Annual Report 2011-2012

No.1 English Daily In South India

Deccan Chronicle Holdings Limited
Annual Report 2011-12

Board of Directors
T . Venkattram Reddy (Chairman)
T . Vinayak Ravi Reddy (Vice Chairman)
P. K. Iyer (Vice Chairman)
Dr V Lakshmana Charya Director (Independent and Non Executive)
M Venkateswarlu Director (Independent and Non Executive)
S Suresh Director (Independent and Non Executive)

Auditors
C B Mouli & Associates
Chartered Accountants
125, M G Road
Secunderabad-500 003

Registered Office
36, Sarojini Devi Road
Secunderabad-500 003 Registrar & Share Transfer Agents
Karvy Computershare Private Ltd
17-24, Beside Image Hospital
ISIN Number Vittal Rao Nagar, Madhapur
INE 137G01027 Hyderabad-500 081

1
NOTICE
th
Notice is hereby given that the 10 Annual General Meeting of the
members of Deccan Chronicle Holdings Limited will be held on
th
Thursday, the 28 March, 2013 at 9.00 A.M at Deccan Chronicle
Printing Press situated at Survey No.186 (P), Kondapur,
Serilingampally - 500 084 to transact the following business:
Ordinary Business
1. To receive, consider and adopt the Audited Balance Sheet
as at 30th September, 2012 and Profit and Loss Account
for the year ended on that date and the reports of the
Board of Directors' and Auditors' thereon.
2. To appoint a director in place of Mr.T Vinayak Ravi Reddy,
who retires by rotation and being eligible offers himself
for re-appointment.
3. To appoint M/s. C.B.Mouli & Associates , Chartered
Accountants, the retiring Auditors, as Statutory Auditors
of the Company to hold office from the conclusion of this
meeting till the conclusion of next Annual General
Meeting and to authorize the Board to fix their
remuneration.
Special Business
4. To consider and if thought fit, to pass with or without
modification(s), the following resolution as a Ordinary
Resolution:
“RESOLVED THAT pursuant to the provisions of Section
257 and other applicable provisions, if any, of the
Companies Act, 1956 Dr V Lakshmana Charya be and is
hereby appointed as an Independent Director of the
Company, whose period of office shall be liable to retire
by rotation.”
5. To consider and if thought fit, to pass with or without
modification(s), the following resolution as a Ordinary
Resolution:
“RESOLVED THAT pursuant to the provisions of Section
257 and other applicable provisions, if any, of the
Companies Act, 1956 Mr Venkateswarlu Malapaka be and
is hereby appointed as an Independent Director of the
Company, whose period of office shall be liable to retire
by rotation.”
6. To consider and if thought fit, to pass with or without
modification(s), the following resolution as a Ordinary
Resolution:
“RESOLVED THAT pursuant to the provisions of Section
257 and other applicable provisions, if any, of the
Companies Act, 1956 Mr S Suresh be and is hereby
appointed as an Independent Director of the Company,
whose period of office shall be liable to retire by rotation.”
7. To consider and if thought fit, to pass with or without
modification(s), the following resolution as an Ordinary
Resolution:
“RESOLVED THAT in accordance with the provisions of
Sections 198, 269, 309,310 and other applicable
provisions, if any, of the Companies Act, 1956 read with
Schedule XIII of the Act and subject to such approvals, if
any, consent of the Company be and is herby accorded to
re-designate Mr.T.Vinayak Ravi Reddy,Vice Chairman
as Vice Chairman and Managing Director of the Company
for the remaining tenure of his office (w.e.f 22.02.2013)
carrying a minimum remuneration as prescribed under
Schdule XIII of the Companies Act, 1956 subject to the
approval of central governament and the other terms
and conditions of his earlier appointment remain
unchanged.
RESOLVED FURTHER THAT the Board be and is hereby
authorised to alter and vary any of the terms and
conditions relating to the remuneration payable to
Mr. T. Vinayak Ravi Reddy within the limits specified under
the provisions of the Companies Act, 1956.”
8. To consider and if thought fit, to pass with or without
modification(s), the following resolution as an Ordinary
Resolution:
“RESOLVED THAT the consent of the shareholders be and
is hereby accorded to the Board of Directors of the
Company under section 293(1)(d) of the Companies Act,
1956, for the sums borrowed and/or to borrow any sum or
sums of monies from time to time from Banks or Financial
Institutions or Body Corporate or Mutual Funds or others,
whether by way of debentures, Commercial Papers, cash
credit, advance or deposits, loans or bill discounting etc.
notwithstanding the money or monies to be borrowed,
together with the monies already borrowed by the
Company (apart from temporary loans obtained from the
Company's bankers in the ordinary course of business)
may exceed the aggregate of the paid up capital of the
Company and its free reserves, that is to say, reserves not
set apart for any specific purposes, provided however
that the total amounts so borrowed / to be borrowed shall
not exceed Rs.5000 Crores (Rupees Five Thousand Crores
Only)”.
RESOLVED FURTHER THAT the Board of Directors be and
is hereby authorised to do and perform all such acts,
deeds and things as may be necessary, desirable or
expedient to give effect to this resolution.”
By Order of the Board
For Deccan Chronicle Holdings Ltd.
T Venkattram Reddy
Chairman
Secunderabad, February 22, 2013
Notes:
1. Every member entitled to attend and vote at the meeting
is entitled to appoint a Proxy to attend and vote instead
of himself and such Proxy need not be a member.
2. The proxy form duly completed must reach the registered
office of the Company before 48 hours of time fixed for
holding the meeting.
3. The Explanatory Statement pursuant to Section 173(2) of the
Companies Act,1956 is annexed hereto and forms part of the notice
4. Pursuanat to clause 49 of the Listing Agreement particulars of
2
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Mr. T Vinayak Ravi Reddy, Dr V Lakshmana Charya, Mr
Venkateswarlu Malapaka and Mr S Suresh seeking re-
appointment at this meeting is enclosed.
5. The Register of Members and Share Transfer Books of the
th
Company will remain closed from Monday, 25 March, 2013
th
toThursday, 28 March, 2013 (both days inclusive).
6. Members are requested to:
I) note that copies of Annual Report will not be
distributed at the Annual General Meeting.
ii) deliver duly completed and signed Attendance Slip at
the entrance of the meeting venue as entry to the
Meeting will be strictly on the basis of the entry slip.
iii) quote their Folio/Client ID & DP ID Nos. in all
correspondence.
iv) note that no gifts/coupons will be distributed at the
Annual General Meeting.
7. A corporate member shall be deemed to be personally
present only if it is represented in accordance with Section
187 of the Companies Act, 1956 i.e. only if the corporate
member sends certified true copy of the Board
resolution/power of attor ney author izing the
representative to attend and vote at the Annual General
Meeting.
8. Members are requested to notify immediately any change
of address:
i) to their Depository Participants (DP) in respect of
shares held in dematerialized form, and
ii) to the Company at its Registered Office or to its
Registrar & Share Transfer Agent M/s. Karvy Computer
share Pvt. Ltd. in respect of their physical shares, if any,
quoting their folio number.
9. All documents, if referred to in the accompanying
notice, are open for inspection at the registered office
of the Company on all working days (barring
Saturdays and Sundays) between 11.00 a.m. to 1.00
p.m. prior to the Annual General Meeting.
By Order of the Board
For Deccan Chronicle Holdings Ltd.
T Venkattram Reddy
Chairman

Secunderabad, February 22, 2013

3
Explanatory Statement
(Pursuant to Section 173(2) of the Companies Act, 1956)
Item No. 4
th
The Board of Directors of the Company at its meeting held on 8 December, 2012 appointed Dr V Lakshmana Charya as Additional
Director of the Company. In terms of the provisions of Section 260 of the Companies Act, 1956 read with Article 98 of the Articles of
Association of the Company, DrV Lakshmana Charya holds his office only up to the date of this Annual General Meeting.

Your Company has received a notice, in writing from a shareholder, under Section 257 of the Companies Act, 1956 along with a requisite
deposit, signifying his intension to appoint Dr V Lakshmana Charya as an Independent Director of the Company. The Board considers it
desirable that the Company should continue to avail the services of DrV Lakshmana Charya and accordingly recommend the resolution
for your approval.

None of the Directors except DrV Lakshmana Charya is interested or concerned in the above resolution.

Item No. 5
th
The Board of Directors of the Company at its meeting held on 8 December, 2012 appointed Mr Venkateswarlu Malapaka as Additional
Director of the Company. In terms of the provisions of Section 260 of the Companies Act, 1956 read with Article 98 of the Articles of
Association of the Company, MrVenkateswarlu Malapaka holds his office only up to the date of this Annual General Meeting.

Your Company has received a notice, in writing from a shareholder, under Section 257 of the Companies Act, 1956 along with a requisite
deposit, signifying his intension to appoint Mr Venkateswarlu Malapaka as an Independent Director of the Company. The Board
considers it desirable that the Company should continue to avail the services of Mr Venkateswarlu Malapaka and accordingly
recommend the resolution for your approval.

None of the Directors except MrVenkateswarlu Malapaka is interested or concerned in the above resolution.

Item No.6
th
The Board of Directors of the Company at its meeting held on 8 December, 2012 appointed Mr S Suresh as Additional Director of the
Company. In terms of the provisions of Section 260 of the Companies Act, 1956 read with Article 98 of the Articles of Association of the
Company, Mr S Suresh holds his office only up to the date of this Annual General Meeting.

