XQLWV RI PXWXDO IXQGV LV UHFRJQL]HG based on the yield earned and to the extent of its reasonable certainty. &RPPLVVLRQ ,QFRPH Commission income from sourcing of advertisement orders on behalf of other entitiesâ&#x20AC;&#x2122; publications is recognized on printing of the advertisement in those publications.

'LYLGHQG ,QFRPH 'LYLGHQG LQFRPH LV UHFRJQL]HG ZKHQ WKH &RPSDQ\ÂˇV ULJKW WR UHFHLYH WKH GLYLGHQG LV HVWDEOLVKHG by the reporting date.

m. Foreign currency transactions ,QLWLDO 5HFRJQLWLRQ )RUHLJQ FXUUHQF\ WUDQVDFWLRQV DUH UHFRUGHG LQ WKH UHSRUWLQJ FXUUHQF\ E\ DSSO\LQJ WR WKH IRUHLJQ FXUUHQF\ DPRXQW WKH H[FKDQJH UDWH EHWZHHQ WKH UHSRUWLQJ FXUUHQF\ DQG WKH IRUHLJQ FXUUHQF\ prevailing at the date of the transaction.

Conversion )RUHLJQ FXUUHQF\ PRQHWDU\ LWHPV DUH UHSRUWHG XVLQJ WKH H[FKDQJH UDWH SUHYDLOLQJ DW WKH UHSRUWLQJ GDWH 1RQ PRQHWDU\ LWHPV ZKLFK DUH FDUULHG LQ WHUPV RI KLVWRULFDO FRVW GHQRPLQDWHG in a foreign currency, are reported using the exchange rate at the date of the transaction. 1RQ PRQHWDU\ LWHPV ZKLFK DUH FDUULHG DW IDLU YDOXH RU RWKHU VLPLODU YDOXDWLRQ GHQRPLQDWHG LQ D IRUHLJQ FXUUHQF\ DUH UHSRUWHG XVLQJ WKH H[FKDQJH UDWHV WKDW H[LVWHG ZKHQ WKH YDOXHV ZHUH determined. ([FKDQJH 'LIIHUHQFHV ([FKDQJH GLIIHUHQFHV DULVLQJ RQ WKH VHWWOHPHQW RI PRQHWDU\ LWHPV RU RQ UHSRUWLQJ VXFK PRQHWDU\ LWHPV RI &RPSDQ\ DW UDWHV GLIIHUHQW IURP WKRVH DW ZKLFK WKH\ ZHUH LQLWLDOO\ UHFRUGHG GXULQJ WKH \HDU RU UHSRUWHG LQ SUHYLRXV Ă&#x20AC;QDQFLDO VWDWHPHQWV DUH UHFRJQL]HG DV LQFRPH RU DV H[SHQVHV LQ WKH \HDU LQ ZKLFK WKH\ DULVH

)RUZDUG ([FKDQJH &RQWUDFWV QRW LQWHQGHG IRU WUDGLQJ RU VSHFXODWLRQ SXUSRVHV 7KH SUHPLXP RU GLVFRXQW DULVLQJ DW WKH LQFHSWLRQ RI IRUZDUG H[FKDQJH FRQWUDFWV LV DPRUWL]HG DV H[SHQVH RU LQFRPH RYHU WKH OLIH RI WKH FRQWUDFW ([FKDQJH GLIIHUHQFHV RQ VXFK FRQWUDFWV DUH UHFRJQL]HG LQ WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV LQ WKH \HDU LQ ZKLFK WKH H[FKDQJH UDWHV FKDQJH $Q\ SURĂ&#x20AC;W RU ORVV DULVLQJ RQ FDQFHOODWLRQ RU UHQHZDO RI IRUZDUG H[FKDQJH FRQWUDFW LV recognized as income or as expense for the year.

Q 5HWLUHPHQW DQG RWKHU HPSOR\HH EHQHĂ&#x20AC;WV L 5HWLUHPHQW EHQHĂ&#x20AC;WV LQ WKH IRUP RI 3URYLGHQW )XQG DQG 3HQVLRQ 6FKHPHV DUH GHĂ&#x20AC;QHG FRQWULEXWLRQ VFKHPHV DQG WKH FRQWULEXWLRQV DUH FKDUJHG WR WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV IRU WKH \HDU ZKHQ WKH FRQWULEXWLRQV WR WKH UHVSHFWLYH IXQGV DUH GXH 7KHUH DUH QR other obligations other than the contribution payable to the respective funds.

LL *UDWXLW\ LV D GHĂ&#x20AC;QHG EHQHĂ&#x20AC;W SODQ 7KH FRVW RI SURYLGLQJ EHQHĂ&#x20AC;WV XQGHU WKH SODQ LV GHWHUPLQHG RQ WKH EDVLV RI DFWXDULDO YDOXDWLRQ DW HDFK \HDU HQG XVLQJ WKH SURMHFWHG XQLW FUHGLW PHWKRG DQG LV FRQWULEXWHG WR *UDWXLW\ )XQG FUHDWHG E\ WKH &RPSDQ\ $FWXDULDO JDLQV DQG ORVVHV DUH UHFRJQL]HG LQ IXOO LQ WKH SHULRG LQ ZKLFK WKH\ RFFXU LQ WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV LLL $FFXPXODWHG OHDYH ZKLFK LV H[SHFWHG WR EH XWLOL]HG ZLWKLQ WKH QH[W PRQWKV LV WUHDWHG DV VKRUW WHUP HPSOR\HH EHQHĂ&#x20AC;W 7KH &RPSDQ\ PHDVXUHV WKH H[SHFWHG FRVW RI such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

p. Income Taxes 7D[ H[SHQVH FRPSULVHV FXUUHQW DQG GHIHUUHG WD[ &XUUHQW LQFRPH WD[ LV PHDVXUHG DW WKH DPRXQW H[SHFWHG WR EH SDLG WR WKH WD[ DXWKRULWLHV LQ DFFRUGDQFH ZLWK WKH ,QFRPH WD[ $FW HQDFWHG LQ ,QGLD DQG WD[ ODZV SUHYDLOLQJ LQ WKH UHVSHFWLYH WD[ MXULVGLFWLRQV ZKHUH WKH &RPSDQ\ RSHUDWHV 7KH WD[ UDWHV DQG WKH WD[ ODZV XVHG WR FRPSXWH WKH DPRXQW DUH WKRVH WKDW are enacted or substantively enacted at the reporting date. 'HIHUUHG ,QFRPH WD[HV UHĂ HFWV WKH LPSDFW RI WLPLQJ GLIIHUHQFHV EHWZHHQ WD[DEOH LQFRPH DQG accounting income originating during the current year and reversal of timing differences for WKH HDUOLHU \HDUV 'HIHUUHG WD[ LV PHDVXUHG XVLQJ WKH WD[ UDWHV DQG WKH WD[ ODZV HQDFWHG RU substantively enacted at the reporting date. 'HIHUUHG WD[ OLDELOLWLHV DUH UHFRJQL]HG IRU DOO WD[DEOH WLPLQJ GLIIHUHQFHV 'HIHUUHG WD[ assets are recognized for deductible timing differences only to the extent that there is UHDVRQDEOH FHUWDLQW\ WKDW VXIĂ&#x20AC;FLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH DYDLODEOH DJDLQVW ZKLFK VXFK GHIHUUHG WD[ DVVHWV FDQ EH UHDOL]HG ,Q VLWXDWLRQV ZKHUH WKH &RPSDQ\ KDV XQDEVRUEHG GHSUHFLDWLRQ RU FDUU\ IRUZDUG WD[ ORVVHV DOO GHIHUUHG WD[ DVVHWV DUH UHFRJQL]HG RQO\ LI WKHUH LV virtual certainty supported by convincing evidence that they can be realized against future WD[DEOH SURĂ&#x20AC;WV

7KH FDUU\LQJ DPRXQW RI GHIHUUHG WD[ DVVHWV DUH UHYLHZHG DW HDFK EDODQFH VKHHW GDWH 7KH &RPSDQ\ ZULWHV GRZQ WKH FDUU\LQJ DPRXQW RI D GHIHUUHG WD[ DVVHW WR WKH H[WHQW WKDW LW LV QR ORQJHU UHDVRQDEO\ FHUWDLQ RU YLUWXDOO\ FHUWDLQ DV WKH FDVH PD\ EH WKDW VXIĂ&#x20AC;FLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH DYDLODEOH DJDLQVW ZKLFK GHIHUUHG WD[ DVVHW FDQ EH UHDOL]HG $Q\ VXFK ZULWH GRZQ LV UHYHUVHG WR WKH H[WHQW WKDW LW EHFRPHV UHDVRQDEO\ FHUWDLQ RU YLUWXDOO\ FHUWDLQ DV WKH FDVH PD\ EH WKDW VXIĂ&#x20AC;FLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH DYDLODEOH

'HIHUUHG WD[ DVVHWV DQG GHIHUUHG WD[ OLDELOLWLHV DUH RIIVHW LI D OHJDOO\ HQIRUFHDEOH ULJKW H[LVWV WR set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and same taxation authority.

$W HDFK UHSRUWLQJ GDWH WKH &RPSDQ\ UH DVVHVVHV XQUHFRJQL]HG GHIHUUHG WD[ DVVHWV ,W recognizes unrecognized deferred tax assets to the extent that it has become reasonably FHUWDLQ RU YLUWXDOO\ FHUWDLQ DV WKH FDVH PD\ EH WKDW VXIĂ&#x20AC;FLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH DYDLODEOH DJDLQVW ZKLFK VXFK GHIHUUHG WD[ DVVHWV FDQ EH UHDOLVHG

q. Earnings Per Share %DVLF HDUQLQJV SHU 6KDUH DUH FDOFXODWHG E\ GLYLGLQJ WKH QHW SURĂ&#x20AC;W RU ORVV IRU WKH UHSRUWLQJ SHULRG DWWULEXWDEOH WR HTXLW\ VKDUHKROGHUV DIWHU GHGXFWLQJ DWWULEXWDEOH WD[HV E\ WKH ZHLJKWHG DYHUDJH QXPEHU RI HTXLW\ VKDUHV RXWVWDQGLQJ GXULQJ WKH UHSRUWLQJ SHULRG 7KH ZHLJKWHG DYHUDJH QXPEHUV RI HTXLW\ VKDUHV RXWVWDQGLQJ GXULQJ WKH UHSRUWLQJ SHULRG DUH DGMXVWHG IRU events of bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares) that have changed the number of equity shares RXWVWDQGLQJ ZLWKRXW D FRUUHVSRQGLQJ FKDQJH LQ UHVRXUFHV

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Ă HFWV WKH H[WHQW WR ZKLFK WKH YHVWLQJ SHULRG KDV H[SLUHG DQG WKH &RPSDQ\ÂˇV EHVW HVWLPDWH RI WKH QXPEHU RI HTXLW\ LQVWUXPHQWV WKDW ZLOO XOWLPDWHO\ YHVW 7KH H[SHQVH RU FUHGLW UHFRJQL]HG LQ WKH VWDWHPHQW RI SURĂ&#x20AC;W and loss for a period represents the movement in cumulative expense recognized as at the EHJLQQLQJ DQG HQG RI WKDW SHULRG DQG LV UHFRJQL]HG LQ HPSOR\HH EHQHĂ&#x20AC;W VFKHPH &RPSHQVDWLRQ cost is amortized over the vesting period of the option on a straight line basis.

