Annual Report – 2006-07 (full download) - Dish TV

INDEX
DIRECTORS’ REPORT............................................................................................... 18
STATEMENT PURSUANT TO SECTION 212 .............................................................. 21
CORPORATE GOVERNANCE REPORT ........................................................................ 22
SHAREHOLDERS’ INFORMATION ............................................................................. 27
MANAGEMENT DISCUSSION AND ANALYSIS .......................................................... 30
FINANCIALS............................................................................................................. 33
CASH FLOW STATEMENT ........................................................................................ 59
CONSOLIDATED FINANCIAL STATEMENTS .............................................................. 61

GROUP
DIRECTORS' REPORT
To the Members,
Your Directors take pleasure in presenting the 19 th Annual Report
together with the Audited Statement of Accounts of the Company for
the year ended March 31, 2007.
RESPONSIBILITY STATEMENT:
In terms of and pursuant to Section 217(2AA) of the Companies Act,
1956, your Directors, in relation to the Annual Statement of Accounts
for financial year 2006-2007, state and confirm that:
a) the Accounts had been prepared on a 'going concern' basis and
in such preparation the applicable accounting standards had
been followed with proper explanation relating to material
departures;
b) your Directors had selected such accounting policies and applied
them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year,
and of the loss of the Company for that year; and
c) your Directors had taken proper and sufficient care for
maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 as amended, for
safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
FINANCIAL HIGHLIGHTS:
During the year 2006-2007 total revenue of your Company has
increased from Rs. 314.62 Million to Rs. 1,943.34 Million as compared
to last year 2005-2006 which is an increase around 517.66%.
The financial highlights of your Company for the year ended March
31, 2007 are summarised below:
(Rs. in Million)
Particulars Year ended Year ended
31.03.2007 31.03.2006
Sales & Services 1,909.37 314.62
Other Income 33.97 Nil
Total Income 1,943.34 314.62
Total Expenses 4,454.16 1,189.48
Profit/(Loss) before
Tax and Exceptional Item (2,510.82) (874.86)
Provision for Taxation (net) 2.50 0.32
Profit/(Loss) after Tax
before Exceptional item (2,513.33) (875.18)
Add: Exceptional Item Nil 1,203.43
Profit/(Loss) after Tax (2,513.33) (2,078.61)
Prior Period Adjustments (5.48) (0.29)
Net - Income/(Loss)
Profit/(Loss) for the Year (2,518.81) (2,078.32)
Add: Balance brought (3,268.59) (1,190.26)
forward
Less: Transfer to (3,268.59) Nil
Restructuring Account
Amount available for (2,518.81) (3,268.59)
appropriations
Appropriations:
Dividend Nil Nil
Tax on Dividend Nil Nil
General Reserve Nil Nil
Balance carried forward (2,518.81) (3,268.59)
BUSINESS OVERVIEW:
Over the last one year, a lot of effort has gone into putting the
fundamentals in place in the areas of organisation development, hiring
of high quality talent and further strengthening of the Sales, Distribution
and Service functions. We have created an infrastructure which is
equipped to handle the pressures of operating in a high growth and
highly competitive service environment. In order to create a stronger
customer facing organisation and improve speed to market, 7
geographic zones have been carved out, each headed by an
empowered senior professional. Service reach has been expanded
considerably and our distribution now extends to almost 4,000 towns.
A host of new features like Near Video on Demand and several new
Games have strengthened our portfolio of offerings. We have also
made rapid strides in urban markets, which are now increasing their
contribution to the overall subscriber base. Implementation of CAS in
parts of Delhi, Mumbai and Kolkata also created an opportunity that
gave a fillip to the DTH Industry with a 20% switchover happening
from cable to DTH. Dish TV fully leveraged this opportunity through
increased marketing spends on a series of brand building and
promotional initiatives in both Urban and Rural markets, thereby giving
our brand a strong national footprint.
All the above initiatives resulted in strong subscriber growth. We
added 1.1 million subscribers, resulting in a year end subscriber
base of 2.0 million, representing a dominant market share of 75%.
Throughout the year, Dish TV has maintained its leadership position
despite the advent of competition.
DTH is a very well entrenched technology in the broadcasting industry
and is one of the most prevalent modes of distribution of television
channels internationally, though it is still in its infancy in India. It has
various advantages over traditional cable systems. With the increase
in scope of CAS in India and with rapid television penetration expansion,
18

the DTH industry will continue to increase its market share in the
distribution space. Your Directors are confident of this Company riding
on this growth and maintaining its leadership position in the years to
come.
Going forward, the competition will be more intense for which
strategies are in place to maintain our lead and sustain the growth on
a continuous basis.
DEMERGER OF BUSINESS UNDERTAKINGS:
Upon receipt of approvals from the Hon'ble High Courts of Bombay
and Delhi, and other Regulatory Authorities, the process of (a) demerger
of the Direct Consumer Services business undertaking of Zee
Entertainment Enterprises Limited (formerly known as Zee Telefilms
Limited - 'ZEEL'), and (b) merger of Siti Cable Network Limited and
New Era Entertainment Network Limited were successfully concluded
during the year. The Scheme was approved by the Hon'ble High Court
of judicature at Delhi on December 18, 2006 and Hon'ble High Court of
judicature at Bombay on January 12, 2007 and became effective from
January 19, 2007 on filing certified copies of High Court Orders with
Registrar of Companies at Mumbai and NCT of Delhi and Haryana.
Subsequently the equity shares of your Company, both those issued
to the shareholders of ZEEL and the existing reorganised shares, were
listed at the Stock Exchanges effective April 18, 2007.
SUBSIDIARY OPERATIONS:
Pursuant to the scheme of arrangement M/s. Integrated Subscriber
Management Services Limited (ISML), a wholly owned subsidiary of
Siti Cable Network Limited became wholly owned subsidiary of the
Company with effect from April 1, 2006. Pursuant to Section 212(1) of
the Companies Act,1956, the Audited Accounts alongwith the Auditors'
Report, Directors' Report and Cash Flow Statement of all the
Subsidiary Companies are separately attached.
As required by Accounting Standard-21 issued by the Institute of
Chartered Accountants of India, the financial statements of the
Company reflecting the Consolidation of the Accounts of its
subsidiaries to the extent of equity holding of the Company in this
company are included in this Annual Report.
SHARE CAPITAL:
During the year, as approved by the Members at the Extra Ordinary
General Meeting held on September 16, 2006, the share capital of the
Company was sub-divided from 73,000,000 equity shares comprising
of Rs.10/- each to 730,000,000 equity shares of Re.1/- each. Pursuant
to the Scheme of Arrangement, besides reorganisation of the share
capital, your Company had issued and allotted 249,300,890 equity shares
of Re. 1/- each to shareholders of Zee Entertainment Enterprises Limited.
CHANGE OF NAME:
To reflect the major business segment of your Company, the Members
had approved, at their meeting held on December 18, 2006, change of
name of the Company. Consequent to receipt of all relevant approvals,
change in the name of the Company from ASC Enterprises
Limited to Dish TV India Limited had become effective from
March 7, 2007.
PUBLIC DEPOSITS:
During the year, your Company has not accepted any Deposits under
Section 58A and Section 58AA of the Act, read with Companies
(Acceptance of Deposits) Rules, 1975.
CORPORATE GOVERNANCE:
A separate report on Corporate Governance together with Auditors'
Certificate on compliance is attached to this Annual Report as also a
Management Discussion and Analysis statement.
DIRECTORS:
During the year Messrs. Punit Goenka, Rajagopalan Chandrasekhar,
Laxmi Narain Goel and Ashok Kumar Goel resigned as Directors.
Your Directors wish to place on record their appreciation of the
contribution of these Directors.
Your Board had appointed Mr. Jawahar Lal Goel, Mr. B. D. Narang,
Mr. Arun Duggal and Mr. Ashok Kurien with effect from January 6,
2007 as Additional Directors of the Company. Mr. Jawahar Lal Goel
was also appointed as the Managing Director of the Company with
effect from January 6, 2007. The Shareholders of the Company had
approved the appointment of all the Directors including the appointment
of Mr. Jawahar Lal Goel as the Managing Director of the Company in
the meeting held on February 2, 2007.
Your Board had also appointed Dr. Pritam Singh with effect from April
27, 2007 as an Additional Director of your Company. Dr. Pritam Singh
will vacate his office at the ensuing Annual General Meeting and has
filed his consent to act as Director of the Company. Notice has been
received from a Member of the Company under Section 257 of the
Companies Act, 1956 for the appointment of Dr. Singh as Director.
Appropriate resolution seeking your approval to his appointment is
appearing in the Notice convening the 19 th Annual General Meeting of
the Company.
AUDITORS:
Statutory Auditors M/s. MGB & Co., Chartered Accountants, Delhi,
retire at the ensuing Annual General Meeting and, being eligible, offer
themselves for re-appointment.
19

GROUP
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN
EXCHANGE EARNINGS AND OUTGO:
Information required to be provided under Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of the Board of Directors) Rules, 1988 in
relation to Conservation of Energy and Technology Absorption are
currently not applicable to the Company.
Particulars of foreign currency earnings and outgo during the year are
given in Schedule 35.3 to the Notes to the Accounts forming part of
the Annual Accounts.
PARTICULARS OF EMPLOYEES:
Information required to be furnished in terms of Section 217(2A) of the
Companies Act, 1956 ('Act') read with the Companies (Particulars of
Employees) Rules, 1975 is required to be set out in an annexure to
this report. However, in terms of Section 219(1)(b) of the Act, the
Report and Accounts are being sent to the shareholders excluding the
aforesaid annexure. Any shareholder interested in obtaining copy of
the same may write to the Company Secretary at the Corporate Office.
None of the employees listed in the said annexure are related to any
Director of the Company.
ACKNOWLEDGEMENTS:
Your Directors take this opportunity to place on record their
appreciation of the dedication and commitment of employees at all
levels that has contributed to the success of your Company. Your
Directors thank and express their gratitude for the support and cooperation
received from the Central and State Governments - mainly
the Ministry of Information and Broadcasting and the Department of
Telecommunications - and other stakeholders including viewers,
vendors, bankers, investors, service providers as well as regulatory
and Governmental authorities.
For and on behalf of the Board of Directors
Place : Noida Jawahar Lal Goel B. D. Narang
Date : June 28, 2007 Managing Director Director
20

STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES
ACT, 1956 RELATING TO SUBSIDIARY COMPANIES
1. Name of the subsidiary Integrated Subscriber Agrani Satellite Agrani Convergence
Management Services Limited Limited
Services Limited
2. Financial year ended March 31, 2007 March 31, 2007 March 31, 2007
3. Holding Company’s interest 100% 100% 51%
4. Share held by the Holding Company in the subsidiary 50,000 Equity 94,401,004 Equity 12,470,544 Equity
Shares of Rs. 10/- each Shares of Rs. 10/- each Shares of Rs. 10/- each
5. The net aggregate of profits or (losses) for the current
financial year of the subsidiary so far as it concerns
the members of the Holding Company
a) dealt with or provided for in the accounts of the Holding Company Nil Nil Nil
b) not dealt with or provided for in the accounts of the Holding Company Rs. (2,270,636) Nil Rs. (4,288,463)
6. The net aggregate of profits or losses for the current
financial year of the subsidiary so far as it concerns
the members of the Holding Company
a) dealt with or provided for in the accounts of the Holding Company Nil Nil Nil
b) not dealt with or provided for in the accounts of the Holding Company Rs. 9,655,527 Nil Rs. (401,564,324)
Note : As the financial year of the subsidiary companies coincides with the financial year of the Holding Company, Section 212(5) of the Companies Act, 1956 is not
applicable.
For and on behalf of the Board
Jawahar Lal Goel
Managing Director
Rajeev K. Dalmia
Chief Financial Officer
B. D. Narang
Director
Jagdish Patra
Company Secretary
Place : Noida
Date : June 28, 2007
21

GROUP
REPORT ON CORPORATE GOVERNANCE
The Company confirms that it has complied with all mandatory
requirements to Clause 49 of the Listing Agreement. The Equity Shares
of the Company got listed on the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE) on April 18, 2007 and on the Calcutta
Stock Exchange (CSE) on June 6, 2007. Although the provisions pertaining
to the Listing Agreement is not strictly applicable as on March 31, 2007,
however as a good management practice, we have provided information
upto the date of approval of the Annual Accounts i.e. June 28, 2007.
BOARD'S PHILOSOPHY ON CORPORATE GOVERNANCE
At Dish TV we firmly believe that good corporate governance is critical
to sustaining corporate development, increasing productivity and
competitiveness. The governance process should ensure that the
available resources are utilised in a manner that meets the aspirations
of all its stakeholders. Your Company's essential charter is shaped
by the objectives of transparency, professionalism and
accountability. The Company continuously endeavour to improve on
these aspects on an ongoing basis.
Company believes that Corporate Governance is the commitment to
compliance with all Laws, Rules and Regulations that apply to it with
the spirit and intent of high business ethics, honesty and integrity
resulting in the effective control and management system in the
organisation leading towards the enhancement of medium and long
term shareholders’ value and interest of other stakeholders. It brings
into focus the fiduciary and the trusteeship role of the Board to
align and direct the actions of the organisation towards creating wealth
and shareholders’ value.
BOARD OF DIRECTORS
a) Composition and Category of Directors
Dish TV Board has an optimum combination of Executive and
Non-Executive Directors, to ensure independent functioning. Non-
Executive Directors include persons drawn from amongst
eminent professionals with experience in business/finance/
taxation/technology.
Composition of the Board as on June 28, 2007
22
Category of Directors No. of % to total
Directors No. of
Directors
Executive Director 1 17
Independent Directors 3 50
Other Non-Executive Directors 2 33
Total 6 100
The particulars of Directors, their attendance at the Annual General
Meeting and Board Meetings held from April 1, 2006 up till June
28, 2007 and also their other directorships in Public Companies
and membership of Audit Committee and Shareholders' Grievance
Committee as on June 28, 2007 are as under:
Name of Category Attendance at No. of No. of
Director Board 18th Directorship Member-
Meetings AGM held of other ships of
(Total 26 on Sept. 29, Companies Board Sub-
Meetings) 2006 Committees
Mr. Subhash PD,NED 1 No 7 1
Chandra
(Chairman)
Mr. Jawahar ED 9 N.A 8 1
Lal Goel*
(Managing
Director)
Mr. Ashok PD,NED 5 N.A 2 3
Kurien**
Mr. B. D. NED,ID 6 N.A 3 2
Narang**
Mr. Arun NED,ID 5 N.A 9 5
Duggal**
Dr. Pritam NED,ID 1 N.A 3 4
Singh***
Mr. Rajagopalan NED,ID 4 No N.A N.A
Chandrasekhar****
Mr. Laxmi PD,NED – No N.A N.A
Narain
Goel****
Mr. Ashok PD,NED 18 Yes N.A N.A
Kumar
Goel****
Mr. Punit PD,NED 18 Yes N.A N.A
Goenka****
* Appointed as Additional Director and also Managing Director w.e.f. January
6, 2007.
** Appointed as Additional Director w.e.f. January 6, 2007.
*** Appointed as Additional Director w.e.f. April 27, 2007.
****Resigned as Director w.e.f. January 6, 2007.
PD: Promoter Director
ED: Executive Director
(b)
NED: Non-Executive Director
ID: Independent Director
From April 1, 2006 till June 28, 2007, 26 meetings of the Board
were held on April 11, 2006, April 27, 2006, May 10, 2006, May
18, 2006, August 8, 2006, August 18, 2006, August 21, 2006,
August 25, 2006, August 30, 2006, September 25, 2006, October
4, 2006, October 27, 2006, November 4, 2006, November 15,
2006, November 24, 2006, November 27, 2006, December 1,
2006, January 6, 2007, January 23, 2007, February 22, 2007,
March 2, 2007, March 15, 2007, March 22, 2007, April 10, 2007,
April 27, 2007 and June 28, 2007. The intervening period between
the Board Meetings were well within the maximum time gap
prescribed under Companies Act, 1956 and Clause 49 of the
Listing Agreement.
Board Meetings of the Company are governed by a structured
agenda. The Company Secretary in consultation with

Chairman/Managing Director drafts agenda of the Board
Meetings. All major agenda items, backed up by
comprehensive background information, are sent well in
advance of the date of the Board meetings to enable the Board
to take informed decision. Any Board member may, in
consultation with the Chairman, bring up any matter for
consideration by the Board. The Chief Executive Officer and
Heads of Departments of Finance and Projects are normally
invited to attend the Board meetings to provide necessary
insights into the working of the Company and discussing
corporate strategies.
The Board periodically reviews Compliance Reports in respect
of laws and regulations applicable to the Company.
Brief profile of the Directors:
1. Mr. Subhash Chandra : Mr. Chandra is the Chairman of Zee
Entertainment Enterprises Limited and promoter of Essel
Group of Companies. His leading industry businesses
includes, television networks and film entertainment, cable
systems, satellite communications, theme parks, flexible
packaging, family entertainment centres and online gaming.
Mr. Chandra leads the Board of Directors and works together
with heads of various businesses and the corporate team
to help set Zee's strategy.
Mr. Chandra has been the recipient of numerous honorary
degrees, industry awards and civic honours, including being
named 'Global Indian Entertainment Personality of the Year'
by FICCI for 2004, 'Business Standard's Businessman of
the Year' in 1999, 'Entrepreneur of the Year' by Ernst &
Young in 1999 and 'Enterprise CEO of the Year' by
International Brand Summit. The Confederation of Indian
Industry (CII) chose Mr. Chandra as the Chairman of the CII
Media Committee for two successive years. Mr. Chandra
has made his mark as an influential philanthropist in India.
He set up TALEEM (Transnational Alternate Learning for
Emancipation and Empowerment through Multimedia), an
organisation which seeks to provide access to quality
education and to promote research in various disciplines
relating to health & family life, social & cultural
anthropology, communication and media. He is also the
trustee for the Global Vippassana Foundation a trust set up
for helping people in spiritual upliftment.
2. Mr. Jawahar Lal Goel : Mr. Goel took the position of
Managing Director of the Company on January 6, 2007.
Mr. Goel is actively involved in creation and expansion of
Essel Group of Industries. He heads the business of Dish
TV. He has been a prophet in pioneering the Direct To Home
(DTH) services in India and instrumental in establishing
Dish TV as a prominent brand with India's most modern
and advanced technological infrastructure.
Mr. Goel is the President of Indian Broadcasting Foundation
which takes up various issues relating to Broadcasting
industry at various forums. He is active member on the
Board of various committees and task force set up by
Ministry of Information & Broadcasting, Government of India
which takes care of several critical matters relating to the
industry. He is a prime architect in establishing India's
most modern and advanced technological infrastructure
for the implementation of Conditional Access System (CAS)
and Direct To Home (DTH) services through "HITS" which
would bring a revolution in the distribution of various
entertainment and electronic media products in India in
the ensuing months and would enormously benefit
consumers (TV viewers).
3. Mr. B. D. Narang : Mr. Narang is a Post Graduate in
Agricultural Economics and brings with him 32 years of
Banking experience. During this period, he also held the
coveted position of the Chairman and Managing Director
of Oriental Bank of Commerce.
Mr. Narang has handled special assignments viz. alternate
Chairman of the Committee on Banking procedures set up
by Indian Banks Association for the year 1997-98, Chaired a
Panel on serious financial frauds appointed by R.B.I., Chaired
a Panel on financial construction industry appointed by Indian
Banks Association, Appointed as Chairman of Governing
Council of National Institute of Banking Studies & Corporate
Management, Elected Member Management Committee of
Indian Banks Association, Member of the Advisory Council
of Bankers Training College (RBI) Mumbai, Chairman of IBA's
Advisory Committee on NPA Management, CDR Mechanism,
DRT, ARC etc. Elected as a Fellow and Member of Governing
Council of the Indian Institute of Banking & Finance, Mumbai,
Elected as Deputy Chairman of Indian Banks Association,
Mumbai and recipient of Business Standard "Banker of the
Year" Award for 2004. Presently he is Independent Director
on the Board of National Investment Fund, M/s Shivam
Autotech Ltd., M/s IST Steel & Power Ltd., M/s Jubilee Hills
Landmark Projects Ltd., Member of Expert group formed for
examining problem of distressed farmers - nominated by
RBI, Member of the Committee to oversee the working of
National Education & Investor Fund - Nominated by Ministry
of Co. Affairs, Goverment of India, Member Supervisory Board
of NABARD. Beside this he is advisor on the Board of KARMA
FOUD and Consultant of M/s Revathi Equipment Ltd. for private
equity business, DSP Merrillynch for India related business
and M/s Dhir & Dhir Associate Law Firm.
4. Mr. Arun Duggal : Mr. Duggal, a Mechanical Engineer from
the prestigious Indian Institute of Technology, Delhi and
holds an MBA from the Indian Institute of Management,
Ahmedabad. He teaches Banking & Finance at the Indian
Institute of Management, Ahmedabad as a visiting
Professor.
Mr. Duggal, is an experienced international Banker,
advising Corporations on Financial Strategy, M&A and
Capital Raising areas and an International Advisor to a
number of Corporations, major Financial Institutions and
Private Equity firms.
Mr. Duggal is the Vice Chairman (non executive) of
International Asset Reconstruction, a de novo Company
engaged in managing Non Performing Loan portfolios. He
is on the Board of Directors of Jubilant Energy Ltd. Canada,
23