Your Company has received a notice, in writing from a shareholder, under Section 257 of the Companies Act, 1956 along with a requisite
deposit, signifying his intension to appoint Mr S Suresh as an Independent Director of the Company. The Board considers it desirable
that the Company should continue to avail the services of Mr S Suresh and accordingly recommend the resolution for your approval.

None of the Directors except Mr S Suresh is interested or concerned in the above resolution.

Item No.7
Members are aware that Mr N Krishnan has resigned as Managing Director as well as Director of the Company with effect from
20.07.2012. In order to comply with Section 269 of the Companies Act, 1956 the Board of Directors of the Company at its meeting
held on 22.02.2013 considered the statutory requirement of appointment of Managing Director and therefore re-designated Mr. T.
Vinayak Ravi Reddy, Vice Chairman as Vice Chairman and Managing Director of the Company carrying a minimum remuneration as
prescribed under Schdule XIII of the Companies Act, 1956, subject to the approval of central governament and shareholders at this
Annual General Meeting for the remaing period of his tenure of his office. To recall Mr T Vinayak Ravi Reddy has been appointed as
Vice Chairman for a period of 5 Years with effect from 16th May, 2010 which was ratified by the memebrs at the 8th Annaul General
Meeting held on 29th September, 2010 and therefore he will continue as Vice Chairman and Managing Director for the remaining
th
period upto 15 May, 2015 with payment of minimum remuneration as mentioned above.

Your directors, therefore, recommend the resolution for your approval.

None of the Directors except MrTVenkattram Redy and Mr.T.Vinayak Ravi Reddy are interested or concerned in the above resolution.

4
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Item No. 8
As per the provision of Section 293(1) (d) of the Companies Act, 1956, the Board of Directors cannot, except with the consent of the
Company in general meeting borrow monies, apart from temporary loans obtained from banks in the ordinary course of business in
excess of the aggregate of the paid up capital of the Company and its free reserves, that is to say, reserves not set apart for any specific
purpose.

Presently the Company is permitted to borrow up to Rs 1000 crores by virtue of resolution passed at the Annual General Meeting of the
th
Company held on 29 September, 2007. However during the course of business, the Company has obtained temporary loans from
banks/financial institutions/NBFC's and upon such loans becoming or likely to become regular loans in nature due to non-repayment
of the same in time, the Act requires the approval of the members for borrowing loans beyond Rs.1000 crores but not exceeding
Rs.5,000 crores.

In view of the above, it is proposed to raise the borrowing limits earlier sanctioned by the members to Rs.5000 crores.

Your directors, therefore, recommend the above resolution for your approval.

None of the Directors is, in any way interested or concerned in the above resolution.

By Order of the Board

For Deccan Chronicle Holdings Ltd.

T Venkattram Reddy
Chairman

Secunderabad, February 22, 2013

5
Management discussion and analysis
The financials of the year under review are not strictly comparable
to that of previous year as the current financial year is of 18
months as compared to 12 months.
Industry Overview
The Indian Entertainment & Media (E&M) industry is set to grow
robustly over the next few years on the back of steady macro-
economic growth, rising spending power and positive
demographic indicators. The industry revenues are expected to
reach 1,764 billion INR (37.6 billion USD) by 2016, with a CAGR of
about 17% from 2012 to 2016. Currently, India is only the 14th
largest E&M market in the world with industry revenues
contributing about 1% of its GDP. On the other hand, China is
already the third-largest market in the world and is likely to
surpass Japan over the next decade to become the second-
largest market worldwide, after the US.
The industry as a whole has been slowing down for the past few
years and the economic slowdown affected it further and your
Company is no exception to the same. Paper industry anywhere in
the world will survive on the advertisement revenue. The major
contributors to advertisements to the News Papers of the
Company are Governments, Government Undertakings and
Corporate houses. In view of the above adverse economic factors
and unfriendly industrial climate as also, cessation of certain
arrangements and competition from competitors, there was no
expected growth in the advertisement revenues.
Operations Review
Deccan Chronicle, the Flagship News paper of the Company
continues to be the Leading News Paper in South India. The
Company publishes editions from Hyderabad, Visakhapatnam,
Vijayawada, Rajahmundry, Anantapur, Nellore, Karimnagar,
Chennai, Bangalore, Coimbatore, Kochi, Thiruvananthapuram
and Kozhikode. During the financial year the Company has
restructured its operations and reinstated its assets and liabilities.
An exhaustive review of policies with regard to the sale of
advertisement, circulation and brand building stratagies scaling
down the operation on other fronts has been undertaken by the
management and accordingly, the Company captured the value
of the brands namely Deccan Chronicle and Andhra Bhoomi and
this has given a huge leverage to the Company and expected to
get better yields in future and enhance the enterprise value and
the investment value of the investors and shareholders.
Franchise rights of“Deccan Chargers”
The Hyderabad Franchise“Deccan Chargers”of the Indian Premier
League (IPL), created by the Board of Control for Cricket in India
(BCCI) is owned by the Company. During this accounting period,
the BCCI gave a differential treatment to the Company and citing
some untenable reasons and alleged breach of the terms of
agreement by the Company, terminated the franchise in a one
sided manner and approach adversely affecting the revenue
source of the Company and erosion of the Asset base of the
Company. In spite of the above adverse implications, the
Company cleared the arrears of fee to the players and freed the
Deccan Charges from hypothecation/charges. As per the orders
of the Honorable High Court of Bombay, BCCI and the Company
referred the issues to the Arbitrator for resolution of the dispute.
The Company filed claim petition before the Arbitrator against
BCCI for loss of profit, loss of brand creation, damages, etc. The
Company is hopeful of favorable outcome in the matters before
the Leaned Arbitrator.
Scalling Down of operations of Odyssey – A Chain of Leisure
Stores
The Company's operations of “odyssey” dealing in retail trading
outlets have been scaled down to rationalize the business
operations.
Affect of expansions.
The Company launched news papers editions in other parts of
south India during the previous years. News Paper industry will
survive only on the advertisement revenue and advertisement
revenue is a factor that is connected to the circulation and
readership. Hence, any paper enterprise has to sacrifice and suffer
loss till such time, the paper gets the required circulation and
viewership and till such time there is bound to be mismatch
between the revenue and cost. While the revenue from the
operations in Andhra Pradesh is positive and good, the company
witnessed mismatch between the revenues and cost in other
southern states due to the above factors.
In the light of the above incidents and factors, the Company has
suffered losses to the tune of `. 1040.40 Crores against a profit of
`.162.58 Crores during the previous year.
Share Capital
Share capital as at 30th September, 2012 is `. 41,79,44,438/-
comprising of 20,89,72,219 Equity shares of `. 2/- each fully paid
up. The Equity share capital has decreased during the year from
`.48,69,44,438/- to `. 41,79,44,438/- on account of buy back of
3,45,00,000 Equity Shares of `. 2/- each.
Reserves and Surplus
Reserves and Surplus as at 30 th September, 2012 is ` .
(31,78,48,086/-) as against `. 1231,44,94,532/- in the previous
year. The decrease in Reserves and Surplus is on account of
restructuring of operations and reinstatement of assets and
liabilities.
Debt
Secured Long term debt as at 30th September, 2012 is `.
147,20,12,291/- as against `. 268,11,60,760/- in the previous year.
Fixed Assets and Capital work in progress
The net block of fixed assets and Capital work in progress is `.
3870,33,15,217/- as against `. 926,71,28,206/- in the previous
year the increase in block of assets is on account of restructuring
of operations and reinstatement of assets and liabilities.
Investments
th
There are no investments as at 30 September, 2012.
Inventories
Inventories as at 30th September, 2012 is `. 21,08,43,200/- as
against `.133,40,93,918/- in the previous year.
Debtors
th
Debtors as at 30 September, 2012 is `. 144,77,87,733/- as against
`. 258,36,15,032.
6
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Cash and Bank balances government policies are not within the control of the
th management.
Cash and bank balances as at 30 September, 2012 is
`.15,87,29,161/- as against `.703,79,60,018/- in the previous year. Industry Risk
Loans and Advances The growth of print media industry is directly attributable to the
th growing economy, high-income levels and increasing literacy
The loans and advances as at 30 September, 2012 is
amongst the people. Any variations in these can have an impact
`.64,25,88,577/- as against `. 146,54,14,331/- in the previous year,
on the industry.
largely on account of scaling down of operations of Odyssey.
Raw Material Risk
Current liabilities and Provisions
Newsprint constitutes the major raw material for the newspaper
The Current liabilities and Provisions as at 30th September, 2012 is
industry. Therefore continuous supply of newsprint at
`.4042,16,05,681/- as against `. 559,67,46,466 /- in the previous
competitive price is essential for the business.
year. The variation is mainly due to reinstatement of assets and
liabilities. Operational Risk
Printing and Other Operative Expenses The Company has appointed good quality reporters who provide
on daily basis proper and authenticated information. The
The increase in printing and operative cost from `. 426,08,55,553
Company has also deployed good quality machines for printing
to `. 667,93,65,040/- is primarily an account of cost of
the newspaper without any breakdowns.
merchandise and franchisee fee paid of Deccan Chargers. More
over the expenses relating to the current period is of 18 months
Outlook
Depreciation
The Company provides depreciation on straight-line basis at the The Company during the period under review changed some
rates prescribed in Schedule XIV of the Companies Act, 1956. The policies and reinstated assets and liabilities. The Company has
depreciation charged for the current year `. 81,23,44,856/- as been actively defending all the cases filed against it by the
compared to the previous year of `. 51,57,35,240/- creditors. The management has been maintaining cordial
relationship with the lenders and the workforce. A process of
Tax Charge consultation with the creditors has been set in motion. To
mitigate the financial crisis and funds flow, the management has
The total tax charge for the current year is `.( 82,98,19,351/-) as
decided to go for a scheme of arrangement with its
against the previous year of `. 74,30,31,452/-. The Company has
creditors/lenders as per the provisions of the Companies Act,
reversed deferred tax liabilities as the company has incurred
1956 involving de-merger of print division of the Company and
losses for the current period and no deferred tax asset has been
reorganization of the debt subject to the approval of the
recognised in the books of accounts based on prudence concept.
creditors/lenders/shareholders and other statutory authorities
Internal Control Systems and the Courts. The Company has the requisite support in
particular financial support to implement the scheme and
The Company has adequate internal control systems to monitor
discharge the financial obligations. Once the scheme of
all aspects of operations and managerial functions. There are well
arrangement is approved, the Company is confident of achieving
defined procedures and policies laid out to perform the various
high growth in terms of revenue as well as operational profit in
functions. All functions are regularly reviewed and the results of
the years to come.
the same are discussed by the senior management and Audit
Committee.The recommendations are duly implemented.
Risk Management Cautionary Statement
All businesses are subject to internal and external risks. The
Readers are cautioned that this section may contain forward
internal risks are controllable risks and the senior management
looking statements by the management that involves certain
has identified such risks and formulated such actions to mitigate
risks and uncertainties.This section should be read in conjunction
the effect of such risks.The external risks like change in
with the Company's financial statements and relevant notes
attached there to.