7KH &RPSDQ\ WUHDWV DFFXPXODWHG OHDYH H[SHFWHG WR EH FDUULHG IRUZDUG EH\RQG WZHOYH PRQWKV DV ORQJ WHUP HPSOR\HH EHQHĂ&#x20AC;W IRU PHDVXUHPHQW SXUSRVHV 6XFK ORQJ WHUP compensated absences are provided for based on the actuarial valuation using the SURMHFWHG XQLW FUHGLW PHWKRG DW WKH \HDU HQG $FWXDULDO JDLQV ORVVHV DUH LPPHGLDWHO\ WDNHQ WR WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV DQG DUH QRW GHIHUUHG 7KH &RPSDQ\ SUHVHQWV WKH HQWLUH leave as current liability in the balance sheet, since it does not have as unconditional right to defer its settlement for 12 months after the reporting date.

o. Provisions $ SURYLVLRQ LV UHFRJQL]HG ZKHQ WKH &RPSDQ\ KDV D SUHVHQW REOLJDWLRQ DV D UHVXOW RI SDVW HYHQW DQG LW LV SUREDEOH WKDW DQ RXWĂ RZ RI UHVRXUFHV ZLOO EH UHTXLUHG WR VHWWOH WKH REOLJDWLRQ LQ UHVSHFW RI ZKLFK D UHOLDEOH HVWLPDWH FDQ EH PDGH 3URYLVLRQV DUH QRW GLVFRXQWHG WR WKHLU present value and are determined based on best estimate required to settle the obligation at WKH UHSRUWLQJ GDWH 7KHVH DUH UHYLHZHG DW HDFK UHSRUWLQJ GDWH DQG DUH DGMXVWHG WR UHĂ HFW WKH current best estimates.

Annual Report 2011-12

Hindustan Media Ventures Limited

)RU WKH SXUSRVH RI FDOFXODWLQJ GLOXWHG HDUQLQJV SHU VKDUH WKH QHW SURĂ&#x20AC;W RU ORVV IRU WKH UHSRUWLQJ SHULRG DWWULEXWDEOH WR HTXLW\ VKDUHKROGHUV DQG WKH ZHLJKWHG DYHUDJH QXPEHU RI VKDUHV RXWVWDQGLQJ GXULQJ WKH UHSRUWLQJ SHULRG DUH DGMXVWHG IRU WKH HIIHFWV RI DOO GLOXWLYH SRWHQWLDO equity shares.

s. Cash and Cash equivalents &DVK DQG &DVK HTXLYDOHQWV IRU WKH SXUSRVHV RI FDVK Ă RZ VWDWHPHQW FRPSULVH FDVK LQ KDQG DQG DW EDQN FKHTXHV LQ KDQG DQG VKRUW WHUP LQYHVWPHQWV ZLWK DQ RULJLQDO PDWXULW\ RI WKUHH months or less. t. Expenses incurred on Initial Public Offer (IPO) ([SHQVHV LQFXUUHG LQ ,QLWLDO 3XEOLF 2IIHU DUH DGMXVWHG DJDLQVW WKH VHFXULWLHV SUHPLXP DFFRXQW u. Contingent liabilities $ FRQWLQJHQW OLDELOLW\ LV D SRVVLEOH REOLJDWLRQ WKDW DULVHV IURP SDVW HYHQWV ZKRVH H[LVWHQFH ZLOO EH FRQĂ&#x20AC;UPHG E\ WKH RFFXUUHQFH RU QRQ RFFXUUHQFH RI RQH RU PRUH XQFHUWDLQ IXWXUH HYHQWV beyond the control of the Company or a present obligation that is not recognized because LW LV QRW SUREDEOH WKDW DQ RXWĂ RZ RI UHVRXUFHV ZLOO EH UHTXLUHG WR VHWWOH WKH REOLJDWLRQ $ FRQWLQJHQW OLDELOLW\ DOVR DULVHV LQ H[WUHPHO\ UDUH FDVHV ZKHUH WKHUH LV D OLDELOLW\ WKDW FDQQRW be recognized because it cannot be measured reliably. The Company does not recognize a FRQWLQJHQW OLDELOLW\ EXW GLVFORVHV LWV H[LVWHQFH LQ WKH Ă&#x20AC;QDQFLDO VWDWHPHQWV v. Measurement of EBITDA $V SHUPLWWHG E\ WKH *XLGDQFH 1RWH RQ WKH 5HYLVHG 6FKHGXOH 9, WR WKH &RPSDQLHV $FW WKH Company has elected to present earnings before interest, tax, depreciation and amortization (%,7'$ DV D VHSDUDWH OLQH LWHP RQ WKH IDFH RI WKH VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV 7KH &RPSDQ\ PHDVXUHV (%,7'$ RQ WKH EDVLV RI SURĂ&#x20AC;W ORVV IURP FRQWLQXLQJ RSHUDWLRQV ,Q LWV PHDVXUHPHQW WKH &RPSDQ\ GRHV QRW LQFOXGH GHSUHFLDWLRQ DQG DPRUWL]DWLRQ H[SHQVH Ă&#x20AC;QDQFH FRVWV DQG tax expense.

SHARE CAPITAL (` in lacs) $V DW $V DW 31 March 2012 31 March 2011

Particulars Authorized Shares HTXLW\ VKDUHV RI ` HDFK 3UHYLRXV <HDU HTXLW\ VKDUHV RI ` HDFK Issued, Subscribed and fully paid-up shares HTXLW\ VKDUHV RI ` HDFK 3UHYLRXV <HDU HTXLW\ VKDUHV RI ` HDFK IXOO\ SDLG

a) Reconciliation of the equity shares outstanding at the beginning and at the end of the year (TXLW\ 6KDUHV

Shares outstanding at the beginning of the year 6KDUHV ,VVXHG GXULQJ WKH \HDU 6KDUHV ERXJKW EDFN GXULQJ the year Shares outstanding at the end of the year

$V DW 0DUFK $V DW 0DUFK 1R RI VKDUHV $PRXQW 1R RI VKDUHV $PRXQW (` in lacs) (` in lacs)

16,265,060

1,626.51

Annual Report 2011-12

Hindustan Media Ventures Limited

b) Terms/rights attached to equity shares The Company has only one class of equity shares having par value of `10 per share. (DFK KROGHU RI HTXLW\ VKDUHV LV HQWLWOHG WR RQH YRWH SHU VKDUH 7KH &RPSDQ\ GHFODUHV DQG SD\V GLYLGHQGV LQ ,QGLDQ UXSHHV 7KH GLYLGHQG SURSRVHG E\ WKH %RDUG RI 'LUHFWRUV LV VXEMHFW WR WKH DSSURYDO RI WKH VKDUHKROGHUV LQ WKH HQVXLQJ $QQXDO *HQHUDO 0HHWLQJ

Deferred tax liabilities 'LIIHUHQFHV LQ GHSUHFLDWLRQ LQ EORFN RI Ã&#x20AC;[HG DVVHWV DV SHU WD[ ERRNV DQG Ã&#x20AC;QDQFLDO ERRNV (IIHFW RI ,QFRPH DFFUXHG RQ LQYHVWPHQW Gross deferred tax liabilities Deferred tax assets 6KDUH LVVXH H[SHQVHV DOORZHG IRU WD[ SXUSRVHV LQ IXWXUH \HDUV X V ' RI ,QFRPH 7D[ $FW (IIHFW RI H[SHQGLWXUH GHELWHG WR SURÃ&#x20AC;W DQG ORVV DFFRXQW LQ WKH FXUUHQW \HDU HDUOLHU \HDUV EXW DOORZHG IRU WD[ SXUSRVHV LQ IROORZLQJ \HDUV Provision for doubtful debts and advances Gross deferred tax assets Deferred tax liabilities (net)

,Q WKH HYHQW RI OLTXLGDWLRQ RI WKH &RPSDQ\ WKH KROGHUV RI HTXLW\ VKDUHV ZLOO EH HQWLWOHG WR receive remaining assets of the Company, after distribution of all preferential amounts. The GLVWULEXWLRQ ZLOO EH LQ SURSRUWLRQ WR WKH QXPEHU RI HTXLW\ VKDUHV KHOG E\ WKH VKDUHKROGHUV

c) Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates Out of the equity shares issued by the Company, shares held by its holding company and VXEVLGLDU\ RI KROGLQJ FRPSDQ\ DUH DV EHORZ (` in lacs) $V DW $V DW 31 March 2012 31 March 2011

Particulars HT Media Limited, the holding company SUHYLRXV \HDU HTXLW\ VKDUHV of `10 each fully paid

(TXLW\ VKDUHV DOORWHG DV IXOO\ SDLG XS ERQXV E\ FDSLWDOL]DWLRQ IURP VHFXULW\ SUHPLXP DFFRXQW ,Q )< IXOO\ SDLG ERQXV VKDUHV LQ WKH UDWLR RI E\ FDSLWDOL]LQJ sum of ` /DFV IURP VHFXULW\ SUHPLXP DFFRXQW

31 March 2012 31 March 2011 1R RI VKDUHV 1R RI VKDUHV

3URYLVLRQ IRU HPSOR\HH EHQHÃ&#x20AC;WV 3URYLVLRQ IRU JUDWXLW\ 5HIHU 1RWH

727$/ 7.