GROUP
24
Patni Computer Systems Ltd. (Chairman, Audit Committee),
Fidelity Fund Management, Petronet LNG (Nominee
Director of Asian Development Bank and Chairman, Audit
Committee), Manipal AcuNova (Chairman - Investment and
Finance Committee), Zuari Industries, Pragati Capfin Ltd.,
Info Edge (India) Ltd. (Chairman - Audit Committee), The
Economist Intelligence Unit (India), Shriram Transport
Finance Company (Chairman), Shriram Properties Ltd.
(Chairman), Shriram City Union Finance Limited (Chairman)
and Mundra Port & Special Economic Zone Ltd. He was
also on the Board of Governors of the National Institute of
Bank Management and erstwhile Chairman of the American
Chamber of Commerce, India.
5. Mr. Ashok Kurien : Mr. Kurien, is a well known personality
in the advertising world. He is the Chairman of Ambience
Publicis, Publicis India and Solutions-Publicis India. He is
also the promoter-Director of Zee Entertainment Enterprises
Limited (ZEEL) which has in its fold flagship channel Zee
TV, India's first private satellite channel.
6. Dr. Pritam Singh : Dr. Singh is an M.Com (BHU), MBA (USA),
Ph.D. (BHU), and author of seven academically reputed
books and published over 50 research papers.
Dr. Singh is one of the pioneers of management education in
India and abroad. He initiated a number of social projects
focusing on Healthcare, Education, Water Management and
Road Building for the surrounding community to improve
the quality of life. Owing to his contributions towards building
intellectual capital at Administrative Staff College and
refocusing of IIM, Bangalore as a truly integrated management
school, he is branded as a Change Master par excellence
and a Renaissance leader. Currently he is on the Board of
Shipping Corporation of India, Hero Honda Motors Limited,
Parsvnath Developers Limited and Local Board of Reserve
Bank of India. Dr. Singh’s distinguished services were
acknowledged by the country when the President of India
conferred on him the prestigious ‘Padma Shri’ in year 2003.
He has also been conferred with many other prestigious
management awards. Notable among them are ESCORT
Award (1979 and 2002), FORE Award (1984), Best Motivating
Professor IIM Bangalore Award (1993), Best Director Award
of Indian Management Schools (1998), Outstanding CEO
(Chief Executive Officer) National HRD Award (2001) UP
RATNA Award (2001), Wisitex Foundation Award – Eminent
Personality of the Decade (2002) TIEUP California USA
Outstanding Entrepreneur Award (2002), IMM Outstanding
Management Educator Award (2002), Managerial GRID
Leadership Excellence Award (2002).
Code of Conduct
The Board of Directors at its meeting held on January 6,
2007 have approved and adopted Code of Conduct for
Members of the Board of Directors and Senior Management
of the Company. The Code has been posted on Company's
website viz. www.dishtv.in
A declaration affirming compliance with the Code of Conduct
by the members of the Board and Senior Management is
annexed herewith and forms part of this report.
Declaration
All Directors and Senior Management of the Company
have affirmed compliance with the Code of Conduct for
the financial year ended March 31, 2007.
Jawahar Lal Goel
Managing Director
Noida, June 28, 2007
BOARD COMMITTEES
a) Audit Committee
The Board has constituted the Audit Committee, all the Members
of the Committee being Non-Executive Directors. The Chairman
of the Committee, Mr. B. D. Narang, is an Independent Director.
The role and the powers of the Audit Committee are as per the
guidelines set out in the Listing Agreement with the Stock
Exchanges and provisions of Section 292A of the Companies
Act, 1956. The Committee meets periodically and reviews:
Audited and unaudited financial results,
Internal audit reports and report on internal control systems
of the Company,
Business plans, and various reports placed by the
Management,
Discusses the larger issues that could be of vital concern
to the Company including adequacy of Internal Controls,
reliability of financial statements/other management
information, adequacy of provisions for liabilities and
whether the audit tests are appropriate and scientifically
carried out in accordance with Company's business and
size of operations.
The Audit Committee also reviews adequacy of disclosures and
compliance with all relevant laws. In addition to the foregoing, in
compliance with requirements of Clause 49 of the Listing
Agreement, the Audit Committee reviews operations of subsidiary
companies viz. its financial statement, significant related party
transactions, statement of investments and minutes of meeting
of the Board and Committees.
During the period under review, Audit Committee met thrice i.e.
on August 30, 2006, February 22, 2007 and June 28, 2007.
Present composition of Audit Committee of the Board, in
accordance with the applicable guidelines and rules, during the
period under review is as follows:
Name of Category Date of Date of
Directors Appointment Cessation
Mr. B. D. Non- January 6, NA
Narang Executive- 2007
Independent
Mr. Arun Non- January 6, NA
Duggal Executive- 2007
Independent
Mr. Ashok Non- January 6, April 27,
Kurien Executive 2007 2007
Dr. Pritam Non- April 27, 2007 NA
Singh Executive-
Independent

Statutory Auditors, Chief Executive Officer and Chief Financial
Officer of the Company attend meetings of the Committee.
The Company Secretary is the Secretary of the Audit
Committee.
b) Remuneration Committee and Policy
The Remuneration Committee of the Company comprises of
Mr. B. D. Narang, Non-Executive Independent Director as
Chairman, Mr. Arun Duggal, Non-Executive Independent Director
and Dr. Pritam Singh, Non-Executive Independent Director. The
Company Secretary is the Secretary of the Committee.
The terms of reference of the Remuneration Committee, inter alia,
consist of reviewing the overall compensation policy, service
agreements and other employment conditions of Executive
Directors. The remuneration of Executive Directors is decided by
the Board of Directors on the recommendation of the Remuneration
Committee as per the remuneration policy of the Company within
the overall ceiling approved by shareholders.
During the period under review, Remuneration Committee met
only once on January 6, 2007, which was attended by all
members.
Details of the remuneration paid to Managing Director till
March 31, 2007 :
Name Position Remuneration (Rs.) Employer's
Salary Contribution
and to Provident
Allowances Fund
Mr. Jawahar Managing 1,225,613 68,129
Lal Goel Director
Remuneration payable to Non-Executive Director
Within the limits specified under the Companies Act, 1956 and
approved by the Board, all the Non-Executive Directors are entitled
for sitting fees of Rs. 10,000/- per meeting for attending the
Meetings of the Board, Audit and Remuneration Committee with
effect from March, 2007.
c) Share Transfer and Investor Grievance Committee
The Share Transfer and Investors Grievance Committee of the
Board comprises of Mr. Ashok Kurien, Non-Executive Director
as Chairman and Mr. Jawahar Lal Goel, Managing Director as
Member. The Company Secretary is the Secretary of the
Committee.
Main functions of the Share Transfer and Investor Grievance
Committee is to supervise and ensure efficient transfer of shares
and proper and timely attendance of investors' grievances.
Mr. Jagdish Patra, Company Secretary is the Compliance Officer
of the Company.
During the period under review, Share Transfer and Investor
Grievance Committee met once on May 30, 2007. The meeting
was attended by all committee members.
Details of number of requests/complaints received and resolved
since listing till as on date:
Nature of Received Replied/ Pending
Correspondence
Resolved
Request for Transfer/ 9 9 –
Transmission/Demat/Remat
Non-receipt of Certificate 12 12 –
Non-receipt of Warrant 4 4 –
Miscellaneous Letters 37 37 –
ANNUAL GENERAL MEETINGS
The 19 th Annual General Meeting of the Company for the year 2007
will be held on Friday, the 3 rd day of August, 2007 at Seven Seas, B-28,
Ring Road, Lawrence Road, Industrial Area, Delhi-110 035 at 3 P. M.
Details of Annual General Meetings held during last 3 years are as
follows:
Meeting Day, Date and Venue
Time of the Meeting
18th AGM Friday, September B-10, Lawrence
29, 2006, 1130 Hrs. Road, Industrial
Area, Delhi - 110 035
17th AGM Friday, September B-10, Lawrence
30, 2005, 1130 Hrs. Road, Industrial
Area, Delhi - 110 035
16th AGM Thursday, September B-10, Lawrence
30, 2004, 1130 Hrs. Road, Industrial
Area, Delhi - 110 035
No Special Resolution was passed during the last three Annual General
Meetings of the Company.
DISCLOSURES
There are no materially significant related party transactions i.e.
transaction material in nature, between the Company and its
promoters, directors or management or their relatives etc. having
any potential conflict with interests of the Company at large.
Transactions with related parties are disclosed elsewhere in the Annual
Report.
There has not been any non-compliance by the Company and no
penalties or strictures imposed by SEBI or Exchanges or any statutory
authority on any matter relating to capital markets, during the last
three years.
MEANS OF COMMUNICATION
The Company has promptly reported all material information including
declaration of financial results, press releases, etc. to all Stock
Exchanges where the securities of the Company are listed. Such
information is also simultaneously displayed immediately on the
Company's website, www.dishtv.in. The financial results and other
statutory information were communicated to the shareholders by way
of an advertisement in a English daily and in a vernacular language
newspaper as per requirements of the Stock Exchanges.
Official news releases and presentations made to institutional
investors or to the analysts are displayed on Company's
website, www.dishtv.in.
Management Discussions and Analysis Report forming part of Annual
Report is annexed separately.
SHAREHOLDERS' INFORMATION
The required information is provided in Shareholders' Information
Section.
25

GROUP
AUDITORS’ CERTIFICATE
To,
The Members of
Dish TV India Limited
We have examined the compliance of conditions of Corporate Governance by Dish TV India Limited, for the period from April 1, 2006 to June
28, 2007 as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to procedures
and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither
an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the representations made by the management,
we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement.
We state that generally no investor grievances are pending for a period exceeding 30 days against the Company as per the records maintained
by the Company.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
L. K. Shrishrimal
Partner
M. No. 72664
For and on behalf
MGB & Co.,
Chartered Accountant
Place : Noida
Date : June 28, 2007
26

SHAREHOLDERS' INFORMATION
1. Date, Time and Venue of Shareholders' Meeting Meeting : Annual General Meeting
Day and Date : Friday, 3rd August, 2007
Time : 3 P. M.
Venue : Seven Seas, B-28, Ring Road, Lawrence Road,
Industrial Area, Delhi - 110 035
2. Financial Year 2006-2007
3. Date of Book Closure Monday, July 30, 2007 to Friday, August 3, 2007 (Both days inclusive)
4. Registered Office B-10, Essel House, Lawrence Road, Industrial Area, Delhi -110 035
Tel: +91 11 27101145, Fax: + 91 11 27186561, Website: www.dishtv.in
5. Listing on Stock Exchanges The Bombay Stock Exchange Limited (BSE)
The National Stock Exchange of India Limited (NSE)
The Calcutta Stock Exchange Association Limited (CSE)
6. Stock Code 532839 (Bombay Stock Exchange)
DISHTV (National Stock Exchange)
7. ISIN No. Equity - INE836F01026
8. Registrar & Share Transfer Agent Sharepro Services (India) Pvt. Ltd.
Unit: Dish TV India Ltd. Satam Estate, 3rd Floor, Above Bank of Baroda,
Cardinal Gracious Road, Chakala, Andheri (E), Mumbai - 400 099
Tel: +91 22 2821 5168/2832 9828 , Fax: +91 22 2839 2259/2837 5646
Email: sharepro@vsnl.com
9. Investor Relation Officer Mr. Ranjit Srivastava - Asst. Company Secretary
Dish TV India Limited, FC-19, Sector 16 A, Noida - 201 301, U.P., India
Tel: +91-120-2511064/78, Fax: +91-120-2488777, Email: cs@dishtv.in
10. Change of Address
Members holding equity shares in physical form are requested to notify the change of address, if any, to the Company's Registrar & Share
Transfer Agent, at the address mentioned above.
Members holding equity shares in dematerialised form are requested to notify the change of address if any, to their respective Depository
Participant (DP).
11. Share Transfer System
Equity Shares sent for physical transfer or for dematerialisation are generally registered and returned within a period of 15 days from the
date of receipt of completed and validly executed documents.
12. Dematerialisation of Equity Shares & Liquidity
As per extant guidelines Trading in equity shares of the Company is mandatory in dematerialised form. To facilitate trading in demat form,
there are two depositories i.e. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
The Company has entered into agreements with both these depositories. Shareholders can open account with any of the Depository
Participant registered with any of these two depositories. As on date 57.69% of the equity shares of the Company are in the dematerialised
form.
13. Shareholders' Correspondence
We endeavour to reply all letters received from the shareholders within a period of 7 working days.
All correspondence may be addressed to the Registrar & Share Transfer Agent at the address given above. In case any shareholder is not
satisfied with the response or do not get any response within reasonable period, they may approach the Investor Relation Officer at the
address given above.
27

GROUP
14. Stock Market Data Relating to Shares Listed in India
a. Monthly high and low quotations and volume of shares traded on Bombay Stock Exchange and National Stock Exchange for the
period April, May and June 2007 (upto June 28, 2007) are:
BSE
NSE
Month High Low High Low
(Rs.) (Rs.) (Rs.) (Rs.)
April 2007 120 97.25 117 96.5
May 2007 142.8 107.5 142.8 107.5
June 2007 136.2 100.7 135.85 101.00
Distribution of Shareholding as on June 22, 2007
No. of Equity Shares
Shareholders
No. of Shares
Number % of Holders Number % of Shares
Up to 5000 117465 99.32 14759351 3.45
5001-10000 319 0.27 2266195 0.53
10001-20000 135 0.11 1941023 0.45
20001-30000 70 0.06 1710425 0.40
30001-40000 29 0.03 1026959 0.24
40001-50000 25 0.02 1147852 0.27
50001-100000 44 0.04 3136212 0.73
100001 and Above 180 0.15 402234786 93.93
TOTAL 118267 100.00 428222803 100.00
Categories of Shareholders as on June 22, 2007
Category No. of Shares held % of Shareholding
Promoters 248335772 57.99
Individuals 15580873 3.64
Domestic Companies 16532773 3.86
FIs, Mutual Funds and Banks 38548738 9.00
FIIs, OCBs & NRI 109224647 25.51
TOTAL 428222803 100.00
28

Top ten (10) Shareholders as on June 22, 2007
Sr. No. Name No. of Shares held % of Shareholding
1. Veena Investments Pvt. Ltd. 76497825 17.86
2. Afro-Asian Satellite Communications 35172125 8.21
3. Jayneer Capital Pvt. Ltd. 34399354 8.03
4. Charu Trading Co. Pvt. Ltd. 26858508 6.27
5. Ganjam Trading Co. Pvt. Ltd. 16876987 3.94
6. Premier Finance & Leasing Ltd. 12859855 3.00
7. Prajatama Trading Co. Pvt. Ltd. 11998875 2.80
8. Life Insurance Corporation of India 11719541 2.74
9. Oppenheimer Funds Inc. A/c Oppenheimer 10934339 2.55
10. Delgrada Limited 10420293 2.43
TOTAL 247737702 57.85
DISH TV SHARE PATTERN AS ON JUNE 22, 2007
25.51
Promoters
Individuals
9.00
3.86
3.64
57.99
Domestic Companies
Fls, Mutual Funds & Banks
Flls, OCBs & NRI
SHAREHOLDERS SERVICES
Compliance Officer
Jagdish Patra
Company Secretary & Compliance Officer
Dish TV India Ltd.
FC-19, Sector 16 A, Noida - 201 301, U.P., India
Tel. : +91-120-2511064
Fax : +91-120-2488777.
29

GROUP
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Your Directors are pleased to present the Management Discussion
and Analysis Report for the year ended March 31, 2007.
DISH TV - AN OVERVIEW
The total number of TV owning households in India is estimated at 117
million. This represents a 54% penetration of TV in Indian households.
Out of this, Cable and Satellite households are 68 million. The DTH
industry is currently pegged at 2.6 million subscribers. India is also
one of the fastest growing and largest television markets in the world.
Television households are estimated to grow to 165 million in 2011,
resulting in an annual compounded growth rate of 6.5% p.a. The Indian
Entertainment & Media Industry is estimated to be Rs. 450 billion and
is on a growth overdrive, with a conservative projected compounded
annual growth rate of 18% over the next 5 years. The DTH Industry
revenue is expected to grow @ 80% compounded per annum over the
next 5 years and will be in the range of Rs.100 billion in 2011.
Due to the continued buoyancy in the Indian economy and an annual
growth rate of over 9%, the country's Gross Domestic Product is
touching US$ One trillion. This, coupled with increasing penetration
of TVs, will give a boost to the demand for better quality products like
DTH. In terms of sheer numbers, DTH subscribers are expected to
touch 27 million in 2011 and 61 million in 2015.
The industry will move towards adoption of best business practices
due to enhanced consumer awareness about the quality of content,
convergence, customisation, configuration, digitalisation, dynamic
pricing, product innovation and contemporary global viewing
experiences. Customers will increasingly demand content from
content providers, that they can engage and relate with and which has
relevance to their social and leisure lifestyle.
Going forward, in the years to come, key drivers for the DTH industry
will be Brand Strategy, Service Excellence, Content, Distribution reach
across all corners of the country, Digitalisation of the industry, Strong
high end television growth, Events like the Olympics and
Commonwealth games, Robust international football and cricket
calendar, improvement in the electricity generation situation and
multiple service providers who between them are likely to spend
anything between Rs.10-15 billion per annum on advertising and
sales promotion. All these things, coupled with enormous consumer
education, will result in the market opening up.
Challenges to DTH providers will be largely in the form of higher
subscriber acquisition costs, high content costs, long gestation and
profit break even periods, stiff competition among various DTH
platforms and from the cable industry, high tax regime, frequent
regulatory changes and non availability of transponder capacity.
SWOT ANALYSIS
STRENGTHS
Dish TV has the first mover advantage on account of being the first
DTH service provider in India. Being a part of the Essel Group, there
is strong promoter backing and committed investment. Dish TV is
also India's only truly national DTH brand, with presence in over
4,000 towns and with an equally strong representation in both Urban
and Rural markets. Sales and Distribution infrastructure is one of the
Company's key strengths. The Company has an extremely cost
conscious culture that has resulted in multiple cost management
initiatives making it one of the lowest cost service providers. Strong
technology partnerships with organisations like Conax (Norway) and
Open TV (USA) have helped/continue to help in providing cutting edge
features and in maintaining technological leadership. Advance planning
has resulted in adequate transponder capacity to meet the new channel
launch requirements of the Company. This is an area where all other
operators are likely to feel challenged over the next two years.
OPPORTUNITIES
GDP growth of almost 9% over the last four years has resulted in
India's huge middle class flexing its muscles and an explosion in
consumerism. With net disposable incomes on the rise, Indians are
spending like never before on acquiring the latest products and
products that are aspirational in nature. DTH, with its superior quality
and wide ranging maneuverability and flexibility - Active services,
Interactive services, multipoint channel viewing, gaming, Electronic
Program Guide etc. - is increasingly being adopted by those who
want great quality TV viewing experience. So far the Company has
concentrated on household customers but a wide scope exists in
areas relating to Multi Dwelling Units, Institutions, Guest Houses,
Restaurants, Hotels and other Commercial establishments. Further,
the emergence of large retail format stores across the country is
creating a totally new opportunity. These will become more important
as the retail industry in India goes through a consolidation phase,
from its current highly fragmented disposition. As the Industry matures,
value added services will give a boost to ARPU.
WEAKNESSES
The DTH Industry in India is an intrinsically low ARPU market, with
one of the lowest rates in the world. This poses a challenge to the
profitability of operators. This will continue till exclusive content
becomes a reality, till people are willing to pay for more content and
till value added services catch on with consumers. In all these areas,
the Company has clearly defined strategies to increase ARPU.
THREATS
India will have between 4 to 5 operators in the DTH space. While this
will help in expanding the market, as happened in mobile telephony, it
will also result in higher subscriber acquisition costs by way of
increase in promotional spends and higher subsidy on set top boxes.
IP TV is also likely to come in, but is unlikely to be a major threat. With
increasing competition management of churn and quality of subscriber
acquisitions will also be a challenge.
BUSINESS STRATEGY
In the face of the opportunity that lies ahead, as well as the challenges
with respect to the competitive environment, it would be paramount
to sustain high paced growth and long-term viability of the business
model. On a broader scale, the Media and Television industry is also
going through a dynamic phase, therefore flexibility, adaptability and
growth remain key concerns of the management. Going forward, we
would build our business strengths, on the following strategies:
(I) Brand Building: Dish TV is already considered a pioneer and
30

