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Download latest annual report - HT Media

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AUDITORS’ REPORT<br />

To<br />

The Board of Directors<br />

<strong>HT</strong> <strong>Media</strong> Limited<br />

1. We have audited the attached Consolidated Balance<br />

Sheet of <strong>HT</strong> <strong>Media</strong> Limited, comprising of its Subsidiaries<br />

(Hindustan <strong>Media</strong> Ventures Limited, <strong>HT</strong> Music and<br />

Entertainment Company Limited, <strong>HT</strong> Burda <strong>Media</strong> Limited,<br />

<strong>HT</strong> Digital <strong>Media</strong> Holdings Limited, Firefly e-Ventures<br />

Limited, <strong>HT</strong> Mobile Solutions Limited, <strong>HT</strong> Overseas Pte.<br />

Ltd., Singapore, <strong>HT</strong> Education Limited, <strong>HT</strong> Learning<br />

Centers Limited, Ed World Private Limited, <strong>HT</strong> Global<br />

Education) and Joint Venture (India Education Services<br />

Private Limited) hereinafter referred as <strong>HT</strong> <strong>Media</strong> Group, as<br />

at March 31, 2012, and also the Consolidated statement of<br />

profit and loss and the Consolidated Cash Flow Statement<br />

for the year ended on that date annexed thereto. These<br />

financial statements are the responsibility of the <strong>HT</strong> <strong>Media</strong><br />

Limited’s management and have been prepared by the<br />

management on the basis of separate financial statements<br />

and other financial information regarding its subsidiaries and<br />

joint venture. Our responsibility is to express an opinion on<br />

the Consolidated Financial Statements based on our audit.<br />

2. We conducted our audit in accordance with the Auditing<br />

Standards generally accepted in India. Those Standards<br />

require that we plan and perform the audit to obtain<br />

reasonable assurance about whether the financial<br />

statements are free of material misstatement. An audit<br />

includes, examining on a test basis, evidence supporting<br />

the amounts and disclosures in the financial statements. An<br />

audit also includes assessing the accounting principles used<br />

and significant estimates made by management, as well as<br />

evaluating the overall financial statement presentation. We<br />

believe that our audit provides a reasonable basis for our<br />

opinion.<br />

3. We did not audit the financial statements of six subsidiaries<br />

(<strong>HT</strong> Mobile Solutions Limited, <strong>HT</strong> Digital <strong>Media</strong> Holdings<br />

Limited, <strong>HT</strong> Overseas Pte. Ltd., Singapore, <strong>HT</strong> Learning<br />

Centers Limited, <strong>HT</strong> Education Limited and <strong>HT</strong> Global<br />

Education) of <strong>HT</strong> <strong>Media</strong> Limited whose financial statements<br />

reflect total assets of `2,067.90 lacs as at March 31, 2012<br />

and total revenues of `1,483.54. lacs for the year ended<br />

March 31, 2012 and increase in cash flows amounting to<br />

`150.55 lacs for the year ended March 31, 2012 have<br />

been considered for the purpose of preparation of these<br />

consolidated financial statements. The financial statements<br />

and other financial information of the above subsidiaries<br />

have been audited by other auditors whose <strong>report</strong> have<br />

been furnished to us, and our opinion, in so far as it relates to<br />

the amounts included in respect of the subsidiaries and joint<br />

venture is based solely on the <strong>report</strong> of the other auditors.<br />

4. Consolidated Financial Statements includes deferred tax<br />

assets (net) of `5,795.72 lacs, `1,653.93 lacs, `192.66 lacs,<br />

`8.20 lacs and `422.88 lacs lacs in respect of the Subsidiary<br />

Companies - Firefly e-Ventures Limited, <strong>HT</strong> Burda <strong>Media</strong><br />

Limited, <strong>HT</strong> Mobile Solutions Limited, <strong>HT</strong> Music and<br />

Entertainment Company Limited, and <strong>HT</strong> Learning<br />

<strong>HT</strong> <strong>Media</strong> Limited<br />

Centers Limited respectively as on March 31, 2012. The<br />

management of the group is confident that subsequent<br />

realization of the deferred tax assets is virtually certain in<br />

the near future based on future projections and existing<br />

business model. However, in our opinion, the basis is not<br />

in line with the requirements of Accounting Standard 22<br />

notified pursuant to the Companies (Accounting Standards)<br />

Rules, 2006 (as amended) to determine virtual certainty.<br />

This had caused us to qualify our audit opinion on the<br />

consolidated financial statements relating to preceding year<br />

in respect of deferred tax assets of `4,543.60 lacs, `134.02<br />

lacs, `9.26 lacs and `1,003.52 lacs recognized by Subsidiary<br />

Companies Firefly e-Ventures Limited, <strong>HT</strong> Mobile Solutions<br />

Limited, <strong>HT</strong> Music and Entertainment Company Limited<br />

and <strong>HT</strong> Burda <strong>Media</strong> Limited respectively.<br />

We further <strong>report</strong> that had the observation made by us in<br />

paragraph above been considered, the consolidated profits<br />

for the year and consolidated reserves & surplus would<br />

have decreased by `8,073.39 lacs each and consolidated<br />

deferred tax assets would have decreased by `8073.39 lacs<br />

(Refer Note No.4 in the Consolidated Financial Statements).<br />

5. Except for the effect of the matter stated in paragraph 4<br />

above, based on our audit and on consideration of <strong>report</strong>s<br />

of other auditors on separate financial statements and on<br />

the other financial information of the subsidiaries and joint<br />

venture, and to the best of our information and according<br />

to the explanations given to us, we are of the opinion that<br />

the attached consolidated financial statements give a true<br />

and fair view in conformity with the accounting principles<br />

generally accepted in India:<br />

(i) in the case of the Consolidated Balance Sheet of the<br />

consolidated state of affairs of <strong>HT</strong> <strong>Media</strong> Group as at<br />

March 31, 2012;<br />

(ii) in the case of the Consolidated statement of profit and<br />

loss, of the Profit of the <strong>HT</strong> <strong>Media</strong> Group for the year<br />

ended on that date; and<br />

(iii) in the case of the Consolidated Cash Flow Statement,<br />

of the Cash Flows of the <strong>HT</strong> <strong>Media</strong> Group for the year<br />

ended on that date.<br />

For S.R. Batliboi & Co.<br />

Firm Registration No. 301003E<br />

Chartered Accountants<br />

per Manoj Gupta<br />

Partner<br />

Membership No.: 83906<br />

Place: New Delhi<br />

Date: May 18, 2012<br />

95

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