Hathway Bhawani Cabletel and Datacom Limited (the Company) is a Public Company domiciled in India and incorporated under the provisions of the Companies Act. 1956. The Company is engaged in distribution of television channels through analog and digital cable distribution network and internet services through cable. Its equity shares are listed on Bombay Stock Exchange Limited (BSE) in India.

1.01 In the opinion of the Board, the loans & advances, trade receivables and all other assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Balance sheet

1.02 Capital And Other Commitments

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for aggregate to Rs. Nil (March 31, 2014: Rs. Nil).

The Company in its ordinary course of business has promoted / acquired interest in various entities. Considering the long-term involvement of the Company in these entities and strategic impact it has on the business of the Company, the Company has committed to provide operating and financial support to these entities.

1.03 Contingent Liabilities

(a) Claims against the Company not acknowledged, as debts are Rs. 2,100,000 (March 31, 2014: Rs. 2,100,000).

(b) Outstanding Bank Guarantees Rs. 1,200,000 /- (March 31, 2014: Rs. 1,200,000).

1.04 Employee Benefits

(a) Defined Benefit Plans:

The present value of the defined benefit obligations and the related current service cost were measured using the objected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

1.05 Segmental Reporting

The Company has only one reportable segment. The Company's operations are based in India.

1.06 Related Party Disclosures

I. Controlled by:

a. Hathway Cable & Datacom Ltd.

II. Under the control of the Company

a. Hathway Bhawani NDS Network Pvt.Ltd.

b. Hathway Bhawani Sai Network Pvt.Ltd. (up to March 31, 2014)

III. Other related parties with whom the Company had transactions.

a. Mr. Samson Jesudas ( Managing Director with effect from June 1, 2014 )

b. Mr. Kuldeep Puri ( Managing Director- up to May 31, 2014)

c. Mr. Kulbhushan Puri as Karta Of M/s Kulbhushan Puri HUF (Relative Of Managing Director - up to May 31, 2014)

1.07 Leases

The Company has leasing arrangements in terms of Accounting Standard 19 on "Leases" as applicable. These leasing arrangements, which are cancelable, range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms. The amount of such lease rentals debited to the Statement of Profit and Loss for the year is Rs 4,358,340/- (March 31, 2014: Rs 4,117,175/-).

1.08 The enactment of the Companies Act, 2013 requires that the Company should reassess useful life of its fixed assets and provide depreciation based on such re-assessment with effect from April 1, 2014. The Company has decided to provide depreciation on all fixed assets, except Set top boxes on straight line basis (SLM) as against written down value basis (WDV) based on useful life specified in Schedule II to the said Act. There is no change in the method of depreciation for Set top boxes.

(a) This change has resulted in net surplus of Rs. 2,566,759 (March 31, 2014 ; Rs. Nil) and is disclosed under as Exceptional Items. Had the Company continued to use the earlier method of depreciation, the debit to the statement of profit and loss after tax for the current period (year to date) would have been lower by Rs. 447,953 (March 31, 2014 ; Rs. Nil)

(b) Based on transitional provision provided in Note 7(b) of Schedule II to the Act, the charge to retained earnings in respect of assets having no useful life as on the effective date, net of deferred tax is Rs. 17,27,105 (March 31 2014 ; Rs. Nil).

1.09 Supplementary statutory information required to be given pursuant to Clause 32 of the listing agreement -Nil.

1.10 Previous year figures have been rearranged and regrouped wherever necessary.