7
Corporate Governance
1. Company’s philosophy on code of governance
Corporate Governance is a synonym for sound management, transparency and disclosure. The Company's philosophy of Corporate
Governance envisages the highest level of transparency, accountability and equity in all its dealings with shareholders, employees,
government and lenders. The Company's guiding principles are focused to achieve the highest standards of Corporate Governance. In
compliance with the disclosure requirements of Clause 49 of the Listing Agreement executed with the Stock Exchanges, the details are
set out below:
2. Board of Directors
Composition
The Board has an optimum combination of Executive and Non-Executive Directors, and is in conformity with clause 49 of the Listing
Agreement entered into with the Stock Exchanges in which Company's shares are listed.

Presently the Board consists of 6 Directors, whose composition is as under:

Sl.No Name Designation Category

1 T.Venkattram Reddy Chairman Promoter, Executive
2 T.Vinayak Ravi Reddy Vice Chairman Promoter, Executive
3. P. K. Iyer Vice Chairman Promoter, Executive
4 *N. Krishnan Managing Director Executive, Non Independent
5 ~M. Sukumar Reddy Director Non Executive, Independent
6 ~G. Kumar Director Non Executive, Independent
7 ~V. Suresh Director Non Executive, Independent
8 @Krishan Premnarayen Director Non Executive, Independent
9 $ P. Siddhartha Director Non Executive, Independent

10 #Dr V Lakshmana Charya Director Non Executive, Independent

11 #MalapakaVenkateswarlu Director Non Executive, Independent

(1) * N.Krishnan resigned on 20.07.2012

(2) @ Krishan Premnarayen resigned on 30.1.2012
(3) $ P.Siddhartha appointed as additional Director on 14.2.2012 and resigned on 08.12.2012
(4) ~ M. Sukumar Reddy, G. Kumar and V. Suresh resigned on 08.12.2012
(5) # V Lakshmana Charya, Malapaka Venkateswarlu and S. Suresh appointed as additional Director on 08.12.2012

Meetings held
During the year 2011-12 (from 01.04.2011 to 30.09.2012), the Board met 15 times on 13.05.2011;17.06.2011;13.08.2011;23.09.2011;
14.11.2011;16.12.2011;12.01.2012;14.02.2012;12.03.2012;23.03.2012;15.05.2012;18.06.2012;06.07.2012;20.07.2012 and 07.09.2012.

The Directors attendance at the board meetings, number of Directorships and Committee memberships held by them in other
companies are given hereunder:

8
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Name No. of Board No. of Board Last *No. of *Committee

Meetings Meetings AGM directorships in Positions held in
held attended attended other public other public
companies companies
Chairman Member

T.Venkattram Reddy 15 15 Yes Nill - -

T.Vinayak Ravi Reddy 15 15 Yes Nill - -
P. K. Iyer 15 15 Yes Nill - -
N. Krishnan 15 6 No Nill - -
M. Sukumar Reddy 15 11 No Nill - -
G. Kumar 15 6 Yes Nill - -
Krishan Premnarayen 15 3 No Nill - -
V. Suresh 15 6 No Nill - -
P. Siddhartha 15 - - Nill - -

* As at 30th September, 2012 (from 01.04.2011 to 30.09.2012) (Committee positions include only Audit and Investors' Grievance
Committees)
1.The Directorships held by the Directors as mentioned above, do not include Alternative Directorships and Directorships in foreign
companies, Companies registered under section 25 of the Companies Act , 1956 and Private Limited Companies.

2.In accordance with the Clause 49, memberships/ Chairmanships of only the Audit Committee and Share holders'/Investors Grievance
Committees in Public limited companies (excluding Deccan Chronicle Holdings Limited) have been considered.

Audit Committee:

The Composition of the Audit Committee is in compliance with the Clause 49 of the Listing Agreement and the terms of reference,
role and scope are in line with those prescribed by Clause 49 of the Listing Agreement with the Stock Exchanges.

The Audit Committee comprises of 3 (three) Non executive Independent Directors including the Chairman. The Audit Committee met 5
times during the year (from 01.04.2011 to 30.09.2012) under review on 13.05.2011; 13.08.2011; 14.11.2011; 14.02.2012 and 15.05.2012 .

The Members of the Audit Committee namely Mr.V.Suresh, Mr.Sukumar Reddy and Mr.G.Kumar have resigned from the Board of
Directors on 08.12.2012, Consequently the Board of Directors has appointed the following Additional Directors Dr V Lakshmana
Charya, Mr. Malapaka Venkateswarlu and Mr.S.Suresh as Independent and Non Executive on 08.12.2012 and the Audit Committee has
been reconstituted with the new Directors.

The composition of Audit Committee before / after reconstitution by the Board of Directors and the details of meetings attended by
them are given below :

A. Before reconstitution of Audit Committee

Sl. No Name Position held in Number of committee

the Committee meetings attended
1 G. Kumar Chairman 4
2 M. Sukumar Reddy Member 5
3 V. Suresh Member 5

B. Before reconstitution of Audit Committee

Sl. No Name Position held in Number of committee

the Committee meetings attended
1 V Lakshmana Charya Chairman -
2 M. Venkateswarlu Member -
3 S. Suresh Member -

9
During these meetings, the Committee, inter alia, reviewed the financial statements including changes in accounting policies and
practices before submission to the Board, recommended the appointment of statutory auditors including fixation of audit fee, and
reviewed the company's financial and risk management policies.

Investors' Grievance Committee

The responsibilities of the Committee include redressal of all shareholders queries and grievances and approval of splitting of share
certificates, consolidation of share certificates and related matters including issue of fresh share certificates in lieu of the
split/consolidated certificates.
During the year (from 01.04.2011 to 30.09.2012), the committee met 4 times on 13.05.2011; 14.11.2011; 14.02.2012 and 15.05.2012. The
Chairman of Investor Grievance Committee Mr. M.Sukumar Reddy has resigned from the Board on 08.12.2012. Consequently the Board
of Directors has appointed the following Additional Directors Dr V Lakshmana Charya, Mr. Malapaka Venkateswarlu and Mr.S.Suresh as
Independent and Non Executive on 08.12.2012 and the Investor Grievance Committee has been reconstituted with the new Directors.

A. Before reconstitution of Investors' Grievance Committee

Sl. No Name Position held in Number of committee

the Committee meetings attended
1 M. Sukumar Reddy Chairman 4
2 T. Vinayak Ravi Reddy Member 4
3 P. K. Iyer Member 4

B. After reconstitution of Investors' Grievance Committee

Sl. No Name Position held in Number of committee

the Committee meetings attended
1 V Lakshmana Charya Chairman -
2 M. Venkateswarlu Member -
3 S. Suresh Member -

Remuneration Committee

The responsibilities of the committee are to appraise the performance of Executive Directors and senior officers of the Company and to
determine and recommend to the Board compensation payable to the above said persons.
The Members of the Remuneration Committee namely Mr.G.Kumar, Mr.Sukumar Reddy and Mr.V.Suresh have resigned from the Board
of Directors on 08.12.2012, Consequently the Board of Directors has appointed the following Additional Directors Dr V Lakshmana
Charya, Mr. Malapaka Venkateswarlu aend Mr.S.Suresh as Independent and Non Executive on 08.12.2012 and the Remuneration
Committee has been reconstituted with the new Directors.