(II)
leader in the DTH segment. Efforts will be on, to make the brand
a force to reckon with, that carves a niche for itself in the consumers'
mind-space and life. Further, it will be the task of marketing
to educate consumers, about the relevance of this technology
to their entertainment needs, which will drive faster adoption.
Value added services, will become more aspirational and
find higher usage, as the product penetration expands. These
services will drive not just brand stature but add to the revenue
prospects as well.
Subscriber and Revenue Growth: The Company has created a
Zonal structure comprising of seven zones to create a wide
spread distribution muscle across the length and breadth of
the country. Apart from traditional retail outlets in the durable
and telecom categories, the product will also find presence in
multi brand national and regional modern trade chain stores.
These stores that attract large volume traffic will add to our
sales numbers in the present year, apart from giving us a
commanding brand presence in the market. Moreover, large
Corporates are being approached for bulk sales for their employees,
vendor gifts, trade schemes and the like. Whilst acquiring
new subscribers would remain one of the primary drivers
for growth, retention of existing customers would also be a
key focus area. Distinct emphasis is being laid to build capability
in the team to develop subscriber relationship management
and CRM calendars that will help in reducing churn and
boosting revenues through timely collection and upgrade offers.
(III) Service Capability: Recognising that service would be a key
differentiator for this business, a commendable service team
has been set up, over the last year, to take care of both the front
end service management in the field and a back end support
from the enhanced call centre capabilities. 93 Dish Care Centres
(DCC) and service franchisees have been set up across major
cities to provide on-site customer service, in the likelihood of
such a service requirement. A large team of experienced
professionals have been hired across regions, to build a service
infrastructure that is commensurate with the growth in subscriber
base and to steer the service function ongoingly. Call centre
infrastructure has also been upgraded to cater to the demands of
our growing base. Emphasis is placed on ease of access, instant
customer responsiveness, quality of call centre interactions and
fast resolution time. The objective being to build customer loyalty
and an overall feeling pride of possession among the Dish TV
subscribers.
(IV) Corporate Governance and Value Creation : We strongly believe
that group corporate governance and management best practices
are critical for long-term sustainable growth and for building
resilience to competition. It will drive and ensure accountability,
transparency, professionalism and risk containment. The
recent restructure exercise will create more value and build a
focused business approach that will go a long way in creating
value for the stakeholders.
CORPORATE STRUCTURE AFTER MERGER
Integrated Subscriber
Management Services
Limited (wholly owned Subsidiary
Company of SITI) (Now wholly owned
subsidiary of Dish TV)
New Era Entertainment
Network Limited
(NEEL) (Subsidiary of SITI)
Zee Entertainment
Enterprises Ltd. (ZEEL)
SITI Cable Network
Limited (SITI)
(Subsidiary of ZEEL)
Direct Consumer
Services Business
undertaking(DCS)
Dish TV India Ltd.
(Formerly ASC Enterprises
Limited)
● DCS business was merged with Dish TV and in lieu of such
Merger, Dish TV issued 5.75 shares of Re. 1/- each for every 10
shares held by ZEEL shareholders.
Reorganisation of Share Capital:
(Rs. in Crore)
Equity Share Capital before 71.56
reorganisation
99.72 crores shares of Re.1/- each fully paid up equity
was issued in the ratio of 23 shares for every 10 shares
of ZEEL.
Reduction of 99.72 crores shares by cancelling of 3
shares for every 4 shares held and issue of 24.93
crores shares to ZEEL shareholders.
Therefore final equity of Dish TV India Ltd. is as under:
1. Shares issued to ZEEL shareholders 24.93
2. Reduction of existing equity of 71.56
(In the ratio of 3 equity shares for every 4 17.89
equity shares)
Total share capital 42.82
31

GROUP
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company believes in formulating adequate and effective internal
control systems and implementing the same to ensure that the assets
and interests of the Company are safeguarded and reliability of
accounting data and its accuracy are ensured with proper checks and
balances.
The Company has a strong internal audit programme, which examines
and evaluates the adequacy and effectiveness of Internal control
systems. The internal audit ensures that the systems designed and
implemented, provide adequate internal control, commensurate with
the size and operations of the Company. Management Information
System (MIS) forms an int egral part of the Company's control
mechanism, where all operating parameters are monitored and
controlled. An effective budgetary control on all capital expenditure
ensures that the actual spends are in line with the capital budget.
The Audit Committee of the Board, Statutory Auditors and the Top
Management are regularly apprised of internal audit findings. The
Audit Committee of the Company consisting of Non-Executive
Independent Directors, periodically reviews and recommends the
financial statements of the Company.
HUMAN CAPITAL
Since inception, we have endeavoured to establish ourselves as a
progressive organisation, continuously monitoring and anticipating
the changing market trends and evolving market dynamics. With this
approach, we have been the change leader in the industry, setting
what can be termed as “Industry Benchmark”.
Human capital in the organisation has always remained the constant
appreciating assets, which have propelled the organisation to its
present status. The organisation aims to post a consistent and healthy
growth in the DTH spectrum. The attraction, preservation and
development of high caliber people is the source of competitive
advantage for our business.
Over the last 6 months, it was felt imperative to undertake an in-depth
diagnostic and climate study with the purpose of aligning the
aspirations, goals, structure, capabilities, processes and people with
the organisation and most importantly bring about cultural change
and uniformity across varied spectrums internally as well as with the
industry. The entire exercise was to be followed by development of a
Human Capital strategy and undertake various Human Capital
initiatives for implementation across the organisation.
The task to realign and transform the organisation along with the
building process has been greatly challenging. However, it has
provided clarity on what an individual/employee is expected to do,
the interdependencies and interfaces in the organisation structure
and the requisite capabilities and the behaviour required.
Defining scope and responsibilities of the jobs and conducting job
evaluation exercise for the whole organisation has been helpful to
create clarity of structures, job roles and contributions resulting in
effective implementation of organisation strategies and career and
succession planning.
Identification of key and critical positions and identifying individuals
with leadership skills and nurturing them as future leaders, has been
a continuous process.
The organisation has also seen employee engagement initiatives like
open houses, fun events, employee community building and
recognition activities, which have build a sense of well being and
excitement in the work environment. Training and development
initiatives planned are focused towards increasing organisation's
effectiveness and health through planned interventions in the
processes, skills and competencies.
There have also been a lot of efforts spent in pruning and streamlining
the PMS, employee MIS and HR services systems and processes.
The process is being advised by Hay Group. The objective of human
resources is to build and develop a Human Capital geared up to face
the challenges of the business.
TALENT IDENTIFICATION
The Company's talent Identification process is aimed at identifying
employees who have the aptitude, capabilities and qualities necessary
to undertake work, involving greater responsibility and skill levels,
than their current one. Another aspect of talent identification is to
create a talent pool by identifying individuals with leadership qualities
and nurturing them as future leaders. A proactive and an effective
succession management is in place, to nurture the talent pool.
Individual development plans have been drawn detailing the career
steps of the individual.
CAUTIONARY STATEMENT
Statements in this report describing the Company's objectives,
expectations or predictions may be forward looking within the meaning
of applicable laws and regulations. The actual results may differ
materially from those expressed in this statement.
32

AUDITORS' REPORT
To,
The Members,
Dish TV India Limited
1. We have audited the attached Balance Sheet of Dish TV India
Limited (formerly ASC Enterprises Limited) as at March 31,
2007 and also the Profit and Loss Account and the Cash Flow
Statement of the Company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an
opinion on these 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. As required by the Companies (Auditor’s Report) Order, 2003
(hereinafter referred to as "the Order") issued by the Central
Government of India in terms of Section 227(4A) of the Companies
Act, 1956 ("the Act"), on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us during the course of our audit, we annex
hereto a statement on the matters specified in paragraph 4 and
5 of the said Order.
4. We draw reference to
a) Note 21 regarding the Scheme of Arrangement sanctioned
by the High Court of Judicature at Bombay on 12th January,
2007 and High Court of Judicature at New Delhi on 18th
December, 2006, effect of which has been given in these
financial statements, except allotment of equity shares and
reorganisation of the share capital.
b) Note 23 regarding preparation of these financial statements
on going concern basis.
5. Further to our comments in the annexure referred to in paragraph
(3) above, we report that:
a) We have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b) In our opinion, proper books of accounts as required by
law have been kept by the Company, so far as appears
from our examination of those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with
the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account
and Cash Flow Statement complies with the accounting
standards referred to in sub-section (3C) of Section 211 of
the Act;
e) On the basis of written representations received from the
directors, and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on
March 31, 2007 from being appointed as a director in terms
of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956;
f) In our opinion and to the best of our information and
according to the explanations given to us, the said accounts
read with the significant accounting policies and notes
thereon subject to Note 30.10.2 regarding managerial
remuneration amounting to Rs.1,293,742 paid to managing
director pending approval of Central Government, give the
information required by the Act in the manner so required
and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs
of the Company as at March 31, 2007;
ii) In the case of the Profit and Loss Account, of the loss
of the Company for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows
for the year ended on that date.
L.K. Shrishrimal
M. No. 72664
Partner
For and on behalf of
MGB & Co.
Chartered Accountants
Place : Noida
Date : June 28, 2007
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT
TO THE MEMBERS OF DISH TV INDIA LIMITED ON THE ACCOUNTS
FOR THE YEAR ENDED MARCH 31, 2007.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of
its fixed assets.
(b) According to the information and explanations given to us,
there is a phased program of physical verification of fixed
assets except for consumer premises equipments installed
at the customers premises,, which in our opinion is
reasonable having regard to the size of the Company and
nature of its assets. Pursuant to the program, the physical
verification of certain assets was carried out during the
year. The reconciliation of the fixed assets physically verified
with the books is in progress and differences, if any, will
be accounted on its determination.
33

GROUP
(c) In our opinion, the Company has not disposed of substantial
part of the fixed assets during the year.
(ii) (a) The inventory has been physically verified by the
management at the end of the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures of physical verification of inventories
followed by the management are reasonable and adequate
in relation to the size of the Company and the nature of its
business.
(c) The Company is maintaining proper records of the inventory
and no discrepancy were noticed on physical verification
as compared to book records.
(iii) (a) According to the information and explanations given to us,
the Company has granted unsecured loan to one company
covered in the register maintained under Section 301 of
the Act. The maximum amount involved during the year
was aggregated to Rs. 1,239.82 Lacs and the year end
balance of such loan amounted to Rs. 1,239.82 Lacs.
(b) In our opinion and according to the information and
explanations given to us, except for the rate of interest
charged on the loans given, the other terms and conditions
of loans given by the Company were prima facie not
prejudicial to the interests of the Company.
(c) As per the information made available to us, the party is
regular in payment of principal and interest, wherever
applicable, as per the terms of the loan.
(d) In respect of the aforesaid loan, and considering the terms
of the loan there is no overdue amount at the year end.
(e) According to the information and explanations given to us,
the Company has taken unsecured loans from two
companies covered in the register maintained under Section
301 of the Act. The maximum balance during the year was
Rs. 1,025.74 Lacs and the year end balance of such loans
is Rs. 533.36 Lacs.
(f) The interest rate and other terms and conditions of such
loans are prima facie not prejudicial to the interests of the
Company.
(g) As per the information made available to us, the aforesaid
loans alongwith interest are repayable on demand.
(iv) In our opinion and according to the information and explanations
given to us, except in case where transactions entered are of
special nature and for which alternative sources not available,
there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for
the purchases of inventory, fixed assets and for the sale of goods
and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in
these internal control systems.
(v) (a) Based on the audit procedures applied by us and according
to the information and explanations given to us, the
transactions needed to be entered into the register
maintained in pursuance of Section 301 of the Act have
been duly entered.
34
(b) In our opinion and according to the information and
explanations given to us, except in cases where transaction
entered are of a special nature, the transaction made in
pursuance of contract or arrangements entered into the
register maintained under Section 301 of the Act and
exceeding the value of Rupees five lacs in respect of each
party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices.
(vi) According to the information and explanations given to us, the
Company has not accepted deposits from the public within the
meaning of Section 58A and Section 58AA of the Act.
(vii) The Company has an internal audit system commensurate with
its size and nature of its business. However, the same needs to
be strengthened as regard scope and periodicity.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1)(d) of the Act,
for the activities of the Company.
(ix) (a) According to the records of the Company, the Company is
regular in depositing undisputed statutory dues including,
investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, custom duty,
excise duty, cess, and other statutory dues, wherever
applicable, with appropriate authorities except delay in few
cases.
(b) According to the information and explanation given to us,
no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, custom duty, excise duty and cess
were outstanding as at March 31, 2007 for a period of more
than six months from the date they became payable.
(c) According to the information and explanations given to us,
there are no dues of sales tax, income tax, custom duty,
wealth tax, excise duty and cess which have not been
deposited on account of any dispute except the following:
Name of Nature of Amount Period to Forum where
statute dues (Rs. in which dispute
lacs) pertain is pending
Uttar Pradesh Entertainment 920.20 2003-04 to 2006-07 Allahabad High
Entertainment & Tax
Court
Betting Tax Act,
1979
(x) The accumulated losses of the Company as at March 31, 2007
are more than fifty percent of its net worth. Further, the Company
has incurred cash losses during the current financial year as
well as in the immediately preceding financial year.
(xi) On the basis of our examination and according to the information
and explanations given to us, the Company has not defaulted in
repayment of dues to banks/financial institutions.
(xii) The Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures and
other securities.
(xiii) In our opinion, considering the nature of activities carried out by
the Company during the year, the provision of any special statute
applicable to chit fund, nidhi or mutual benefit fund/societies are
not applicable to it.

(xiv) According to the information and explanations given to us the
Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) In our opinion, the Company has not given any guarantees for
loan taken by others from banks and financial institutions the
terms and conditions whereof, are prima facie prejudicial to
the interests of the Company.
(xvi) According to the information and explanations given to us, the
term loans raised during the year have been applied for the
purposes for which the loans were obtained.
(xvii) On the basis of utilisation of funds, which is based on an overall
examination of Balance Sheet of the Company and related
information as made available to us, we report that short-term
fund amounting to Rs. 51,626.07 have been used for long-term
investments.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained
under Section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx)
(xxi)
The Company has not raised any money by public issues during
the year.
During the course of examination of the books of account and
records of the Company, carried out in accordance with the
generally accepted auditing practices in India and according
to the information and explanations given to us, we have not
come across any fraud on or by the Company, noticed or
reported during the year, nor have we been informed of such
case by the management.
L. K. Shrishrimal
M. No. 72664
Partner
For and on behalf of
MGB & Co.
Chartered Accountants
Place : Noida
Date : June 28, 2007
35

GROUP
BALANCE SHEET AS AT MARCH 31,
Place : Noida
Date : June 28, 2007
36
(Currency: Indian Rupees)
Notes 2007 2006
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 2 428,222,803 715,687,650
Reserves and Surplus 3 1,695,856,798 3,728,245,250
2,124,079,601 4,443,932,900
Advance against Share Application Money – 740,000,000
LOAN FUNDS
Secured Loans 4 1,444,696,311 78,085,333
Unsecured Loans 5 306,314,726 5,678,150
1,751,011,037 83,763,483
TOTAL 3,875,090,638 5,267,696,383
APPLICATION OF FUNDS
Fixed Assets
Gross Block 6 6,170,233,853 656,820,290
Less : Depreciation/Amortisation upto date 673,702,453 50,910,568
Net Block 5,496,531,400 605,909,722
Capital Work-in-Progress 1,126,405,690 536,524,123
6,622,937,090 1,142,433,845
INVESTMENTS 7 944,510,040 1,068,715,480
Current Assets, Loans and Advances
Inventories 8 11,370,689 4,747,250
Sundry Debtors 9 390,643,722 75,552,132
Cash and Bank Balances 10 113,316,720 59,361,576
Loans and Advances 11 1,869,406,314 1,468,002,403
2,384,737,445 1,607,663,361
Less : Current Liabilities and Provisions 12
Current Liabilities 8,576,968,604 1,818,347,071
Provisions 18,940,733 1,362,406
8,595,909,337 1,819,709,477
NET CURRENT ASSETS (6,211,171,892) (212,046,116)
PROFIT AND LOSS ACCOUNT 2,518,815,400 3,268,593,174
TOTAL 3,875,090,638 5,267,696,383
The accompanying notes form an integral part of these financial statements
As per our attached report of even date For and on behalf of the Board
L. K. Shrishrimal
Partner Jawahar Lal Goel B. D. Narang
M. No.72664 Managing Director Director
For and on behalf of
MGB & Co. Rajeev K. Dalmia Jagdish Patra
Chartered Accountants Chief Financial Officer Company Secretary

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
Notes 2007 2006
INCOME
Sales and Services 13 1,909,373,010 314,625,830
Other Income 14 33,975,422 –
1,943,348,432 314,625,830
EXPENDITURE
Cost of Goods Sold 15 5,407,941 56,430,158
Operating Costs 16 2,242,565,278 725,066,904
Personnel Cost 17 148,720,588 21,486,610
Administrative and Other Expenses 18 339,339,990 18,838,872
Selling and Distribution Expenses 19 1,025,030,484 322,577,565
Financial Charges (Net) 20 117,823,546 16,739,229
Depreciation/Amortisation 6 575,283,677 28,345,299
4,454,171,504 1,189,484,637
PROFIT/(LOSS) BEFORE TAX & EXCEPTIONAL ITEMS (2,510,823,072) (874,858,807)
Exceptional Items (Refer Note 30.2) – 1,203,430,395
Profit/(Loss) Before Tax (2,510,823,072) (2,078,289,202)
Provision for Taxation – Current Tax – –
– Deferred Tax (Refer Note 27.2) – –
– Fringe Benefit Tax 2,450,467 328,767
– Wealth Tax 57,856 –
Profit/(Loss) After Tax (2,513,331,395) (2,078,617,969)
Prior Period Adjustments (Net) - Income/(Loss) (Refer Note 30.5) (5,484,005) 292,152
Profit/(Loss) for the Year (2,518,815,400) (2,078,325,817)
Balance Brought Forward (3,268,593,174) (1,190,267,357)
Less : Transfer to Restructuring Account (Refer Note 24) 3,268,593,174 –
Balance Carried to Balance Sheet (2,518,815,400) (3,268,593,174)
CALCULATED ON THE FACE VALUE OF RS. 10
Basic and diluted Earnings Per Share (Rs.) before exceptional items (58.82) (12.22)
Basic and diluted Earnings Per Share (Rs.) after exceptional items (58.82) (29.04)
CALCULATED ON THE FACE VALUE OF RE. 1
Basic and diluted Earnings Per Share (Rs.) before exceptional items (5.88) (1.22)
Basic and diluted Earnings Per Share (Rs.) after exceptional items (5.88) (2.90)
The accompanying notes form an integral part of these financial statements
As per our attached report of even date For and on behalf of the Board
L. K. Shrishrimal
Partner Jawahar Lal Goel B. D. Narang
M. No.72664 Managing Director Director
For and on behalf of
MGB & Co. Rajeev K. Dalmia Jagdish Patra
Chartered Accountants Chief Financial Officer Company Secretary
Place : Noida
Date : June 28, 2007
37

