Latin Manharlal Chat
BSE Prices delayed by 5 minutes...
     Prices as on Apr 19, 2021     
  ABB India 1393.9 [ 1.91% ]
  ACC 1876.85 [ -0.26% ]
  Axis Bank Ltd. 648 [ -3.19% ]
  Bajaj Auto Ltd. 3518.9 [ -3.21% ]
  Bank of Baroda 63.8 [ -5.20% ]
  Bharti Airtel 526.45 [ -2.61% ]
  Bharat Heavy Ele 44.05 [ -4.55% ]
  Bharat Petroleum 408.45 [ -1.33% ]
  Cipla 946.6 [ 0.84% ]
  Coal India 124.65 [ -2.46% ]
  Colgate Palm. 1535.3 [ -2.18% ]
  Dabur India 568.6 [ -1.10% ]
  DLF Ltd. 236.8 [ -6.22% ]
  GAIL (India) Ltd. 136.5 [ -2.22% ]
  Grasim Inds. 1325.25 [ -2.06% ]
  HCL Technologies 996.85 [ -1.55% ]
  HDFC 2493.75 [ -3.10% ]
  HDFC Bank 1411.9 [ -1.16% ]
  Hero MotoCorp 2786.55 [ -3.70% ]
  Hindalco Indus. 361.45 [ -2.35% ]
  ICICI Bank 559.6 [ -1.24% ]
  IDFC L 44.75 [ -4.69% ]
  Indian Hotels Co 94.7 [ -4.34% ]
  IndusInd Bank 831.7 [ -3.89% ]
  Infosys 1362.6 [ 0.74% ]
  ITC Ltd. 205.6 [ -1.13% ]
  Jindal St & Pwr 414.15 [ -0.01% ]
  L&T 1310.8 [ -3.60% ]
  Lupin Ltd. 1061.45 [ 0.53% ]
  Mahi. & Mahi 794.7 [ -3.33% ]
  MTNL 15.35 [ -6.12% ]
  Nestle India 17090.35 [ -0.86% ]
  NIIT Ltd. 174.3 [ 1.43% ]
  NMDC Ltd. 137.8 [ -3.30% ]
  NTPC 99.1 [ -3.22% ]
  ONGC 103.1 [ -3.91% ]
  Punj. NationlBak 33.15 [ -4.88% ]
  Power Grid Corpo 201.15 [ -4.17% ]
  Reliance Inds. 1902.55 [ -1.63% ]
  SBI 331.25 [ -2.54% ]
  Vedanta 227.85 [ -1.70% ]
  Shipping Corpn. 98.95 [ -4.72% ]
  Sun Pharma. 640.3 [ -0.89% ]
  Tata Chemicals 731.85 [ -2.90% ]
  Tata Motors Ltd. 300.95 [ -2.89% ]
  Tata Steel 886.95 [ -0.30% ]
  Tata Power Co. 93.55 [ -3.71% ]
  Tata Consultancy 3163.1 [ -0.95% ]
  Tech Mahindra 1000.8 [ -0.97% ]
  United Spirits 517.65 [ -0.29% ]
  Wipro Ltd 472.65 [ 0.72% ]

Company Information

Home » Market » Company Information

HT Media Ltd.

Apr 19
20.25 -0.70 ( -3.34 %)
 
VOLUME : 21400
Prev. Close 20.95
Open Price 20.50
TODAY'S LOW / HIGH
20.00
 
 
 
21.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
10.01
 
 
 
30.65
Apr 19
20.15 -0.75 ( -3.59 %)
 
VOLUME : 85986
Prev. Close 20.90
Open Price 20.45
TODAY'S LOW / HIGH
20.10
 
 
 
20.70
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
9.75
 
 
 
30.60
Company Information Menu

Search Company

Market Cap. ( ₹ ) 468.99 Cr. P/BV 0.20 Book Value ( ₹ ) 98.52
52 Week High/Low ( ₹ ) 31/10 FV/ML 2/1 P/E(X) 0.00
Bookclosure 26/09/2019 TTM EPS ( ₹ ) -5.90 Div Yield (%) 0.00
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2018-03 

1. CORPORATE INFORMATION

HT Media Limited (“HTML” or “the Company”) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the National stock exchange (NSE) and Bombay stock exchange (BSE). The Company publishes ‘Hindustan Times’, an English daily, and ‘Mint’, a Business paper daily except on Sunday’ and undertakes commercial printing jobs. The Company is also engaged into the business of providing entertainment, radio broadcast and all other related activities through its Radio Stations operating under brand name ‘Fever 104’, ‘Fever’ and ‘Radio Nasha’. The digital business of the Company comprises of various online platforms such as ‘shine.com’, ‘desimartini.com’ etc. The registered office of the Company is located at 18-20, K.G. Marg, New Delhi-110001.

The Company derives revenue primarily from the sale of the above mentioned publications, advertisements published therein, by undertaking printing jobs and airtime advertisements aired at the aforesaid radio stations. Digital business contributes to the Company’s revenue, by way of display of advertisements on these websites and related services.

Information on related party relationship of the Company is provided in Note No 36.

The financial statements of the Company for the year ended March 31, 2018 are authorised for issue in accordance with a resolution of the Board of Directors on May 2, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY COMPANY

2.1 Basis of preparation

The standalone financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (‘Ind-AS’) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Companies Act 2013 (the “accounting principles generally accepted in India”).

The accounting policies are applied consistently to all the periods presented in the financial statements.

The standalone financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

- Derivative financial instruments.

- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

- Defined benefit plans - plan assets measured at fair value.

The standalone financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts disclosed in the financial statements and notes have been rounded off to the nearest lacs as per the requirement of Schedule III, unless otherwise stated. Rounding of errors has been ignored.

2.2. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The areas involving critical estimates or Judgement are as below: Assessment of lease contracts

Significant judgement is required to apply lease accounting rules under Appendix C to INDAS 17: determining whether an Arrangement contains a Lease. In assessing the applicability to arrangements entered into by the Company, management has exercised judgement to evaluate the right to use the underlying assets, substance of the transaction including legally enforced arrangements and other significant terms and conditions of the arrangement to conclude whether the arrangements meet the criteria under Appendix C to INDAS 17.