The composition of Remuneration Committee before / after reconstitution is given below:

A. Before reconstitution of Remuneration Committee

Sl. No Name Position held in Number of committee

the Committee meetings attended
1 G. Kumar Chairman Nill
2 M. Sukumar Reddy Member Nill
3 V. Suresh Member Nill

B. Before reconstitution of Remuneration Committee

Sl. No Name Position held in Number of committee

the Committee meetings attended
1 M. Venkateswarlu Chairman -
2 S. Suresh Member -
3 V Lakshmana Charya Member -

10
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Details of Remuneration to Directors as on (from 01.04.2011 to 30.09.2012)

Sl.No Name Designation Salary (Rs. in lakhs)

1 T. Venkattram Reddy Chairman 255.82
2 T. Vinayak Ravi Reddy Vice Chairman 256.13
3 P. K. Iyer Vice Chairman 256.27
4 N. Krishnan Managing Director (since resigned) 210.00

Salary includes gross salary and perquisites.

No remuneration has been paid to the Non-Executive Directors during the year (from 01.04.2011 to 30.09.2012).

Certification
The Vice Chairman and Managing Director has certified to the Board of Directors, interalia, the accuracy of financial statements and
adequacy of internal controls for the financial reporting purpose as required under Clause 49(V) of the Listing Agreement for the year
ended (from 01.04.2011 to 30.09.2012).

Code of conduct and for Directors and senior management.

The Company is committed to conducting business in accordance with highest standards of business ethics and complying with
applicable law, rules and regulations.

The Company believes that a good corporate governance structure would not only encourage value creation but also provide
accountability and control systems commensurate with the risks involved.

The Board of Directors has adopted the Code of Conduct for Directors and Senior Management (“the Code”).

The Code has been circulated to all the members of the Board and Senior Management and the compliance of the same has been
affirmed by them. A declaration signed by theVice chairman and Managing Director is given below:

“I hereby confirm that the Company has obtained from all the members of the Board and senior management, affirmation that they have
complied with the Code of Conduct for Directors and senior management in respect of the financial year 2011-2012 (from 01.04.2011 to
30.09.2012).”

T.Vinayak Ravi Reddy

Vice Chairman and Managing Director

Details on General Body Meetings

Year Location Date Time No. of Special

Resolutions

2010-2011 Hotel Baseraa, Sarojini Devi Road, 30/09/2011 9.00 AM Nil

Secunderabad- 500 003

2009-2010 Hotel Baseraa, Sarojini Devi Road, 29/09/2010 9.00 AM Nil

Secunderabad- 500 003

2008-2009 Hotel Baseraa, Sarojini Devi Road, 30/09/2009 9.00 AM Nil

Secunderabad- 500 003

Postal Ballot
There were no special resolutions passed through postal Ballot procedure during the year 2011 -2012 (from 01.04.2011 to 30.09.2012)

11
Disclosures

The Board of Directors receive from time to time disclosures relating to financial and commercial transactions from key management
personnel of the Company as and when they and/or their relatives have personal interest in any of the pecuniary transactions with the
Company. There are no materially significant related party transactions, which have potential conflict with the interest of the Company
at large.

There has been no instance of non-compliance by the Company on any matter related to capital markets. Hence there has been no
penalties or strictures imposed by SEBI or Stock Exchanges.

Means of Communication

The quarterly financial results of the Company are generally published in Deccan chronicle and Andhra Bhoomi (Vernacular) and also
posted on the website of the company.

Non-Mandatory Requirements

The Company has set up a Remuneration Committee details of which have been given earlier in this report.
General Shareholder Information
Annual General Meeting :
th
Date andTime 28 March, 2013 at 9.00 A.M

Venue Deccan Chronicle Printing Press situated Survey No.186 (P),

Financial Calendar (tentative)
Book Closure Dates
Listing on Stock Exchanges
Stock Code
Payment of Listing and Custodial fees.
The annual listing fees up to the financial year 2011-12 have been paid to Bombay Stock Exchange Ltd. (BSE) and National Stock
Exchange of India Ltd. (NSE).
Kondapur, Serilingampally - 500 084
:
st th
FinancialYear 01 April, 2011 to 30 September,2012
th
First quarter results 15 of August
th
Second quarter results 15 of November
th
Third quarter results 15 of February
th
Fourth quarter results 15 of May
th th
: 25 March, 2013 to 28 March, 2013
(both days inclusive for the purpose of AGM)
: The Company Shares are listed at the following Stock Exchanges
1. National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Bandra Kurla Complex,
Bandra East, Mumbai - 400 051.
2. BSE Ltd,(BSE)(Formerly Bombay Stock Exchange Limited) Phiroze Jeejeebhoy Towers,
Dalal Street, Fort, Mumbai - 400 001.
: Bombay Stock Exchange Ltd: Scrip Code: 532608
National Stock Exchange of India Ltd: Scrip ID: DCHL

The annual custodial fee up to the financial year 2011-12 have been paid to National Securities Depositories Limited (NSDL) and Central
Depository Services (India) Limited (CDSL).

12
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Market Price-Volume Data & Comparison to broad based indices

Month BSE
Deccan Chronicle Sensex
High (Rs.) Low (Rs.) High Low
April-2011 90.00 78.40 19811.14 18976.19
May-2011 85.00 63.90 19253.87 17786.13
June-2011 70.45 54.55 18873.39 17314.38
July-2011 73.50 65.15 19131.70 18131.86
August-2011 70.00 49.10 18440.07 15765.53
September-2011 63.25 52.80 17211.80 15801.01
October-2011 56.85 45.06 17908.13 15745.43
November-2011 51.90 43.80 17702.26 15478.69
December-2011 49.20 35.50 17003.71 15135.86
January-2012 47.00 31.75 17258.97 15358.02
February-2012 57.00 40.50 18523.78 17061.55
March-2012 44.90 32.55 18040.69 16920.61
April-2012 40.55 34.70 17664.10 17010.16
May-2012 42.00 26.85 17432.33 15809.71
June-2012 34.85 25.95 17448.48 15748.98
July-2012 33.40 15.25 17631.19 16598.48
August-2012 15.70 9.5 17972.54 17026.97
September-2012 15.05 8.90 18869.94 17250.80

Month NSE
Deccan Chronicle S&P CNX Nifty
High (Rs.) Low (Rs.) High Low
April-2011 89.90 78.25 5944.45 5693.25
May-2011 85.00 65.05 5775.25 5328.70
June-2011 70.60 53.40 5657.90 5195.90
July-2011 73.40 65.60 5740.40 5453.95
August-2011 69.90 49.10 5551.90 4720.00
September-2011 63.15 54.20 5169.25 4758.85
October-2011 56.90 45.40 5399.70 4728.30
November-2011 52.50 44.00 5326.45 4639.10
December-2011 49.20 35.05 5099.25 4531.15
January-2012 46.70 31.75 5217.00 4588.05
February-2012 56.60 40.55 5629.95 5159.00
March-2012 44.75 32.10 5499.40 5135.95
April-2012 40.70 34.55 5378.75 5154.30
May-2012 41.90 26.35 5279.60 4788.95
June-2012 35.00 25.80 5286.25 4770.35
July-2012 33.40 15.20 5348.55 5032.40
August-2012 15.70 9.60 5448.60 5164.65
September-2012 14.95 8.95 5735.15 5215.70

13
Registrar and Share Transfer Agents Karvy Computershare Pvt. Ltd.
Unit: Deccan Chronicle Holdings Limited
17-24, Beside Image Hospital,
Vittal Rao Nagar
Madhapur, Hyderabad - 500 081.
Tel: 040 23420816-24
Fax: 040 23420814
Email: einward.ris@karvy.com

Share Transfer System

Almost the entire shares of the Company are in the electronic form. As regards transfer of shares held in physical form, the transfer
documents are lodged with our registrar Karvy Computershare Pvt. Ltd at the address mentioned herein above. Shares in physical form
are processed by the Registrar and Share Transfer agent within 15 days from the date of receipt, if the documents are complete in all
respects.
th
Distribution of Shareholding as on 30 September, 2012

Category (Shares) No. of Shares Percentage No. of Shareholders Percentage

1 - 5000 48935 93.05 16830255 8.05
5001 - 10000 1812 3.45 6880854 3.30
10001 - 20000 919 1.75 7000285 3.35
20001 - 30000 274 0.52 3447354 1.65
30001 - 40000 177 0.33 3206824 1.53
40001 - 50000 96 0.18 2212559 1.06
50001 - 100000 190 0.36 7006569 3.35
100001 & Above 188 0.36 162387519 77.71
Total 52591 100.00 208972219 100.00

Shareholding Pattern as on 30thstSeptember, 2012

Category No. of Shares Percentage
Promoters 8,02,51,523 38.40
Bodies Corporate 6,30,06,914 30.15
Resident Individuals 4,53,74,005 21.71
Indian Financial Institutions 1,40,75,632 6.74
Clearing Members 19,37,611 0.93
HUF 18,30,853 0.88
Non Resident Indians 14,44,002 0.69
Foreign Institutional Investors 10,38,004 0.49
Trusts 13675 0.01

Total 20,89,72,219 100.00

Dematerialization of Shares and Liquidity

The Company's shares are compulsorily traded in dematerialized form and have been admitted for dematerialization in both the
depositories i.e., National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).

th
As on 30 September, 2012 the Equity Shares of the Company are dematerialized as follows.
Shares held in No. of Shares Percentage
Physical Form 1,549 0.001
Electronic form with NSDL 18,33,58,619 87.743
Electronic form with CDSL 2,56,12,051 12.256
Total 20,89,72,219 100.00

14
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Plant Locations : Industrial Estate,Vijayawada, A.P.