GROUP
NOTES TO FINANCIAL STATEMENTS AS AT MARCH 31,
(Currency: Indian Rupees)
2007 2006
2. SHARE CAPITAL (REFER NOTE 24.2)
Authorised
730,000,000 Equity Shares of Re.1 each 730,000,000 730,000,000
(Previous Year 73,000,000 Equity Shares of Rs.10 each)
Issued, Subscribed and Paid-up
715,687,650 Equity Shares of Re. 1 each fully paid-up 715,687,650 715,687,650
(Previous Year 71,568,765 Equity Shares of Rs.10 each fully paid-up)
Share Capital Suspense (287,464,847) –
TOTAL 428,222,803 715,687,650
3. RESERVES AND SURPLUS
Securities Premium : (Refer Note 24.3)
As per last Balance Sheet 3,728,245,250 3,728,245,250
Less : Transferred to Restructuring Account 3,728,245,250 –
TOTAL – 3,728,245,250
General Reserves (Refer Note No. 24.3.3):
Transfer from Restructuring Account pursuant to the Scheme (Refer Note 24.3) 1,698,096,659 –
Less : Adjustments pursuant to transitional Provisions as per AS-15 (Refer Note 30.12) 2,239,861 –
TOTAL 1,695,856,798 –
TOTAL 1,695,856,798 3,728,245,250
4. SECURED LOANS
(For security and other details Refer Note 26)
Term Loan from Bank 750,000,000 –
Bridge Loan from Bank 604,780,715 –
Cash Credit from Bank 75,725,609 75,070,472
Vehicle Loan 7,183,137 3,014,861
Interest accrued and due 7,006,850 –
TOTAL 1,444,696,311 78,085,333
5. UNSECURED LOANS
From Banks (Refer Note 26.5) 250,000,000 –
From Others 54,600,000 4,600,000
Interest accrued and due 1,714,726 1,078,150
TOTAL 306,314,726 5,678,150
38

NOTES TO FINANCIAL STATEMENTS AS AT MARCH 31,
6. FIXED ASSETS (AT COST )
(Currency: Indian Rupees)
Particulars GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK
Addition During The Year
Depreciation During the Year
As at Additions * Transfer Acquired Sale/ As at As at For The Year Transfer Acquired Sale/ As at As at As at
31.03.2006 Pursuant Under Adjustment 31.03.07 31.03.2006 Pursuant to Under Adjustment 31.03.07 31.03.07 31.03.2006
Scheme* Slump Scheme* Slump
Sale***
Sale*
Intangible Assets
Goodwill – – – 451,177,637 – 451,177,637 – 22,558,882 – – – 22,558,882 428,618,755 –
Licence fees 100,000,000 – – – – 100,000,000 25,000,000 10,000,000 – – – 35,000,000 65,000,000 75,000,000
Software 27,540 139,690,936 34,429,719 – – 174,148,195 257 28,015,114 – – – 28,015,371 146,132,824 27,283
Total (A) 100,027,540 139,690,936 34,429,719 451,177,637 – 725,325,832 25,000,257 60,573,996 – – – 85,574,253 639,751,579 75,027,283
Tangible Assets
Plant and
Machinery 67,419,994 255,509,369 361,948,316 – – 684,877,679 12,203,250 64,458,059 47,567,308 – – 124,228,617 560,649,062 55,216,744
Consumer
Premises
Equipments 476,646,480 2,722,775,388 – 1,503,497,136 – 4,702,919,004 9,980,853 444,125,843 – – – 454,106,696 4,248,812,308 466,665,627
Computers 2,690,644 9,529,952 3,830,571 – – 16,051,167 738,329 1,955,627 – – – 2,693,956 13,357,211 1,952,315
Office Equipments 853,077 2,475,742 2,213,194 – – 5,542,013 134,459 339,575 – – – 474,034 5,067,979 718,618
Furniture and
Fixtures 1,009,898 1,999,034 3,022,267 – – 6,031,199 197,629 871,860 – – – 1,069,489 4,961,710 812,269
Vehicles 5,650,062 2,825,706 17,239,423 – 1,724,462 23,990,729 553,629 2,361,981 – – 59,100 2,856,510 21,134,219 5,096,433
Leasehold
Improvements 2,522,595 2,973,635 – – – 5,496,230 2,102,162 596,736 – – – 2,698,898 2,797,332 420,433
Total (B) 556,792,750 2,998,088,826 388,253,771 1,503,497,136 1,724,462 5,444,908,021 25,910,311 514,709,681 47,567,308 – 59,100 588,128,200 4,856,779,821 530,882,439
Current Year
(A+B) 656,820,290 3,137,779,762 422,683,490 1,954,674,773 1,724,462 6,170,233,853 50,910,568 575,283,677 47,567,308 – 59,100 673,702,453 5,496,531,400 605,909,722
Previous Year 171,318,303 488,506,249 – – 3,004,262 656,820,290 23,105,978 28,345,299 – – 540,709 50,910,568 605,909,722
Notes:
(1) * Addition during the year includes additions of demerged operations.
(2) ** Transfer of assets pursuant to the Scheme (Refer Note 24).
(3) *** Acquired under Slump Sale (Refer Note 25).
(4) Details of assets given on Operating Lease is given in Note 33.2.
(Currency: Indian Rupees)
2007 2006
7. INVESTMENTS (REFER NOTE 28)
Long Term (At Cost) – Unquoted
In Subsidiaries – Trade
12,470,544 Equity Shares of Rs. 10 each fully paid up of Agrani 124,705,440 124,705,440
Convergence Limited (Extent of holding 51%)
50,000 Equity Shares of Rs.10 each fully paid up of Integrated Subscriber 500,000 –
Management Services Ltd. (Wholly owned)
94,401,004 Equity Shares of Rs. 10 each fully paid up of Agrani 944,010,040 944,010,040
Satellite Services Limited (Wholly owned)
1,069,215,480 1,068,715,480
Less : Provision for Diminution in the Value of Investments 124,705,440 –
TOTAL 944,510,040 1,068,715,480
Aggregate Book Value of Unquoted Investments 944,510,040 1,068,715,480
39

GROUP
NOTES TO FINANCIAL STATEMENTS AS AT MARCH 31,
(Currency: Indian Rupees)
2007 2006
8. INVENTORIES
(as taken, valued and certified by the management)
Stock in Trade 11,370,689 4,694,889
Raw Tapes/Cassettes – 52,361
TOTAL 11,370,689 4,747,250
9. SUNDRY DEBTORS
(unsecured, considered good unless otherwise stated)
More than Six Months Old 18,146,573 8,126,528
Others (includes doubtful Rs. 42,288,389 [Rs. Nil]) 414,785,538 67,425,604
432,932,111 75,552,132
Less : Provision for Doubtful Debts 42,288,389 –
TOTAL 390,643,722 75,552,132
10. CASH AND BANK BALANCES
Cash in Hand 67,645 359,152
Balance with Scheduled Banks :
In Current Account 59,861,543 17,442,471
In Fixed Deposit [pledged with Banks Rs. 53,387,532 (Rs. 41,559,953)] 53,387,532 41,559,953
TOTAL 113,316,720 59,361,576
11. LOANS AND ADVANCES (REFER NOTE 30.6)
(unsecured, considered good unless otherwise stated)
Loans 843,167,351 779,581,764
Advance against Share Application Money 334,170,285 357,533,966
Other Advances 1,901,467,193 1,533,578,715
Deposits 16,644,794 5,738,353
3,095,449,623 2,676,432,798
Less : Provision for Doubtful Advances 1,226,043,309 1,208,430,395
TOTAL 1,869,406,314 1,468,002,403
40

NOTES TO FINANCIAL STATEMENTS AS AT MARCH 31,
(Currency: Indian Rupees)
2007 2006
12. CURRENT LIABILITIES AND PROVISIONS
Current Liabilities (Refer Note 30.7)
Creditors for Goods 880,671,831 484,816,313
Creditors for Expenses and Other Liabilities 3,077,435,056 539,058,853
Interest accrued but not due 4,019,923 –
Advances/Deposits 4,614,841,794 794,471,905
TOTAL 8,576,968,604 1,818,347,071
Provisions
For Taxation 8,866,893 450,436
For Retirement Benefits 10,073,840 911,970
TOTAL 18,940,733 1,362,406
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
2007 2006
13. SALES AND SERVICES
Income from DTH Subscribers :
Subscription Income 1,219,008,658 195,304,505
Lease Rentals 218,070,913 2,398,831
Other DTH Revenue 1,274,760 7,738,816
Income from Content Providers :
Placement and Active Services 359,214,740 –
Royalty – 2,500,000
Teleport Services 104,888,339 49,268,188
Sales (Net of Returns) 6,915,600 57,415,490
TOTAL 1,909,373,010 314,625,830
14. OTHER INCOME
Exchange Difference (Net) 25,162,512 –
Other Income 8,812,910 –
TOTAL 33,975,422 –
15. COST OF GOODS SOLD
Opening Stock 4,694,889 –
Purchases (Net of Returns) 12,083,741 61,125,047
16,778,630 61,125,047
Less : Closing Stock 11,370,689 4,694,889
TOTAL 5,407,941 56,430,158
41

GROUP
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
2007 2006
16. OPERATING COSTS
Transponder Lease 338,307,289 330,555,853
License Fees 156,121,933 36,265,718
Uplink Charges 60,459,416 44,305,859
Content Costs 1,556,275,576 229,325,911
Subscriber Management Expenses 74,450,388 61,686,396
Middleware Charges 45,107,361 22,041,729
Entertainment Tax 11,754,420 –
Other Operating Charges 88,895 885,438
TOTAL 2,242,565,278 725,066,904
17. PERSONNEL COST
Salary and Allowances 135,933,291 19,696,890
Contribution to Provident and Other Funds 7,626,543 1,276,780
Staff Welfare 5,160,754 512,941
TOTAL 148,720,588 21,486,610
18. ADMINISTRATIVE AND OTHER EXPENSES
Rent 8,593,128 1,733,399
Rates and Taxes 952 5,335
Water and Electricity Charges 7,232,128 1,585,371
Insurance 1,233,273 82,928
Repairs and Maintenance – Plant and Machinery 1,051,928 2,567,329
Repairs and Maintenance – Building 2,387,600 –
Repairs and Maintenance – Others 5,419,450 423,728
Vehicles Expenses 2,573,440 –
Legal and Professional Expenses 15,721,445 1,873,679
Director Sitting Fee 40,000 –
Printing and Stationery 13,090,410 1,416,144
Communication Expenses 12,959,287 755,603
Travelling and Conveyance [Directors Rs. 206,612 (Rs. Nil)] 29,435,500 2,477,049
Provision for Doubtful Debts & Advances 57,694,388 –
Provision for Diminution in the Value of Investments 124,705,440 –
Foreign Currency Fluctuations (Net) – 643,057
Miscellaneous Expenses 17,630,737 920,870
Service and Hire Charges 11,517,738 –
Freight, Cartage and Demurrage 26,656,060 4,157,494
Bad Debts 161,252 –
Loss on Sale/Discard of Assets 1,235,835 196,886
TOTAL 339,339,990 18,838,872
42

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
2007 2006
19. SELLING AND DISTRIBUTION EXPENSES
Advertisement Expenses 535,244,862 281,922,195
Commission 328,846,145 14,690,759
Business Promotion 5,764,044 3,133,544
Customer Support Service (Call Centre) 155,175,433 22,831,067
TOTAL 1,025,030,484 322,577,565
20. FINANCIAL CHARGES (NET)
Interest to Banks 71,311,992 5,177,753
Interest to Others 71,743,715 950,589
143,055,707 6,128,342
Less : Interest Received (Gross) 57,467,387 2,746,053
(TDS Rs. 347,519, Previous Year Rs. 556,425)
85,588,321 3,382,289
Bank and Other Financial Charges 32,235,226 13,356,940
TOTAL 117,823,547 16,739,229
1. SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting Convention:
i. The Company generally follows mercantile system of accounting and recognises income and expenditure on accrual basis
except those with significant uncertainties.
ii. The financial statements have been prepared on historical cost convention and in accordance with the accounting standards
referred to in Section 211(3C) of the Companies Act, 1956.
(b) Fixed Assets:
i. Fixed assets are stated at cost. Cost includes capital cost, freight, installation cost, duties and taxes and other incidental
expenses incurred during the construction/installation stage attributable to bringing the assets to working condition for its
intended use.
ii. All capital costs and incidental expenditure during the pre-operational period are shown as Capital work-in-progress.
iii. Customer premises equipments is capitalised on activation.
iv. License fee is considered as an intangible asset and is stated at amount paid.
v. Software is capitalised as an intangible asset on meeting recognition criteria.
(c) Depreciation/Amortisation:
i. Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV to
the Companies Act, 1956, except customer premises equipments on which depreciation is provided @20% based on useful
life estimated by the management.
ii. Software is amortised over a period of five years or license period whichever is shorter.
iii. Goodwill on acquisition is amortised over a period of five years.
iv. Leasehold improvements are amortized over the period of lease.
v. License fee is amortised over the period of license.
43

GROUP
NOTES TO FINANCIAL STATEMENTS
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Revenue Recognition:
i. Income from services is accounted on the completion of services. Period based services are accounted rateably over the
period of service.
ii. Sale of goods are recognised when risk and rewards of ownership are passed on to the customer, which is generally on
dispatch of goods.
Investments:
Investments are considered as long-term and are stated at cost less provision for permanent diminution in the value of such
investments.
Inventories:
Inventories are valued at lower of cost and net realisable value. Cost is identified on weighted average basis.
Retirement Benefits:
i) Contribution to Provident Fund and other recognised funds are charged to Profit and Loss Account.
ii) Gratuity and Leave Encashment is provided on the basis of actuarial valuation at the Balance Sheet date.
Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currency are translated at the exchange rate prevailing at the Balance Sheet date and gains or
losses on translation are recognised in Profit and Loss Account. Non monetary foreign currency items are carried at cost.
Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets.
All other borrowing costs are charged to revenue.
Taxes on Income:
Tax expense comprise of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with Indian Income Tax Act. Deferred Tax is recognised, subject to
consideration of prudence, on timing difference, being the difference between taxable income that originate in one period and are
capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. At the Balance Sheet date
the company assesses unrealised deferred tax assets to the extent they become reasonably certain or virtually certain of realisation,
as the case may be.
Operating Lease:
Lease of the assets where all the risk and rewards of ownership are effectively retained by the lessor are classified as operating
lease. Lease payments/revenue under operating lease are recognised as an expense/income on accrual basis in accordance with
respective lease agreement.
Earning Per Share:
Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the
year. Diluted earnings per share is computed and disclosed using the weighted average number of common and dilutive common
equivalent share outstanding during the year except where the result would be anti dilutive.
21. BACKGROUND
Dish TV India Limited is mainly in the business of providing Direct to Home (DTH) Satellite Television Service and Teleport Service
including Placement and Active Service. The name of the Company has been changed during the year from ASC Enterprises Limited to
Dish TV India Limited.
22. USE OF ESTIMATES
The preparation of the financial statements in accordance with the Generally Accepted Accounting Principles requires that the management
to make estimates and assumption that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the
date of the financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from those
estimates. Any revision to estimates is recognised prospectively in the current and future periods.
23. GOING CONCERN
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The management
believes that it is appropriate to prepare these financial statements on a 'going concern' basis, for the following reasons:
23.1 The Company hold DTH license from Government of India for a considerable long time.
44

NOTES TO FINANCIAL STATEMENTS
23.2 The Company is the first to launch DTH services in India. This business necessitates long gestation period to stand in its feet.
Being first mover the Company incurred huge expenses on awareness of the product, brand building on a pan India basis. The
benefit of these expenses will accrue in the future years.
23.3 The Promoters are fully seized of the matter and are committed to arrange required resources.
24. THE SCHEME OF ARRANGEMENT
The Scheme of Arrangement (the Scheme) under Sections 391 to 394 read with Sections 78, 100 and other applicable provisions of the
Companies Act, 1956 between Zee Telefilms Limited now known as Zee Entertainment Enterprises Ltd. (ZEEL), Siti Cable Network
Limited (SITI) and New Era Entertainment Network Ltd. (NE) and ASC Enterprises Limited (now known as Dish TV India Limited (the
Company)) and their respective shareholders have been sanctioned by the Hon'ble High Court of Judicature at Bombay and High Court
of Judicature at New Delhi vide their respective order dated January 12, 2007 and December 18, 2006 and a copy of these orders have
been filed with the respective Registrar of Companies on January 17, 2007 and January 19, 2007 respectively. The Scheme has been
given effect in these financial statements except actual allotment and reorganisation of Share Capital.
24.1 Pursuant to the Scheme, Direct Consumer Services undertaken (DCS) of ZEEL including investment made by ZEEL in SITI and the
entire business and whole of the undertaking of the transferor Companies i.e. SITI and NE have been transferred to and vested in the
Company on appointed date i.e. April 1, 2006 on going concern basis. The assets and the liabilities of DCS undertaking of ZEEL at book
value and of SITI and NE at fair value have been transferred to and vested in the Company as under: (Currency: Indian Rupees)
Particulars DCS undertaking of ZTL SITI NE
Gross Block of Fixed Assets 320,441,991 75,724,410 26,517,087
Less : Depreciation 47,567,308 – –
Net Block of Fixed Assets 272,874,683 75,724,410 26,517,087
Capital Work-in-Progress – 329,347,821 –
Investments 19,363,880 1,000,000 –
Share Application Money 1,419,713,819 500,000,000 690,000,000
Current Assets, Loans and Advances – 105,776,495 424,897,432
Total Assets (A) 1,711,952,382 1,011,848,726 1,141,414,519
Loan Funds 326,324,605 1,069,936 7,100,114
Current Liabilities and Provisions 19,920 1,435,362,605 1,124,494,831
Total Liabilities (B) 326,344,525 1,436,432,541 1,131,594,945
Surplus/(Deficit) (A-B) 1,385,607,857 (424,583,815) 9,819,574
24.2 Reorganisation of Share Capital
24.2.1 The paid up equity share capital of the Company had been sub-divided on September 25, 2006 by splitting 71,568,765 equity
shares of Rs. 10 each into 715,687,650 equity shares of Re. 1 each.
24.2.2 Pursuant to the Scheme following effect are given considering the shareholding pattern of ZEEL on record date i.e. February 20, 2007:-
● 997,203,560 equity shares of Re. 1 each fully paid to be issued in the ratio of 23 equity shares Re. 1 each fully paid up of
the Company for every 10 equity shares of Re. 1 each fully paid up of ZEEL.
● Reduction of above equity share capital by way of cancellation of 3 equity shares of Re. 1 each fully paid up for every 4
equity shares of Re. 1 each fully paid up resulting in final issues of 249,300,890 equity shares of Re. 1 each fully paid up.
● Pending actual action, the difference on allotment, cancellation, reduction and issue of Share Capital as above has been
taken to the "Share Capital Suspense" in Note 2 to these financial statements.
24.2.3 The present Share Capital of the Company Rs. 715,687,650 divided into 715,687,650 equity shares of Re. 1 each fully paid up will
be reduced by cancellation of 3 equity shares of Re. 1 each fully paid up for every 4 equity shares of Re. 1 each fully paid up. The
resultant Share Capital will be Rs. 178,921,913. Pending actual reduction Rs. 536,765,737 has been taken to 'Share Capital
Suspense' in Note 2.
24.3 Pursuant to the Scheme, surplus Rs. 1,698,096,658 in the Restructuring Account after carrying out following adjustments as per
the Scheme has been transferred to General Reserve Account.
24.3.1 The value of net assets of DCS undertaking of ZEEL as reduced by the face value of equity shares to be issued amounting to Rs.
1,136,306,967 has been credited to Restructuring Account as prescribed in the Scheme.
45

GROUP
NOTES TO FINANCIAL STATEMENTS
24.3.2 The value of net assets/(liabilities) of SITI and NE amounting to (Rs. 443,947,695) and Rs. 9,319,574 respectively, as reduced
by the cancellation of the investments amounting to Rs. 19,363,880 and Rs. 500,000 respectively has been (debited)/credited
to Restructuring Account as prescribed in the Scheme.
24.3.3 Balance in Share Premium Account and Profit and Loss Account (Debit Balance) amounting to Rs. 3,728,245,250 and
Rs. 3,268,593,174 respectively has been transferred to Restructuring Account.
24.3.4 Reduction in present Share Capital Rs. 536,765,737 has been transferred to Restructuring Account.
24.4 Pursuant to demerger of DCS undertaking of ZEEL, SITI and NE became wholly owned subsidiaries of the Company and hence
upon the merger of the Subsidiaries with the Company, entire equity share capital of these Companies stand automatically
cancelled and hence there will not be any issue and allotment of shares of the Company.
24.5 The transactions of New Era Entertainment Network Limited, Siti Cable Network Ltd. and DCS business of Zee Entertainment
Enterprises Ltd. between the appointed date and the effective date are deemed to be made on behalf of the Company. Accordingly
all Assets, Liabilities, Income & Expenditure of the demerged undertakings for the said period are taken over by the Company
and given effect in these Financial Statements.
24.6 The assets, license & agreements etc. transferred pursuant to the Scheme of Arrangement are in the process of registration/
transfer in the name of the Company.
25. The Company has acquired DTH Equipment Unit Business (DEU) of Essel Agro Private Limited on a going concern basis vide agreement
to transfer DTH Equipment Unit (DEU) Business dated December 31, 2006. Pursuant to the agreement following assets and liabilities have
been acquired and are included in these financial statements. The goodwill arising on acquiring of DEU Business amounting to Rs.
451,177,637 (including purchase consideration Rs. 500,000) has been treated as intangible asset. (Currency: Indian Rupees)
46
Particulars
Fixed Assets 1,503,497,136
Current Assets, Loans and Advances 21,403,084
Total Assets 1,524,900,220
Current Liabilities and Provisions 1,975,577,857
Net Deficit 450,677,637
26. SECURED/UNSECURED LOANS
26.1 Cash Credit of Rs. 75,725,609 (Rs. 75,070,472) is secured by first pari passu hypothecation charge on all present and future
movable fixed assets relating to DTH project and pledge of shares by related parties.
26.2 Bridge Loan of Rs. 604,780,715 (Rs. Nil) is secured by hypothecation of all movables including movable machinery, machinery
spares, tools and accessories, book debts etc., present and future, and corporate guarantee of related party and pledge of
certain shares held by the promoters in the Company. The bridge loan is against a term loan of Rs. 75 crores is repayable on
October 1, 2007.
26.3 Term Loan of Rs. 750,000,000 (Rs. Nil) is secured by hypothecation by way of first pari passu charge on all the current assets
including goods, stocks and all other such articles and book debts, receivables, investments, present and future, corporate
guarantee of related party. The loan is repayable within twelve months.
26.4 Vehicle Loan is secured against hypothecation of vehicles (ROC charge not registered) (amount repayable within a year
Rs. 3,514,731)
26.5 Unsecured Loans from banks are backed by corporate guarantee provided by a related party and is short-term loan.
27. TAXES ON INCOME
27.1 In view of loss incurred by the Company no provision for current tax is made.
27.2 In accordance with the Accounting Standards-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered
Accountants of India, deferred tax assets and liability should be recognised for all timing difference in accordance with the said
standard. However, considering the present financial position and requirements of the accounting standard regarding certainty/
virtual certainty, the same is not provided for. The same will be reassessed at a subsequent Balance Sheet date and will be
accounted for in the year of certainty/virtual certainty in accordance with the aforesaid accounting standard.
28. INVESTMENTS
Investments in subsidiaries are carried at cost as the projects undertaken by such companies are under implementation and also
keeping in view long-term involvement and relationship with these companies.