Contingent Liability and commitments

The Company is involved in various litigations. The management of the Company has used its judgement while determining the litigations outcome of which are considered probable and in respect of which provision needs to be created.

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax assessments and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the Companies.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the postemployment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

Further details about gratuity obligations are given in Note 33.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 39 for further disclosures.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

Impairment of non- financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent markets transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

Share Based Payment

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 34.

Volume discounts and pricing incentives

The company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the rateable allocation of the discounts/ incentives amount to each of the underlying revenue transaction that results in progress by the customer towards earning the discount/ incentive. Also, when the level of discount varies with increases in levels of revenue transactions, the company recognizes the liability based on its estimate of the customer’s future purchases. If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be estimated reliably, then discount is not recognized until the payment is probable and the amount can be estimated reliably. The company recognizes changes in the estimated amount of obligations for discounts in the period in which the change occurs.

Property, Plant and Equipment

The Company, based on technical assessment management estimate, depreciates certain assets over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management has estimated, supported by technical assessment, the useful lives of certain plant and machinery as 16 to 21 years. These useful lives are higher than those indicated in schedule II. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

iii. Refer Note 14A for charge created on property, plant & equipment as security against borrowings.

iv. Certain assets have been impaired based on difference of fair value less costs of disposal and value in use.

Additional information for which impairment loss has been recognized are as under:

1) Nature of asset :Plant and Machinery

2) Amount of Impairment : Rs.89 Lacs (Previous Year: Rs.379 Lacs)

3) Reason of Impairment : Change in Specification of Newspaper

4) Recoverable Amount : Nominal

As at March 31, 2018 and March 31, 2017, the fair value of the properties are Rs.47,225 lacs and Rs.36,056 lacs respectively. These valuations are based on valuations performed by accredited independent valuers who are specialist in valuing these types of investment properties. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied.

The Company has no restrictions on the realisability of its investment properties except restriction for the Investment properties purchased from Amrapali Ultra Home Constructions Private Limited and Amrapali Silicon City Private Limited which originated during FY 2017-18. The fair values of investment property held by the Company in various projects of Amrapali Ultra Home Constructions Private Limited and Amrapali Silicon City Private Limited have not been considered since National Company Law Tribunal has appointed Insolvency Resolution Professionals for both these companies and the proceedings will be governed according to the Insolvency and Bankruptcy Code of India, 2016. Adjustments, if any, that may be required on completion of insolvency proceedings shall be made at the time of conclusion of such proceedings. The Company does not expect such amount to be material.

There are contractual obligations of Rs.3,796 lacs as on March 31, 2018 (Previous Year: Rs.724 lacs) to purchase investment properties whereas there are no contractual obligations to construct or develop investment properties or for repairs and enhancements.

Estimation of Fair Value

The valuation has been determined basis the market approach by reference to sales in the market of comparable properties. However, where such information is not available, current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences, has been considered to determine the valuation. All resulting fair value estimates for investment properties are included in Level II.

Note I The Board of Directors and Shareholders of Firefly e-Ventues Limited (Firefly), HT Digital Media Holdings Limited (HT Digital) and HT Mobile Solutions Limited (HT Mobile) approved a Composite Scheme of Capital Reduction and Arrangement under Sections 100 to 104 of the Companies Act 1956, along with Section 52 of the Companies Act 2013 and Sections 391-394 of Companies Act, 1956 (the Scheme), among Firefly, HT Digital and HT Mobile (the Companies) and their respective shareholders and creditors, subject to requisite approval(s) and sanction by the Hon’ble National Company Law Tribunal (NCLT). The Scheme, inter-alia, provides for reduction of share capital in Firefly and HT Digital followed by demerger of HT Campus Undertaking (Demerged Undertaking) of Firefly and transfer and vesting thereof into the HT Mobile w.e.f. from June 30, 2016 (the Appointed Date).

During the year ended March 31, 2018, NCLT sanctioned the Scheme vide its order dated October 17, 2017. Consequent upon filing of the order passed by NCLT with the Registrar of Companies, the Scheme became effective from October 27, 2017 (closing hours) (‘Effective Date’).

Accordingly, during the year, the Company has written off the provision of Rs.4,237 Lacs for diminution in value of its investment held in a step down subsidiary Firefly e-Ventures Limited (FEVL). The provision consists of Rs.1,693 lacs in the value of Investments held directly by the Company in FEVL and Rs.2,544 lacs for investment held by the Company in FEVL through its wholly owned subsidiary HT Digital Media Holdings Limited (parent company of FEVL).

Note II The Board, in its meeting held on May 19, 2017, had approved proposal to acquire 49% equity stake in India Education Services Private Limited (IESPL) held by Apollo Global Singapore Holdings Pte. Ltd. (‘Apollo Global’), Joint Venture partner. The said transaction was concluded vide share purchase agreement dated July 18, 2017 at a consideration of USD 6,50,000. Accordingly, IESPL is now a subsidiary of the Company (holding 99% equity share capital of IESPL) and the Joint Venture Agreement has been terminated. It was classified as a joint venture in previous year.

# The name of Birla Sun Life has been changed to Aditya Birla Sun Life

* 61.65 Lac units of Axis Short Term Fund Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17

** 74.57 Lac units of DSP BlackRock Banking and PSU Debt Fund Growth with a face value of ‘10/- unit are pledged in favour of Deutsche

Bank for overdraft facility in FY 17-18

*** 66.64 Lac units of SBI Corporate Bond Fund Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17

**** 62.65 Lac units of TATA Dynamic Bond Fund Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17

**** 59.48 Lac units of TATA Dynamic Bond Fund Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 16-17

***** 93.51 Lac units of Reliance Banking and PSU Debt Fund Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17

****** 79.13 Lac units of UTI Short Term Income Fund IP Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18 & FY 16-17

******* 99.45 Lac units of Kotak Bond Short Term Plan Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18

******** 1.44 Lac units of DSP BlackRock Strategic Bond Fund Institutional Plan Growth with a face value of ‘10/- unit are pledged in favour of Deutsche Bank for overdraft facility in FY 16-17

********* 51.74 Lacs units of Tata Short term Bond Fund Growth with a face value of Rs.10/- per unit are pledged in favour of Deutsche Bank for overdraft facility in FY 17-18

Derivative instruments at fair value through profit and loss reflect the positive change in fair value of those foreign exchange forward contracts and foreign currency options that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected sales and purchases.