Particulars (TXLW\ VKDUHV RI `10 each fully paid up HT Media Limited, the hold ing company

Secured %X\HU V &UHGLW IURP +')& %DQN 727$/

31 March 2012 31 March 2011 1R RI VKDUHV KROGLQJ 1R RI VKDUHV KROGLQJ

RESERVES & SURPLUS

)RU GHWDLOV RI VKDUH UHVHUYHG IRU LVVXH XQGHU (PSOR\HHV 6WRFN 2SWLRQ 3ODQ (623 RI WKH &RPSDQ\ UHIHU 1RWH

Particulars Capital Reserve Capital Redemption Reserve Securities Premium Account %DODQFH DV SHU ODVW Ã&#x20AC;QDQFLDO VWDWHPHQWV $GG 5HFHLYHG GXULQJ WKH \HDU RQ DFFRXQW RI IUHVK LVVXH RI equity shares /HVV 6KDUH LVVXH H[SHQVHV ZULWWHQ RII 5HIHU 1RWH F

Closing Balance General Reserve %DODQFH DV SHU ODVW Ã&#x20AC;QDQFLDO VWDWHPHQWV $GG DPRXQW WUDQVIHUUHG IURP VXUSOXV EDODQFH LQ WKH VWDWH PHQW RI SURÃ&#x20AC;W DQG ORVV Closing Balance 6XUSOXV LQ WKH VWDWHPHQW RI SURÃ&#x20AC;W DQG ORVV %DODQFH DV SHU ODVW Ã&#x20AC;QDQFLDO VWDWHPHQWV 3URÃ&#x20AC;W IRU WKH \HDU /HVV $SSURSULDWLRQV Proposed equity dividend (amount per share `1.20 (PY `1) Tax on proposed equity dividend Transfer to general reserve 1HW VXUSOXV LQ WKH VWDWHPHQW RI SURÃ&#x20AC;W ORVV Total Reserves and Surplus 1HW RI 7D[ LPSDFW RI 1LO 3UHYLRXV <HDU ` ODFV

$V DW 31 March 2012 0.50

(` in lacs) $V DW 31 March 2011 0.50

165.00

7UDGH SD\DEOH 5HIHU 1RWH IRU GHWDLOV RI GXHV WR PLFUR and small enterprises)# Other liabilities ,QWHUHVW DFFUXHG EXW QRW GXH RQ ERUURZLQJV DQG RWKHUV 3D\DEOH WR KROGLQJ FRPSDQ\ FRPSDQLHV XQGHU WKH VDPH management# Customers and agents balances $GYDQFH IURP FXVWRPHUV Outstanding dues of other creditors 8QFODLPHG GLYLGHQG Sundry deposits Statutory dues 727$/ ,QFOXGHG LQ 7UDGH SD\DEOHV 2WKHU OLDELOLWLHV 'XH WR Holding company $PRXQW SD\DEOH WR ,QYHVWRU (GXFDWLRQ DQG 3URWHFWLRQ )XQG 9.

5,359.35

165.00

119.06

62.22

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

2,052.22 2,052.22

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

12.99

230.22 10,193.50

1,222.19

1LO

SHORT TERM PROVISIONS (` in lacs) Particulars

OTHER CURRENT LIABILITIES Particulars

f) Shares reserved for issue under options

%X\HUÂ·V FUHGLW IURP +')& LV VHFXUHG E\ ZD\ RI Ã&#x20AC;UVW FKDUJH WR WKH EDQN RQ DOO WKH VWRFN LQ WUDGH ERWK SUHVHQW DQG IXWXUH FRQVLVWLQJ RI UDZ PDWHULDOV Ã&#x20AC;QLVKHG JRRGV JRRGV LQ SURFHVV RI PDQXIDFWXULQJ DQG RWKHU PHUFKDQGLVH DQG DOO ERRN GHEWV RXWVWDQGLQJ PRQLHV UHFHLYDEOH FODLPV DQG ELOOV ERWK SUHVHQW DQG IXWXUH ZKLFK DUH QRZ GXH DQG RZLQJ RU ZKLFK PD\ DW DQ\ WLPH KHUHDIWHU GXULQJ WKH FRQWLQXDQFH RI WKLV VHFXULW\ EHFRPHV GXH DQG RZLQJ WR WKH ERUURZHU

$V SHU WKH UHFRUGV RI WKH &RPSDQ\ LQFOXGLQJ LWV UHJLVWHU RI VKDUHKROGHUV PHPEHUV DQG RWKHU GHFODUDWLRQ UHFHLYHG IURP WKH VKDUHKROGHUV UHJDUGLQJ EHQHÃ&#x20AC;FLDO LQWHUHVW WKH DERYH VKDUHKROGLQJ UHSUHVHQWV ERWK OHJDO DQG EHQHÃ&#x20AC;FLDO RZQHUVKLSV RI VKDUHV

SHORT-TERM BORROWINGS Particulars

e) Details of shareholders holding more than 5% shares in the Company

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

LONG TERM PROVISIONS Particulars

(d) Aggregate number of bonus shares issued, shares issued for consideration other WKDQ FDVK DQG VKDUHV ERXJKW EDFN GXULQJ WKH SHULRG RI Ã&#x20AC;YH \HDUV LPPHGLDWHO\ preceding the reporting date Particulars

DEFERRED TAX LIABILITIES (NET) Particulars

'XULQJ WKH \HDU HQGHG 0DUFK WKH DPRXQW RI SHU VKDUH GLYLGHQG SURSRVHG DV GLVWULEXWLRQV WR HTXLW\ VKDUHKROGHUV ZDV `1.20 (previous year `1).

$V DW $V DW 31 March 2012 31 March 2011

3URYLVLRQ IRU HPSOR\HH EHQHÃ&#x20AC;WV Provision for Leave encashment

121.31

3URYLVLRQ IRU JUDWXLW\ UHIHU 1RWH

Proposed dividend on equity shares

Tax on proposed dividend

119.06

Others

727$/

Annual Report 2011-12

Hindustan Media Ventures Limited

10. TANGIBLE ASSETS AND INTANGIBLE ASSETS $OO DPRXQWV LQ /DFV

Particulars

7DQJLEOH $VVHWV Land Land Buildings ,PSURYHPHQW Plant and 2IÃ&#x20AC;FH )UHHKROG Leasehold to Leasehold Machinery equipments Premises

Cost or valuation $V DW $SULO $GGLWLRQV 'LVSRVDOV $V DW 0DUFK 'HSUHFLDWLRQ $V DW $SULO Charge for the year 'LVSRVDOV $V DW 0DUFK 1HW %ORFN $V DW 0DUFK

161.31

)XUQLWXUH and )L[WXUHV

Vehicles

Total $V DW March 2012 (Tangible $VVHWV

Previous Website Year 'HYHORSPHQW

,QWDQJLEOH $VVHWV 6RIWZDUH Total Licenses $V DW March 2012 ,QWDQJLEOH $VVHWV

Previous Year

291.29 2,630.95 101.21

0.09 333.01

213.56

0.12

219.21

323.16

33.06

55.10 90.20

103.56

3.69 0.96 33.13 26.00

1.12

50.63

10.92

162.59

Note: 9HKLFOH KDYLQJ D : ' 9 RI `0. ODFV 3UHYLRXV <HDU ` /DFV LV SHQGLQJ IRU UHJLVWUDWLRQ LQ WKH QDPH RI &RPSDQ\ 11. NON CURRENT INVESTMENTS Particulars A. Trade (Unquoted) B. Non-trade investments (valued at cost unless stated otherwise) (Quoted ) 1DWLRQDO +LJKZD\ $XWKRULW\ RI ,QGLD /LPLWHG SUHYLRXV \HDU 1LO XQLWV RI `1,000 each fully paid up 3)& 7D[ )UHH %RQGV SUHYLRXV \HDU 1LO XQLWV RI `1,000 each fully paid up 727$/ 1) 0DUNHW YDOXH RI TXRWHG LQYHVWPHQWV 2) $JJUHJDWH DPRXQW RI 8QTXRWHG LQYHVWPHQWV

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

532.02 532.02

12. LONG TERM LOANS AND ADVANCES Particulars (Unsecured, considered good) &DSLWDO $GYDQFHV 6HFXULW\ 'HSRVLWV

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

322.50

13. OTHER NON CURRENT ASSETS Particulars %DODQFH ZLWK %DQNV 0DUJLQ PRQH\ ,QFRPH DFFUXHG RQ ,QYHVWPHQWV DQG GHSRVLWV 727$/

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011 31.66 3.03

0.32

,QFOXGHV Ã&#x20AC;[HG GHSRVLWV UHFHLSWV SOHGJHG ZLWK EDQNV DQG KHOG DV PDUJLQ PRQH\ RI `31.66 lacs (Previous year ` ODFV

14. CURRENT INVESTMENTS Particulars A. At Cost Current Portion of Long Term Investments ,QYHVWPHQW LQ (TXLW\ ,QVWUXPHQWV 4XRWHG GTL Ltd 3UHYLRXV <HDU VKDUHV RI `10 each fully paid up *7/ ,QIUDVWUXFWXUH /WG 3UHYLRXV <HDU VKDUHV RI `10 each fully paid up Provision for diminution in the value of investments 727$/ $

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

Particulars B. At Cost or fair value, whichever is less : Units in Mutual funds Quoted 5HOLDQFH 5HJXODU 6DYLQJV )XQG 'HEW 3ODQ ,QVWLWX WLRQDO *URZWK 3ODQ 1LO 3UHYLRXV \HDU 8QLWV RI `10 each +')& +LJK LQWHUHVW IXQG VKRUW WHUP SODQ *URZWK 1LO 3UHYLRXV \HDU 8QLWV RI `10 each 7HPSOHWRQ ,QGLD 6KRUW 7HUP ,QFRPH ,QVWLWXWLRQDO 3ODQ *URZWK 3UHYLRXV <HDU 8QLWV 8QLWV RI `10 each .RWDN &UHGLW 2SSRUWXQLWLHV )XQG *URZWK 1LO 3UHYLRXV <HDU 8QLWV RI `10 each 7HPSOHWRQ ,QGLD ,QFRPH 2SSRUWXQLWLHV )XQG *URZWK 1LO 3UHYLRXV <HDU 8QLWV RI `10 each %LUOD 6XQ /LIH '\QDPLF %RQG )XQG *URZWK 3UHYLRXV <HDU 8QLWV RI `10 each 7HPSOHWRQ ,QGLD 6KRUW 7HUP ,QFRPH 5HWDLO 3ODQ *URZWK 8QLWV 3UHYLRXV <HDU 1LO 8QLWV RI `10 each ,')& 66,) 6KRUW 7HUP 3ODQ % *URZWK 8QLWV 3UHYLRXV <HDU 1LO 8QLWV RI `10 each ,&,&, 3UXGHQWLDO ,QVWLWXWLRQDO 6KRUW 7HUP 3ODQ &XPXOD tive Option 8QLWV 3UHYLRXV <HDU 1LO 8QLWV RI `10 each +')& 6KRUW 7HUP 3ODQ *URZWK 3UHYLRXV <HDU 1LO 8QLWV RI ` HDFK fully paid ':6 6KRUW 0DWXULW\ )XQG ,QVWLWXWLRQDO *URZWK 3UHYLRXV <HDU 1LO 8QLWV RI ` HDFK fully paid '63 %ODFN5RFN 6KRUW 7HUP )XQG *URZWK 3UHYLRXV <HDU 1LO 8QLWV RI ` HDFK fully paid Units in Fixed Maturity Plans '63 %ODFN5RFN )03 6HULHV 0 3UHYLRXV \HDU 1LO 8QLWV RI `10 each 5HOLDQFH )L[HG +RUL]RQ )XQG ;9 6HULHV *URZWK 3ODQ )03

1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK 5HOLDQFH )L[HG +RUL]RQ )XQG ;9 6HULHV *URZWK 3ODQ )03

1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK +')& )03 ' $XJXVW *URZWK 6HULHV ;9 )03