Dowleswaram, Rajahmundry, A.P.
MVP Colony,Visakhapatnam, A.P.
Tapovanam Colony, Anantapur, A.P.
BurranpurVillage, Nellore, A.P.
Vavilapally Colony, Karimnagar, A.P.
Kompally, Hyderabad, A.P.
Kondapur, Hyderabad, A.P.
Industrial Estate, Guindy, Chennai,TN
Bommasandra, Industrial Area, Bengaluru, Karnataka
KurudampalayamVill., Coimbatore,Tamil Nadu

Address for Investor Correspondence : The Compliance Officer

Deccan Chronicle Holdings Ltd
No. 36, Sarojini Devi Road
Secunderabad – 500 003
Tel: 040-27803930

In terms of Clause 47(f ) of the Listing Agreement of Stock Exchanges investors may please use the following exclusive e-mail ID for
redressal of their grievances.

E-Mail- dchlinvestors@deccanmail.com

Details of Directors seeking re-appointment at the Annual General Meeting.

Particulars Dr V Lakshmana Mr. T. Vinayak Ravi Reddy Mr.Venkateswarlu Malapaka Mr. S Suresh
Charya
Date of Birth 05.09.1940 14.09.1961 19.05.1956 06.06.1966

Date of Appointment 08.12.2012 30.12.2002 08.12.2012 08.12.2012

M.com, LL.M, FCS, PG diploma in Business B.SC

Qualifications ICWA, PG.Diploma MBA Management
Labour Laws, Ph.d

General Management, General Management,

Company Law, Business Strategy, General Operations & Commercial Operations & Commercial
Experience in specific Corporate Laws and Management, Operations & matters , more in Sports matters, more in
functional area corporate finance. Commercial matters. and media Travel/Hospitality
and Aviation.

Directorships held in Nil Nil Nil Nil

other Public
Companies
Membership/Chairman
ship of Committees of
other Public
Companies (includes Nil Nil Nil Nil
only Audit Committee
and Shareholders/
Investors Grievance
Committee)

No. of Shares held in

the Company Nil 2,61,65,445 Nil Nil

For and on behalf of the Board

T Venkattram Reddy
Secunderabad, February 22, 2013 Chairman

15
Certificate of Compliance of Corporate Governance
TO
THE MEMBERS OF DECCAN CHRONICLE HOLDINGS LIMITED
We have examined the compliance of conditions of corporate governance by Deccan Chronicle Holdings Limited, for the year ended
30th September 2012 as stipulated in Clause 49 of the listing agreement of the company with the Bombay and National Stock Exchanges
(BSE& NSE).
The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to a
review of the procedures and implementation thereof adopted by the Company subject to the quarterly compliance report on
Corporate Governance filed by the company with the stock exchanges, for ensuring compliance of the conditions of Corporate
Governance as stipulated in the said clause. 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, 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 such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the company.
For C B Mouli & Associates
Chartered Accountants
(Firm’s Registration No. 2140S)

Mani Oommen
Partner
Secunderabad, February 22, 2013 M.No.24046

16
Deccan Chronicle Holdings Limited
Annual Report 2011-12

Directors’Report
Dear Shareholders,
th th
Your Directors take pleasure in presenting the 10 Annual Report and the Audited Accounts of your Company for the year ended 30
September, 2012 together with the Auditors' Report thereon.

FinancialYear

The Company has extended its financial year by six months consequent upon which, the Balance sheet and profit and loss account
st th
under consideration is made up from 1 April, 2011 to 30 September, 2012. Thus the financial year 2011 -12 are for Eighteen months.
The company has since obtained permission from the Registrar of Companies, Ministry of Corporate Affairs, Andhra Pradesh, to extend
st th
the financial year ending 31 March, 2012 till 30 September, 2012 and also, extension of time for holding the Annual General Meeting
by a period of three months i.e till 31st March, 2013.
Financial Results

Your Company's summarized financial results for the year under review is as under:
(Amount in `)

Particulars 2011 - 12 2010-11

Total Revenue 8,43,41,42,713 10,31,70,52,071

Profit/(Loss) before interest, tax and depreciation (3,08,27,39,095) 3,47,47,09,567
Less: Interest and financial charges 7,33,87,72,125 59,01,14,992
Profit/(Loss) before depreciation & tax (10,42,15,11,220) 2,88,45,94,575
Less: Depreciation 81,23,44,856 51,57,35,240
Profit /(Loss)before tax (11,23,38,56,076) 2,36,88,59,335
Tax charge (current and deferred) (82,98,19,351) 74,30,31,452
Net profit/(Loss) for the year (10,40,40,36,725) 1,62,58,27,883
Appropriations & Adjustments: -
-
Effect of change in treatment of franchise rights/others 51,36,48,000
-
Transfer to debenture redemption reserve 50,00,00,000
Transfer to general reserve 60,00,00,000
Surplus / (Deficit)for the year (10,40,40,36,725) 1,21,79,883
Balance in Profit & Loss Account 5,27,38,39,980 5,26,16,60,097
Balance carried forward (5,13,01,96,754) 5,27,38,39,980

Dividend Management Discussion and Analysis

Due to lack of profits, your Directors are unable to propose any A detailed Management Discussion and Analysis covering
payment of dividend for the year under review. operations review and outlook is provided in the Annual
Report.

Liquidity Crisis / Restatement of liabilities Buy back of Equity Shares

During the period under review, your company suffered a

reverses and liquidity constraints on account of termination of IPL
Franchise agreement by BCCI, mismatch in the cash inflows and
out flows of odyssey outlets business and accumulation of
receivables. The management with a view to arrest losses and
liquidity constraints has reviewed its policies in the interest of the
Company and in the process some of the liabilities have been
restated.
Pursuant to the Buy Back of shares announced during the
previous financial year, your Company has completed the
same and bought back the agreed 3,45,00,000 Equity shares
of `. 2/- each . The buyback issue was closed on 3rd January ,
2012 consequent upon which, the paid up share capital of the
Company as on 30th September,2012 stands reduced to `.
41,79,44,438/- consisting of 20,89,72,219 equity shares of `.
2/- each fully paid-up. .