Forex derivative contract

While the Company entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of foreign currency bonds, borrowings and payables. These contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

Call Spread Option to buy USD

The Company had entered into call spread option to buy USD to hedge principal repayment of Foreign Currency Non- Repatriable(FCNR) borrowing.

Interest Rate Swap

The Company had entered into interest rate swap to hedge against exposure to variable interest outflow on Foreign Currency Non- Repatriable (FCNR) Borrowing. Swap terms are to pay fixed interest @3.90% p.a. on notional USD amount and receive a variable interest @ one month LIBOR 1.9% on USD notional amount.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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

(i) During the FY 2006-07, an amount of Rs.2,000 lacs have been transferred from Statement of Profit and Loss to Capital Redemption Reserve on account of 2,000,000 1% Non-cumulative Redeemable preference shares of Rs.100/- each, were redeemed on September 16, 2006.

(ii) The Board of Directors at their meeting held on May 14, 2013, approved buy-back of fully paid-up equity shares of the Company having a face value of Rs.2/- , from the existing shareholders/beneficial owners, other than the promoters/persons who are in control of the Company, from the open market through stock exchanges, at a price not exceeding Rs.110/- per equity share payable in cash, for an aggregate amount not exceeding Rs.2,500 Lacs. The Buy back Scheme envisaged the Buy Back of Shares of minimum of 5,68,182 equity shares and a maximum of 22,72,727 equity shares. Pursuant to above, during the year ended March 31, 2014, the Company has bought and extinguished 22,72,727 equity shares of Rs.2/- each.

The shares extinguished have been bought for an aggregate consideration of Rs.1,881 lacs. The excess of aggregate consideration paid for Buy-Back over the face value of shares so bought back and extinguished, amounting to Rs.1,835 lacs, is adjusted against the Share Premium Account. Further an amount of Rs.45 lacs (equivalent to nominal value of shares bought back) has been transferred to Capital Redemption Reserve from General Reserves.

NOTE I- BUYER’S CREDIT FROM BANK OF TOKYO AND MITSUBISHI (UNSECURED)

Outstanding Buyer’s Credit loan from Bank of Tokyo and Mitsubishi (Unsecured) was drawn in various tranches from July 20, 2017 till March 27, 2018 @ average Interest Rate of 2.64% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from April 16, 2018 till December 21, 2018. The loan outstanding in previous year has been repaid during the current year.

NOTE II- BUYER’S CREDIT FROM DBS BANK (UNSECURED) Outstanding Buyer’s Credit loan from DBS Bank (Unsecured) was drawn in various tranches from July 7, 2017 till July 31, 2017 @ average

Interest Rate of 2.33% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from April 3, 2018 till April 25, 2018.

NOTE III- BUYER’S CREDIT FROM YES BANK (UNSECURED) Outstanding Buyer’s Credit loan from Yes Bank (Unsecured) was drawn in various tranches from August 1, 2017 till August 30, 2017 @ average Interest Rate of 2.31% p.a. (Applicable LIBOR Margin from time to time) and are due for repayment respective due dates starting from April 26, 2018 till May 25, 2018.

NOTE IV - FOREIGN CURRENCY NON- REPATRIABLE (FCNR) LOAN FROM CITI BANK (SECURED)

FCNR Loan from Citi Bank carries interest @USD 1 month Libor 1.90% spread p.a. The loan is repayable in 8 semi annual equal instalments of USD 8,75,000 starting from January 31, 2016. The loan is secured by Pari Passu charge on company’s all present & future movable fixed assets (Charge of Rs.42 Crs with MCA as on 31st Mar’18).

NOTE V - EXTERNAL COMMERCIAL BORROWING FROM CITI BANK (SECURED)

External commercial borrowing from Citi Bank carries interest @USD 3 months Libor 1.50% spread p.a. The loan was repayable in semi annual equal installments of USD 15,62,500 starting from December 31, 2013. The loan was secured by Pari Passu charge on company’s present and future movable fixed assets at (A) Noida -B-2, sector 63, District Gautam Budh Nagar, Noida- 201307 (B) plot No.-8, Udyog Vihar, Greater Noida, Uttar Pradesh- 201306 and first and exclusive charge in favour of Citibank N.A. on assets acquired/ to be acquired out of Citibank’s ECB and LC facilities of USD 32.5 Mn, to secure Citibank’s ECB, LC and hedging limits (Charge is released with MCA as repaid during the FY 17-18).

FOREX DERIVATIVE CONTRACT

While the Company entered into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of foreign currency bonds, borrowings and payables. These contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

CALL SPREAD OPTION TO BUY USD

The Company had entered into call spread option to buy USD to hedge principal repayment of External Commercial Borrowing and Foreign Currency Non- Repatriable(FCNR) borrowing.

COUPON ONLY SWAP

The Company had entered into coupon only swap to hedge against exposure to variable interest outflow on External Commercial Borrowing. Swap terms are to pay fixed interest @3.38% p.a. on notional ‘ amount and receive a variable interest @ three months LIBOR 1.5% on USD notional amount.

INTEREST RATE SWAP

The Company had entered into interest rate swap to hedge against exposure to variable interest outflow on Foreign Currency Non-Repatriable (FCNR) Borrowing. Swap terms are to pay fixed interest @3.90% p.a. on notional USD amount and receive a variable interest @ one month LIBOR 1.9% on USD notional amount.

Provision for contingencies

The provision for contingencies represents the best estimate of the management for an obligation on the Company in relation to employee benefits/claims for the past services. Further, the provision for contingency created in prior periods arising out of business purchase agreement dated October 1, 2004 is no more required in view of various court decisions in the current year.

NOTE 3: INCOME TAX

The major components of income tax expense for the year ended March 31, 2018 and March 31, 2017 are :

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. MAT Credit entitlement has been adjusted against the deferred tax liabilities as on the reporting date.

During the year ended March 31, 2018 and March 31, 2017, the Company has paid dividend to its shareholders. This has resulted in payment of Dividend Distribution Tax to the taxation authorities. The company believes that Dividend Distribution Tax represents additional payment to taxation authority on behalf of the shareholders. Hence , Dividend Distribution Tax paid is charged to equity.