1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

1,000.00

2,000.00

500.00

1,000.00

500.00

2,000.00

2,660.55

500.00

1,500.00

1,600.00

1,000.00

500.00

1,600.00

500.00

1,000.00

1,500.00

Annual Report 2011-12

+')& )03 ' 6HSWHPEHU *URZWK 6HULHV ;9 )03

1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK ,')& )L[HG 0DWXULW\ <HDUO\ 6HULHV *URZWK 1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK .RWDN )03 'D\V 6HULHV *URZWK 1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK ,&,&, 3UXGHQWLDO )OH[LEOH ,QFRPH 3ODQ 3UHPLXP *URZWK 1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK '63 %ODFN5RFN 6KRUW 7HUP )XQG *URZWK 1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK '63 %ODFN5RFN 0RQH\ )03 0 6HULHV *URZWK 1LO 3UHYLRXV \HDU 8QLWV RI ` HDFK 5HOLDQFH )L[HG +RUL]RQ IXQG ;,; 6HULHV *URZWK 3ODQ 6,000,000 (Previous year 6,000,000) Units of ` each, fully paid 5HOLJDUH )03 6HULHV ,; 3ODQ % *URZWK 3UHYLRXV <HDU 1LO 8QLWV RI `10 each $[LV )03 6HULHV *URZWK 3UHYLRXV <HDU 1LO 8QLWV RI `10 each +')& )03 0 6HSWHPEHU 3UHYLRXV <HDU 1LO 8QLWV RI `10 each 7DWD )L[HG 0DWXULW\ 3ODQ 6HULHV & 3UHYLRXV <HDU 1LO 8QLWV RI `10 each 5HOLJDUH )L[HG 0DWXULW\ 3ODQ 6(5,(6 ,; 3ODQ ' 3UHYLRXV <HDU 1LO 8QLWV RI `10 each %LUOD 6XQ /LIH )L[HG 7HUP 3ODQ 6HULHV '/ 3UHYLRXV <HDU 1LO 8QLWV RI `10 each 5HOLDQFH )03 ;; 6HULHV *URZWK 3UHYLRXV <HDU 1LO 8QLWV RI `10 each 7DWD )L[HG 0DWXULW\ 3ODQ 6HULHV $ 3UHYLRXV <HDU 1LO 8QLWV RI `10 each ':6 )L[HG 7HUP )XQG 6HULHV 3UHYLRXV <HDU 1LO 8QLWV RI `10 each 727$/ %

7RWDO $ %

Disclosure with respect to B above 1) $JJUHJDWH DPRXQW RI TXRWHG LQYHVWPHQWV 2) 0DUNHW YDOXH RI TXRWHG LQYHVWPHQWV 3) $JJUHJDWH DPRXQW RI 3URYLVLRQ IRU GLPLQXWLRQ LQ the value of long term investments 7KHVH ,QYHVWPHQWV DUH SOHGJHG LQ IDYRXU RI 'HXWVFKH %DQN IRU 2YHUGUDIW )DFLOLW\

Hindustan Media Ventures Limited

1,000.00

1,500.00

500.00

1,000.00

600.00

17. CASH AND BANK BALANCES Particulars Cash and cash equivalents Cash on hand Cheques in hand %DODQFHV ZLWK VFKHGXOHG EDQNV RQ &XUUHQW DFFRXQWV 2WKHU EDQN EDODQFHV %DODQFHV ZLWK VFKHGXOHG EDQNV RQ XQSDLG DQG XQFODLPHG GLYLGHQG DFFRXQW 727$/

1,000.00

Particulars

1,000.00

6HFXULW\ 'HSRVLWV $GYDQFHV UHFRYHUDEOH LQ FDVK RU NLQG RU IRU YDOXH WR EH received# FRQVLGHUHG JRRG FRQVLGHUHG GRXEWIXO

1,000.00

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011 1,960.66 561.61

5.09

16. TRADE RECEIVABLES Particulars Outstanding for a period exceeding six months from the date they are due for payment Secured, considered good Unsecured, considered good Unsecured, considered doubtful Provision for doubtful receivables Other receivables Secured, considered good Unsecured, considered good Unsecured, considered doubtful Provision for doubtful receivables 727$/

3,250.92

102.31

7KH &RPSDQ\ FDQ XWLOL]H WKHVH EDODQFHV RQO\ WRZDUGV VHWWOHPHQW RI WKH UHVSHFWLYH XQFODLPHG dividend.

18. SHORT TERM LOANS AND ADVANCES

Provision for doubtful advances Other loans and advances $GYDQFH LQFRPH WD[ QHW RI SURYLVLRQ IRU WD[ ` (previous year ` /DFV

Material on loan 6HUYLFH 7D[ &UHGLW 5HFHLYDEOH 727$/ ,QFOXGH DPRXQW GXH IURP +7 0HGLD /LPLWHG WRZDUGV WKH debtors collected on behalf of Hindustan Media Ventures Limited.)

(valued at lower of cost and net realisable value)

5DZ PDWHULDOV LQFOXGHV VWRFN LQ WUDQVLW RI ` ODFV (previous year ` ODFV

Stores and spares :RUN LQ SURJUHVV 6FUDS DQG ZDVWH SDSHUV 727$/

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

1,206.31

953.29 953.29 953.29

0.25

0.25 52.01 2,925.93

555.19

19. OTHER CURRENT ASSETS

15. INVENTORIES

Particulars

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

1,290.05

692.11 6,512.90

Particulars Unamortised premium in foreign exchange derivative contracts ,QFRPH DFFUXHG RQ ,QYHVWPHQWV DQG GHSRVLWV Others 727$/

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011 509.90 612.00

20. REVENUE FROM OPERATIONS Particulars Revenue from Operations Sale of services $GYHUWLVHPHQW UHYHQXH -RE ZRUN UHYHQXH DQG FRPPLVVLRQ LQFRPH Sale of products 6DOH RI QHZV DQG SXEOLFDWLRQV Other operating revenues 6DOH RI VFUDS ZDVWH SDSHUV DQG ROG SXEOLFDWLRQ 2WKHUV Revenue from Operations (Net)

(` in lacs) 31 March 2012 31 March 2011

305.91 59,818.03

132.56 51,617.80

Annual Report 2011-12

Hindustan Media Ventures Limited

21. OTHER INCOME

25. OTHER EXPENSES

(` in lacs) Particulars 31 March 2012 31 March 2011 ,QWHUHVW ,QFRPH RQ %DQN GHSRVLWV 7D[ GHGXFWHG DW VRXUFH `0.06 lacs , previ ous year ` ODFV

Others (Tax deducted at source ` ODFV SUHYLRXV \HDU 1LO

'LYLGHQG LQFRPH IURP FXUUHQW LQYHVWPHQW

,QFRPH IURP LQYHVWPHQWV IURP FXUUHQW LQYHVWPHQW

)RUHLJQ H[FKDQJH GLIIHUHQFH QHW

8QFODLPHG EDODQFHV XQVSHQW OLDELOLWLHV ZULWWHQ EDFN QHW

10.59 21.05 1HW JDLQ RQ VDOH RI DVVHW 5HQWDO LQFRPH 123.33 Miscellaneous income 25.39 727$/ 1,912.51 22. COST OF MATERIALS CONSUMED Particulars Consumption of raw material ,QYHQWRU\ DW WKH EHJLQQLQJ RI WKH \HDU $GG 3XUFKDVHV GXULQJ WKH \HDU /HVV 6DOH RI GDPDJHG QHZVSULQW /HVV ,QYHQWRU\ DW WKH HQG RI WKH \HDU Cost of raw material consumed

(` in lacs) 31 March 2012 31 March 2011 1,960.66 202.51

1,255.93 1,960.66

Details of inventory Particulars 5DZ PDWHULDOV 1HZVSULQW ,QN

(` in lacs) $V DW $V DW 31 March 2012 31 March 2011

1,960.66

Particulars Consumption of stores and spares Printing and service charges 1HZV VHUYLFHV DQG GHVSDWFKHV 3RZHU DQG IXHO $GYHUWLVLQJ DQG VDOHV SURPRWLRQ )UHLJKW DQG IRUZDUGLQJ FKDUJHV QHW

5HQW 5DWHV DQG WD[HV ,QVXUDQFH 5HSDLUV DQG PDLQWHQDQFH 3ODQW DQG PDFKLQHU\ %XLOGLQJ 2WKHUV Travelling and conveyance Communication costs Legal and professional fees 3D\PHQW WR DXGLWRU UHIHU GHWDLOV EHORZ

'LUHFWRUVÂˇ VLWWLQJ IHHV )RUHLJQ H[FKDQJH GLIIHUHQFH QHW

Provision for doubtful debts & advances /RVV RQ GLVSRVDO RI Ă&#x20AC;[HG DVVHWV QHW

Provision for diminution in long term investments 'RQDWLRQV Miscellaneous expenses 727$/ As Auditor: $XGLW IHH /LPLWHG 5HYLHZ 7D[ DXGLW IHH 2XW RI SRFNHW H[SHQVHV 6HUYLFH WD[ In Other Capacity: 2WKHU VHUYLFHV

(` in lacs) 31 March 2012 31 March 2011 695.99 11.31 50.55 3.20 199.25

336.53 3.60 102.99 12.10

16.00

16.00 12.00

31 March 2012

(` in lacs) 31 March 2011

26. DEPRECIATION & AMORTISATION

23. (INCREASE) / DECREASE IN INVENTORIES Particulars ,QYHQWRU\ DW WKH EHJLQQLQJ RI WKH \HDU :RUN LQ SURJUHVV 6FUDS DQG ZDVWH SDSHUV ,QYHQWRU\ DW WKH HQG RI WKH \HDU :RUN LQ SURJUHVV 6FUDS DQG ZDVWH SDSHUV

(` in lacs) 31 March 2012 31 March 2011 5.09 35.39

16.93 5.09

Details of inventory Particulars :RUN LQ SURJUHVV 1HZVSULQW Scrap and waste papers 1HZVSULQW

(` in lacs) 31 March 2012 31 March 2011 5.09

16.93

27. FINANCE COST Particulars ,QWHUHVW RQ WHUP ORDQV RQ EDQNV DQG RWKHUV %DQN FKDUJHV 1HW ORVV RQ IRUHLJQ FXUUHQF\ ERUURZLQJ WR WKH H[WHQW FRQ VLGHUHG DV DQ DGMXVWPHQW WR WKH LQWHUHVW FRVW 727$/

(` in lacs) 31 March 2012 31 March 2011 193.56 51.96

330.01

28. EARNINGS PER SHARE 7KH IROORZLQJ UHĂ HFWV WKH SURĂ&#x20AC;W DQG VKDUH GDWD XVHG LQ WKH EDVLF DQG GLOXWHG (36 FRPSXWDWLRQV

24. EMPLOYEE BENEFIT EXPENSES Particulars 6DODULHV ZDJHV DQG ERQXV Contribution to provident and other funds *UDWXLW\ H[SHQVH 5HIHU 1RWH