17
Directors
During the year, Mr. Krishan Premnarayen, Independent director
has resigned from the board of directors and he was relieved of
his directorship with effect from 30.01.2012. Mr N. Krishnan,
Managing Director of the company has also resigned and he was
accordingly relieved of his duties with effect from 20.07.2012.
Further, Mr. M Sukumar Reddy, Mr.Gurumurthy Kumar and Mr. V
Suresh, independent and non executive directors have also
tendered their resignations and the same have since been
accepted by the board with effect from 08th December 2012. The
board of directors placed on records its gratitude and
appreciation for the services rendered by the above Directors
during their tenure.
On 08th December 2012, board of directors inducted Dr V
Lakshmana Charya, Mr Venkateswarlu Malapaka and Mr Suresh
Srinivasan as additional directors, who are independent and non
executive and the Company filed relevant forms with Registrar of
Companies for the above appointments and resignation of the
Directors. In view of the resignation of independent directors and
induction of additional directors, the board of directors
reconstituted the Audit committee, Investor grievances
committee and Remuneration committee in compliance with
clause 49 of the listing agreement with stock exchanges.
The aforesaid additional directors, who were appointed by the
board are liable for retirement at the ensuing annual general
meeting and being eligible for reappointment, are proposed to
be appointed as directors liable to retire by rotation in
accordance with section 257 of the companies Act, 1956. Notices
have been received, proposing the candidature of Dr V
Lakshmana Charya, Mr Venkateswarlu Malapaka and Mr Suresh
Srinivasan from some of the share holders of the company with
relevant deposit amount. Your board of directors recommends
their appointment as Independent and non excutive directors
liable to retire by rotation.
Mr. T. Vinayak Ravi Reddy, Vice Chairman and Director was
appointed as Vice chairman and Managing director at the
meeting of Board of Directors held on 22.02.2013 for the
remaining period of his tenure of office, subject to the approval of
the same by the shareholders. The relevant resolution proposing
the candidature of Mr. T Vinayak Ravi Reddy as Vice chairman and
Managing Director is included in the notice convening this
annual general meeting
Commercial papers / Debentures
The company has raised debt through commercial papers and
some of them have been repaid on the due dates and the
remaining commercial papers valued at `. 270 Crores are
outstanding and yet to be closed and similarly the debt raised
through debentures worth `. 481.65 Crores could not be
redeemed on due dates due to liquidity problems.
Investor protection fund
The unclaimed dividend amounting to `. 25,475/- pertaining to
the financial year 2004-05 is due for transfer to the Investor
Education and Protection Fund (IEPF) as per the regulations of the
Companies Act,1956.
Shares Pledge by the Promoters/Directors
As a result of the Lenders invoking the pledge of shares made
by the Promoters of the Company as collateral security for the
financial assistance provided to the Company , the promoters
share holding as reflected in the depository has come down from
38.40% to 32.66% as at 31st December 2012. The Promoters have
contested the invocation of the pledge and appropriation of the
value by the lenders and the matter is pending to be resolved.
Franchise rights of“Deccan Chargers”
Franchise rights of“Deccan Chargers”
Your Company is the owner of the Hyderabad Franchise “Deccan
Chargers”of the Indian Premier League (IPL), created by the Board
of Control for Cricket in India (BCCI). This is an indefinite right and
the Company can operate the franchise as long as the IPL
tournaments are conducted by BCCI. The consideration for
acquiring the franchise rights of Rs.428.04 Crores is payable to
BCCI over a period of 10 years, which is renewable, in equal
installments commencing from 2008 (IPL-1). The income accrues
to the Company on this Franchise by way of share comprising of
central revenue from BCCI, ticket sales, sponsorship etc.
During this accounting period, BCCI terminated the IPL Franchise
of the Company unilaterally under the pretext of breach of some
of the terms of the Franchise Agreement. As per the orders of the
Hon'ble High Court of Bombay, the parties viz., BCCI and the
Company approached an Arbitrator for resolution of the disputes.
Company filed claim petition before the Arbitrator against BCCI
claiming damages/ compensation for loss suffered by the
company on various counts on account of actions of BCCI.
Pending outcome of the arbitration, income on this disputed loss
of profit has not been recognized for the period under review.
Legal Cases
During the period under review, some creditors filed cases
against the Company and its Directors including petitions for
18
Deccan Chronicle Holdings Limited
Annual Report 2011-12
winding up of the Company, in the High Court of Andhra
Pradesh. The management has taken and been taking all diligent
steps under legal advice, to defend the company in all the
litigation. Since the matters are sub-judice, the exact liability of
the Company can't be ascertained at this point of time.
The Ministry of Corporate Affairs has ordered an Inspection of
Books of Accounts and other records under section 209A of the
Companies Act, 1956 and your company is taking steps to
provide the necessary documents/records to comply with the
order.
Listing at Stock Exchanges
The National Stock Exchange of India Limited has suspended the
trading of securities of the Company vide email dated 15th
January, 2013 with effect from 23.01.2013 due to non compliance
of some of the provisions of the listing agreement. Steps have
been already initiated to comply with the provisions of listing
agreement and in the process, the Company has since applied
the Stock Exchange for revocation of the suspension and the
same is awaited.
Report on Corporate Governance
As required under Clause 49 of the Listing Agreement with the
Stock Exchanges a report on Corporate Governance is given in
the Annual Report. Certificate of the Auditor regarding
compliance with the conditions of Corporate Governance is also
given.
Replies on the comments/ notes to accounts /Observations
made by the Statutory Auditors
Your directors noted for future guidance the observations of
Statutory Auditors in the Auditors Report.
Reply to Auditors Qualifications/ Notes to Accounts/
Observations
Note No. 27.01 Regarding the Contingent Liabilities: The same
will be taken into account when the liabilities get crystallized.
Note No.27.06 Regarding managerial remuneration: Due to no
profits/inadequacy of profits, remuneration paid to the executive
directors resulted in excess of permissible limit as such, the
company will take appropriate steps to obtain necessary
approvals from the central government.
Note No.27.10 read with paragraph No. f ) iii) of the report of the
Auditors regarding Confirmation of Balances: Without reciprocal
action from the Debtors and Creditors and in the absence any
dispute regarding their amounts, the Company has accounted
for the amounts due from the debtors and due to the creditors
as per its books of accounts. The Company is in the process of
obtaining confirmation from the parties wherever possible. In
the absence of any note or information contrary to the Balances
shown by the Company in respect of Debtors and Creditors, no
adverse inference can be drawn for any negative or variation
impact on the profit and loss of the company and consequently,
no provision for any uncertain or imaginary adverse variation can
19
be made in the books of accounts of the Company. Some of the
lenders have got the properties mortgaged to them transferred in
their names and some out of those lenders gave an option to the
Company to buy back the properties conveyed to them. So far,
these lenders have not confirmed the amounts of loan if any
adjusted by the transfer of properties, how the values and
consideration have been arrived at, the reschedulement of loan, if
any, or refund of excess over the liability etc., and in the absence of
the same, recognition of the sale or the profit or loss on sale of
assets or adjustment of loan account will not arise.
Note No.27.11 read with paragraph No. 4(f )( ii) of the report of the
Auditors regarding restructuring of operations and
Reinstatement of Assets and Liabilities: Consequent upon
slowdown in the overall economy, downward trend in the
industrial growth and additional costs in running the business
and industry and failure in performance of the payment
obligations by the parties against receivables or discharge of
corresponding liabilities by them, the management felt it
reasonable and expedient to review the policies with regard to
the above and other core sectors of business and reinstate the
assets and liabilities in line with the changed scenario. It is in this
context, the management decided to reinstate the assets and
liabilities as per the arrangement reached between the
concerned parties, in the financial statements. As per the
arrangement, the Company captured the value of precious
intangible asset i.e., the Brands known as Deccan Chronicle and
Andhra Bhoomi, for an agreed sum of Rs 2,905.32 Crores as
against the value of around Rs.3,700.00 crores as arrived by the
Valuation Consultant in his report. By virtue of the aforesaid
review of policies and consequential reinstatement of assets and
liabilities as per the arrangement, Rs. 2,905.32 Crores
representing the value of the Brands has now been shown an
intangible asset under development against receivables with
corresponding liability to the amount in the form of borrowings
from various lenders. The Management after careful
consideration feels that capturing of Brands will do well to the
Company and enhances the enterprise value of your company. In
addition, the Brands have been synonymous with the Company
as its main business is associated with the same. In modern
environment, Corporate value and earning power are decided
and generated by both class of assets, often more by intangibles
than tangibles and more so, in the news paper industry.
Moreover, the objective of the management in the above process
is to help a realistic assessment of company's real economic value
done at any given point of time. In view of these reasons and
substantial information and inputs with statistical and
mathematical support, the company and its management are
quite confident that there would not be any shortfall requiring
any provisioning or any impact on the loss reported for the year
under subject. The parties are in the process of concluding the
transfer of ownership over the brands to the Company to the
extent of Rs 2,905.32 crores where only few technicalities are left
and hence, these amounts are shown under the Head“Intangible
Assets under Development –Brand” on the Assets side under
Fixed Assets with corresponding liability in the form of
borrowings have been reinstated in the Balance Sheet.
Note No.27.13:
The Company's operations of “odyssey” dealing in retail trading
outlets in the products like books, publications, periodicals, toys, .
Compact Disks and music CDs etc., has been severely affected
due to heavy competition from the online merchandised sales
and the same coupled with adverse market conditions, forced the
company to scale down its operations and discontinue the sales
outlets at various places in order to rationalize the business
operations by reducing the losses. The Management feels that
scaling down the “Odyssey” operations will arrest further losses
on the above count of business. Hence a sum of `.65.91 Crores
has been written off towards termination of lease deposits,
assets, loans and advances etc and steps are initiated to recover
some of the lease deposits and loans and advances due from
outlet owners.
Note No.27.14:
The Company has been making serious efforts to resolve
outstanding issues with banks, financial Institutions and NBFCs
and creditors and is confident of resolving the issues by way of
restructuring of the loan/interest accrued as per the scheme with
the lenders/Creditors and the company is taking steps to defend
the legal cases/winding up petitions filed by various
creditors/lenders. None of the winding up petition was so far
admitted. All the claims are contested and in few cases, the
company raised counter claims too.
Note No.27.15, 27.16 and 27.17:
The Board of Directors has taken note of the observations of
Auditors which are self explanatory in nature.
The notes and remarks of Auditors'' are self-explanatory and
therefore do not require any further clarifications.
Reply to the qualification made by the Auditors under paragraph
f ) (i) of their Audit report as regards“going Concern“assumption: -
The assets and liabilities are recorded on the basis that the entity
will be able to realize its assets and discharge the liabilities in the
normal course of business. Merely because, some commercial
decisions of the Management did not yield the required results
should not be considered as factor to doubt the going concern
assumption. The main business of the Company is not affected
by the adverse conditions reported by the Auditors in their
report. The Company challenged the action of BCCI and raised
the dispute as also, claimed compensation/damages for the loss
caused by the actions of BCCI and presently, these matters are
under Arbitration.There are receivables representing the share of
central revenues due from BCCI and the same have not been
remitted so far to the Company. The downward trend and
slowdown in the economy resulted in losses to the Odyssey
business. Hence the decision to scale down the operations on the
above count has helped the company to curtail further losses and
save it from being pushed into major crisis and irretrievable
situation. Next issue is the winding petitions filed by some of the
creditors. So far, none of the petition filed seeking to wind up the
company was admitted as such, no adverse inferences can be
drawn against the Going concern assumption. The Company is
contesting all the cases. The management has been taking stock
of the situation regularly and adjusting its priorities to tide over
the difficulties. The company will be in a position to discharge its
liabilities and continue the operations without any interruption.
In view of these reasons the management is advised that there is
no threat to the Going Concern status of the company
Note 27.18 read with Paragraph No. 4 (f ) (v) of the Audit report
relating to non-disclosure of details as regards the principal
overdue and interest etc., the same are awaited from the parties.
Some of the parties preferred legal routes and some others are
reconciling the figures. The Company has all the data and once
the confirmation is received from the parties, necessary details
will be furnished.
Rest of the observations of the Auditors is self explanatory and
they are noted for guidance and compliance.
Fixed Deposits
During the year under review, your company has neither invited
nor accepted any deposits from the public.
Statutory Auditors
The Company's Statutory Auditors M/s. C. B. Mouli & Associates,
Chartered Accountants, hold office up to the conclusion of the
forthcoming Annual General Meeting. It is proposed to re-
appoint M/s. C. B. Mouli & Associates, Chartered Accountants,
Statutory Auditors of the Company to hold office from the
conclusion of this Annual General Meeting until the conclusion of
the next Annual General Meeting of the Company. The necessary
resolution seeking approval of Statutory Auditors has been
incorporated in the notice convening the Annual General
Meeting.
Particulars of Employees
Information as per Section 217(2A) of the Companies Act, 1956
read with the Companies (Particulars of employees) Rules 1975 as
amended from time to time forms part of this report. However, as
per the provisions of Section 219(1) (b)(iv) of the Act, the Report
and Accounts are being sent to all members excluding the
statement containing the particulars of employees to be
provided under section 217(2A) of the Act. Any member
interested in obtaining such particulars may write to the
Company Secretary/ Compliance officer at the Registered Office
of the Company.
Directors' Responsibility Statement
Pursuant to provisions of Section 217 (2AA) of the Companies Act,
1956 with respect to “Directors' Responsibility Statement”, it is
hereby confirmed;
(I) that in the preparation of the annual accounts for the
financial year ended 30th September, 2012, the applicable
Accounting Standards have been followed along with
proper explanations relating to material departures;
(ii) that the directors had selected such accounting policies
and applied them consistently and made judgments 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 profit or loss of the
Company for the year under review;
20
Deccan Chronicle Holdings Limited
Annual Report 2011-12

(iii) that the directors had taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities:
(iv) that the directors had prepared the annual accounts for
the financial year ended 30th September,2012 on a going
concern basis.