The Company has obtained licenses under the Export Promotion Capital Goods(‘EPCG’) Scheme for importing capital goods at a concessional rate of customs duty. Under the terms of the respective scheme, the Company is required to export goods or/and services in respect of these licenses. The management is confident of fulfilling the said commitment within the stipulated time or extended time as allowed.

# During the FY 2015-16, the Company has created provision for impairment for investment held in HTDMH and FEVL amounting to Rs.4,096 lacs. The said provision was debited to Profit and Loss account. The Company, while filing its return of income for FY 2015-16 has suo moto added back the provision for impairment from the Book Profits while computing its tax liability under MAT provisions under Section 115JB of the Act.

During the current year, pursuant to approval of NCLT, the investment held by the Company in FEVL and HTDMH has been actually written off by Rs.4,096 lacs and the Company has recorded realised loss in its books of accounts of FY 2017-18. Accordingly, the loss having been realized in current year, has been reduced from the Book Profit while computing income under MAT provisions under Section 115JB of the Act.

* Exceptional item represents Impairment in value of Investment in Subsidiaries as detailed below:

a) Impairment of Investment in HT Digital Media Holdings Limited amounting to Rs.684 Lacs.

b) Impairment of Investment in HT Mobile Solutions Limited amounting to Rs.123 Lacs.

c) Impairment of Investment in Topmovies Entertainment Limited amounting to Rs.605 Lacs.

d) Reversal of impairment of Investment in Firefly e-Ventures Limited amounting to Rs.7 Lacs

NOTE 4:

a) The Board of Directors of the Company at its meeting held on August 25, 2017, has approved a Scheme of Arrangement u/s 230-232 read with Section 66 of the Companies Act, 2013, between the Company and Digicontent Limited(formerly, HT Digital Ventures Limited), a wholly owned subsidiary company (Resulting Company) and their respective shareholders and creditors (“Scheme”) for demerger of Entertainment & Digital Innovation Business of the Company, and transfer and vesting thereof to and in the Resulting Company, as a ‘going concern’. In consideration of the proposed demerger, the Scheme also provides for issue of fully paid-up equity shares by the Resulting Company, to the shareholders of the Company.

In terms of the order passed by the Hon’ble National Company Law Tribunal (NCLT) meetings of secured creditors, unsecured creditors and shareholders of the Company have been convened for approval of the Scheme. The Scheme is subject to sanction by the NCLT and such other statutory authorities, as may be required. Pending the above approval(s), impact of the Scheme is not considered in these financial statements.

b) A Scheme for capital reduction of India Education Services Private Limited (99% subsidiary of the Company w.e.f. July 18, 2017) was filed with NCLT in October 2017 with September 30, 2017 as the Appointed date. Pending the approval of the Hon’ble National Company Law Tribunal, impact of the Scheme is not considered in these financial statements.

c) During the current year, the Company entered into a business purchase agreement with Topmovies

Entertainment Limited, to acquire its ‘Desimartini’ business on slump sale basis as a going concern along with related assets, liabilities and rights therein, at a lump-sum consideration of Rs.503 Lacs, in cash, determined as per the valuation report obtained from an independent valuer. The said business purchase agreement was executed with effective date December 1, 2017.

NOTE 5 : EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on separation at 15 days salary (last drawn salary) for each completed year of service. The Company has formed a Gratuity Trust to which contribution is made based on actuarial valuation done by independent valuer.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. The Company has purchased insurance policy, which is a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset.

The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the balance sheet :

NOTE 6 : SHARE-BASED PAYMENTS

In accordance with the Securities and Exchange Board of India (Share Based Employee benefits) Regulations, 2014 and Ind-AS 102 Share-based Payment, the scheme detailed below is managed and administered, compensation benefits in respect of the scheme is assessed and accounted by the Company. To have an understanding of the scheme, relevant disclosures are given below.

I. As approved by the shareholders at their Extra-ordinary General Meeting held on October 21, 2005, during an earlier year, the Company has given interest-free loan of J 2,174 lacs to HT Media Employee Welfare Trust which in turn purchased 468,044 Equity Shares of J 10/- each of HT Media Limited (as on date equivalent to 2,340,220 Equity Shares of J 2/- each) from the open market [average cost per share - J 92.91 based on Equity Share of J 2/- each], for the purpose of granting Options under the ‘HTML Employee Stock Option Scheme’ (the Scheme), to eligible employees.

During the financial year 2007-08, the Scheme was modified to the effect - (a) Options granted w.e.f. September 15, 2007 shall vest as per previous revised schedule of vesting period; and (b) to extend the coverage of the Scheme to the eligible full-time employees of the subsidiary companies.

The Options granted under the Scheme shall vest as per the Schedules of vesting period which are hereinafter referred to as ‘Plan A, ‘Plan B’ (applicable to Options granted w.e.f. September 15, 2007) and Plan C (applicable to Options granted w.e.f. October 8, 2009). Options granted under both the plans are exercisable for a period of 10 years after the scheduled vesting date of the last

The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is Rs. NIL (March 31, 2017: Rs. NIL)

II. The subsidiary company, Firefly e-Ventures Private Limited has given Employee Stock Options (ESOPs) to employees of HT Media Limited (HTML).

A. Details of these plans are given below:

Employee Stock Options

A stock option gives an employee, the right to purchase equity shares of Firefly e-Ventures Limited at a fixed price within a specific period of time.

Weighted average fair value of the options outstanding of Plan B in previous year was Rs.4.82 per option.

The Company has availed exemption under Ind-AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options have been measured at intrinsic value.

The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is Rs. NIL (Previous Year: Rs. NIL)

III. HT Media Limited has given loan of Rs.243 lacs to “HT Group Companies - Employee Stock Option Trust” which in turn has purchased 37,338 Equity Shares of Rs.10/- each of Hindustan Media Venture Limited (HMVL) - Subsidiary Company of HT media Limited, for the purpose of granting Options under the ‘HT Group Companies -Employee Stock Option Scheme’ (the Scheme), to eligible employees of the group. On these purchased shares, the trust has also received 238,964 shares out of the bonus shares issued by HMVL on February 21, 2010.