:RUNPHQ DQG VWDII ZHOIDUH H[SHQVHV (PSOR\HH VWRFN RSWLRQ VFKHPH 727$/

Particulars 'HSUHFLDWLRQ RQ WDQJLEOH DVVHWV $PRUWL]DWLRQ RI ,QWDQJLEOH DVVHWV 727$/

31 March 2012 335.23 110.31 32.03

(` in lacs) 31 March 2011

Particulars Computation of basic earnings per share 3URĂ&#x20AC;W DIWHU WD[ Weighted average number of equity shares in calculating EDVLF (36 LQ ODFV

%DVLF HDUQLQJV SHU VKDUH LQ 5XSHHV RI IDFH YDOXH RI `10 Computation of diluted earning per share 3URĂ&#x20AC;W DIWHU WD[ Weighted average number of equity shares in calculating GLOXWHG (36 LQ ODFV

'LOXWHG HDUQLQJV SHU VKDUH LQ 5XSHHV RI IDFH YDOXH RI `10

(` in lacs) 31 March 2012 31 March 2011

5,359.35

Annual Report 2011-12

Hindustan Media Ventures Limited

Amount recognized in Balance Sheet

29. a) 7KH &RPSDQ\ KDG Ă&#x20AC;OHG D 3URVSHFWXV ZLWK 5HJLVWUDU RI &RPSDQLHV %LKDU DQG -KDUNKDQG RQ -XO\ IRU DQ ,QLWLDO 3XEOLF 2IIHULQJ ,32 RI VKDUHV DJJUHJDWLQJ to `26,999.99 lacs. The issue opened for subscription on July 5, 2010 and closed on -XO\ 3XUVXDQW WR WKLV ,32 HTXLW\ VKDUHV RI ` HDFK ZHUH DOORWWHG IRU cash at a premium of ` SHU VKDUH :LWK HIIHFW IURP -XO\ WKH VKDUHV ZHUH OLVWHG RQ 1DWLRQDO 6WRFN ([FKDQJH DQG %RPED\ 6WRFN ([FKDQJH

(` in lacs) Particulars 3UHVHQW YDOXH RI GHĂ&#x20AC;QHG EHQHĂ&#x20AC;W REOLJDWLRQV )DLU YDOXH RI SODQ DVVHWV 7RWDO 6XUSOXV 'HĂ&#x20AC;FLW

1HW OLDELOLW\ $VVHW UHFRJQL]HG LQ %DODQFH 6KHHW

b) Utilization of IPO funds: (` in lacs) $PRXQW 26,999.99

Proceeds *URVV 3URFHHGV RI WKH ,VVXH /HVV ,VVXH H[SHQVHV 1HW SURFHHGV RI WKH LVVXH

(` in lacs) 2EMHFWLYHV

6HWWLQJ XS QHZ publishing units Upgrading existing plant and machinery Prepayment of loans Total

$PRXQW Balance $PRXQW WR unutilized be utilized utilized till as on as per prospectus 6,600.00

$PRXQW utilized till

Balance unutilized as on

5,500.00

13,500.00

25,600.00

5HFRJQL]HG XQGHU Long Term Provisions Short Term Provisions

F $V RQ 0DUFK H[SHQVHV DJJUHJDWLQJ WR ` ODFV LQFXUUHG E\ WKH &RPSDQ\ LQ UHODWLRQ WR VDLG ,32 DFWLYLW\ 6KDUH LVVXH H[SHQVHV ZHUH DFFRXQWHG IRU DV Â´0LVFHOODQHRXV ([SHQGLWXUH WR WKH H[WHQW QRW ZULWWHQ RII RU DGMXVWHG Âľ 7KHVH H[SHQVHV QHW RI GHIHUUHG WD[HV of ` ODFV KDYH EHHQ ZULWWHQ RII DJDLQVW WKH VHFXULWLHV SUHPLXP UHFHLYHG IURP WKH ,QLWLDO Public Offer of the equity shares of the Company.

Present value of obligation as at the beginning of the year Current Service cost ,QWHUHVW FRVW $FWXDULDO ORVV JDLQV RQ REOLJDWLRQ %HQHĂ&#x20AC;WV SDLG Present value of obligation as at the end of the year

)DLU YDOXH RI SODQ DVVHWV DV DW EHJLQQLQJ ([SHFWHG UHWXUQ SODQ DVVHWV Contributions by employer %HQHĂ&#x20AC;WV SDLG $FWXDULDO JDLQ ORVVHV RQ SODQ DVVHWV )DLU YDOXH RI SODQ DVVHWV DV DW WKH HQG RI WKH \HDU

Particulars )XQG PDQDJHG E\ LQVXUHU

Current service cost ,QWHUHVW FRVW RQ EHQHĂ&#x20AC;W REOLJDWLRQ ([SHFWHG UHWXUQ RQ SODQ DVVHWV Past Service Cost 1HW DFWXDULDO JDLQ ORVV UHFRJQL]HG LQ WKH \HDU 1HW %HQHĂ&#x20AC;W ([SHQVH $FWXDO UHWXUQ RQ SODQQHG DVVHWV

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011 23.06

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011

7KH RYHUDOO H[SHFWHG UDWH RI UHWXUQ RQ DVVHWV LV GHWHUPLQHG EDVHG RQ WKH PDUNHW SULFHV SUHYDLOLQJ RQ WKDW GDWH DSSOLFDEOH WR WKH SHULRG RYHU ZKLFK WKH REOLJDWLRQ LV WR EH VHWWOHG 7KHUH KDV EHHQ VLJQLĂ&#x20AC;FDQW FKDQJH LQ H[SHFWHG UDWH RI UHWXUQ RQ DVVHWV GXH WR WKH LPSURYHG VWRFN PDUNHW VFHQDULR

Particulars 'LVFRXQW UDWH ([SHFWHG UDWH RI UHWXUQ RQ SODQ DVVHWV )XWXUH 6DODU\ ,QFUHDVH (PSOR\HH WXUQRYHU Upto 30 years )URP WR \HDUV $ERYH \HDUV

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011

7KH HVWLPDWHV RI IXWXUH VDODU\ LQFUHDVHV FRQVLGHUHG LQ DFWXDULDO YDOXDWLRQ WDNH DFFRXQW RI LQĂ DWLRQ VHQLRULW\ SURPRWLRQ DQG RWKHU UHOHYDQW IDFWRUV RQ ORQJ WHUP EDVLV

7KH GLVFORVXUH RI WKH DPRXQW UHTXLUHG E\ SDUDJUDSK Q RI $6 IRU Ă&#x20AC;QDQFLDO \HDU LV QRW JLYHQ DV WKH &RPSDQ\ KDV DGRSWHG WKH VWDQGDUG ZLWK HIIHFW IURP Ă&#x20AC;QDQFLDO \HDU

1HW HPSOR\HH EHQHĂ&#x20AC;W H[SHQVH UHFRJQLVHG LQ (PSOR\HH &RVW

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011 (23.06)

110.31 21.93 22.29

The principal assumptions used in determining gratuity obligations for the Companyâ&#x20AC;&#x2122;s plans are shown below:

7KH IROORZLQJ WDEOH VXPPDUL]HV WKH FRPSRQHQWV RI QHW EHQHĂ&#x20AC;W H[SHQVHV UHFRJQL]HG LQ WKH 6WDWHPHQW RI 3URĂ&#x20AC;W DQG /RVV DQG WKH )XQGHG VWDWXV DQG DPRXQW UHFRJQL]HG LQ WKH %DODQFH 6KHHW IRU UHVSHFWLYH SODQV

Particulars

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

7KH &RPSDQ\ KDV D GHĂ&#x20AC;QHG EHQHĂ&#x20AC;W JUDWXLW\ SODQ (YHU\ HPSOR\HH ZKR KDV FRPSOHWHG Ă&#x20AC;YH \HDUV RU PRUH RI VHUYLFHV JHWV D JUDWXLW\ RQ GHSDUWXUH DW GD\V VDODU\ ODVW GUDZQ VDODU\ IRU HDFK FRPSOHWHG \HDU RI VHUYLFH )RU HPSOR\HHV RWKHU WKDQ WKRVH WUDQVIHUUHG WR WKH &RPSDQ\ RQ DFFRXQW RI WKH EXVLQHVV SXUFKDVH WKH VFKHPH LV IXQGHG ZLWK /,& LQ WKH IRUP RI D *URXS *UDWXLW\ SROLF\ WR ZKLFK FRQWULEXWLRQV LV PDGH EDVHG RQ DFWXDULDO YDOXDWLRQ GRQH E\ LQGHSHQGHQW YDOXHU )RU WKH employees transferred to the Company on account of business purchase, the parent company has IRUPHG D JUDWXLW\ WUXVW WR ZKLFK WKH FRQWULEXWLRQV DUH PDGH

(` in lacs)

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011

,QFOXGHV ` /DFV SD\PHQW PDGH IURP RZQ VRXUFHV DQG QRW IURP SODQQHG DVVHWV

Particulars

7KH &RPSDQ\ VHOOV LWV SURGXFWV PRVWO\ ZLWKLQ ,QGLD ZLWK LQVLJQLĂ&#x20AC;FDQW H[SRUW LQFRPH DQG GRHV QRW KDYH DQ\ RSHUDWLRQV LQ HFRQRPLF HQYLURQPHQWV ZLWK GLIIHUHQW ULVNV DQG UHWXUQV DQG KHQFH LW KDV been considered as to be operating in a single geographical segment.

$PRXQW UHFRJQL]HG LQ 6WDWHPHQW RI 3URĂ&#x20AC;W DQG /RVV

(` in lacs)

*UDWXLW\ 3RVW (PSOR\PHQW %HQHĂ&#x20AC;W SODQ

Changes in the fair value of plan assets are as follows:

8QXWLOL]HG ,32 IXQGV RI ` ODFV DV RQ 0DUFK ZHUH WHPSRUDULO\ LQYHVWHG LQ GHEW EDVHG PXWXDO IXQGV SHQGLQJ WKHLU XVH IRU WKH REMHFWV RI WKH LVVXH

7KH &RPSDQ\ LV HQJDJHG LQ WKH EXVLQHVV RI 3ULQWLQJ DQG 3XEOLFDWLRQ RI 1HZVSDSHUV DQG 3HULRGLFDOV 7KH HQWLUH RSHUDWLRQV DUH JRYHUQHG E\ WKH VDPH VHW RI ULVN DQG UHWXUQV KHQFH WKH same has been considered as representing a single business segment. The said treatment is in DFFRUGDQFH ZLWK WKH JXLGLQJ SULQFLSOHV HQXQFLDWHG LQ $FFRXQWLQJ 6WDQGDUG Â˛ RQ Âś6HJPHQW 5HSRUWLQJÂˇ

$V DW 0DUFK 31, 2011

&KDQJHV LQ WKH SUHVHQW YDOXH RI WKH GHĂ&#x20AC;QHG EHQHĂ&#x20AC;W REOLJDWLRQ DUH DV IROORZV Particulars

30. Segment Information

$V DW 0DUFK 31, 2012

(` in lacs)

$V RQ 0DUFK DJDLQVW WKH EDODQFH RI ,32 IXQGV RI ` ODFV WR EH XWLOL]HG DV SHU 3URVSHFWXV WKH DFWXDO DPRXQW RI XQXWLOL]HG ,32 IXQGV ZHUH ` ODFV 3UHYLRXV \HDU ` ODFV 7KH GLIIHUHQFH EHLQJ D VKRUWIDOO RI ` ODFV EHWZHHQ SURFHHGV RI WKH LVVXH DQG UHTXLUHPHQW RI IXQGV WR EH XWLOL]HG IRU WKH REMHFWV RI WKH ,32 ,VVXH ZLOO EH PHW WKURXJK internal accruals.

