1. Provisions and contingencies

a. Claims against the Company not acknowledged as debts:

i. The Company has received demands ascertaining to Rs. 3087.80 lakhs (previous year - Rs. 974.17 lakhs) towards Income Tax for the assessment years 2005-06, 2006-07, 2008-09, 2009-10 and 2010-11. The Company has disputed the demands and has preferred appeals before appellate authorities and also deposited Rs 671.25 lakhs upto 31 March 2016

ii. Sales tax/Works Contract tax matters disputed by the Company relating to issue of applicability, allow ability, etc. aggregating to Rs.4,585 lakhs (previous year Rs. 3,196.92 lakhs) for the F.Y 2000-01 2001-02, 2002-03, 2003-04, 2004-05, 2006-07,2007-08, 2008-09, 2009-10 and F.Y 2010-11.

In respect of the demands/claims described in paragraphs (i) and (ii) above, the Company has also assessed that the possibility of these cases being decided against the Company and the demand crystallizing on the Company is not likely and hence no provision is required.

2. The Company has contributed Rs. 0.11 (previous year Rs. 0.11 Lakhs) towards Contribution to provident fund.

3. During the previous years, the Company has closed the printing press business and discontinued the printing operations. As at

31 March 2016, the carrying amount of such assets and liabilities of discontinuing operations which were not disposed off for previous year was Rs. 860.93 Lakhs (previous year Rs 851.44 lakhs) and Rs. 639.59 lakhs (previous year Rs. 697.37 Lakhs) respectively. The following statement shows the revenue and expenses of continuing and discontinuing operations:

4. The accumulated losses of the Company have resulted in the erosion of its net worth. The Company has been legally advised that in view of closure of its printing operations, the provisions of Sick Industrial Companies (Special provisions) Act, 1985 are not applicable to it.

5. The Company had discontinued its operations in the previous years and has incurred net loss of Rs. 370.76 lakhs during the year ended 31 March 2016 and as of that date the Company’s accumulated losses amount to Rs.7,899.66 lakhs which has resulted in erosion of hundred percent of net worth of the Company. The management is evaluating various options, including starting a new line of business. There is a material uncertainty related to the aforementioned conditions that may cast significant doubt on the Company continuing as a going concern and accordingly, the Company may be unable to realise its assets and discharge its liabilities in the normal course of business. Network18 Media & Investments Limited, the Holding Company, has given a support letter to extend, for the foreseeable future (i.e. twelve months from 31 March 2016), any financial support, which may be required by the Company. Considering these factors, the management has assessed that the Company continues to be a going concern and hence, these financial statements have been prepared on a going concern basis.

6. As the Company operates in a single business and geographical segment, the reporting requirements for primary and secondary segment disclosures prescribed by Accounting Standard 17 “Segment Reporting”, have not been provided in these financial statements.

Net deferred tax (liability) / asset - -

The Company had recognized deferred tax asset to the extent of the deferred tax liability only, in view of estimated tax losses and absence of virtual certainty supported by convincing evidence that sufficient future taxable income will not be available against which such deferred tax assets can be realized.

7. Previous year’s figures have been regrouped wherever necessary to conform with figures of the current year.