Details of these plans are given below:

Employee Stock Options

A stock option gives an employee, the right to purchase equity shares of HMVL at a fixed price within a specific period of time.

Options granted are exercisable for a period of 10 years after the scheduled vesting date of last tranche as per the Scheme. Weighted average fair value of the options outstanding is Rs.56.38 (Previous year Rs.48.44) per option.

The Company has availed exemption under Ind-AS 101 in respect of Share-based payments that had been vested before the transition date. The Company has elected to avail this exemption and accordingly, vested options have been measured at intrinsic value .

The employee compensation cost (accounting charge for the year) calculated using the intrinsic value of stock options is Rs. NIL (Previous Year: Rs. NIL)

IV. The subsidiary company, HT Mobile Solution Limited has given Employee Stock Options (ESOPs) to employees of HT Media Limited (HTML).

Details of these plans are given below:

Employee Stock Options

A. Stock option gives an employee, the right to purchase equity shares of HT Mobile Solution Limited at a fixed price within a specific period of time.

B. Details of stock options granted during the current year and earlier year are as given below:

NOTE 7: COMMITMENTS AND CONTINGENCIES

(a) Leases

Operating lease commitments - Company as lessee

The Company has taken various residential, office and godown premises under operating lease agreements. These are generally cancellable leases and are renewable by mutual consent on mutually agreed terms with or without rental escalations.

The Company has paid Rs.5,352 lacs (Previous Year: Rs.5,120 lacs) during the year towards minimum lease payment and the same is disclosed as Rent under Note 27

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

Operating lease commitments - Company as lessor

The Company has entered into operating leases on its investment property. These are generally cancellable leases and are renewable by mutual consent on mutually agreed terms with or without rental escalations.

Finance Lease- Company as lessor

The Company has entered into a finance lease arrangement with its Holding Company. Future minimum lease receivables under finance lease together with the present value of the minimum lease receivables are as follows:

B. Other Commitments Commitment under EPCG Scheme

The Company has obtained licenses under the Export Promotion Capital Goods(‘EPCG’) Scheme for importing capital goods at a concessional rate of customs duty against submission of bonds in September, 2008.

Under the terms of the respective scheme, the Company is required to export goods or/and services of FOB value equivalent to eight times the duty saved in respect of licenses within eight years from the date of issuance of license.

Accordingly, the Company is required to export goods and services of FOB value of Rs.20,017 lacs by September 18, 2018 (after extended time). The balance export obligation left as on March 31, 2018 is Rs.1,535 lacs (Previous Year: Rs.2,171 lacs). The management is confident of fulfilling the said commitment within the stipulated time or extended time as allowed.

Letter of Support

The Company has given letters of support to its subsidiaries, Firefly e-Ventures Limited, HT Mobile Solutions Limited and HT Music and Entertainment Company Limited to enable the said companies to continue their operations.

(c) Contingent Liabilities

Claims against the company not acknowledged as debts Legal claim contingency

(i) Income- tax authorities have raised additional demands for Rs.53 lacs (Previous Year: Rs.406 lacs) for various financial years. The tax demands are mainly on account of disallowances of expenses claimed by the company under the Income Tax Act. The matters are pending before various authorities. The Company is contesting the demands and the management believes that its position will likely to be upheld. No tax expenses have been accrued in the financial statements for these tax demands.

(ii) Service tax authorities have raised additional demands for Rs.61 lacs (Previous Year: Rs.317 lacs) for various financial years. The matters are pending before Service Tax Appellate Tribunal. The Company is contesting the demands and the management believes that its position will likely to be upheld. No tax expenses have been accrued in the financial statements for these tax demands.

(iii) During the year ended March 31, 2005, the Company acquired the printing undertaking at New Delhi from The Hindustan Times Limited (HTL). Ex-workmen of HTL challenged the transfer of business by way of a writ in Hon’ble Delhi High Court, which was quashed on May 9, 2006. Thereafter these workmen raised the industrial dispute before Industrial Tribunal-I, New Delhi (Tribunal).

The case was decided by an award by Industrial Tribunal, on January 23, 2012, wherein the workmen were granted “relief of treating them in continuity of services under terms and conditions of service as before their alleged termination w.e.f. October 3, 2004. As per the award, they will not be entitled to any notice pay or compensation u/s 25 FF of Industrial Dispute Act. The said notice pay or compensation, if any, received by them, will have to be refunded to the Company.”

The said award after publication came into operation w.e.f. April 1, 2012. The HTL issued several letter(s) to the workmen, followed by the public notice asking them to refund the notice pay and retrenchment compensation so received, as directed by Industrial Tribunal, However, there was no response from the workman.

The workman also filed the Execution Proceeding for Back wages on April 2, 2012, Execution Court vide its order dated October 8, 2012, held that “No Back Wages” have been granted and decree in relation thereto cannot be executed”. The Execution Court vide its order dated January 04, 2013 directed the management to reinstate the workman without insisting for refund of notice pay and retrenchment compensation. The said order of the Ld. Execution Court was challenged before High Court of Delhi as HTL has no factory, it offered notional reinstatement & Salary w.e.f. April 18, 2013. HTL informed the High Court during the pendency of the petition that since HTL is currently engaged in non industrial activities, it can offer non-industrial work to a maximum of 38 (thirty eight) workmen based on seniority. It was also submitted that HTL will accordingly exercise its rights and remedies as available under the Industrial Disputes Act, 1947 qua the remaining workmen. Accordingly, HTL issued letter of posting to 38 workmen on December 4, 2013 and paid compensation under Section 25FFF of the Industrial Dispute Act, 1947 to remaining 167 workmen. Single Bench of Delhi High Court on September 14, 2015 delivered the judgment wherein Court relied on the Judgment of Division Bench and held that the parties will be at liberty to pursue the logical corollary. The proceedings before the Execution Court re-started after judgment of Single Bench of Delhi High Court. The Execution Court ordered HTL to reinstate the workmen as earlier reinstatement was not in accordance with Award dated January 23, 2012 and also directed to make payment of wages accordingly. HTL challenged the said order of Execution Court before single bench of Hon’ble High Court. In the mean time the workmen filed an application for relief of interim wages under Section 17B of the Industrial Disputes Act, 1947 in the pending writ petition of HTL. The Ld. Single Judge allowed the said application vide order dated March 1, 2017 and directed HTL to pay last drawn monthly wages w.e.f. March 1, 2017. The said order was challenged by the management in LPA 176 /2017 before Division Bench wherein the Division Bench has stayed the impugned order to the extent of the direction for payment of monthly wages. The Hon’ble Division Bench has disposed of the LPA 176/2017 on 20.04.2017 and granted HTL. an opportunity to file reply to the application under Section 17B before single bench of Hon’ble High Court. The reply to the afore mentioned application has been filed. The matter is being argued by the parties and it is listed on 04.05.2018 for remaining final arguments.