NOTES TO FINANCIAL STATEMENTS
29. CAPITAL WORK IN PROGRESS
29.1 Capital work in progress includes equipments valuing Rs. 763,289,475 (Rs. 287,187,769) which includes Customer Premises
Equipments valuing Rs. 719,824,813 (Rs. 287,187,769) provided on lease to customers to provide services of the Company.
29.2 Includes goods in transit of Rs. 361,460,373 (Rs. 249,336,354).
29.3 Includes capital advances of Rs. 1,655,842 (Rs. Nil).
30. OTHER DISCLOSURES
30.1 Previous year figures have been regrouped, rearranged and recasted wherever considered necessary. Figures in brackets
pertain to previous year. The current year figures are not comparable with previous years figures as current year figures
includes transfer of undertakings pursuant to Scheme of Arrangement (Refer Note 24) and business acquired (Refer Note 25).
30.2 Exceptional item during the previous year represents provision for doubtful advance Rs. 1,203,430,395 relating to multi mission
satellite system project acquired during the year 2001. The approval of Reserve Bank of India is yet to be applied.
30.3 Sharing of Expenses: The expenses under various heads are net of expenses shared with subsidiaries and other related parties
as per arrangement.
30.4 Small Scale Industry Undertakings:
The total amount due to small-scale industry undertakings as at March 31, 2007 is Rs. 89,920,401. The amount outstanding for
more than 30 days as at March 31, 2007 Rs. 55,955,240 is payable to Niyogi Offset Private Limited, Samrat Offset Private
Limited, The Atlas Electric Industries Private Limited, Speedway Industries Private Limited, K.M. Tolling, Atul Engineers. The
above information regarding small scale undertakings have been determined to the extent such parties have been identified on
the basis of information available with the Company.
30.5 Prior period adjustments (Net) comprises of :-
(Currency: Indian Rupees)
Particulars 2007 2006
A. Income
Teleport Services – 2,741,864
Lease Rentals (222,033) –
Total Income (222,033) 2,741,864
B. Expenses
Uplink Charges – 2,397,788
Electricity Charges 2,731 –
Communication Expenses 1,200,256 20,724
Professional Fees 90,000 –
Miscellaneous Expenses 49,175 –
Sales Promotion 2,557,246 –
Advertisement Expenses 89,456 –
Commission 1,223,221 –
License Fees 7,935 –
Travelling and Conveyance 41,952 31,200
Total Expenses 5,261,972 2,449,712
Net Income/(Loss) (5,484,005) 292,152
30.6 Loans and Advances
Advances against share application money includes Rs. 334,170,285 (Rs. 327,533,966) given to wholly owned Subsidiary
Company which is considered good as the project undertaken by the Subsidiary is under implementation and also in view of
long-term involvement and relationship with the Subsidiary.
30.7 Creditors for Expenses and Other Liabilities
30.7.1 Includes Rs. 676,446,144 (Rs. Nil) due to Subsidiary Companies.
47

GROUP
NOTES TO FINANCIAL STATEMENTS
30.7.2 Includes Rs. 350,999,096 due to Zee Entertainment Enterprises Ltd. on account of transaction between the appointed date and
effective date pursuant to the Scheme of Arrangement (Refer Note 24).
30.8 Loans and advances given include Rs. 899,656,036 (previous years Rs. Nil) recoverable from a private limited company in
which director of the Company is a director or a member.
30.9 As per the advice received and in term of DTH License agreement the Company has provided license fees on its gross revenue
from DTH subscribers.
30.10 Remuneration to the Directors
30.10.1 No commission is paid/payable to any director and hence the computation of profits under Section 198/349 of the
Companies Act, 1956 is not required.
30.10.2 Remuneration paid or provided in accordance with Section 198 of the Companies Act, 1956 to the Managing Director
included in personnel cost and relevant expenses head is as given below. Remuneration paid to the Managing Director
exceeds the minimum remuneration payable in case of inadequacy of the Profits. Hence, the Company has applied to
the Central Government for approval of the excess remuneration paid and approval is awaited.
(Currency: Indian Rupees)
Particulars 2007 2006
Managing Director
Salary and Allowances 1,225,613 –
Contribution to Provident Fund 68,129 –
TOTAL 1,293,742
Note: Salary and allowances includes basic salary, house rent allowance and leave travel allowance but excluding leave
encashment and gratuity.
30.11 Remuneration to Auditors:
(Included in Legal & Professional Expenses)
(Currency: Indian Rupees)
Particulars 2007 2006
Statutory Audit Fees 800,000 270,000
Tax Audit Fees 150,000 30,000
Certification and Tax Representation 798,509 50,000
30.12 Retirement Benefits to the Employees
30.12.1 Effective April 1, 2006 the Company adopted the revised Accounting Standard on Employees Benefit. Pursuant to the
adoption, the transitional obligation of the Company Rs. 2,239,861 has been recorded with the transfer of the
obligation amount to balance of General Reserve Account as required by the Standard.
The present value of defined benefit obligation and the related current service cost are measured using the projected
unit credit method with actuarial valuation being carried at each Balance Sheet date. The defined benefit obligations
are not funded.
30.12.2 The reconciliation of opening and closing balances of the present value of the defined obligation as at March 31,
2007: (Currency: Indian Rupees)
Particulars Gratuity Benefits Leave Encashment Benefits
Obligation at the year beginning 2,534,324 2,747,207
Service Cost 1,881,075 2,264,690
Interest Cost 202,746 219,777
Actuarial (Gain)/Loss 1,032,258 797,815
Benefit Paid (33,228) (1,572,824)
Obligation at the year end 5,617,175 4,456,665
48

NOTES TO FINANCIAL STATEMENTS
30.12.3 Cost for the year : (Currency: Indian Rupees)
Particulars Gratuity Benefits Leave Encashment Benefits
Service Cost 1,881,075 2,264,690
Interest Cost 202,746 219,777
Net Actuarial (Gain)/Loss 1,032,258 797,815
Net Cost 3,116,079 3,282,282
30.12.4 Assumptions used :
Particulars Gratuity Benefits Leave Encashment Benefits
Discount Rate 8% 8%
Salary Escalation Rate 8% 8%
30.12.5 The Company has provided gratuity liability on the basis of actuarial valuation at the end of the period and has
decided to discontinue the payment of contribution to gratuity fund scheme namely Group Insurance Scheme of Life
Insurance Corporation of India subscribed till March 31, 2006.
30.13 As at Balance Sheet date, the Company has foreign currency able USD 5,118,551, and receivable USD 375,000 which are not
hedged by a derivative instrument or otherwise.
30.14 Debit and Credit balances of parties including subscribers and dealers' balances are subject to confirmation/reconciliation and
effect if any, will be considered on its determination.
31. CAPITAL COMMITMENT
Estimated amount of contract remaining to be executed on capital account and not provided for (Net of advance) is Rs. 307,722,738
(previous year Rs. 175,486,466).
32. CONTINGENT LIABILITY NOT PROVIDED FOR
32.1 (Currency: Indian Rupees)
Particulars 2007 2006
Claim against Company not acknowledged as Debts – –
Guarantees given by Banks on our behalf 400,105,000 400,000,000
Corporate Guarantees given on behalf of other Companies 24,000,000 4,000,000
Corporate Guarantees provided by others on behalf of Company 2,224,030,715 400,000,000
Legal Cases filed against the Company Unascertained Unascertained
32.2 The Entertainment Tax Authorities, Noida has raised a demand of Rs. 40,459,628 for the period from November 3, to February 4. The
Company has filed petition against the demand, which is pending. Further the authorities have intimated a total demand of
Rs. 92,019,941 till March, 2007.
33. OPERATING LEASE
33.1 In respect of assets taken on operating lease:
The Company's significant leasing arrangements are in respect of operating leases taken for offices, residential premises,
transponder etc. These leases are cancellable operating lease agreements that are renewable on a periodic basis at the option of
both the lessee and the lessor. The initial tenure of the lease generally is for 11 months to 120 months. The details of assets taken
on operating lease during the period are as under:
(Currency: Indian Rupees)
Particulars 2007 2006
Lease Rental Charges for the period (net of shared cost) 403,424,137 368,806,561
Future Lease Rental obligation payable (under non-cancellable lease)
Not later than one year 141,119,343 352,676,466
Later than one year but not later than five years 7,059,771 146,948,527
More than five years – –
49

GROUP
NOTES TO FINANCIAL STATEMENTS
33.2 In respect of assets given under operating lease:
The Company has leased out assets by way of operating lease and as on March 31, 2007, the gross book value of such assets,
its accumulated depreciation and depreciation for the year is as given below. The total lease income for the year is
Rs. 273,155,252 (Previous year Rs. 3,509,874)
(Currency: Indian Rupees)
Particulars 2007 2006
Gross Value of the Assets 4,721,923,650 495,651,130
Accumulated Depreciation 460,001,940 13,911,015
Depreciation for the year 446,090,925 11,945,934
Particulars 2007 2006
Future Lease Rental Receivable (under non-cancellable lease)
Not later than one year 45,560,0471 23,112,150
Later than one year but not later than five years 1,447,565,341 438,254,470
More than five years – –
34. RELATED PARTY DISCLOSURES
34.1 List of parties where control exists:
● Agrani Satellite Services Limited. (Wholly Owned Subsidiary)
● Agrani Convergence Limited. (Extent of holding reduced from 100 % to 51% on March 31, 2006)
● Agrani Wireless Services Limited. (Till March 31, 2006)
● Agrani Satellite Communication Enterprises (Gibraltar) Limited. (Till March 31, 2006.)
● Integrated Subscribers Management Services Ltd. (Wholly Owned Subsidiary from April 1, 2006)
34.2 Other Related with whom transactions have taken place during the year and balances outstanding as on last date of the year:-
Smart Talk Private Limited, Essel Corporate Services Private Limited, Essel Agro Private Ltd., Cyquator Technologies Limited, Zee
Telefilms Limited (now known as Zee Entertainment Enterprises Limited), Pan India Network Infravest Private Limited, Pan India
Paryatan Limited, Ayepee Lamitubes Limited, Procall Private Limited, Suncity Projects Limited, Afro-Asian Satellite Communication
(Gibraltar) Limited, Afro-Asian Satellite Communication (U.K.) Limited, ASC Telecommunication Limited, Asia Today Limited, Asia
TV Limited, Zee News Limited, Brio Academic, Zee Foundation, Rupee Finance and Management Pvt. Ltd., Intrex India Limited,
Wire and Wireless India Limited, Dakshin Media Gaming Solutions Private Limited, Rama Associates, Zee Turner Limited, Zee
Interactive Learning Systems Limited, Kenlott Gaming Solutions Private Limited, Zee Akash News Private Limited, E City
Entertainment Private Limited, Zee Sports Limited, Bhilwara Telenet Services Private Limited, Quick Call Private Limited,
Mr. Jawahar Goel, ETC Networks Limited, Diligent Media Corporation Limited, Indian Cable Net Limited.
Directors/Key Management Personnel
Mr. Subhash Chandra,
Mr. Jawahar Lal Goel, Mr. Ashok Kurien, Mr. B. D. Narang and Mr. Arun Duggal (appointed w.e.f. January 6, 2007),
Mr. Laxmi Narain Goel, Mr. Punit Goenka, Mr. Rajagopalan Chandrashekhar and Mr. Ashok Goel (upto January 6, 2007).
34.3 Transaction with related parties:
(Currency: Indian Rupees)
Particulars 2007 2006
Total Amount Amounts for Total Amount Amounts for
(Rs.) Major Parties (Rs.) Major Parties
(i)
With Subsidiaries Companies
Purchase of Goods & Services– 274,733,182 –
Integrated Subscriber Management Services
Limited 274,733,182 –
Loan, Advance and Deposit Given
(including Share Application Money) 6,636,319 132,540,130
50

NOTES TO FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Particulars 2007 2006
Total Amount Amounts for Total Amount Amounts for
(Rs.) Major Parties (Rs.) Major Parties
(ii)
Agrani Satellite Services Limited 6,636,319 28,831,432
Agrani Convergence Limited – 60,833,463
Agrani Wireless Service Limited – 42,875,235
Purchase of Fixed Assets – 2,382,013
Agrani Convergence Limited – 2,382,013
Refund Received against Loan, Advance and
Deposit Given – 177,052,549
Agrani Satellite Services Limited – 35,616,893
Agrani Convergence Limited – 71,505,431
Agrani Wireless Service Limited – 69,930,225
Diminution in the value of Investment 124,705,440 –
Agrani Convergence Limited 124,705,440 –
With Other Related Parties:
Sales, Services & Recoveries (Net of Taxes) 467,598,932 118,872,701
Zee Entertainment Enterprises Limited 178,322,015 8,355,222
Zee News Limited 71,144,836 4,645,020
Asia Today Limited 34,896,965 17,752,907
Asia TV Limited 24,804,575 17,225,482
Zee Turner Limited 73,840,149 –
Essel Agro Private Limited – 59,144,070
Others 84,590,392 11,750,000
Purchase of Goods & Services 987,774,125 514,003,882
Zee Turner Limited 802,522,247 93,723,409
Zee Entertainment Enterprises Limited 67,452,464 36,080,254
Intrex India Limited 25,566,444 3,228,896
New Era Entertainment Network Limited – 371,486,868
Essel Agro Private Limited 71,025,412 780,768
Others 21,207,558 8,703,687
Rent Paid 4,899,943 864,000
Zee Entertainment Enterprises Limited 3,662,364 864,000
E City Entertainment (I) Private Limited 1,237,579 –
Interest Paid 52,012,364 6,741,009
Zee Entertainment Enterprises Limited 49,624,805 6,741,009
Others 2,387,559 –
Donation 2,500,000 –
Zee Foundation 2,500,000 –
Interest Received 52,818,343 381,098
Essel Agro Private Limited 46,017,716 381,098
ASC Telecommunication Limited 6,800,627 –
Purchase of Fixed Assets 728,933,910 694,317,792
Zee Entertainment Enterprises Limited 725,646,020 693,033,682
Others 3,287,890 1,284,110
51

GROUP
NOTES TO FINANCIAL STATEMENTS
52
(Currency: Indian Rupees)
Particulars 2007 2006
Total Amount Amounts for Total Amount Amounts for
(Rs.) Major Parties (Rs.) Major Parties
Sale of Investments – 202,216,663
Essel Agro Private Limited – 202,216,663
Loan, Advance and Deposit Taken 641,624,604 95,401,850
Zee Entertainment Enterprises Limited 326,324,604 3,111,250
Essel Agro Private Limited – 83,000,000
Wire & Wireless India Limited 105,300,000 –
Rupee Finance & Management Pvt. Ltd. 210,000,000 –
Others – 9,290,600
Repayment of Loan, Advance and
Deposit Taken 290,300,000 2,100,000
Essel Agro Private Limited 25,000,000 –
Wire & Wireless India Limited 105,300,000 –
Kenlott Gaming Solutions Private Limited – 2,100,000
Rupee Finance & Management Pvt. Ltd. 160,000,000 –
Share Application Money Received – 740,000,000
New Era Entertainment Network Limited – 690,000,000
Integrated Subscriber Management
Services Limited – 50,000,000
Loan, Advance and Deposit Given 417,337,314 961,206,276
Essel Agro Private Limited 313,645,898 843,461,600
ASC Telecommunication Limited 94,100,000 58,459,147
Others 9,591,416 59,285,529
Refund Received against Loan, Advance and
Deposit Given 247,393,494 710,061,803
ASC Telecommunication Limited 15,511,319 –
Essel Agro Private Limited 231,282,175 –
Jay Properties Private Limited – 507,323,000
Ganjam Trading Co. Private Limited – 98,241,988
Others 600,000 104,496,815
Corporate Guarantees Given 24,000,000 4,000,000
Procall Private Limited 20,000,000 –
Quick Call Private Limited 1,500,000 1,500,000
Smart Talk Private Limited 1,500,000 1,500,000
Bhilwara Telenet Services Limited 1,000,000 1,000,000
Corporate Guarantees Received 2,224,030,715 400,000,000
Zee Entertainment Enterprises Limited 2,224,030,715 400,000,000
Provision for Doubtful Advances 8,030,768 1,208,430,395
Afro-Asian Satellite Comm. (UK) Limited – 376,881,821
Afro-Asian Satellite Comm. (Gib.) Limited – 827,708,050
Agrani Satellite Comm. (Gib.) Limited – 3,840,524
Brio Academic 7,950,000 –
Others 80,768 –

NOTES TO FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Particulars 2007 2006
Total Amount Amounts for Total Amount Amounts for
(Rs.) Major Parties (Rs.) Major Parties
Assets & Liabilities Received Pursuant to
Scheme of Arrangement
DCS undertaking of Zee Entertainment
Enterprises Limited 1,385,607,857 –
Total Assets 1,711,952,382 –
Total Liabilities 326,344,525 –
Siti Cable Network Limited (424,583,815) –
Total Assets 1,011,848,726 –
Total Liabilities 1,436,432,541 –
New Era Entertainment Network Limited 9,819,574 –
Total Assets 1,141,414,519 –
Total Liabilities 1,131,594,945 –
Assets & Liabilities Received pursuant to
Slump Sale
Essel Agro Private Limited (451,177,637) –
Total Assets 1,524,900,220 –
Total Liabilities 1,975,577,857 –
Purchase Consideration 500,000 –
Key Management Personnel 1,014,833
Jawahar Lal Goel 1,014,833
Balance at the end of period:
With Subsidiaries Companies:
Investment 1,069,215,480 1,068,715,480
Agrani Satellite Services Limited 944,010,040 944,010,040
Agrani Convergence Limited 124,705,440 124,705,440
Integrated Subscriber Management
Services Limited 500,000 –
Loan, Deposit and Advances Given 334,170,284 327,533,966
Agrani Satellite Services Limited 334,170,284 327,533,966
Creditors for Expenses and Other Liabilities 676,606,366 –
Integrated Subscriber Management
Services Limited 675,354,672 –
Agrani Convergence Limited 1,251,694 –
With Other Related Parties:
Loan, Deposit and Advances Given 2,394,155,181 2,018,802,263
Afro-Asian Satellite Comm. (UK) Limited 376,881,821 376,881,821
Afro-Asian Satellite Comm. (Gib.) Limited 827,708,050 827,708,050
Agrani Satellite Comm. (Gib.) Limited 3,840,524 3,840,524
Intrex India Limited 133,128,344 –
Essel Agro Private Limited 899,656,036 740,982,317
ASC Telecommunication Limited 143,982,455 58,593,147
Others 8,957,951 10,796,404
53