Annual Report 2011-12

Hindustan Media Ventures Limited

Amounts for current and previous year are as follows:

1DPHV RI RWKHU UHODWHG SDUWLHV ZKHWKHU WUDQVDFWLRQV ZLWK WKHP have occurred or not)

(` in lacs) )RU WKH \HDU )RU WKH \HDU )RU WKH \HDU )RU WKH \HDU ended March ended March ended March ended March 31, 2012 31, 2011 31, 2010 31, 2009

Particulars

'HĂ&#x20AC;QHG %HQHĂ&#x20AC;W 2EOLJDWLRQ

3ODQ $VVHWV

(99.19)

([SHULHQFH $GMXVWPHQW RQ 3ODQ /LDELOLWLHV *DLQ /RVV

(9.69)

3.15

([SHULHQFH $GMXVWPHQW RQ 3ODQ $VVHWV

6.31

0.33

6XUSOXV 'HĂ&#x20AC;FLW

)HOORZ 6XEVLGLDULHV ZKHWKHU WUDQVDFWLRQV ZLWK WKHP KDYH occurred or not)

+7 0XVLF DQG (QWHUWDLQPHQW &RPSDQ\ /LPLWHG )LUHĂ \ H 9HQWXUHV /LPLWHG +7 'LJLWDO 0HGLD +ROGLQJV /LPLWHG HT Burda Media Limited HT Mobile Solutions Limited 6KUDGKDQMDOL ,QYHVWPHQW 7UDGLQJ &R /LPLWHG +7/ ,QYHVWPHQW DQG 7UDGLQJ &RPSDQ\ /LPLWHG +7 ,QWHUDFWLYH 0HGLD 3URSHUWLHV /LPLWHG *R L FRP 0DXULWLXV /LPLWHG *R L FRP ,QGLD 3ULYDWH /LPLWHG +7 )LOPV /LPLWHG :KLWH 7LGH $PXVHPHQW /LPLWHG +7 (GXFDWLRQ /LPLWHG HT Learning Centers Limited HT Overseas Pte. Limited +7 *OREDO (GXFDWLRQ Z H I

,QGLD (GXFDWLRQ 6HUYLFHV 3ULYDWH /WG IURP to 21.12.2011) (G :RUOG 3ULYDWH /LPLWHG IRUPHUO\ 3HDFRFN (GXFDWLRQ 6HUYLFHV 3ULYDWH /WG Z H I

&RPSDQLHV ZKHUH FRPPRQ FRQWURO Paxton Trexim Private Limited exists by ultimate parent company Metropolitan Media Company Private Limited (upto DQG WKH KROGLQJ FRPSDQ\ ZKHWKHU

WUDQVDFWLRQV ZLWK WKHP KDYH ,QGLD (GXFDWLRQ 6HUYLFH 3ULYDWH /LPLWHG Z H I

occurred or not) .H\ 0DQDJHPHQW 3HUVRQQHO 6KUL %HQR\ 5R\FKRZGKXU\ :KROH WLPH 'LUHFWRU

The Company expects to contribute ` ODFV WR JUDWXLW\ IXQG LQ WKH \HDU 3UHYLRXV Year ` ODFV (` in lacs) 'HĂ&#x20AC;QHG &RQWULEXWLRQ 3ODQ

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011

Contribution to Provident and other fund &KDUJHG WR VWDWHPHQW RI SURĂ&#x20AC;W DQG ORVV

335.23

32. Names of Related Parties 1DPH RI UHODWHG SDUWLHV ZKHUH FRQWURO H[LVWV ZKHWKHU WUDQVDFWLRQV have occurred or not

HT Media Limited (Parent Company) The Hindustan Times Limited (Ultimate Parent Company)

'HWDLOV RI WUDQVDFWLRQV HQWHUHG ZLWK UHODWHG SDUWLHV GXULQJ WKH \HDU Particulars

(` in lacs) )HOORZ 6XEVLGLDU\

Holding Company HT Media Ltd.

)LUHĂ \ H 9HQWXUHV /WG

HT Music and (QWHUWDLQPHQW Company Ltd

.H\ 0DQDJHULDO Personnel

HT Burda Media Ltd

HT Mobile Solutions Ltd

HT Learning Centers Limited

727$/

Benoy 5R\FKRZGKXU\

Revenue Transactions Sale of goods 6WRUHV 0DWHULDO

0.11

:DVWH 3DSHUV

3.25

Purchase of goods

6WRUHV 0DWHULDO

6KDUH RI $GYHUWLVHPHQW revenue paid

0.22

6KDUH RI $GYHUWLVHPHQW revenue received

1.03

9.30

10.33

1,622.69

:DVWH 3DSHUV -RE 5HYHQXH

Printing & Service Charges paid 5R\DOW\ 3DLG

1.15

66.93

319.69

2.16

Collection on behalf of the Company by parties

Collection on behalf of the parties by Company

$GYHUWLVHPHQW 5HYHQXH

5HPXQHUDWLRQ SDLG WR .H\ Managerial Personnel

$GYHUWLVLQJ DQG 6DOHV 3URPRWLRQ ([SHQVHV SDLG

5.52

5HLPEXUVHPHQW RI H[SHQVHV incurred on behalf of the Company by parties

23.29

5HLPEXUVHPHQW RI H[SHQVHV incurred on behalf of the parties by Company

6HDW 6KDULQJ ([SHQVHV 3DLG

6HDW 6KDULQJ LQFRPH 5HFHLYHG

136.03

Annual Report 2011-12

Particulars

Hindustan Media Ventures Limited

)HOORZ 6XEVLGLDU\

Holding Company

.H\ 0DQDJHULDO Personnel Benoy 5R\FKRZGKXU\

HT Music and )LUHĂ \ HT Burda HT Mobile HT Learning 727$/ (QWHUWDLQPHQW H 9HQWXUHV /WG Media Ltd Solutions Ltd Centers Limited Company Ltd HT Media Ltd.

Purchase of publication for Circulation 6DOH RI RZQ SXEOLFDWLRQ WR parties for Circulation Commission Paid for sourcing RI $GYHUWLVHPHQW &RPPLVVLRQ 5HFHLYHG IRU 21.59 21.51 6RXUFLQJ RI $GYHUWLVHPHQW 'LYLGHQG 3DLG CAPITAL TRANSACTIONS 0DWHULDO 5HFHLYHG RQ /RDQ 0DWHULDO 5HFHLYHG RQ /RDQ returned 3XUFKDVH 6DOH RI )L[HG $VVHWV E\ &RPSDQ\ 1HW

6HFXULW\ 'HSRVLWV JLYHQ E\ WKH Company 5HIXQG RI 6HFXULW\ 'HSRVLWV 650 given by the Company Balance Outstanding at period ended on 31-03-12 5HFHLYDEOH DV $GYDQFHV 7UDGH 5HFHLYDEOHV Payable as Creditors & other Liabilities Material received on loan 6HFXULW\ 'HSRVLWV JLYHQ E\ WKH Company

21.59

21.51

650

1.19

922.39

0.91

33. Leases 5HQWDO H[SHQVHV LQ UHVSHFW RI RSHUDWLQJ OHDVHV DUH UHFRJQL]HG DV DQ H[SHQVH LQ WKH 3URĂ&#x20AC;W DQG /RVV $FFRXQW RQ D VWUDLJKW OLQH EDVLV RYHU WKH OHDVH WHUP

E %DQN JXDUDQWHHV LVVXHG E\ &RPSDQ\ÂˇV EDQNHUV RQ EHKDOI RI D IHOORZ VXEVLGLDU\ 1LO 3UHYLRXV year ` ODFV

c) Capital Commitment

2SHUDWLQJ /HDVH IRU DVVHWV WDNHQ RQ /HDVH

(` in lacs) $V DW 0DUFK $V DW 0DUFK 31, 2012 31, 2011 (VWLPDWHG DPRXQW RI FRQWUDFWV UHPDLQLQJ WR EH H[HFXWHG RQ 1,156.63 capital account and not provided for (net of capital advances) Particulars

D 7KH &RPSDQ\ KDV WDNHQ YDULRXV UHVLGHQWLDO RIĂ&#x20AC;FH DQG JRGRZQ SUHPLVHV XQGHU RSHUDWLQJ OHDVH DJUHHPHQWV 7KHVH DUH JHQHUDOO\ FDQFHOODEOH OHDVHV DQG DUH UHQHZDEOH E\ PXWXDO FRQ VHQW RQ PXWXDOO\ DJUHHG WHUPV ZLWK RU ZLWKRXW UHQWDO HVFDODWLRQV b) Lease payments recognized for the year are ` ODFV 3UHYLRXV \HDU `695.99 lacs) and are GLVFORVHG DV 5HQW XQGHU 1RWH

35. Based on the information available with the Company, following are the disclosures required under The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006)

F 7KH IXWXUH PLQLPXP OHDVH SD\PHQWV XQGHU QRQ FDQFHOODEOH RSHUDWLQJ OHDVHV

Â&#x2021; 1RW ODWHU WKDQ RQH \HDU LV ` 3UHYLRXV \HDU ` ODF

Â&#x2021; /DWHU WKDQ RQH \HDU EXW QRW ODWHU WKDQ Ă&#x20AC;YH \HDUV LV ` ODFV 3UHYLRXV \HDU ` ODFV

Â&#x2021; /DWHU WKDQ Ă&#x20AC;YH \HDUV LV ` ODFV 3UHYLRXV \HDU `90.50 lacs).

(` in lacs) S. 1R ,

34. Contingent Liability and other Commitment

D &ODLPV DJDLQVW &RPSDQ\ QRW DFNQRZOHGJHG DV GHEWV $V DW 0DUFK $V DW 0DUFK 31, 2012 31, 2010 D 7KH &RPSDQ\ KDV Ă&#x20AC;OHG D SHWLWLRQ EHIRUH WKH +RQÂˇEOH 3DWQD High Court against an initial claim for additional contribu tion of ` ODFV PDGH E\ (PSOR\HHV 6WDWH ,QVXUDQFH &RU SRUDWLRQ (6,& UHODWLQJ WR WKH \HDUV WR 7KH &RPSDQ\ KDV IXUQLVKHG D EDQN JXDUDQWHH DPRXQWLQJ WR ` ODFV WR (6,& DQG WKH +RQÂˇEOH +LJK &RXUW KDV VWD\HG the matter. There is no further progress in the matter during last one year. E 7KH &RPSDQ\ KDV Ă&#x20AC;OHG D SHWLWLRQ EHIRUH WKH +RQÂˇEOH 3DWQD High Court against the demand of ` ODFV LQFOXGLQJ LQWHUHVW IRU VKRUW SD\PHQW RI (6, GXHV SHUWDLQLQJ WR WKH years from 2001 to 2005. The Honâ&#x20AC;&#x2122;ble Patna High Court has stayed the matter. There is no further progress in the matter during last one year. Particulars

TherH DUH IHZ OHJDO FDVHV LQ UHODWLRQ WR ODERU UHODWLRQV IRU ZKLFK DPRXQW LV QRW DVFHUWDLQDEOH at this point of time.