After the Petition of management challenging the order of Execution Court dated January 4, 2013, the workmen also filed Writ Petition against the order of Ld. Execution Court dated October 08, 2012 denying them back wages. The Single Bench of Delhi High Court pronounced the judgment on November 17, 2014 in favour ofthe workmen that Back wage are payable to them. HTL challenged the said order before Division Bench, which vide order dated February 23, 2015, held that no back wages are granted to the workmen vide award dated January 23, 2012. The SLP filed by the workmen against the judgment of Division Bench, was dismissed by Hon’ble Supreme Court vide order dated August 1, 2016. . Some other workmen filed another SLP (C) No. 28705/2015 challenging the same order of Division Bench, Delhi High Court, virtually on same grounds, which is pending for hearing though there is a likely hood of same fate as of another SLP. The workmen thereafter filed a fresh Writ Petition before the single bench of Delhi High Court challenging the award dated January 23, 2012 to the extent of denial of back wages. The said Writ Petition was dismissed vide order dated October 3, 2016 on the ground of res- judicata and on account of delay or latches. The judgment of the Single Bench of Delhi High Court is challenged by the workmen before Division Bench of High Court, wherein notice is issued to the Company. The said matter is now listed on 03.07.2018 for final arguments before the Division Bench.

The Delhi High Court has already ruled in favour of the Company in the original challenge to the Industrial Tribunal Award by the Company. Against that order of High Court, the workers have started a fresh round of litigation. At this stage, basis the facts and earlier order of Delhi High Court, the Company does not expect a material adverse outcome in the current round of litigation.

ii) Transactions with related parties

Refer Note 36 A

iii) Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

NOTE 8 : SEGMENT INFORMATION

For the purpose of management review, the Company is organized into business units based on the nature of products and services and has three reportable segments, as follows:

- Printing and Publication of Newspapers & Periodicals

- Radio Broadcast and all other related activities through its Radio channels operating under brand name ‘Fever 104’, ‘Fever’ and ‘Radio Nasha 107.2’ in India.

- Digital - Business of providing internet related services through a job portal Shine.com and movies review website desimartini.com.

The management of the Company monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on its profit and loss and is measured consistently with profit or loss of the Company. Also, the Company’s financing (including finance costs and finance income) and income taxes are managed on a company basis and are not allocated to operating segments.

The financial information for these reportable segments has been provided in Consolidated Financial Results as per Ind-AS 108 - Operating Segments.

NOTE 9 : HEDGING ACTIVITIES AND DERIVATIVES

Derivatives not designated as hedging instruments

The company uses foreign exchange forward contracts, options, interest rate swap, coupon only swap etc. to manage its foreign currency and interest risk exposures. These contracts are not designated as cash flow hedges and are entered into for periods consistent with underlying transactions exposure.

NOTE 10 : FAIR VALUES

Set out below, is a comparison by class of the carrying amounts and fair value of the companies financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that cash and cash equivalents, other bank balances, trade receivables, other current financial assets, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts that are reasonable approximations of fair vale largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

- The fair values of long term interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk was assessed to be insignificant.

- The fair values of the investment in unquoted equity shares/ debt instruments/ preference shares have been estimated using a Discounted Cash Flow (DCF) model and/or comparable investment price such as last round of funding made in the investee company. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted investments.

-The fair values of the investment in unquoted equity shares of India Education Services Private Limited valued in March 31, 2017 at Fair Value through OCI had been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows and discount rate. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted investments.

- Investments in quoted mutual funds being valued at Net Asset Value.

- Investments in venture capital funds are valued using valuation techniques, which employs the use of market observables inputs and the assessment of Net Asset Value.

- Investments in quoted equity shares are valued at closing price of stock on recognized stock exchange.

- The Company enters into derivative financial instruments such as interest rate swaps, coupon only swap, call spread options, foreign exchange forward contracts being valued using valuation techniques, which employs the use of market observable inputs. The company uses mark to market valuation provided by bank for valuation of these derivative contracts.

- The loans and investment in bonds are evaluated by the Company based on parameters such as interest rate, risk factors, risk characteristics and individual credit-worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses.

The significant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2018 and March 31, 2017 are as shown below:

Note I - The Board, in its meeting held on May 19, 2017, had approved proposal to acquire 49% equity stake in India Education Services Private Limited (IESPL) held by Apollo Global Singapore Holdings Pte. Limited (‘Apollo Global’), Joint Venture partner. The said transaction was concluded vide share purchase agreement dated July 18, 2017 at a consideration of USD 6,50,000. Accordingly, IESPL is now a subsidiary of the Company (holding 99% equity share capital of IESPL) and the Joint Venture Agreement has been terminated. It is classified as a joint venture in previous year.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

Note 11 : Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The company also enters into foreign exchange derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the mitigation of these risks. The Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in foreign exchange derivatives for speculative purposes will be undertaken. The policies for managing each of these risks, which are summarized below:-

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at March 31, 2018 and March 31, 2017.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations and provisions.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s current debt obligations with fixed interest rates.

The Company manages its interest rate risk for short term borrowings by raising funds at a fixed rate and for Long term borrowing by selectively using interest rate swaps, coupon only swap and other derivative instruments to manage its exposure to interest rate movements. These exposures are reviewed by appropriate levels of management as and when required.

* Interest rate sensitivity for floating borrowing

The table below illustrates the impact of a 0.5% to 1.50% movement in interest rates on interest expense on loans and borrowings. The risk estimate provided assumes that the changes occur at the reporting date and has been calculated based on risk exposure outstanding as of date. The year end balances are not necessarily representative of the average debt outstanding during the year. This analysis also assumes that all other variables, in particular foreign currency rates, remain constant.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency), investment & borrowing in foreign currency etc.