GROUP
NOTES TO FINANCIAL STATEMENTS
Particulars 2007 2006
(Currency: Indian Rupees)
Total Amount Amounts for Total Amount Amounts for
(Rs.) Major Parties (Rs.) Major Parties
Loan, Deposit and Advances Taken 60,120,791 5,678,150
Essel Agro Private Limited – –
Suncity Project Limited 2,700,000 2,700,000
Kenlott Gaming Solutions Private Limited 1,900,000 1,900,000
Ayepee Lamitubes Limited 1,078,150 1,078,150
Wire & Wireless India Limited 3,806,065 –
Rupee Finance & Management Pvt. Ltd. 50,636,576 –
Creditors 1,573,331,839 862,606,087
Zee Entertainment Enterprises Limited 730,584,399 461,688,482
Zee Turner Limited 800,633,181 –
New Era Entertainment Network Limited – 267,053,242
Integrated Subscriber Management
Services Limited – 116,444,346
Others 42,114,259 17,420,017
Debtors 364,507,920 52,965,529
Asia Today Limited 23,772,474 17,857,613
Asia TV Limited 16,473,374 17,225,482
Essel Agro Private Limited – 9,149,304
New Era Entertainment Network Limited – 8,553,650
Zee News Limited 46,881,562 –
Zee Entertainment Enterprises Limited 193,321,888 –
Others 84,058,622 179,480
Corporate Guarantees Given 24,000,000 4,000,000
Procall Private Limited 20,000,000 –
Quick Call Private Limited 1,500,000 1,500,000
Smart Talk Private Limited 1,500,000 1,500,000
Bhilwara Telenet Services Limited 1,000,000 1,000,000
Corporate Guarantee Received 2,224,030,715 400,000,000
Zee Entertainment Enterprises Limited 2,224,030,715 400,000,000
NOTES
1) Major parties notes who account for more than 10% or more of the aggregate for that category of transactions.
2) Details of Managerial Remuneration is disclosed in Note 30.10.
35. ADDITIONAL INFORMATION PURSUANT TO PART II OF SCHEDULE VI OF THE COMPANIES ACT, 1956:
35.1 The Company is in the business of providing services, which is not subject to any license; hence licensed capacity is not given.
Further, the nature of business is such that the installed capacity is not quantifiable.
54

NOTES TO FINANCIAL STATEMENTS
35.2 The details of Opening Stock, Purchases, Sales and Closing Stock of goods traded are as under:
Quantitative Details 2007 2006
(Currency: Indian Rupees)
Particulars Unit Qty. Amount Qty. Amount
Opening Stock – – – –
Cable Metre 144 948 – –
Dish/Connectors/Switches No. 168 30,845 – –
DVR No. 485 4,659,166 – –
LNB No. 6 3,930 – –
Total 4,694,889
Purchases
Cable Metre 142,416 1,019,023 1,499,238 7,545,012
Dish/Connectors/Switches No. 210 64,237 552 43,044
DVR No. – – 500 4,812,693
LNB No. 763 352,324 48,513 5,802,980
Set Top Boxes No. 657 1,198,231 20,001 42,921,318
Spare Parts – 9,449,926 – –
Total 12,083,741 61,125,047
Sales and Services
Cable Metre 134,948 1,167,770 1,499,094 7,715,751
Dish/Connectors/Switches* No. 265 69,753 384 15,232
DVR No. 97 1,125,208 15 89,600
LNB No. 656 477,827 48,507 5,916,127
Set Top Boxes No. 557 1,249,781 20,001 43,678,780
Spare Parts 2,854,305 – –
Total 6,944,644 57,415,490
Closing Stock
Cable Metre 7,612 61,452 144 948
Dish/Connectors/Switches No. 113 48,924 168 30,845
DVR No. 388 3,727,332 485 4,659,166
LNB No. 113 38,513 6 3,930
Set Top Boxes No. 100 178,254 – –
Spare Parts – 7,316,214 – –
Total 11,370,689 4,694,889
*Includes transfer to Capital
Work in Progress No. 162 29,044 – –
35.3 Other Information :
(Currency: Indian Rupees)
Particulars 2007 2006
A. CIF Value of Imports
Capital Equipments 1,971,063,330 112,964,065
Trading Goods 7,352,731 61,052,480
B. Expenses in Foreign Currency
Content Fees 20,510,319 8,634,445
Transponder Teleport Charges 33,041,250 31,717,309
55

GROUP
NOTES TO FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Particulars 2007 2006
Unlinking Charges 2,040,500 9,759,397
Business Promotion 48,846 –
Travelling Expenses 846,603 235,594
C. Income in Foreign Exchange
Teleport Services 45,543,340 37,720,253
Down Linking Charges – 213,816
36. EARNING PER SHARE (EPS) (Currency: Indian Rupees)
Particulars 2007 2006
Profit/(Loss) After Tax but Before Exceptional Items (2,518,815,400) (874,895,422)
Profit/(Loss) After Tax and Exceptional Items (2,518,815,400) (2,078,325,817)
Weighted average number of Equity Shares of Rs. 10 each (Nos.)* 42,822,280 71,568,765
Basic and diluted earning per share before exceptional items (58.82) (12.22)
Basic and diluted earning per share after exceptional items (58.82) (29.04)
Weighted average number of Equity Shares of Re. 1 each (Nos.)* 428,222,803 715,687,650
Basic and diluted earning per share before exceptional items (5.88) (1.22)
Basic and diluted earning per share after exceptional items (5.88) (2.90)
* Weighted average number of equity shares for the current year includes equity shares to be allotted on record date pursuant to the
Scheme. (Refer Note No. 24)
37. SEGMENT INFORMATION AS PER AS-17
ASC follows AS-17 "Segmental Reporting" relating to the reporting of financial and descriptive information about their operating segments
in financial statements.
ASC's reportable operating segments have been determined in accordance with the internal management structure, which is organised
based on the operating business segments as described below. The geographical segment is not relevant as exports are insignificant.
Direct to Home Services (DTH) - Uplink of satellite television signals to be received by the customer directly in the home. This segment
derives revenue by way of Subscription, Lease Rentals, Placement & Active Services and Other Incomes.
Trading - Trading in electronics and other equipments.
Teleport Services - Facility for uplink signals.
(a) Business Segment (Year ended March 31, 2007)
(Currency: Indian Rupees)
Description DTH Trading Teleport Services Unallocated Total
Segment Revenue
External Sales 1,797,569,071 6,915,600 104,888,339 – 1,909,373,010
Inter-Segment Sales – – – – –
Total Revenue 1,797,569,071 6,915,600 104,888,339 – 1,909,373,010
Segment Results (2,415,959,827) 1,507,659 (10,782,583) – (2,425,234,751)
Operating Profit/(Loss)
Before Interest & Tax (2,415,959,827) 1,507,659 (10,782,583) – (2,425,234,751)
Interest Expenses – – – – 143,055,706
Interest Income – – – – 57,467,387
Profit/(Loss) Before Tax – – – – (2,510,823,070)
56

NOTES TO FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Description DTH Trading Teleport Services Unallocated Total
Exceptional Items – – – – –
Current Taxes - FBT/Wealth Tax – – – – 2,508,323
Prior Period Adjustments
(Net) - Income/(Loss) – – – – (5,484,005)
Profit /(Loss) After Tax – – – – (2,518,815,400)
(b) Other Segment Information
Segment Assets 7,505,926,160 11,370,689 293,040,051 2,141,847,676 9,952,184,576
Segment Liabilities 10,321,989,892 – 24,930,482 – 10,346,920,374
Capital Expenditure* 5,892,956,755 – 212,062,837 – 6,105,019,592
Depreciation/Amortisation 539,906,074 – 35,377,603 – 575,283,677
Non Cash Expenditure other
than Depreciation/Amortisation 50,980,223 – – 132,655,440 183,635,663
*Capital Expenditure includes assets received pursuant to the Scheme of Arrangement.
(a) Business Segment (Year ended March 31, 2006)
(Currency: Indian Rupees)
Description DTH Trading Teleport Services Unallocated Total
Segment Revenue
External Sales 207,942,152 57,415,490 49,268,188 – 314,625,830
Inter-Segment Sales – – – – –
Total Revenue 207,942,152 57,415,490 49,268,188 – 314,625,830
Segment Results (869,039,788) 985,332 (2,837,758) – (871,476,518)
Operating Profit/(Loss) before
Interest and Tax (869,624,092) 985,332 (2,837,758) – (871,476,518)
Interest Expenses – – – – (6,128,342)
Interest Income – – – – 2,746,053
Profit/(Loss) Before Tax – – – – (874,858,807)
Exceptional Items – – – – (1,203,430,395)
Current Taxes –
FBT/Wealth Tax – – – – 328,767
Prior Period Adjustments
(Net) - Income/(Loss) – – – – 292,152
Profit/(Loss) After Tax – – – – (2,078,325,817)
(b) Other Segment Information
(Currency: Indian Rupees)
Segment Assets 2,088,176,260 4,694,889 95,293,196 1,630,648,341 3,818,812,686
Segment Liabilities 1,899,478,578 – 3,994,381 – 1,903,472,959
Capital Expenditure 1,025,030,372 – – – 1,025,030,372
Depreciation/Amortisation 25,130,010 – 3,215,289 – 28,345,299
Non Cash Expenditure other
than Depreciation/Amortisation 196,886 – – 1,208,430,395 1,208,627,281
As per our attached report of even date
For and on behalf of the Board
Jawahar Lal Goel B. D. Narang
L. K. Shrishrimal Managing Director Director
M. No. 72664
Partner Rajeev K. Dalmia Jagdish Patra
For and on behalf of Chief Financial Officer Company Secretary
MGB & Co.
Chartered Accountants
Place : Noida
Date : June 28, 2007
57

GROUP
BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE
I. REGISTRATION DETAILS
Registration No.
Balance Sheet Date
(Rs. in ’000)
1 0 1 8 3 6 State Code
5 5
3 1 0 3 2 0 0 7
II.
CAPITAL RAISED DURING THE YEAR
Public Issue
Bonus Issue
N I L Rights Issue
N I L
N I L Private Placement
N I L
III.
POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS
Total Liabilities
SOURCES OF FUNDS
3 8 7 5 0 9 0
Total Assets
3 8 7 5 0 9 0
Paid-up Capital
4 2 8 2 2 2
Reserves and Surplus
1 6 9 5 8 5 6
Secured Loans
1 4 4 4 6 9 6
Unsecured Loans
3 0 6 3 1 4
Deferred Tax Liability
N I L
APPLICATION OF FUNDS
Net Fixed Assets
6 6 2 2 9 3 7
Investments
9 4 4 5 1 0
Net Current Assets (–)
6 2 1 1 1 7 1
Miscellaneous
Expenditure
N I L
Accumulated Loss
2 5 1 8 8 1 5
IV.
PERFORMANCE OF THE COMPANY
Turnover
1 9 4 3 3 4 8
Total Expenditure
4 4 5 4 1 7 1
+/– Profit/(Loss) Before Tax (–) 2 5 1 0 8 2 3 +/– Profit/(Loss) After Tax (–)
2 5 1 3 3 3 1
Earnings Per Share (Rs.) - 5 . 8 8 Dividend Rate (%)
N I L
V. GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (as per monetary terms)
Item Code No. (ITC Code)
N A
Product Description
DTH Services, Trading & Transponder Teleport Activity
For and on behalf of the Board
Jawahar Lal Goel B. D. Narang
Managing Director Director
Place : Noida
Date : June 28, 2007
58
Rajeev K. Dalmia Jagdish Patra
Chief Financial Officer Company Secretary

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
2007 2006
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) before taxation but after exceptional items (2,510,823,071) (2,078,289,202)
Adjustments for :
Depreciation /Amortisation 575,283,677 28,345,299
Provision for Doubtful Debts & Advances 57,694,388 –
Provision for Diminution in the value of Investment 124,705,440 –
(Profit)/Loss on sale of fixed assets 1,235,835 196,886
Exchange Adjustments ( Net) (3,208,281) –
Exceptional Items – 1,203,430,395
Interest expenses 143,055,707 6,128,342
Interest Income (57,467,387) (2,746,053)
Prior Period Adjustment (Net) (5,484,005) 292,152
Operating Profit/(Loss) before working capital changes (1,675,007,696) (842,642,181)
Adjustments for :
(Increase)/Decrease in trade and other receivables (658,738,845) (355,161,538)
Increase/(Decrease) in trade and other payables 4,165,910,428 954,476,532
Cash Generated from Operations 1,832,163,887 (243,327,187)
Direct Taxes Paid (Net) 7,169,519 398,400
Net Cash Flow from Operating Activities 1,824,994,368 (243,725,587)
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchases of Fixed Assets/CWIP (3,372,577,476) (1,025,030,372)
Proceeds from sale of Fixed Assets 429,526 2,266,667
Refund of Advances – 20,000,000
Security Received against Capital goods 50,559,749 340,796,160
Loan repaid by Subsidiaries – 52,131,225
Loan repaid by others 190,832,756 699,561,357
Loan to others (201,600,000) (779,581,764)
Share Application Money Refund Received 100,000,000 120,330,222
Advance against Share Application Money Paid (70,000,000) (30,000,000)
Advance against Share Application Money Paid to Subsidiaries (6,636,319) –
Sale of Investments – 182,350,663
Interest received 4,649,044 2,746,053
Net Cash Flow from Investing Activities (3,304,342,720) (414,429,789)
59

GROUP
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
2007 2006
C. CASH FLOW FROM FINANCING ACTIVITIES
Interest Paid (131,392,358) (6,663,734)
Net Proceeds from Long Term Borrowing (4,001,774) 2,180,513
Proceeds from Short Term Borrowing 1,915,435,851 56,992,160
Repayment of Short Term Borrowing (260,000,000) –
Repayment of Term Loan – (120,000,000)
Unsecured Loans repaid to Others – (1,000,000)
Unsecured Loans from Others – 1,900,000
Advance Against Share Application – 740,000,000
Net Cash Flow from Financing Activities 1,520,041,718 673,408,939
Net Cash Flow during the year (A+B+C) 40,693,367 15,253,563
Cash and Cash Equivalents received pursuant to the Scheme 13,261,777 –
Cash and Cash Equivalents at the beginning of the year 59,361,576 44,108,014
Cash and Cash Equivalents at the end of the year 113,316,720 59,361,576
Cash and Cash Equivalents at the end of the year comprises of :
Cash in hand 67,645 359,152
Balances with Scheduled Banks in Current Accounts 59,861,543 17,442,471
Balances with Scheduled Banks in Deposit Accounts (Pledge with Banks) 53,387,532 41,559,953
Notes :
1) Previous year's figures have been regrouped, rearranged and recasted wherever considered necessary. The current year figures are not
comparable with previous years figures as current year figures includes transfer of undertakings pursuant to Scheme of Arrangement
(Refer Note 24) and business acquired (Refer Note 25).
2) Assets and Liabilities received pursuant to the Scheme (Refer Note 24) and business acquired (Refer Note 25) are not considered in
above Cash Flow Statement being non cash transactions.
As per our attached report of even date For and on behalf of the Board
L. K. Shrishrimal Jawahar Lal Goel B. D. Narang
Partner Managing Director Director
M. No.72664
For and on behalf of
MGB & Co. Rajeev K. Dalmia Jagdish Patra
Chartered Accountants Chief Financial Officer Company Secretary
Place : Noida
Date : June 28, 2007
60

AUDITORS' REPORT
To
The Board of Directors of Dish TV India Limited
1. We have audited the attached Consolidated Balance Sheet of
Dish TV India Limited ("the Company") and its subsidiaries ("the
Group") as at March 31, 2007, the Consolidated Profit and Loss
Account for the year then ended on that date, annexed thereto.
These financial statements are the responsibility of the
Company's management. Our responsibility is to express an
opinion on these 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 the
management, as well as evaluating the overall financial
statement presentation. We believe that our audit provide a
reasonable basis for our opinion.
3. The financial statements of the subsidiary with total assets (net)
of Rs. 42,997,907 as at March 31, 2007 and total revenues (net)
of Rs. 7,102,431 for the year ended on that date have not been
audited by us. The financial statements of the subsidiary has
been audited by other auditor whose report has been furnished
to us and our opinion in so far as it relates to the amounts
included in respect of the subsidiary, is based solely on the
report of the other auditor.
4. We draw reference to
a) Note 25 regarding the Scheme of Arrangement sanctioned
by the High Court of Judicature at Bombay on January 12,
2007 and High Court of Judicature at New Delhi on
December 18, 2006, effect of which has been given in
these financial statements, except allotment of equity
shares and reorganisation of the share capital.
b) Note 23 regarding preparation of these financial statements
on going concern basis.
5. a) The Company could not prepare the consolidated cash flow
statement as the consolidated financial statements for the
previous year are not available, being the first year of
consolidation.
b) Note 30.6 regarding managerial remuneration amounting
to Rs. 1,293,742 paid to managing director pending approval
of Central Government.
6. We report that the Consolidated Financial Statements have been
prepared by the Company in accordance with the requirements
of the Accounting Standard (AS) 21 "Consolidated Financial
Statements" issued by the Institute of Chartered Accountants of
India and on the basis of the separate audited financial
statements of the Company and its subsidiaries
7. Based on our audit and on consideration of the reports of other
auditors on separate financial statements of subsidiaries, in our
opinion and to the best of our information and according to the
explanations given to us, the attached Consolidated Financial
Statements, subject to matters stated in (5) above, give a true
and fair view in conformity with the accounting principles
generally accepted in India:
(a)
(b)
In the case of the Consolidated Balance Sheet, of the
consolidated state of affairs of the Group as at March 31,
2007;
In the case of the Consolidated Profit and Loss Account, of
the consolidated results of operations of the Group for the
year ended on that date.
L. K. Shrishrimal
Membership No. 72664
Partner
For and behalf of
MGB & Co.
Chartered Accountants
Place : Noida
Date : June 28, 2007
61

GROUP
CONSOLIDATED BALANCE SHEET AS AT MARCH 31,
(Currency: Indian Rupees)
Notes 2007
SOURCES OF FUNDS
Shareholders' Funds
Share Capital 2 428,222,803
Reserves and Surplus 3 1,695,856,798
2,124,079,601
Deferred Tax Liability (Refer Note 28.3) 6,857,971
Loan Funds
Secured Loans 4 1,444,967,354
Unsecured Loans 5 485,097,726
1,930,065,080
TOTAL 4,061,002,652
APPLICATION OF FUNDS
Fixed Assets
Gross Block 6 6,580,023,774
Less : Depreciation/Amortisation upto date 742,888,739
Net Block 5,837,135,035
Captial Work-in-Progress 2,468,184,983
8,305,320,018
Investments 7 25,500
Current Assets, Loans and Advances
Inventories 8 11,762,339
Sundry Debtors 9 418,392,509
Cash and Bank Balances 10 127,772,394
Loans and Advances 11 1,547,498,727
2,105,425,969
Less : Current Liabilities and Provisions 12
Current Liabilities 9,010,061,302
Provisions 12,509,690
9,022,570,992
NET CURRENT ASSETS (6,917,145,023)
PROFIT AND LOSS ACCOUNT 2,672,802,157
TOTAL 4,061,002,652
The accompanying notes form an integral part of these financial statements
As per our attached report of even date For and on behalf of the Board
L. K. Shrishrimal
Partner Jawahar Lal Goel B. D. Narang
M.No. 72664 Managing Director Director
For and on behalf of
MGB & Co. Rajeev K. Dalmia Jagdish Patra
Chartered Accountants Chief Financial Officer Company Secretary
Place : Noida
Date : June 28, 2007
62