Conservation of Energy,Technology Absorption

Particulars regarding conservation of energy, technology absorption are not applicable to printing and publishing of newspapers and
periodicals.

Foreign Exchange Earnings and Outgo

In accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988, the information relating to foreign exchange earnings and outgo is provided as under:

(`. in Rupees)

Particulars 2011-12 2010-11

Foreign Exchange Earnings 15,24,94,924 Nil
Foreign Exchange Outgo 285,36,02,418 223,04,82,000

Acknowledgements

The Directors take this opportunity to thank Company's customers, suppliers, bankers, financial Institutions for their consistent support
to the Company. Your Directors express their appreciation for the dedicated and sincere services rendered by the employees of the
Company at all levels. Your Directors also wish to express their gratitude to the Shareholders for the confidence reposed by them in the
Company and for the continued support and co-operation.
For and on behalf of the Board

T.Venkattram Reddy
Chairman
Secunderabad, February 22, 2013

21
Auditors’ Report
TO
The Members of DECCAN CHRONICLE HOLDINGS LIMITED
Secunderabad
1. We have audited the attached Balance Sheet of DECCAN CHRONICLE HOLDINGS LIMITED (“the Company”) as at 30th September,
2012, the Statement of Profit and Loss and the Cash Flow Statement for the period 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 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, as amended, issued by the Central Government in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the
said Order.

4. 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 account as required by law have been kept by the Company so far as it appears from our
examination of those books;

c) the Balance Sheet, the Statement of Profit & Loss and the Cash Flow Statement dealt with by this report are in agreement with
the books of account;

d) in our opinion, the Balance Sheet, the Statement of Profit & Loss and the Cash Flow Statement dealt with by this report subject
to para no 4(f) below are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act,
1956.

e) On the basis of written representations received from the directors as on 30th September 2012 and taken on record by the
Board of Directors, (except for the directors resigned from the Board after 30th September, 2012), we report that none of the
directors is disqualified as on 30th September 2012 from being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.

f) We invite the attention of the members to the following material matters:

(Note Nos. referred hereunder are with reference to respective Notes forming part of the financial statements)

i) With regard to the preparation of financial statements on going concern:

In view of the dispute on cancellation of franchise by the Board of Control for Cricket in India (BCCI) for the Indian Premier
League as stated in Note No. 27.12, Scaling down of operation of Odyssey outlets as stated in Note.27.13 some of the lenders
and creditors filing a petition for Winding Up of the Company as stated in Note No.27.14, pending adjustment of
Intangible Asset under Development-Brand and Capital Work in Progress -Advance for purchase of property as stated in
Note No. 27.15 and 27.16 and other related factors indicate the existence of uncertainty that may cast doubt about the
Company's ability to continue as a Going Concern.

ii) With regard to the Note No.27.11 relating to the restructuring and regrouping of the financial statements which resulted
in recognition of liability of Rs. 3,075.48 Crores on the credit side and equivalent Intangible Asset under Development-
Brand and Capital Work in Progress -Advance for purchase of property on the asset side and writing off of financial charges
to the extent of Rs. 638.22 Crores for the current period. In the absence of sufficient information we are unable to express any
opinion on these amounts whether any provision is to be made for the short fall in carrying the said amounts and any
consequential impact on the reported loss is not quantified.

22
Deccan Chronicle Holdings Limited
Annual Report 2011-12

iii) With regard to Note No.27.10 relating to pending confirmation of balances:. In the absence of confirmation of balances
th
from lenders, trade payables, trade receivables, other loans and advances as at 30 September, 2012, any provision to be
made for adverse variation in the carrying amounts of these balances isare not quantified.
In the absence of information, Profit/(loss) on sale of assets, if any, on adjustment of loan liability with assets swapped is not
quantified.

iv) With regard to Note No.27.17 relating to pending accounting of interest on borrowings: As stated in the notes, pending
quantification of the interest payable, damages, costs, other financial charges, the ultimate liability for financial charges and
related impact on the reported loss is not quantified for the period.

v) With regard to the Note No.27.18 and Note No. 27.20 relating to the non disclosure of details as required by Schedule VI of
the Companies Act, 1956: Details of principal overdue, period of due, penal interest, redemption or extension of redemption
etc. for the loan borrowals, debenture borrowals etc. and details regarding lease disclosures are not furnished by the
management as required by Schedule VI of the Companies Act, 1956.

5. Subject to the matters referred to in paragraph 4(f) above, in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the accounting policies and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
th
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 30 September 2012;
th
ii) in the case of Statement of Profit & Loss, of the Loss of the Company for the period ended 30 September 2012 and
iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the period ended on that date

For C.B.MOULI & ASSOCIATES

Chartered Accountants
Firm Registration No: 002140S

MANI OOMMEN
Partner
Membership No: 24046

Place: Secunderabad
st
Date: 21 January 2013

23
Annexure to the Auditors’ Report of
M/s. DECCAN CHRONICLE HOLDINGS LIMITED
(Referred to in paragraph 3 of our report of even date)
(Note Nos. referred hereunder are with reference to respective Notes forming part of the financial statements)

i. In respect of its Fixed Assets:

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets which needs to be updated.
b. All fixed assets have been physically verified during the period by the management and according to the information
and explanations given to us, no material discrepancies were noticed on such verification.
c. In our opinion and according to the information and explanations given to us, substantial part of fixed assets has not
been disposed off by the Company during the period.

ii. In respect of its inventories:

a. The inventories have been physically verified during the period by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations given to us, 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 has maintained proper records of inventories. As explained to us, the material discrepancies noticed on
physical verification of inventories as compared to the book records has been properly dealt with..

iii. In respect of the Loans secured or unsecured, granted or taken by the Company to/from companies, firms or other parties
covered in the register maintained u/s 301 of the Companies Act, 1956:
The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties
covered in the register maintained under Section 301 of the Companies Act, 1956.

iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business for the purchase of inventories and fixed assets
except for purchase of certain items of inventories, certain consumer lifestyle products for retail stores and with regard to the
sale of advertisement space except as stated in Note No.27.11 regarding restructuring of operations and consequential
reinstatement of financials, we have not observed any continuing failure to correct major weaknesses in such internal control
system during the course of our audit.

v. In respect of the Contracts or arrangements referred to in sec 301 of the Companies Act, 1956;

a. As explained to us, the transactions made in pursuance of contracts or arrangements, that need to be entered in
the register maintained under section 301 of the companies Act, 1956 have been so entered.
b. As explained to us, the transactions made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the companies Act, 1956 and exceeding the value of `. 5 lakhs in respect of each
party during the period have been made at prices which are prima facie reasonable having regard to the
prevailing market prices at the relevant time.

vi. The Company has not accepted any deposits from the public within the meaning of sections 58A, 58AA or any other relevant
provisions of the Act and the rules framed thereunder. Hence, the provisions of clause (vi) of paragraph 4 of the Order are not
applicable to the Company.

vii. In our opinion, the Company has an internal audit system, which needs to be strengthened to commensurate with the size of
the Company and the nature of its business.

viii. According to the information and explanations given to us, the Company is in the process of updating cost records in respect
of its products and processes for which the maintenance of cost records has been prescribed under sec. 209(1)(d) of the Act
pursuant to the Companies (Cost Accounting Records) Rules, 2011 notified by the Central Government of India vide
notification dated June 3, 2011.

ix. In respect of Statutory dues:

a. According to the information and explanations given to us and on the basis of our examination of records of the
Company, the Company has been generally regular in depositing amounts deducted/accrued in the books of account
in respect of undisputed statutory dues including Provident Fund, Employee's State Insurance, Income Tax, Sales tax,
WealthTax, Customs Duty, Cess and other applicable statutory dues with the appropriate authorities.
b. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident
Fund, Employee's State Insurance, Income Tax, Sales tax, Wealth Tax, Customs Duty, Cess and other applicable statutory
th
dues were in arrears as at 30 September 2012 for a period of more than six months from the date they became payable.