The company manages its foreign currency risk by hedging foreign currency transactions with forward covers and option contracts. These transactions generally relates to purchase of imported newsprint, investments & borrowings in foreign currency.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the underlying exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the company’s profit before tax is due to change in the fair value of monetary assets and liabilities.

Equity price risk

The Company invests in listed and non-listed equity securities which are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Investment Committee reviews and approves all equity investment decisions.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables

An impairment analysis is performed at each reporting date on an individual basis for major clients. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10A. The Company does not hold collateral as security.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the company’s policy. Investments of surplus funds are made as per guidelines and within limits approved by Board of Directors. Board of Directors/ Management reviews and update guidelines, time to time as per requirement. The guidelines are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

Liquidity risk

The Company monitors its risk of shortage of funds.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of Bank overdrafts, Bank loans & Money Market Borrowing. Approximately 99% of the Company’s debt will mature in less than one year at March 31, 2018 (Previous Year: 98%) based on the carrying value of borrowings reflected in the financial statements.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding i.e. investments / Bank limits for Borrowing/ cash accrual from Operation and debt maturing within 12 months can be paid/ rolled over with existing lenders.

At 31 March 2018, the Company had available Rs.95,528 Lacs (Previous Year: Rs.1,03,692 Lacs) of undrawn committed borrowing facilities.

Collateral

The Company has pledged part of its investment in mutual funds in order to fulfil the collateral requirements for borrowing. At March 31, 2018 & March 31, 2017, the invested values of the investment in mutual funds pledged were Rs.12,076 lacs & 18,949 lacs, respectively. The counterparties have an obligation to return the securities to the company and the company has an obligation to repay the borrowing to the counterparties upon maturity/ due date. There are no other significant terms and conditions associated with the use of collateral. Securities except pledge given against outstanding bank facilities details is provided in borrowing note.

NOTE 12: CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves . The primary objective of the Company’s capital management is to maximize the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a gearing ratio ,which is net debt divided by total capital and net debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

The Company has satisfied all financial debt covenants prescribed in the terms of bank loan except Total Debt to EBIDTA ratio for FCNR loan taken from Citibank. Required waiver approval dated March 28, 2018 has been obtained from Citibank to condone the non-compliance and non-adherence of the Total Debt to EBITDA Ratio for financial condition test till September 30, 2018 for FCNR loan.

NOTE 13: STANDARDS ISSUED BUT NOT YET EFFECTIVE

Ind-AS 115 Revenue from Contracts with Customers

Ind-AS 115 was issued on March 28, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Ind-AS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind-AS. This Standard is effective for accounting periods beginning on or after April 1, 2018.

Either a so called full retrospective application or a modified retrospective application is required for annual periods beginning on or after April 1,2018.

During 2017-18, the Company performed a preliminary assessment of Ind-AS 115. The initial application of Ind-AS 115 is not expected to have material impact on the Company’s financial statements.

Amendments to Ind-AS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restrict the sources of taxable profits against which it may make deductions on the reversal of deductible temporary difference related to unrealized losses. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. This amendment is applicable retrospectively for annual periods beginning on or after April 1, 2018.

During 2017-18, the Company performed a preliminary assessment of this amendment. The application of this amendment is not expected to have a material impact on the Company’s financial statements.

Ind-AS 28 Investments in Associates and Joint Ventures -Clarification that measuring investees at fair value through profit or loss is an investment-by-investment choice

When an investment in an associate or joint venture is held by, or is held indirectly through, a venture capital organisation, or a mutual fund, unit trust and similar entities including investment-linked insurance funds, the entity may elect, in accordance with Ind-AS 28, to measure that investment at fair value through profit or loss.

However, it was not clear whether the entity is able to choose between applying the equity method or measuring the investment at fair value for each investment, or whether instead the entity applies the same accounting to all of its investments in associates and joint ventures.

Ind-AS 28 has been amended to clarify that a venture capital organisation, or a mutual fund, unit trust and similar entities may elect, at initial recognition, to measure investments in an associate or joint venture at fair value through profit or loss separately for each associate or joint venture.

In addition, Ind-AS 28 permits an entity that is not an investment entity to retain the fair value measurement applied by its associates and joint ventures (that are investment entities) when applying the equity method. Therefore, this choice is available, at initial recognition, for each investment entity associate or joint venture.

The amendments are applicable retrospectively for annual periods beginning on or after April 1, 2018.

These amendments are not applicable to the Company.

Ind-AS 21 Foreign Currency Transactions and Advance Consideration

The amendment clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a nonmonetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or nonmonetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

The amendment is applicable for accounting periods beginning on or after April 1, 2018 (retrospective application is permitted).

Since the Company’s current practice is in line with the amendment, the Company does not expect any effect on its financial statements.

Ind-AS 40 Investment Property

The amendment lays down the principle regarding when a company should transfer asset to, or from, investment property. However, it was not clear whether the evidence of a change in use should be the one specifically provided in the standard.

Accordingly, the amendment clarifies that a transfer is made when and only when:

a) There is an actual change of use i.e. an asset meets or ceases to meet the definition of investment property

b) There is evidence of the change in use.

The amendments are applicable for annual periods beginning on or after April 1, 2018. Since the Company’s current practice is in line with the amendment, the Company does not expect any effect on its financial statements.

NOTE 14

The Company has consolidated the financial statements of HT Media Employee Welfare Trust (“Trust”) in its standalone financial statements. Accordingly, the amount of loan of Rs.2,004 Lacs (Previous Year Rs.2,004 Lacs) outstanding in the name of Trust in the books of the Company at the year end has been eliminated against the amount of loan outstanding in the name of Company appearing in the books of Trust at the year end. Further, the investment of Rs.2,022 Lacs (previous year Rs.2,068 Lacs) made by the Trust in the equity shares of the Company (through secondary market) has been shown as deduction from the Share Capital to the extent of face value of the shares [Rs.44 Lacs (previous year Rs.45 Lacs)] and Securities Premium Account to the extent of amount exceeding face value of equity shares [Rs.1,978 Lacs (previous year Rs.2,022 Lacs)]. Further, the amount of dividend of Rs.9 Lacs (previous year Rs.9 Lacs) received by the Trust from the Company during the year end has been added back to the surplus in the statement of Profit and Loss.