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR
ENDED MARCH 31,
(Currency: Indian Rupees)
Notes 2007
INCOME
Sales and Services 13 1,916,475,433
Other Income 14 45,630,442
1,962,105,875
EXPENDITURE
Cost of Goods Sold 15 5,407,941
Operating Costs 16 2,202,072,958
Personnel Cost 17 220,133,221
Administrative and Other Expenses 18 293,496,708
Selling and Distribution Expenses 19 895,467,669
Financial Charges (Net) 20 117,869,722
Depreciation/Amortisation 623,625,999
4,358,074,218
Profit/(Loss) Before Tax (2,395,968,343)
Provision for Taxation - Current Tax/Wealth Tax 57,856
- Deferred Tax (2,903,037)
- Fringe Benefit Tax 2,660,784
Profit/(Loss) After Tax (2,395,783,946)
Prior Period Adjustments (Net) - Income/(Loss) (Refer Note 30.2) (4,924,454)
Profit/(Loss) for the Year (2,400,708,400)
Balance Brought Forward (3,540,686,931)
Less : Transfer to Restructuring Account ( Refer Note 25.3) 3,268,593,174
(272,093,757)
Balance Carried to Balance Sheet (2,672,802,157)
Basic and Diluted Earnings Per Share (Rs.) (Refer Note 35)
Calculated on face value of Re. 1 each (5.61)
Calculated on face value of Rs. 10 each (56.06)
The accompanying notes form an integral part of these financial statements
As per our attached report of even date For and on behalf of the Board
L. K. Shrishrimal
Partner Jawahar Lal Goel B. D. Narang
M.No. 72664 Managing Director Director
For and on behalf of
MGB & Co. Rajeev K. Dalmia Jagdish Patra
Chartered Accountants Chief Financial Officer Company Secretary
Place : Noida
Date : June 28, 2007
63

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT
MARCH 31,
(Currency: Indian Rupees)
2. SHARE CAPITAL (REFER NOTE 25)
Authorised
730,000,000 Equity Shares of Re.1 each 730,000,000
730,000,000
Issued, Subscribed and Paid-up
715,687,650 Equity Shares of Re. 1 each fully paid-up 715,687,650
Share Capital Suspense (287,464,847)
TOTAL 428,222,803
2007
3. RESERVES AND SURPLUS
Securities Premium (Refer Note 25.3.3)
As per last Balance Sheet 3,728,245,250
Less: Transferred to Restructuring Account 3,728,245,250
TOTAL –
General Reserves :
Transfer from Restructuring Account pursuant to the Scheme (Refer Note 25.3) 1,698,096,658
Less: Adjustment pursuant to the transitional provision as per AS-15 2,239,860
TOTAL 1,695,856,798
TOTAL 1,695,856,798
4. SECURED LOANS
(For security and other details Refer Note 27)
Term Loan from Bank 750,000,000
Bridge Loan from Bank 604,780,715
Cash Credit from Bank 75,725,609
Vehicle Loan 7,454,180
Interest accrued and due 7,006,850
TOTAL 1,444,967,354
5. UNSECURED LOANS
From Banks ( Refer Note 27.5) 250,000,000
From Others 234,019,576
Interest accrued and due 1,078,150
TOTAL 485,097,726
64

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT
MARCH 31,
6. FIXED ASSETS
(Currency: Indian Rupees)
Particulars GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK
Addition During The Year
Depreciation During the Year
As at Additions * Transfer Acquired Sale/ As at As at For The Year Transfer Acquired Sale/ As at As at
31.03.2006 Pursuant to Under Adjustment 31.03.07 31.03.2006 Pursuant to Under Adjustment 31.03.2007 31.03.2007
Scheme** Slump Sale*** Scheme* Slump Sale
Intangible Assets
Goodwill – – – 451,177,637 – 451,177,637 – 22,558,882 – – – 22,558,882 428,618,755
Licence fees 100,000,000 – – – – 100,000,000 25,000,000 10,000,000 – – – 35,000,000 65,000,000
Software 60,608 139,690,936 34,429,719 – – 174,181,263 15,516 28,021,728 – – – 28,037,244 146,144,019
Tangible Assets
Plant and Machinery 259,831,894 465,109,328 361,948,316 – – 1,086,889,538 31,288,406 110,227,610 47,567,308 – – 189,083,324 897,806,214
Consumer Premises
Equipments 476,646,480 2,722,775,388 – 1,503,497,136 – 4,702,919,004 9,980,853 444,125,843 – – – 454,106,696 4,248,812,308
Computers 5,952,788 9,529,952 3,830,571 – – 19,313,311 2,991,655 2,483,515 – – – 5,475,170 13,838,141
Office Equipments 4,120,186 2,747,174 2,213,194 – – 9,080,554 1,044,753 655,805 – – – 1,700,558 7,379,996
Furniture and Fixtures 1,256,761 1,999,034 3,022,267 – – 6,278,062 281,400 885,477 – – – 1,166,877 5,111,185
Other Electronic
Equipment 21,034,190 – – – 21,034,190 – 6,088,039 2,182,833 – – 8,270,872 – –
Vehicles 6,779,608 2,825,706 17,239,423 – 2,156,562 24,688,175 856,151 2,457,141 – – 252,202 3,061,090 21,627,085
Leasehold
Improvements 2,522,595 2,973,635 – – – 5,496,230 2,102,162 596,736 – – – 2,698,898 2,797,332
Current Period 878,205,110 3,347,651,153 422,683,490 1,954,674,773 23,190,752 6,580,023,774 79,648,935 624,195,570 47,567,308 – 8,523,074 742,888,739 5,837,135,035
Notes:
(1) * Addition during the year includes additions of demerged operations.
(2) ** Transfer of assets pursuant to the Scheme.
(3) *** Acquired under Slump Sale.
(4) Details of operating lease is given in Note 33.2.
(5) Current year depreciation includes Rs. 569,571 taken to pre-operating expenses (Refer Note 29.4).
(Currency: Indian Rupees)
2007
7. INVESTMENTS
Long Term (At Cost) - Unquoted
NSC VIII issue 25,500
(Pledge with Sales Tax Authorities)
TOTAL 25,500
Aggregate Book value of unquoted investments 25,500
Aggregate Book value of quoted investments –
8. INVENTORIES
(as taken, valued and certified by the management)
Stock in Trade 11,762,339
TOTAL 11,762,339
9. SUNDRY DEBTORS
(unsecured, considered good unless otherwise stated)
More than Six Months Old (include doubtful of Rs. 13,161,188) 56,397,146
Others (include doubtful of Rs. 42,288,389) 417,444,940
473,842,086
Less: Provision for Doubtful Debts 55,449,577
TOTAL 418,392,509
65

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT
MARCH 31,
(Currency: Indian Rupees)
2007
10. CASH AND BANK BALANCES
Cash in Hand 183,072
Balance with Scheduled Banks :
In Current Account 63,564,790
In Fixed Deposit (Pledge with Bank/others Rs. 64,024,532 ) 64,024,532
TOTAL 127,772,394
11. LOANS AND ADVANCES
(unsecured, considered good unless otherwise stated)
Loans 849,767,351
Other Advances (recoverable in cash or kind or for value to be considered) 1,907,021,991
Deposits 16,752,694
2,773,542,036
Less : Provision for Doubtful Advances 1,226,043,309
TOTAL 1,547,498,727
12. CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Creditors for Goods 886,017,159
Creditors for Expenses and Other Liabilities 3,138,438,127
Interest accrued but not due 4,019,923
Advances/Deposits 4,981,586,093
TOTAL 9,010,061,302
Provisions
For Taxation (net of taxes) 1,372,280
For Retirement Benefits 11,137,410
TOTAL 12,509,690
66

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE
YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
13. SALES AND SERVICES
Income from DTH Subscribers :
Subscription Income 1,219,008,658
Lease Rentals 218,070,913
Other DTH Revenue 1,274,760
Income from Content Providers:
Placement and Active Services 359,214,740
Royalty –
Teleport Services 104,888,339
Sales (Net of Returns) 6,915,600
Call Center Charges 5,721,085
Other Services 1,381,338
TOTAL 1,916,475,433
2007
14. OTHER INCOME
Exchange Difference (Net) 25,162,512
Other Income 20,467,930
TOTAL 45,630,442
15. COST OF GOODS SOLD (NET)
Opening Stock 5,086,539
Purchases (Net of Returns) 12,083,741
17,170,280
Less: Closing Stock 11,762,339
TOTAL 5,407,941
16. OPERATING COSTS
Transponder Lease 338,307,289
License Fees 200,614,938
Uplink Charges 60,459,416
Content Costs 1,556,275,576
Entertainment Tax 11,754,420
Middleware Charges 28,688,833
Other Operating Charges 5,972,486
TOTAL 2,202,072,958
17. PERSONNEL COST
Salary and Allowances 202,255,273
Contribution to Provident and Other Funds 12,400,052
Staff Welfare 5,477,896
TOTAL 220,133,221
67

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE
YEAR ENDED MARCH 31,
(Currency: Indian Rupees)
18. ADMINISTRATIVE AND OTHER EXPENSES
Rent 9,310,128
Rates and Taxes 36,441
Water and Electricity Charges 8,841,886
Insurance 1,254,732
Repairs and Maintenance - Plant and Machinery 1,051,928
Repairs and Maintenance - Building 2,387,600
Repairs and Maintenance - Others 6,084,008
Vehicles Expenses 2,608,178
Legal and Professional Expenses 20,870,786
Director Meeting Fee 40,000
Printing and Stationery 13,211,752
Communication Expenses 60,556,484
Travelling and Conveyance 39,696,894
Freight, Cartage and Demurrage 26,656,060
Provision for Doubtful Debts and Advances 57,694,388
Preliminary Expenses written off 16,415
Miscellaneous Expenses 18,097,036
Service and Hire Charges 11,517,738
Bad Debts 161,252
Loss on Sale/Discard of Assets 13,403,002
TOTAL 293,496,708
2007
19. SELLING AND DISTRIBUTION EXPENSES
Advertisement Expenses 535,244,862
Commission 328,846,145
Business Promotion 5,805,396
Customer Support Service (Call Centre) 25,571,266
TOTAL 895,467,669
20. FINANCIAL CHARGES (NET)
Interest to Banks 71,803,899
Interest to Others 72,056,215
143,860,114
Less : Interest Received (Gross) 58,225,618
85,634,496
Bank and Other Financial Charges 32,235,226
TOTAL 117,869,722
68

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Accounting Convention:
i. The Company generally follows mercantile system of accounting and recognises income and expenditure on accrual basis
except those with significant uncertainties.
ii.
The Financial Statements have been prepared on historical cost convention and in accordance with the accounting standards
referred to in Section 211 (3C) of the Companies Act,1956.
Fixed Assets:
i. Fixed assets are stated at Cost. Cost includes capital cost, freight, installation cost, duties & taxes and other incidental
expenses incurred during the construction/installation stage attributable to bringing the assets to working condition for its
intended use.
ii.
iii.
iv.
All capital costs and incidental expenditure during the pre-operational period are shown as Capital work-in-progress.
License fee is considered intangible assets and is stated at amount paid.
Customer premises equipments are being capitalised on its activation.
v. Software is capitalised as an intangible asset on meeting recognition criteria.
Depreciation/Amortisation:
i. Depreciation on fixed assets is provided on tangible assets including leased assets, at the rates adopted in the accounts of
respective subsidiaries as permissible under applicable law, on Straight Line Method from the time they are available for use,
so as to write off their cost over estimated useful life of the assets.
ii.
iii.
iv.
Goodwill arising on acquisition is amortised over a period of five years.
Leasehold improvements are amortised over the period of lease.
License fee is amortised over the period of license.
v. Assets costing below Rs. 5,000 (except customer premises equipments & VC Cards) are depreciated at 100%.
vi.
Depreciation on other intangible assets is amortised over the economic useful life of the assets as estimated by the management.
Revenue Recognition:
i. Incomes from service is accounted on the completion of services. Period based services are accounted rateably over the
period of service.
ii.
iii.
Sales of goods are recognised when risk and rewards of ownership are passed on to the customer, which is generally on
dispatch of goods.
Lease rentals are recognised as revenue as per the terms of the operating lease agreement.
Investments:
Long-term Investments are stated at cost. Diminution in value, other than temporary is provided.
Inventories:
Inventories including material lying with third parties are valued at the cost, which are being valued at weighted average basis or
net releasable value whichever is lower except in case of one subsidiary, inventory is value on first in first out basis. The effect is
unascertained.
Retirement Benefits:
i) Contribution to Provident Fund and other recognised funds are charged to Profit & Loss Account.
ii)
iii)
Gratuity and Leave Encashment is provided on the basis of actuarial valuation at the Balance sheet date.
In case of Two Indian Subsidiaries, the gratuity benefit is provided through annual contribution to a fund managed by the Life
Insurance Corporation of India (LIC).
69

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(h)
(i)
(j)
(k)
(l)
Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and
liabilities denominated in foreign currency are translated at the exchange rate prevailing at the Balance Sheet date and gains or
losses on translation are recognised in Profit & Loss Account. Non monetary foreign currency items are carried at cost.
Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets.
All other borrowing costs are charged to revenue.
Taxes on Income:
Tax expense comprise of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with Indian Income Tax Act. Deferred Tax is recognised, subject to
consideration of prudence, on timing difference, being the difference between taxable income that originate in one period and are
capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. At the Balance Sheet date
the Company assesses unrealised deferred tax assets to the extent they become reasonably certain or virtually certain of realization
as the case may be.
Operating Lease:
Lease of the assets where all the risk and rewards of ownership are effectively retained by the lessor are classified as operating
lease. Lease payments/revenue under operating lease are recognised as an expense/income on accrual basis in accordance with
respective lease agreement.
Earning Per Share:
Basic earning per share is computed and disclosed using the weighted average number of common shares outstanding during the
year. Diluted earning per share is computed and disclosed using the weighted average number of common and dilutive common
equivalent share outstanding during the year except where the result would be anti dilutive.
(m) Impairment:
The carrying amounts of the Company's assets are reviewed at each Balance Sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized whenever the carrying amount of an asset exceeds its
recoverable amount. Impairment losses are recognised in the income statement in the period in which the impairment is identified.
70

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
21. BACKGROUND
Dish TV India Limited (herein referred to as "the parent company", "the company" or "Dish") alongwith its subsidiaries (collectively
known as "the Group") encompassing the Direct To Home (DTH) Satellite Television Service which includes teleport service, customer
support, transponder space leasing etc.
The Group's revenue are mainly from subscription from customers, lease rent on customer premises equipment, teleport services,
placement and active services charges.
22. USE OF ESTIMATES
The preparation of the CFS in accordance with the Generally Accepted Accounting Principles requires the management to make
estimates and assumption that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of
the financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from those estimates.
Any revision to estimates is recognized prospectively in the current and future periods.
23. GOING CONCERN
The accompanying CFS have been prepared assuming that the Company will continue as a going concern. The management believes that
it is appropriate to prepare these financial statements on a 'going concern' basis, for the following reasons:
23.1 The Company hold DTH license from Government of India for a considerable long time.
23.2 The Company is the first to launch DTH services in India. This business necessitates long gestation period to stand in its feet. Being
first mover the Company incurred huge expenses on awareness of the product, brand building on a pan India basis. The benefit of
these expenses will accrue in the future years.
23.3 The Promoters are fully seized of the matter and are committed to arrange required resources.
24. BASIS OF CONSOLIDATION
24.1 The Consolidated Financial Statements (CFS) of the Group are prepared under the historical cost convention in accordance with
Generally Accepted Accounting Principles in India and the Accounting Standard (AS) 21 on "Consolidated Financial Statements"
issued by the Institute of Chartered Accountants of India (ICAI), to the extent possible in the same format as that adopted by the parent
company for its separate financial statements by regrouping, recasting or rearranging figures wherever considered necessary. The
significant inconsistencies in accounting policies are disclosed wherever applicable and no adjustment are made in CFS for such
inconsistencies.
The consolidation of the financial statements of the parent company and its subsidiaries is done to the extent possible on line to line
basis by adding together like items of assets, liabilities, income and expenses. All significant intra group transactions , balances
and unrealised inter company profits have been eliminated in the process of consolidation.
24.2 The parent company and its subsidiaries prepare its financial statements under the historical cost convention, in accordance with
Generally Accepted Accounting Principles (GAAP) prevalent in India.
24.3 The CFS includes the Financial Statements of the parent company and the subsidiaries (all Indian companies) as listed in the table
below. Subsidiaries are consolidated from the date on which effective control is acquired and are excluded from the date of transfer/
disposal.
Name of the Subsidiaries Extent of holding %
Integrated Subscribers Management Services Limited 100.00
Agrani Convergence Limited 51.00
Agrani Satellite Services Limited 100.00
24.4 Minority interest in subsidiary represents the minority shareholders proportionate share of the net assets and net income.
25. THE SCHEME OF ARRANGEMENT
The Scheme of Arrangement (the Scheme) under Sections 391 to 394 read with Sections 78, 100 and other applicable provisions of the
Companies Act, 1956 between Zee Telefilms Limited now known as Zee Entertainment Enterprises Ltd. (ZEEL), Siti Cable Network
71

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Limited (SITI) and New Era Entertainment Network Ltd. (NE) and ASC Enterprises Limited (now known as Dish TV India Limited (the
Company) and their respective shareholders have been sanctioned by the Hon'ble High Court of Judicature at Bombay and High Court of
Judicature at New Delhi vide their respective order dated January 12, 2007 and December 18, 2006 and a copy of these orders have been
filed with the respective Registrar of Companies on January 17, 2007 and January 19, 2007 respectively. The Scheme has been given
effect in these financial statements except actual allotment and reorganisation of Share Capital.
25.1 Pursuant to the Scheme, Direct Consumer Services undertaking (DCS) of ZEEL including investment made by ZEEL in SITI and the
entire business and whole of the undertaking of the transferor Companies i.e. SITI and NE have been transferred to and vested in the
Company on appointed date i.e. April 1, 2006 on going concern basis. The assets and the liabilities of DCS undertaking of ZEEL at
book value and of SITI and NE at fair value have been transferred to and vested in the Company as under.
Particulars DCS undertaking of ZTL SITI NE
Gross Block of Fixed Assets 320,441,991 75,724,410 26,517,087
Less : Depreciation 47,567,308 – –
Net Block of Fixed Assets 272,874,683 75,724,410 26,517,087
Capital Work-in-Progress – 329,347,821 –
Investments 19,363,880 1,000,000 –
Share Application Money 1,419,713,819 500,000,000 690,000,000
Current Assets, Loans and Advances – 105,776,495 424,897,432
Total Assets (A) 1,711,952,382 1,011,848,726 1,141,414,519
Loan Funds 326,324,605 1,069,936 7,100,114
Current Liabilities and Provisions 19,920 1,435,362,605 1,124,494,831
Total Liabilities (B) 326,344,525 1,436,432,541 1,131,594,945
Surplus/(Deficit) (A-B) 1,385,607,857 (424,583,815) 9,819,574
25.2 Reorganisation of Share Capital
25.2.1 The paid up equity share capital of the Company had been sub-divided on September 25, 2006 by splitting 71,568,765
equity shares of Rs. 10 each into 715,687,650 equity shares of Re. 1 each.
25.2.2 Pursuant to the Scheme following effect are given considering the shareholding pattern of ZEEL on record date i.e.
February 20, 2007:-
●
●
997,203,560 equity shares of Re. 1 each fully paid to be issued in the ratio of 23 equity shares of Re. 1 each fully
paid up of the Company for every 10 equity shares of Re. 1 each fully paid up of ZEEL.
Reduction of above equity share capital by way of cancellation of 3 equity shares of Re. 1 each fully paid up for
every 4 equity shares of Re. 1 each fully paid up resulting in final issues of 249,300,890 equity shares of Re. 1
each fully paid up.
● Pending actual action, the difference on allotment, cancellation, reduction and issue of Share Capital as above
has been taken to the "Share Capital Suspense" in Note 2 to these financial statements.
25.2.3 The present Share Capital of the Company Rs. 715,687,650 divided into 715,687,650 equity shares of Re. 1 each fully
paid up will be reduced by cancellation of 3 equity shares of Re. 1 each fully paid up for every 4 equity shares of
Re. 1 each fully paid up. The resultant Share Capital will be Rs. 178,921,913. Pending actual reduction Rs. 536,765,737
has been taken to 'Share Capital Suspense' in Note 2.
25.3 Pursuant to the Scheme, surplus Rs. 1,698,096,658 in the Restructuring Account after carrying out following adjustments as per
the Scheme has been transferred to General Reserve Account.
72

