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Annual Report 2011-12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
EDNDED 31 MARCH, 2012
1. Nature of Operations
‘HT Media Group’ consists of HT Media Limited and
it’s subsidiaries and joint venture companies (hereinafter
referred to as ‘the Group’).
The Group is the publisher of ‘Hindustan Times’, an English
daily, ‘Hindustan’, a Hindi daily and ‘Mint’, a Business
newspaper (daily, except Sunday), ‘Nandan’ (monthly
children’s magazine) and ‘Kadambini’ (monthly women’s
magazine). Under ‘Fever 104’ brand, the Group pursues the
business of FM radio broadcast and other related activities,
in the cities of Delhi, Mumbai, Kolkata and Bengalaru. The
digital business of the Group, under Firefly e-Ventures
Limited (subsidiary), comprises of ‘Shine.com’ (job portal)
‘Desimartini.com’ (movie review web-site), ‘HTCampus.
com’ (education portal), ‘Hindustantimes.com’ (news
web-site) & ‘livemint.com’ (business news web-sites). The
Group has also forayed into education sector.
Major portion of the Group’s revenue is derived from sale
of - (i) newspapers and magazines; (ii) advertisement space
in these publications; (iii) airtime in FM radio broadcast,
and printing charges for third-party printing jobs. Internet
business also contributes to the Group’s revenue, by way
of display of advertisements on the websites.
2. Basis of preparation
The Consolidated financial statements (CFS) of the Group
have been prepared in accordance with generally accepted
accounting principles in India (Indian GAAP). The Group
has prepared these financial statements to comply in all
material aspects with the Accounting Standards notified
under the Companies (Accounting Standards) Rules 2006,
(as amended) and the relevant provisions of the Companies
Act, 1956. The financial statements have been prepared on
an accrual basis and under the historical cost convention
except in case of assets for which provision for impairment is
made and revaluation is carried out. The accounting policies
adopted in the preparation of financial statements are
consistent with those of previous year, except for the change
in accounting policy explained below in Note 2.1.(a).
The Consolidated Financial Statements (CFS) relates to
HT Media Limited (hereinafter referred as the “Company”)
and its Subsidiary Companies and Joint Venture Company
(hereinafter referred as the “Group”).
In the preparation of these Consolidated Financial Statements,
investment in Subsidiaries, Associate and Joint Venture have
been accounted for in accordance with Accounting Standards
(AS) 21, Consolidated Financial Statements, Accounting
Standards (AS) 23, Accounting for Investments in Associates
in Consolidated Financial Statements and Accounting
Standard (AS) 27, Financial Reporting of Interests in Joint
Ventures. The Consolidated Financial Statements have been
prepared on the following basis;
(i) Subsidiaries have been consolidated on a line-by-line
basis by adding together the book values of the like
items of assets, liabilities, income and expenses, after
eliminating all significant intra-group balances and
intra-group transactions and also unrealised profits or
losses, except where cost cannot be recovered if any
100
(ii) Interests in the assets, liabilities, income and
2.1
expenses of the joint venture are consolidated using
proportionate consolidation method. Intra group
balances, transactions and unrealised profits/ losses are
eliminated to the extent of Company’s proportionate
share.
(iii) The difference of the cost to the Company of its
investment in subsidiaries and joint venture over
its proportionate share in the equity of the investee
company as at the date of acquisition of stake is
recognized in the financial statements as Goodwill or
Capital Reserve, as the case may be.
(iv) Minorities’ interest in net profit of consolidated
subsidiaries for the year is identified and adjusted
against the income in order to arrive at the net income
attributable to the shareholders of the Company.
Their share of net assets is identified and presented
in the Consolidated Balance Sheet separately. Where
accumulated losses attributable to the minorities are in
excess of their equity, in the absence of the contractual
obligation on the minorities, the same is accounted for
by the holding company.
(v) Investment in entities in which the Group has
significant influence but not the controlling interest,
are reported according to the equity method i.e. the
investment is initially recorded in at cost. The carrying
amount of the investment is adjusted thereafter for
the post acquisition change in the Company’s share
of net assets of the associates. The consolidated profit
and loss account includes the Company’s share of the
result of the operations of the associate.
(vi) As far as possible, the CFS have been prepared using
uniform accounting policies for like transactions and
other events in similar circumstances and are presented,
to the extent possible, in the same manner as the
Company’s stand alone financial statements. Differences
in accounting policies have been disclosed separately.
(vii) The difference between the proceeds from disposal
of investment in subsidiary and the carrying amount
of its assets less liabilities as of the date of disposal is
recognized in the consolidated statement of Profit
& Loss Account as the profit or loss on disposal of
investment in subsidiary.
Summary of Significant Accounting policies
a) Change in accounting policy
Presentation and disclosure of financial statements.
During the year ended 31 March 2012, the revised
Schedule VI notified under the Companies Act 1956,
has become applicable to the Group, for preparation
and presentation of its financial statements. The
adoption of revised Schedule VI does not impact
recognition and measurement principles followed for
preparation of financial statements. However, it has
significant impact on presentation and disclosures
made in the financial statements. The Group has also
reclassified the previous year figures in accordance
with the requirements applicable in the current year.