%DVHG RQ PDQDJHPHQW DVVHVVPHQW DQG FXUUHQW VWDWXV RI WKH FDVH WKH PDQDJHPHQW LV FRQĂ&#x20AC;GHQW that provisioQ LV QRW UHTXLUHG WR EH SURYLGHG IRU LQ WKH Ă&#x20AC;QDQFLDO VWDWHPHQW DV RQ 0DUFK

'HWDLOV RI GXHV WR 0LFUR DQG 6PDOO (QWHUSULVHV DV SHU 060(' $FW The principal amount and the interest due thereon remain ing unpaid to any supplier as at the end of year 3ULQFLSDO $PRXQW 8QSDLG

(` in lacs)

,,,

,9 V

,QWHUHVW 'XH The amount of interest paid by the buyer in terms of section RI WKH 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVH 'HYHORSPHQW $FW DORQJ ZLWK WKH DPRXQWV RI WKH SD\PHQW PDGH WR the supplier beyond the appointed day during the year 3D\PHQW PDGH EH\RQG WKH $SSRLQWHG 'DWH ,QWHUHVW 3DLG EH\RQG WKH $SSRLQWHG 'DWH

1LO

1LO 1LO

The amount of interest due and payable for the period of GHOD\ LQ PDNLQJ SD\PHQW ZKLFK KDYH EHHQ SDLG EXW EH\RQG WKH DSSRLQWHG GD\ GXULQJ WKH SHULRG EXW ZLWKRXW DGGLQJ WKH LQWHUHVW VSHFLĂ&#x20AC;HG XQGHU 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVH 'HYHORSPHQW $FW The amount of interest accrued and remaining unpaid at the HQG RI WKH SHULRG DQG

1LO

The amount of further interest remaining due and payable HYHQ LQ WKH VXFFHHGLQJ \HDUV XQWLO VXFK GDWH ZKHQ WKH LQWHU est dues as above are actually paid to the small enterprise IRU WKH SXUSRVH RI GLVDOORZDQFH DV D GHGXFWLEOH H[SHQGLWXUH XQGHU VHFWLRQ RI WKH 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVH 'HYHORSPHQW $FW

Annual Report 2011-12

Hindustan Media Ventures Limited

36. Hedged and Unhedged Foreign Currency Exposure

D 3DUWLFXODUV RI KHGJHG FUHGLW ERUURZLQJ LPSRUW YHQGRUV DW DSSOLFDEOH H[FKDQJH UDWHV LQ UHVSHFW RI IRUZDUG FRQWUDFWV RXWVWDQGLQJ DV DW %DODQFH 6KHHW GDWH Currency ([FKDQJH $PRXQW $PRXQW ([FKDQJH $PRXQW $PRXQW Purpose rates LQ )RUHLJQ LQ ,QGLDQ rates LQ )RUHLJQ LQ ,QGLDQ (`) Currency ` Currency ` (in Lacs) (in Lacs) (in Lacs) (in Lacs) $V DW 0DUFK $V DW 0DUFK 86' 59.39 To hedge 55.31 buyers FUHGLW Trade creditors

, 7KH +LQGXVWDQ 7LPHV /LPLWHG WKH XOWLPDWH 3DUHQW &RPSDQ\ DQG +7 0HGLD /LPLWHG WKH 3DUHQW &RPSDQ\ KDV JLYHQ ORDQ WR Â´+7 *URXS &RPSDQLHV Â² (PSOR\HH 6WRFN 2SWLRQ 7UXVWÂµ ZKLFK LQ WXUQ KDV SXUFKDVHG (TXLW\ 6KDUHV RI ` HDFK RI WKH &RPSDQ\ IRU WKH SXUSRVH RI JUDQWLQJ 2SWLRQV XQGHU WKH Â¶+7 *URXS &RPSDQLHV Â²(PSOR\HH 6WRFN 2SWLRQ 5XOHVÂ· Â´+7 (623Âµ WR eligible employees of the group. A. Details of Options granted as on 31 March, 2012 are given below: Type of 'DWH RI arrangement grant

E 3DUWLFXODUV RI 8Q KHGJHG )RUHLJQ &XUUHQF\ H[SRVXUH DV DW UHSRUWLQJ GDWH Particulars

Trade Creditors $FFHSWDQFHV

Currency

86'

$V DW 0DUFK $PRXQW LQ ([FKDQJH $PRXQW respective 5DWH LQ (`in currency `) Lacs) (in Lacs)

86'

$V DW 0DUFK $PRXQW LQ ([FKDQJH $PRXQW respective 5DWH LQ (in ` currency `) Lacs) (`in Lacs) 5.69 253.66

Options )DLU Vesting conditions granted value (nos.) on the grant date

(PSOR\HH 6WRFN Options

15th Â¼ of the shares vest each September year over a period of four years starting from one year after the date of grant

(PSOR\HH 6WRFN Options

20th May 2009

11,936 Â¼ of the shares vest each year over a period of four years starting from one year after the date of grant

11.15

(PSOR\HH 6WRFN Options

WK )HEUXDU\ 2010

RQ WKH GDWH RI JUDQW DQG YHVW HDFK \HDU RYHU a period of 2 years starting from the date of grant

(PSOR\HH 6WRFN Options

WK 0DUFK 2010

Â¼ of the shares vest each year over a period of four years starting from one year after the date of grant

11.95

(PSOR\HH 6WRFN Options

VW $SULO 2010

Â¼ of the shares vest each year over a period of four years starting from one year after the date of grant

12.00

37.1 Expenditure in foreign currency (on accrual basis) (` in lacs) )RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011 20.61

Particulars Travelling 3URIHVVLRQDO )HHV Others Total 37.2 Earning in foreign currency (on accrual basis)

Weighted average fair value of the options outstanding is ` SHU RSWLRQ

(` in lacs) Particulars 6DOH RI QHZVSDSHUV DQG SHULRGLFDOV DW )2% 9DOXH $GYHUWLVHPHQW 5HYHQXH Total

)RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011 0.20 0.20 0.26 0.20

B. Summary of activity under the plans is given below.

(PSOR\HH 6WRFN 2SWLRQV Particulars

37.3 Value of Imports on CIF basis (` in lacs) )RU WKH \HDU HQGHG )RU WKH \HDU HQGHG March 31, 2012 March 31, 2011 5,229.29 16.96 5,236.56

Particulars 5DZ 0DWHULDOV Components and spare parts &DSLWDO *RRGV 6HUYLFHV 727$/

Outstanding at the beginning of the year

i) 5DZ PDWHULDOV ,PSRUWHG ,QGLJHQRXVO\ REWDLQHG ii) Stores and Spares ,PSRUWHG ,QGLJHQRXVO\ REWDLQHG Total

Percentage of total Value consumption (`,Q ODFV

)RU WKH \HDU )RU WKH \HDU )RU WKH \HDU )RU WKH \HDU ended March ended March ended March ended March 31, 2012 31, 2011 31, 2012 31, 2011 100.00

19.35 100.00

100.00 100.00

0.26 100.00

13.00

)RUIHLWHG Cancelled during the year

([HUFLVHG GXULQJ the year

21.39

19.95

([SLUHG GXULQJ the year

Outstanding at the end of the year

21.91

9.65

10.65

7KH HVWLPDWHG IDLU YDOXH RI HDFK VWRFN RSWLRQ JUDQWHG RQ HDFK GDWH ZDV PDGH XVLQJ WKH %ODFN 6FKROHV RSWLRQ SULFLQJ PRGHO ZLWK WKH IROORZLQJ DVVXPSWLRQV

([SHFWHG 9RODWLOLW\ Life of the options granted (Vesting and ex ercise period) in years $YHUDJH ULVN IUHH LQWHUHVW UDWH

'LVFORVXUHV LQ DFFRUGDQFH ZLWK WKH *XLGDQFH 1RWH RQ $FFRXQWLQJ IRU (PSOR\HH 6KDUH EDVHG Payments 7KH ,QVWLWXWH RI &KDUWHUHG $FFRXQWDQWV RI ,QGLD KDV LVVXHG D *XLGDQFH 1RWH RQ $FFRXQWLQJ IRU Â¶(PSOR\HHV 6KDUH EDVHG 3D\PHQWVÂ· ZKLFK LV DSSOLFDEOH WR HPSOR\HH VKDUH EDVHG SD\PHQW SODQV 7KH VFKHPH GHWDLOHG EHORZ LV PDQDJHG DQG DGPLQLVWHUHG FRPSHQVDWLRQ EHQHÃ&#x20AC;WV LQ UHVSHFW RI the scheme is assessed and accounted by the Ultimate Parent Company, Parent Company and the *URXS &RPSDQ\ 7R KDYH DQ XQGHUVWDQGLQJ RI WKH VFKHPH UHOHYDQW GLVFORVXUHV DUH JLYHQ EHORZ

Particulars *UDQW 'DWH

38. Share-based Compensation

1XPEHU :HLJKWHG :HLJKWHG 1XPEHU :HLJKWHG :HLJKWHG of average average of average average options exercise remaining options exercise remaining price contractual price contractual life life 10.65 21.56 11.62

Granted during the year

37.4 Imported and indigenous raw materials, stores and spares consumed (excluding consumption included in expenditure during construction period) Unit

Weighted average remaining contractual life in years

([SHFWHG GLYLGHQG \LHOG

& (PSOR\HH 6WRFN 2SWLRQV

VW $SULO

1 $

6 to 9 years WR

$ VWRFN RSWLRQ JLYHV DQ HPSOR\HH WKH ULJKW WR SXUFKDVH HTXLW\ VKDUHV RI WKH &RPSDQ\ DW D Ã&#x20AC;[HG SULFH ZLWKLQ D VSHFLÃ&#x20AC;F SHULRG RI WLPH 7KH GHWDLOV RI H[HUFLVH SULFH IRU VWRFN RSWLRQV RXWVWDQGLQJ DW WKH HQG RI WKH \HDU DUH DV XQGHU

Annual Report 2011-12

Year

5DQJH RI H[HUFLVH prices

1XPEHU of options outstanding

`1.35 to `60 `1.35 to `60

Weighted average remaining contractual life of options (in years) 9.65 10.65

Weighted average exercise price (`)

,,, 3XUVXDQW WR SXUFKDVH RI +LQGL %XVLQHVV FHUWDLQ HPSOR\HHV RI +7 0HGLD /LPLWHG WKH SDUHQW &RPSDQ\ KDYH EHFRPH HPSOR\HHV RI WKH &RPSDQ\ RQ FRQWLQXHG VHUYLFH EDVLV XQGHU +7 (626 Â˛3ODQ $ 3ODQ $ +7 (626 Â˛ 3ODQ % 3ODQ % DQG +7 (626 Â˛ 3ODQ & 3ODQ & 7KHVH HPSOR\HHV FRQWLQXH WR KROG WKH (PSOR\HH 6WRFN 2SWLRQV (623V RI SDUHQW &RPSDQ\ ZKLFK ZHUH JUDQWHG WR WKHP GXULQJ WKHLU HPSOR\PHQW ZLWK WKH SDUHQW &RPSDQ\

21.91

2SWLRQV JUDQWHG DUH H[HUFLVDEOH IRU D PD[LPXP SHULRG RI \HDUV DIWHU WKH VFKHGXOHG vesting date as per the Scheme. 7KH &RPSDQ\ KDV DFFRXQWHG IRU WKH FKDUJH XQGHU ,QWULQVLF 9DOXH PHWKRG UHODWDEOH WR RSWLRQV JUDQWHG WR LWÂˇV HPSOR\HHV XQGHU WKLV VFKHPH 6DPH LV LQFOXGHG LQ (PSOR\HH EHQHĂ&#x20AC;W expenses.