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
25.3.1 The value of net assets of DCS undertaking of ZEEL as reduced by the face value of equity shares to be issued
amounting to Rs. 1,136,306,967 has been credited to Restructuring Account as prescribed in the Scheme.
25.3.2 The value of net assets/(liabilities) of SITI and NE amounting to (Rs. 424,583,815) and Rs. 9,819,574 respectively, as
reduced by the cancellation of the investments amounting to Rs. 19,363,880 and Rs. 500,000 respectively has been
(debited)/credited to Restructuring Account as prescribed in the Scheme.
25.3.3 Balance in Share Premium Account and Profit and Loss Account (Debit Balance) amounting to Rs. 3,728,245,250 and
Rs. 3,268,593,174 respectively has been transferred to Restructuring Account.
25.3.4 Reduction in present Share Capital of Rs. 536,765,737 has been transferred to Restructuring Account.
25.4 Pursuant to demerger of DCS undertaking of ZEEL, SITI and NE became wholly owned subsidiaries of the Company
and hence upon the merger of the Subsidiaries with the Company, entire equity share capital of these Companies stand
automatically cancelled and hence there will not be any issue and allotment of shares of the Company.
25.5 The transactions of New Era Entertainment Network Limited, Siti Cable Network Ltd. and DCS business of Zee
Entertainment Enterprises Ltd. between the appointed date and the effective date are deemed to be made on behalf of
the Company. Accordingly all Assets, Liabilities, Income & Expenditure of the demerged undertakings for the said
period are taken over by the Company and given effect in these Financial Statements.
25.6 The assets, license & agreements etc. transferred pursuant to the Scheme of Arrangement are in the process of
registration/transfer in the name of the Company.
26. The Company has acquired DTH Equipment Unit Business (DEU) of Essel Agro Private Limited on a going concern basis vide agreement
to transfer DTH Equipment Unit (DEU) Business dated December 31, 2006. Pursuant to the agreement following assets and liabilities have
been acquired and are included in these financial statements. The goodwill arising on acquiring of DEU Business amounting to
Rs. 451,177,637 (including purchase consideration Rs. 500,000) has been treated as intangible asset. (Currency: Indian Rupees)
Particulars
Fixed Assets 1,503,497,136
Current Assets, Loans and Advances 21,403,084
Total Assets 1,524,900,220
Current Liabilities and Provisions 1,975,577,857
Net Deficit 450,677,637
27. SECURED/UNSECURED LOANS
27.1 Cash Credit of Rs. 75,725,609 is secured by first pari passu hypothecation charge on all present and future movable fixed assets
relating to DTH project and pledge of shares by related parties.
27.2 Bridge Loan of Rs. 604,780,715 is secured by hypothecation of all movables including movable machinery, machinery spares, tools
and accessories, book debts etc., present and future, and corporate guarantee of related party and pledge of certain shares held by
the promoters in the Company. The bridge loan is against a term loan of Rs. 75 crores and is repayable on October 1, 2007.
27.3 Term Loan of Rs. 750,000,000 is secured by hypothecation by way of first pari passu charge on all the current assets including
goods, stocks and all other such articles and book debts, receivables, investments, present and future, corporate guarantee of
related party. The loan is repayable within twelve months.
27.4 Vehicle Loan is secured against hypothecation of vehicles (ROC charge not registered) (amount repayable within a year Rs. 3,650,500)
27.5 Unsecured Loans from banks are backed by corporate guarantee provided by a related party and is short term loan.
28. TAXES ON INCOME
28.1 In view of loss incurred by the Company and its subsidiaries, no provision for current tax is made.
28.2 In accordance with the Accounting Standards-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants
of India, deferred tax assets and liability should be recognised for all timing difference in accordance with the said standard.
However, considering the present financial position and requirements of the accounting standard regarding certainty/virtual certainty,
the same is not provided for by the group except one subsidiary.
73

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
28.3 The component of the deferred tax balance are as under:- (Currency: Indian Rupees)
Particulars 2007
Deferred Tax Assets
Unabsorbed Depreciation & Business Losses 63,232,296
TOTAL 63,232,296
Deferred Tax Liabilities
Depreciation 70,090,267
TOTAL 70,090,267
Deferred Tax Balances (Net) 6,857,971
29. CAPITAL WORK IN PROGRESS
29.1 Capital work in progress includes equipments valuing Rs. 835,300,684 which includes Customer Premises Equipments valuing
Rs. 719, 824,813 to be given on lease to customers to provide services of the Company.
29.2 Includes goods in transit of Rs. 361,460,373.
29.3 Includes capital advances of Rs. 1,655,842.
29.4 Includes pre-operative expenses of Rs. 1,269,768,084 related to one of the subsidiaries which is implementing the satellite service
project. All the expenses for implementing the satellite project are taken to pre-operative expenses. These are to be eventually
allocated to fixed assets, on commencement of commercial operations.
30. OTHER DISCLOSURES
30.1 30.1.1 The CFS have been prepared for the first time hence as per AS-21 (Consolidated Financial Statements) the Company is
not required to give previous year figures.
30.1.2 Further being first year of consolidation, cash flow statement for the year has not been prepared.
30.2 Prior period adjustments (Net) comprises of :- (Currency: Indian Rupees)
Particulars 2007
A. Income
Exchange Fluctuation 560,051
Lease Rentals (222,033)
Total Income 338,018
B. Expenses
Electricity Charges 2,731
Communication Expenses 1,200,256
Professional Fees 90,000
Miscellaneous Expenses 49,175
Sales Promotion 2,557,246
Advertisement Expenses 89,456
Commission 1,223,221
License Fees 7,935
Travelling and Conveyance 42,452
74
Total Expenses 5,262,472
Net-Income/(Loss) (4,924,454)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
30.3 Creditors for Expenses and Other Liabilities includes Rs. 350,999,096 due to Zee Entertainment Enterprises Ltd. on account of
transaction between the appointed date and effective date pursuant to the Scheme of Arrangement (Refer Note 25).
30.4 As per the advice received and in term of DTH License agreement the Company has provided license fees on its gross revenue from
DTH subscribers.
30.5 Debit and Credit balances of parties including subscribers and dealers' balances are subject to confirmation/reconciliation and
effect if any, will be considered on its determination.
30.6 Remuneration paid or provided in accordance with Section 198 of the Companies Act, 1956 to the Managing Director included in
personnel cost and relevant expenses head is as given below. Remuneration paid to the Managing Director exceeds the minimum
remuneration payable in case of inadequacy of the Profits. Hence, the Company has applied to the Central Government for approval
of the excess remuneration paid and approval is awaited.
(Currency: Indian Rupees)
Particulars 2007
Salary and Allowances 1,225,613
Contribution to Provident Fund 68,129
TOTAL 1,293,742
31. CAPITAL COMMITMENT:
Estimated amount of contract remaining to be executed on capital account and not provided for (Net of advance) is Rs. 452,307,175.
32. CONTINGENT LIABILITY NOT PROVIDED FOR
32.1 (Currency: Indian Rupees)
Particulars 2007
Claim against Company not acknowledged as Debts 99,144,271
Guarantees given by Banks on our behalf 501,110,000
Corporate Guarantees given on behalf of other Companies 24,000,000
Corporate Guarantees provided by others on behalf of Company 2,224,030,715
Legal Cases filed against the Company
Unascertained
32.2 The Entertainment Tax Authorities, Noida has raised a demand of Rs. 40,459,628 for the period from November 3, to February 4. The
Company has filed petition against the demand, which is pending. Further the authorities have intimated a total demand of
Rs. 92,019,941 till March, 2007.
33. OPERATING LEASE
33.1 In respect of assets taken on operating lease:
The Group's significant leasing arrangements are in respect of operating leases taken for offices, residential premises, transponder
etc. These leases are cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessee
and the lessor. The initial tenure of the lease generally is for 11 months to 120 months. The details of assets taken on operating lease
during the period are as under:
(Currency: Indian Rupees)
Particulars 2007
Lease Rental Charges for the period (net of shared cost) 403,469,137
Future Lease Rental obligation payable (under non-cancellable lease)
Not later than one year 141,119,343
Later than one year but not later than five years 7,059,771
More than five years –
33.2 In respect of assets given under operating lease:
The Group has leased out assets by way of operating lease and as on March 31, 2007, the gross book value of such assets, its
accumulated depreciation and depreciation for the year is as given below. The total lease income for the year is Rs. 273,155,252.
75

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Particulars 2007
Gross Value of the Assets 4,721,923,650
Accumulated Depreciation 460,001,940
Depreciation for the year 446,090,925
Particulars 2007
Future Lease Rental Receivable (under non-cancellable lease)
Not later than one year 455,600,471
Later than one year but not later than five years 1,447,565,341
More than five years –
34. RELATED PARTY DISCLOSURES
34.1 List of parties where control exists:
● Agrani Satellite Services Limited. (Wholly Owned Subsidiary)
(Currency: Indian Rupees)
● Agrani Convergence Limited. (Extent of holding reduced from 100% to 51% on March 31, 2006)
● Agrani Wireless Services Limited. (Till March 31, 2006.)
● Agrani Satellite Communication Enterprises (Gibraltar) Limited. (Till March 31, 2006.)
● Integrated Subscribers Management Services Ltd. (Wholly Owned Subsidiary from April 1, 2006)
34.2 Other Related with whom transactions have taken place during the year and balances outstanding as on last date of the year:-
Smart Talk Private Limited, Essel Corporate Services Private Limited, Essel Agro Private Ltd., Cyquator Technologies Limited, Zee
Telefilms Limited (now known as Zee Entertainment Enterprises Limited), Pan India Network Infravest Private Limited, Pan India
Paryatan Limited, Ayepee Lamitubes Limited, Procall Private Limited, Suncity Projects Limited, Afro-Asian Satellite Communication
(Gibraltar) Limited, Afro-Asian Satellite Communication (U.K.) Limited, ASC Telecommunication Limited, Asia Today Limited, Asia
TV Limited, Zee News Limited, Brio Academic, Zee Foundation, Ganjam Trading Co. Ltd., Rupee Finance & Management Pvt. Ltd.,
Intrex India Limited, Wire and Wireless India Limited, Dakshin Media Gaming Solutions Private Limited, Rama Associates, Zee
Turner Limited, Zee Interactive Learning Systems Limited, Kenlott Gaming Solutions Private Limited, Zee Akash News Private
Limited, E City Entertainment Private Limited, Zee Sports Limited, Bhilwara Telenet Services Private Limited, Quick Call Private
Limited, Mr. Jawahar Goel, ETC Networks Limited, Diligent Media Corporation Limited, Indian Cable Net Limited.
Directors/Key Management Personnel
Mr. Subhash Chandra
Mr. Jawahar Lal Goel, Mr. Ashok Kurien, Mr. B. D. Narang and Mr. Arun Duggal (appointed w.e.f. January 6, 2007)
Mr. Laxmi Narain Goel, Mr. Punit Goenka, Mr. Rajagopalan Chandrashekhar and Mr. Ashok Goel (upto January 6, 2007).
34.3 Transaction with related parties (Currency: Indian Rupees)
Particulars 2007
Amount Amounts for Major
(Rs.)
Parties
With Other Related Parties:
Sales, Services & Recoveries (Net of Taxes) 472,662,850
Zee Entertainment Enterprises Limited 178,322,015
Zee News Limited 71,144,836
Asia Today Limited 34,896,965
76

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Particulars 2007
Amount Amounts for Major
(Rs.)
Parties
Asia TV Limited 24,804,575
Zee Turner Limited 74,521,483
Others 88,972,976
Purchase of Goods & Services 987,774,125
Zee Turner Limited 802,522,247
Zee Entertainment Enterprises Limited 67,452,464
Intrex India Limited 25,566,444
Essel Agro Private Limited 71,025,412
Others 21,207,558
Rent Paid 5,571,943
Zee Entertainment Enterprises Limited 4,334,364
E City Entertainment (I) Private Limited 1,237,579
Interest Paid 52,012,364
Zee Entertainment Enterprises Limited 49,624,805
Others 2,387,559
Donation 2,500,000
Zee Foundation 2,500,000
Interest Received 52,818,343
Essel Agro Private Limited 46,017,716
ASC Telecommunication Limited 6,800,627
Purchase of Fixed Assets 728,933,910
Zee Entertainment Enterprises Limited 725,646,020
Others 3,287,890
Sale of Fixed Assets 596,151
Agrani Telecom Limited 596,151
Loan, Advance and Deposit Taken 642,127,830
Zee Entertainment Enterprises Limited 326,324,604
Wire & Wireless India Limited 105,300,000
Rupee Finance & Management Pvt. Ltd. 210,000,000
Others 503,226
Repayment of Loan, Advance and Deposit Taken 292,248,860
Essel Agro Private Limited 25,000,000
Wire & Wireless India Limited 105,300,000
Rupee Finance & Management Pvt. Ltd. 160,000,000
Others 1,948,860
Loan, Advance and Deposit Given 423,640,989
Essel Agro Private Limited 313,645,898
ASC Telecommunication Limited 94,100,000
Others 15,895,091
Refund Received against Loan, Advance and Deposit Given 250,878,245
ASC Telecommunication Limited 15,511,319
77

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Particulars 2007
Amount Amounts for Major
(Rs.)
Parties
78
Essel Agro Private Limited 231,282,175
Others 4,084,751
Corporate Guarantees Given 24,000,000
Procall Private Limited 20,000,000
Quick Call Private Limited 1,500,000
Smart Talk Private Limited 1,500,000
Bhilwara Telenet Services Limited 1,000,000
Corporate Guarantees Received 2,224,030,715
Zee Entertainment Enterprises Limited 2,224,030,715
Provision for Doubtful Advances 8,030,768
Brio Academic 7,950,000
Others 80,768
Assets & Liabilities Received Pursuant to Scheme of Arrangement
DCS undertaking of Zee Entertainment Enterprises Limited 1,385,607,857
Total Assets 1,711,952,382
Total Liabilities 326,344,525
Siti Cable Network Limited (424,583,815)
Total Assets 1,011,848,726
Total Liabilities 1,436,432,541
New Era Entertainment Network Limited 9,819,574
Total Assets 1,141,414,519
Total Liabilities 1,131,594,945
Assets & Liabilities Received pursuant to Slump Sale
Essel Agro Private Limited (451,177,637)
Total Assets 1,524,900,220
Total Liabilities 1,975,577,857
Purchase Consideration 500,000
Key Management Personnel 1,014,333
Jawahar Lal Goel 1,014,333
Balance at the end of period:
With Other Related Parties:
Loan, Deposit and Advances Given 2,399,134,909
Afro-Asian Satellite Comm. (UK) Limited 376,881,821
Afro-Asian Satellite Comm. (Gib.) Limited 827,708,050
Agrani Satellite Comm. (Gib.) Limited 3,840,524
Intrex India Limited 133,128,344
Essel Agro Private Limited 899,656,036
ASC Telecommunication Limited 143,982,455
Others 13,937,679
Loan, Deposit and Advances Taken 245,408,006
Suncity Project Limited 2,700,000

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Currency: Indian Rupees)
Particulars 2007
Amount Amounts for Major
(Rs.)
Parties
Kenlott Gaming Solutions Private Limited 1,900,000
Ayepee Lamitubes Limited 1,078,150
Wire & Wireless India Limited 3,806,065
Zee Multimedia Worldwide Mauritius Ltd. 5,401,750
Ganjam Trading Co. Private Limited 178,783,000
Rupee Finance & Management Pvt. Ltd. 50,636,570
Others 1,102,471
Creditors 1,587,604,879
Zee Entertainment Enterprises Limited 739,969,149
Zee Turner Limited 800,633,181
Others 47,002,549
Debtors 375,699,888
Asia Today Limited 23,772,474
Asia TV Limited 16,473,374
Zee News Limited 46,881,562
Zee Entertainment Enterprises Limited 193,321,888
Others 95,250,590
Corporate Guarantees Given 24,000,000
Procall Private Limited 20,000,000
Quick Call Private Limited 1,500,000
Smart Talk Private Limited 1,500,000
Bhilwara Telenet Services Limited 1,000,000
Corporate Guarantee Received 2,224,030,715
Zee Entertainment Enterprises Limited 2,224,030,715
Notes:
1) Major parties denote who account for 10% or more of the aggregate for that category of transaction etc.
2) Details of remuneration to managing director is disclosed in Note 30.6.
35. EARNING PER SHARE (EPS)
(Currency: Indian Rupees)
Particulars 2007
Profit/(Loss) After Tax (2,400,708,400)
Weighted average number of Equity Shares of Rs. 10 each (Nos.)* 42,822,280
Basic and diluted earning per share (56.06)
Weighted average number of Equity Shares of Re. 1 each (Nos.)* 428,222,803
Basic and diluted earning per share (5.61)
* Weighted average number of equity shares for the year includes equity shares to be allotted on record date pursuant to the Scheme.
(Refer Note No. 25)
36. SEGMENT INFORMATION AS PER AS-17
The Group follows AS-17 "Segmental Reporting" relating to the reporting of financial and descriptive information about their operating
segments in financial statements.
79

GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Group's reportable operating segments have been determined in accordance with the internal management structure, which is
organised based on the operating business segments as described below.
Direct to Home Services (DTH) - Uplink of satellite television signals to be received by the customer directly in the home. This segment
derives revenue by way of Subscription, Lease Rentals, Placement & Active Services and Other Incomes.
Trading - Trading in electronics and other equipments.
Teleport Services - Facility for uplink signals.
Subscriber Management Services - Providing conditional access services, customer support services and related activities.
Transponder Services - Acquisition of transponder per DTH Services and leasing to external parties.
(a) Business Segment (Year ended March 31, 2007)
(Currency: Indian Rupees)
Description DTH Trading Teleport Subscriber Transponder Unallocated Elimination Total
Services Management Services
Services
Segment Revenue
External Sales 1,797,569,071 6,915,600 104,888,339 7,102,423 – – – 1,916,475,433
Inter Segment Sales – – – 274,733,198 – – (274,733,198) –
Total Revenue 1,797,569,071 6,915,600 104,888,339 281,835,621 – – (274,733,198) 1,916,475,433
Segment Results (2,415,959,827) 3,156,292 (10,782,583) (5,140,584) – – 124,705,439 (2,310,333,847)
Operating Profit/(Loss)
Before Interest & Tax (2,415,959,827) 3,156,292 (10,782,583) (5,140,584) – – 124,705,439 (2,310,333,847)
Interest Expenses – – – – – – – 143,860,114
Interest Income – – – – – – – 58,225,618
Profit/(Loss) Before Tax – – – – – – – (2,395,968,343)
Exceptional Items – – – – – – – –
Current Taxes - FBT/Wealth Tax – – – – – – – (2,718,640)
Deferred Tax – – – – – – – 2,903,037
Prior Period Adjustments
(Net) - Income/(Loss) – – – – – – – (4,924,454)
Profit/(Loss) After Tax – – – – – – – (2,400,708,400)
(b)
Other segment Information
(Currency: Indian Rupees)
Segment Assets 7,505,926,160 46,348,197 293,040,051 1,173,683,097 1,284,837,958 1,197,337,636 (1,027,169,316) 10,474,003,783
Segment Liabilities 10,321,989,892 196,349,154 24,930,482 1,165,798,207 6,657,634 – (692,999,030) 11,022,726,339
Capital Expenditure* 5,892,956,755 – 212,062,837 236,928,431 9,891,854 – – 6,351,839,877
Depreciation/Amortisation 539,906,074 2,326,930 35,377,603 46,015,392 – – – 623,625,999
Non Cash Expenditure other
than Depreciation/Amortisation 50,980,223 12,167,167 – 16,415 – 7,950,000 – 71,113,805
80
*Capital Expenditure includes assets received pursuant to the Scheme of Arrangement.
As per our attached report of even date For and on behalf of the Board
L. K. Shrishrimal Jawahar Lal Goel B. D. Narang
Partner Managing Director Director
M.No. 72664
For and on behalf of
MGB & Co. Rajeev K. Dalmia Jagdish Patra
Chartered Accountants Chief Financial Officer Company Secretary
Place : Noida
Date : June 28, 2007