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AUDITORS’ REPORT
To
The Board of Directors
HT Media Limited
1. We have audited the attached Consolidated Balance
Sheet of HT Media Limited, comprising of its Subsidiaries
(Hindustan Media Ventures Limited, HT Music and
Entertainment Company Limited, HT Burda Media Limited,
HT Digital Media Holdings Limited, Firefly e-Ventures
Limited, HT Mobile Solutions Limited, HT Overseas Pte.
Ltd., Singapore, HT Education Limited, HT Learning
Centers Limited, Ed World Private Limited, HT Global
Education) and Joint Venture (India Education Services
Private Limited) hereinafter referred as HT Media Group, as
at March 31, 2012, and also the Consolidated statement of
profit and loss and the Consolidated Cash Flow Statement
for the year ended on that date annexed thereto. These
financial statements are the responsibility of the HT Media
Limited’s management and have been prepared by the
management on the basis of separate financial statements
and other financial information regarding its subsidiaries and
joint venture. Our responsibility is to express an opinion on
the Consolidated Financial Statements based on our audit.
2. We conducted our audit in accordance with the Auditing
Standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our
opinion.
3. We did not audit the financial statements of six subsidiaries
(HT Mobile Solutions Limited, HT Digital Media Holdings
Limited, HT Overseas Pte. Ltd., Singapore, HT Learning
Centers Limited, HT Education Limited and HT Global
Education) of HT Media Limited whose financial statements
reflect total assets of `2,067.90 lacs as at March 31, 2012
and total revenues of `1,483.54. lacs for the year ended
March 31, 2012 and increase in cash flows amounting to
`150.55 lacs for the year ended March 31, 2012 have
been considered for the purpose of preparation of these
consolidated financial statements. The financial statements
and other financial information of the above subsidiaries
have been audited by other auditors whose report have
been furnished to us, and our opinion, in so far as it relates to
the amounts included in respect of the subsidiaries and joint
venture is based solely on the report of the other auditors.
4. Consolidated Financial Statements includes deferred tax
assets (net) of `5,795.72 lacs, `1,653.93 lacs, `192.66 lacs,
`8.20 lacs and `422.88 lacs lacs in respect of the Subsidiary
Companies - Firefly e-Ventures Limited, HT Burda Media
Limited, HT Mobile Solutions Limited, HT Music and
Entertainment Company Limited, and HT Learning
HT Media Limited
Centers Limited respectively as on March 31, 2012. The
management of the group is confident that subsequent
realization of the deferred tax assets is virtually certain in
the near future based on future projections and existing
business model. However, in our opinion, the basis is not
in line with the requirements of Accounting Standard 22
notified pursuant to the Companies (Accounting Standards)
Rules, 2006 (as amended) to determine virtual certainty.
This had caused us to qualify our audit opinion on the
consolidated financial statements relating to preceding year
in respect of deferred tax assets of `4,543.60 lacs, `134.02
lacs, `9.26 lacs and `1,003.52 lacs recognized by Subsidiary
Companies Firefly e-Ventures Limited, HT Mobile Solutions
Limited, HT Music and Entertainment Company Limited
and HT Burda Media Limited respectively.
We further report that had the observation made by us in
paragraph above been considered, the consolidated profits
for the year and consolidated reserves & surplus would
have decreased by `8,073.39 lacs each and consolidated
deferred tax assets would have decreased by `8073.39 lacs
(Refer Note No.4 in the Consolidated Financial Statements).
5. Except for the effect of the matter stated in paragraph 4
above, based on our audit and on consideration of reports
of other auditors on separate financial statements and on
the other financial information of the subsidiaries and joint
venture, and to the best of our information and according
to the explanations given to us, we are of the opinion that
the attached consolidated financial statements give a true
and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Consolidated Balance Sheet of the
consolidated state of affairs of HT Media Group as at
March 31, 2012;
(ii) in the case of the Consolidated statement of profit and
loss, of the Profit of the HT Media Group for the year
ended on that date; and
(iii) in the case of the Consolidated Cash Flow Statement,
of the Cash Flows of the HT Media Group for the year
ended on that date.
For S.R. Batliboi & Co.
Firm Registration No. 301003E
Chartered Accountants
per Manoj Gupta
Partner
Membership No.: 83906
Place: New Delhi
Date: May 18, 2012
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