,, 7KH *URXS &RPSDQ\ )LUHĂ \ H 9HQWXUHV /LPLWHG KDV JLYHQ (PSOR\HH 6WRFN 2SWLRQV (623V WR employees of Hindustan Media Ventures Limited (HMVL).

'LIIHUHQFH EHWZHHQ HPSOR\HH FRPSHQVDWLRQ FRVW FDOFXODWHG XVLQJ WKH LQWULQVLF YDOXH RI VWRFN RSWLRQV DQG WKH HPSOR\HH FRPSHQVDWLRQ FRVW FDOFXODWHG RQ WKH IDLU YDOXH RI WKH options) is ` ODFV 3UHYLRXV <HDU ` ODFV +RZHYHU WKHVH KDYH QRW EHHQ FKDUJHG EDFN WR WKH &RPSDQ\ E\ WKH *URXS &RPSDQ\ KHQFH QRW DFFRXQWHG IRU E\ WKH &RPSDQ\

A. Details of these plans are given below:

(PSOR\HH 6WRFN 2SWLRQV

$ VWRFN RSWLRQ JLYHV DQ HPSOR\HH WKH ULJKW WR SXUFKDVH HTXLW\ VKDUHV RI +7 0HGLD /LPLWHG DW D Ă&#x20AC;[HG SULFH ZLWKLQ D VSHFLĂ&#x20AC;F SHULRG RI WLPH

7KH GHWDLOV RI H[HUFLVH SULFH IRU VWRFN RSWLRQV RXWVWDQGLQJ DW WKH HQG RI WKH \HDU HQGHG 0DUFK DUH DV EHORZ 5DQJH RI H[HUFLVH prices

1XPEHU RI RSWLRQV outstanding

Weighted average remaining contractual life of options (in years)

Weighted average exercise price (`)

9.53

A. Details of these plans are given below: Plan A

(PSOR\HH 6WRFN 2SWLRQV

$ VWRFN RSWLRQ JLYHV DQ HPSOR\HH WKH ULJKW WR SXUFKDVH HTXLW\ VKDUHV RI )LUHĂ \ H 9HQWXUHV /LPLWHG DW D Ă&#x20AC;[HG SULFH ZLWKLQ D VSHFLĂ&#x20AC;F SHULRG RI WLPH 7KH JUDQW SULFH RU VWULNH SULFH IRU RSWLRQV JUDQWHG GXULQJ WKH Ă&#x20AC;QDQFLDO \HDU VKDOO EH `10 each per option

% 'HWDLOV RI VWRFN RSWLRQV H[LVWLQJ GXULQJ WKH \HDU HQGHG 0DUFK DUH DV JLYHQ below: Type of arrangement

'DWH RI grant

(PSOR\HH 6WRFN 16th Options October 2009

Options )DLU YDOXH granted on the (nos.) grant date (`)

Vesting conditions

Weighted average remaining contractual life in years 10.53

Starts from the date of listing of the )LUHĂ \ H 9HQWXUHV Limited as per the IROORZLQJ YHVWLQJ schedule PRQWKV IURP the date of grant PRQWKV IURP the date of grant PRQWKV IURP the date of grant PRQWKV IURP the date of grant

` WR Plan C `

Options granted are exercisable for a period of 10 years after the scheduled vesting date of the last tranche of the Options as per the Scheme. B. Details of Options existing during the year ended March 31, 2012 are as given below: Type of arrangement

'DWH RI grant

Options )DLU YDOXH granted on the (nos.) grant date (`)

50.05 RI WKH VKDUHV vest each year over a period of four years starting from one year after the date of grant

(PSOR\HH 6WRFN WK 2SWLRQV 3ODQ & October 2009

RQ WKH GDWH RI JUDQW DQG vest each year over a period of 2 years starting from the date of grant

9.53

(PSOR\HH 6WRFN 2SWLRQV

Outstanding at the beginning of the year Granted during the year )RUIHLWHG GXULQJ the year ([HUFLVHG GXULQJ the year ([SLUHG GXULQJ the year Outstanding at the end of the year

Weighted average remaining contractual life in years

C. Summary of activity under the plans is as given below:

(PSOR\HH 6WRFN 2SWLRQV Particulars

Vesting conditions

(PSOR\HH 6WRFN 9th 2SWLRQV 3ODQ $ January 2006

C. Summary of activity under the plan for the year ended 31 March 2011 and 31 March, 2010 are given below.

Hindustan Media Ventures Limited

Plan A Particulars

Outstanding at the beginning of the year

10.53

11.53

Weighted average fair value of the options outstanding is ` SHU RSWLRQ 6LQFH QR RSWLRQV KDYH EHHQ H[HUFLVHG GXULQJ WKH SHULRG WKXV ZHLJKWHG DYHUDJH VKDUH SULFH KDV QRW been disclosed.

0DUFK 0DUFK 1XPEHU :HLJKWHG :HLJKWHG 1XPEHU :HLJKWHG :HLJKWHG of average average of average average options exercise remaining options exercise remaining price contractual price contractual life life

92.30

Granted during the year

)RUIHLWHG &DQFHOOHG during the year

([HUFLVHG GXULQJ WKH year

([SLUHG GXULQJ WKH year

Outstanding at the end of the year

92.30

Annual Report 2011-12

Hindustan Media Ventures Limited

Plan C Particulars

([SHQGLWXUH GXULQJ FRQVWUXFWLRQ SHULRG QHWWHG RII IURP UHVSHFWLYH KHDGV LQ VWDWHPHQW RI SURĂ&#x20AC;W and loss and capitalized in additions 0DUFK 0DUFK 1XPEHU :HLJKWHG :HLJKWHG 1XPEHU :HLJKWHG :HLJKWHG of average average of average average options exercise remaining options exercise remaining price contractual price contractual life life 10.53 11.53

Outstanding at the beginning of the year Granted during the year )RUIHLWHG &DQFHOOHG during the year ([HUFLVHG GXULQJ WKH year ([SLUHG GXULQJ WKH year Outstanding at the end of the year

9.53

10.53

(` in lacs) Particulars %DODQFH EURXJKW IRUZDUG $GG ,QFXUUHG GXULQJ WKH \HDU &RQVXPSWLRQ RI 5DZ 0DWHULDOV 7ULDO 5XQ ([SHQVHV

/HJDO DQG 3URIHVVLRQDO IHHV 5HQW 7UDYHOOLQJ &RQYH\DQFH 0LVFHOODQHRXV H[SHQVHV /HVV $OORFDWHG WR Ă&#x20AC;[HG DVVHWV GXULQJ WKH \HDU %DODQFH &DUULHG )RUZDUG

6.96 31.26

1.99

3UHYLRXV \HDU Ă&#x20AC;JXUHV

7LOO WKH \HDU HQGHG 0DUFK WKH &RPSDQ\ ZDV XVLQJ SUH UHYLVHG 6FKHGXOH 9, WR WKH &RPSDQLHV $FW IRU SUHSDUDWLRQ DQG SUHVHQWDWLRQ RI LWV Ă&#x20AC;QDQFLDO VWDWHPHQWV 'XULQJ WKH \HDU HQGHG 0DUFK WKH UHYLVHG 6FKHGXOH 9, QRWLĂ&#x20AC;HG XQGHU WKH &RPSDQLHV $FW KDV EHFRPH DSSOLFDEOH WR WKH &RPSDQ\ 7KH &RPSDQ\ KDV UHFODVVLĂ&#x20AC;HG SUHYLRXV \HDU Ă&#x20AC;JXUHV WR FRQIRUP WR WKLV \HDUÂˇV FODVVLĂ&#x20AC;FDWLRQ

:HLJKWHG DYHUDJH IDLU YDOXH RI WKH RSWLRQV RXWVWDQGLQJ LV

Â&#x2021; 3ODQ $ Â˛ `50.05

$V SHU RXU UHSRUW RI HYHQ GDWH

Â&#x2021; 3ODQ & Â˛ `

)RU DQG RQ EHKDOI RI WKH %RDUG RI 'LUHFWRUV RI Hindustan Media Ventures Limited

For S. R. Batliboi & Co. )LUP 5HJLVWUDWLRQ 1XPEHU ( &KDUWHUHG $FFRXQWDQWV Per Manoj Gupta 3DUWQHU 0HPEHUVKLS 1R

Shobhana Bhartia &KDLUSHUVRQ

Benoy Roychowdhury :KROH 7LPH 'LUHFWRU

Tridib Kumar Barat &RPSDQ\ 6HFUHWDU\

Sachin Sharma 2IĂ&#x20AC;FLDWLQJ &KLHI )LQDQFLDO 2IĂ&#x20AC;FHU

Had the fair value method been used to account for these costs by the Company for various RSWLRQV JUDQWHG WR LWÂˇV HPSOR\HHV XQGHU DOO WKH DERYH VFKHPHV WKH SURĂ&#x20AC;W ZRXOG KDYH EHHQ ORZHU E\ ` 3UHYLRXV <HDU ` ODFV DQG DGMXVWHG DQG GLOXWHG (36 ZRXOG KDYH been ` ODFV 3UHYLRXV <HDU ` ODFV

CĂ&#x2DC;FS Â´FiQZVF I F Ă&#x20AC;FÂśFĂ&#x20AC;Fm Â°FZÂŞFe Ă&#x20AC;FZ ÂśFPĂ&#x17E;Â°FF AJÂśFFS

3ODFH 1HZ 'HOKL 'DWH 0D\

Rajiv Verma 'LUHFWRU