NOTE 15

Pursuant to Scheme of Arrangement and Restructuring u/s 391-394 read with Sections 100-104 of the Companies Act, 1956 between the Company and HT Music and Entertainment Company Limited (Demerged Company) as approved by the Hon’ble Delhi High Court, the assets and liabilities of the radio business of the Demerged company were taken over as at January 1, 2009. One Time Entry Fees (OTEF) paid for acquiring license for Radio business paid by the Demerged Company in earlier years which was capitalized and amortized on straight line basis, is now amortized against the credit balance of Securities Premium Account instead of charging to the Statement of Profit and Loss, over the useful life of the said licenses or their unexpired period (whichever is lower) from date of Merger of Radio business as per the approved Scheme. Consequently an amount of Rs.49 Lacs (Previous Year Rs.568 Lacs) towards amortization of Radio Licenses has been debited to the Securities Premium Account.

NOTE 16

Details of Loans and Advances to subsidiaries, associates and firm/companies in which directors are interested (as required by Regulation 34(3) of (Listing Obligations and Disclosure Requirements) Regulations, 2015)

NOTE 17

Capital Advances include Rs.119 Lacs (Previous Year: Rs.423 Lacs) paid towards Company’s proportionate share for right to use in the Common Infrastructure for channel transmission (for its four stations) to be built on land owned by Prasar Bharti and to be used by all the broadcasters at respective stations as per the terms of bid document on FM Radio Broadcasting (Phase II & Phase III).

NOTE 18 Capitalized Expenditure

During the year, the Company has capitalized the following expenses of revenue nature to the cost of fixed asset/ capital work-in-progress (CWIP). Consequently, expenses disclosed under the respective notes are net of amounts capitalized by the Company.

NOTE 19 Disclosure required under Section 186(4) of the Companies Act, 2013

Included in loans and advances, loans to Employee Stock Option Trust and loan to subsidiary the particulars of which are disclosed in below as required by Sec 186(4) of Companies Act 2013:

For detailed particulars and purpose of above loans refer note 34.

*The loan given to HT Media Employee Welfare Trust has been eliminated on consolidation of HT Media Employee Welfare Trust in the standalone financial statements of the Company (refer note 44).

For further details of loans and advances provided to related parties, refer note 36A Details of Investments made are given under note 6A & 6B.

In addition to above, Corporate Guarantee amounting to USD 35 Lacs (previous year: Nil), in the form of SBLC has been given to bank on behalf of HT Overseas Pte Ltd, for an arms length commission of 0.61% on the value of guarantee given.

NOTE 20

Ministry Of Corporate Affairs issued an amendment to Schedule III of the Companies Act, 2013, regarding general instructions for preparation of Balance Sheet, to disclose the details of Specified Bank Notes (SBN) held and transacted during the period November 08,2016 to December 30,2016.

There has been no movement in the below disclosure for the year ended March 31, 2018

Post demonetization, the management had directed all employees not to accept/ pay using the SBN’s.

Explanation: For the purpose of this clause, the term ‘Specifed Bank Notes’ (SBN) shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.3407(E), dated November 8,2016.

The aforesaid disclosures of SBN’s have been compiled taking the management stated policy, direct bank confirmation and compilation of pay in slips.

NOTE 21: DETAILS OF CSR EXPENDITURE

Pursuant to the applicability of CSR (Corporate Social Responsibility) provisions of the Companies Act, 2013 the Company has made the requisite expenditure towards CSR as per details below :

(a) Gross amount required to be spent by the Company during the year is Rs.243 lacs (March 31, 2017 - Rs.330 lacs)

(b) Details of amount spent during the year ended March 31, 2018

NOTE 22 : TRANSFER OF MULTI-MEDIA CONTENT MANAGEMENT UNDERTAKING OF THE COMPANY (‘MMCM UNDERTAKING’) TO HT DIGITAL STREAMS LIMITED

The Board of Directors of the Company at its meetings held on November 19, 2015, on the recommendation of the Audit Committee, had approved the transfer and vesting of the Multi-media Content Management Undertaking of the Company (‘MMCM Undertaking’) to and in HT Digital Streams Limited (Transferee Company), a wholly-owned subsidiary, as a ‘going concern’ on a slump exchange basis by way of issue of fully paid-up equity shares of the Transferee Company to the Company.

The Scheme of Arrangement u/s 391-394 of the Companies Act, 1956 between the Company and HT Digital Streams Limited (HTDSL) and their respective shareholders & creditors for transfer and vesting of Multi-media Content Management Undertaking of the Company (“MMCM Undertaking”) to and in HTDSL, as going concern on slump exchange basis, with effect from closing hours of March 31, 2016 (‘Appointed Date’) (‘the Scheme’), was sanctioned by the Hon’ble Delhi High Court in terms of orders dated August 29, 2016 and November 15, 2016, and the Hon’ble High Court of Judicature at Patna, in terms of the judgement dated November 24, 2016 and order dated December 19, 2016 and with Registrar of Companies, Bihar on December 31, 2016.

The Scheme became effective from December 31, 2016 (closing hours) (‘Effective Date’), consequent upon filing of the judgments/ orders passed by the Hon’ble High Courts with respective Registrar of Companies.

Financial impact of the Scheme was considered in unaudited Financial Results for the quarter and nine months ended December 31, 2016; as summarized below:

a) HTDSL allotted its 1,14,12,104 Equity Shares of Rs.10/- each to the company, the Company now holds 57.17% of equity share capital of HTDSL

b) An amount of Rs.10,367 lacs, being difference of purchase consideration (Rs.9,900 lacs) and Book Value of Net Assets (Rs.467 lacs (negative)) transferred to HTDSL, was recorded as Capital Reserve in the books of the Company. The Company followed the applicable Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and other Generally Accepted Accounting Principles as on the Appointed Date in accordance with the scheme approved by Hon’ble Delhi High Court. This is not similar to the accounting as per applicable Indian Accounting Standards (Ind-AS) prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder. However, this was in compliance with Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and other Generally Accepted Accounting Principles as applicable when the scheme was filed before with Hon’ble High Court and as on the Appointed Date i.e. March 31, 2016.

23. Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year classification.