24
Deccan Chronicle Holdings Limited
Annual Report 2011-12

a. There are no dues of Sales Tax, Service Tax and Cess that have been deposited on account of any dispute. Dues relating
to IncomeTax which have not been deposited on account of disputes are as under:
Amount
Name of the Statute Financial Year Forum where the dispute is pending
(Rs. In Crores)
Income Tax 2007-08 0.53 Appeal pending with ITAT, Hyderabad

Income Tax 2008-09 1.70 Appeal pending with Commissioner of

Income Tax – (Appeals)-V, Hyderabad

Income Tax 2008-09 0.60 (net off Refund) Appeal pending with Commissioner of
Income Tax – (Appeals)-V, Hyderabad

x. In our opinion and according to the information and explanations given to us, the accumulated loss of the Company as
at the end of financial year is more than 50% of its net worth. The Company has incurred cash losses during financial
period but not in the immediately preceding financial year, subject to the effects as stated in para 4(f) of our Audit
Report of even date.
xi. According to the information and explanations given to us, the management has reinstated the borrowings from banks and others
as stated in Note 27.11 of the notes to accounts. In the absence of sufficient information we are unable to comment on the default on
repayment to the banks, financial institutions and debenture holders.
xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi, mutual benefit fund/society. Therefore clause 4 (xiii) of
paragraph 4 of the Order is not applicable to the Company.
xiv. As the Company is not dealing or trading in shares, securities, debentures and other investments, the clause (xiv) of
paragraph 4 of the Order is not applicable to the Company.
xv. According to information and explanations given to us, the Company has not given guarantees for loans taken by
others from Banks or Financial Institutions except as stated in Note No. 27.21.
xvi. According to the information and explanations given to us, in the absence of adequate information we are unable to comment
whether the term loans availed by the Company were, prima facie, applied for the purpose for which the loans were obtained.
xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the
Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long-term investment
subject to the matters detailed in Note No. 27.11, Note No.27.15 and Note No. 27.16.
xviii. According to the information and explanation given to us, during this period the Company has not made any
preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
xix. In our opinion and according to the information and explanations given to us, during the period under audit, the
Company has not issued any secured debentures requiring creation of charge to the debenture holders.
xx. The Company has not raised any money by way of public issue during the period and hence clause (xx) of paragraph 4
of the Order is not applicable.
xii. In our opinion and according to the information and explanations given to us and, on our examination of books and
records, no fraud on or by the Company has been noticed or reported during the period except some of the
lenders/creditors have filed winding up petition before the court and the management represented us that these will
not have any impact on the financials for the period.

For C.B.MOULI & ASSOCIATES

Chartered Accountants
Firm Registration No: 002140S

MANI OOMMEN
Partner
Membership No: 24046

Place: Secunderabad
st
Date: 21 January 2013

25
Balance Sheet as at 30th September, 2012
(Amount in `)
Particulars Note As at 30.09.2012 As at 31.03.2011

I. EQUITY AND LIABILITIES

(1) Shareholders' Funds
(a) Share capital 3 41,79,44,438 48,69,44,438
(b) Reserves and surplus 4 (31,78,48,086) 12,31,44,94,532
10,00,96,352 12,80,14,38,970
(2) Non-current liabilities
(a) Long-term borrowings 5 1,47,20,12,291 2,68,11,60,760
(b) Deferred tax liabilities (Net) 6 _ 83,26,82,859
(c) Other Long term liabiliteis 7 7,92,69,644 7,37,36,382
(d) Long-Term provisions 8 10,24,74,304 10,02,74,015
1,65,37,56,239 3,68,78,54,016
(3) Current liabilities
(a) Short-term borrowings 9 37,55,69,80,800 4,45,34,66,021
(b) Trade payables 10 1,52,31,26,166 22,48,86,604
(c) Other current liabilities 11 1,33,64,84,982 91,18,83,187
(d) Short term provisions 12 50,13,733 65,10,654
40,42,16,05,681 5,59,67,46,466
Total 42,17,54,58,272 22,08,60,39,452

II. ASSETS
(1) Non-current assets
(a) Fixed assets
(i) Tangible assets 13(a) 7,70,16,84,794 8,47,51,93,055
(ii) Intangible assets 13(b) 7,24,74,597 16,36,04,531
(iii) Capital work-in-progress 13(c) 1,87,59,67,429 62,83,30,620
(iv) Intangible Assets under Development 29,05,31,88,397 -
(Refer Note No. 27.11)
(b) Long term loans and advances 14 22,26,32,053 43,16,75,049
(c) Other Non- Current Assets 15 13,63,23,730 13,25,18,640
39,06,22,71,000 9,83,13,21,895
(2) Current assets
(a) Inventories 16 21,08,43,200 1,33,40,93,918
(b) Trade receivables 17 1,31,14,64,003 2,45,10,96,392
(c) Cash and cash equivalents 18 15,87,29,161 7,03,79,60,018
(d) Short term loans and advances 19 41,99,56,524 1,03,37,39,282
(e) Other Current Assets 20 1,01,21,94,384 39,78,27,947
3,11,31,87,272 12,25,47,17,557

Total 42,17,54,58,272 22,08,60,39,452

Significant Accounting Policies 2

Notes on accounts 27

The Accompanying Notes and other explanatory information form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the board
For C B Mouli & Associates
Chartered Accountants
T. Venkattram Reddy T. Vinayak Ravi Reddy
Chairman Vice-Chairman

Mani Oommen
Partner P. K. Iyer
M.No. 24046
Vice-Chairman

Secunderabad, January 21, 2013

26
Deccan Chronicle Holdings Limited
Annual Report 2011-12

STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED 30th SEPTEMBER 2012
(Amount in `)
For the period ended For the year ended
Particulars Note
30th September, 2012 31st March, 2011
I. Revenue
(a) Revenue from operations 21 7,86,08,04,700 9,76,16,29,067
(b) Other Income 22 57,33,38,013 55,54,23,004

Total 8,43,41,42,713 10,31,70,52,071

II. Expenses
(a) Consumption of Materials and Cost of Purchases &
Services 23 6,67,93,65,040 4,26,08,55,553
(b) Employee benefits expenses 24 1,38,82,70,285 96,82,15,525
(c) Finance costs 25 7,33,87,72,125 59,01,14,992
(d) Depreciation and amortization expense 13(a&b) 81,23,44,856 51,57,35,240
(e) Other Expenses 26 3,44,92,46,483 1,61,32,71,426

Total 19,66,79,98,789 7,94,81,92,736

III. Profit/ (Loss) before Exceptional & Extraordinary items

and Tax (11,23,38,56,076) 2,36,88,59,335
IV. Exceptional items
V. Profit/(Loss) before Extraordinary items and Tax (11,23,38,56,076) 2,36,88,59,335
VI. Extraordinary items
VII. Profit/(Loss) before Tax (11,23,38,56,076) 2,36,88,59,335
VIII. Tax Expenses
71,41,91,744
(a) Current Tax - paid
(b) Current Tax - for earlier years 28,63,508
(c) Deferred Tax (83,26,82,859) 2,88,39,708
IX. Profit / (Loss) for the period (10,40,40,36,725) 1,62,58,27,883

X. Earning per Share (of `. 2/- each): (48.16) 6.68

Basic & Diluted

Significant Accounting Policies 2

Notes on accounts 27

The Accompanying Notes and other explanatory information form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the board
For C B Mouli & Associates
Chartered Accountants
T. Venkattram Reddy T. Vinayak Ravi Reddy
Chairman Vice-Chairman

Mani Oommen
Partner P. K. Iyer
M.No. 24046
Vice-Chairman

Secunderabad, January 21, 2013

27
CASH FLOW STATEMENT FOR THE PERIOD ENDED 30th SEPTEMBER, 2012 (Amount in `)
For the period ended For the year ended
Particulars
30th September, 2012 31st March, 2011
A Cash Flow from Operating Activities:
Profit before Tax excluding extraordinary and exceptional items (11,23,38,56,076) 2,36,88,59,335
Adjustments for:
Depreciation and amortization 81,23,44,856 51,57,35,240
Interest Income (14,83,47,457) (27,99,12,773)
Loss on sale of Fixed Assets (net) 9,71,45,098 79,03,587
Finance Costs 7,33,87,72,125 59,01,14,992
Other non-cash items written off 85,72,71,304
Operating Profit before working Capital Changes (2,27,66,70,150) 3,20,27,00,381
Adjustments for:
(Increase) / Decrease in Trade Receivables and other non current assets 1,13,58,27,299 (62,81,30,123)
(Increase) / Decrease in long term and Short term loans and Advances
and other current assets (64,88,11,987) (81,28,800)
(Increase) / Decrease in Inventory 1,12,32,50,718 (71,37,22,963)
Increase / (Decrease) in other current liabilities 27,00,02,616 28,32,56,405
Increase / (Decrease) in Trade Payables, Other Payables, Long term
liabilities and provisions 1,30,16,12,684 (1,86,86,792)
Cash (used in) / generated from Operating activities 90,52,11,180 2,11,72,88,109
Direct Txes paid 71,41,91,744
Net Cash (used in)/ generated from Opearting Activities 90,52,11,180 1,40,30,96,364

B Cash Flow from Investing Activities

Purchase of Fixed Assets including Capital workin progress and advances
for Fixed Assets (1,32,70,23,804) (88,96,85,650)
Net Proceeds from sale of Fixed Assets 3,45,35,237 2,76,86,500
Interest Income Received 14,83,47,457 27,99,12,773
Sale of Investments 23,13,60,000
Net Cash (used in)/ generated from Investing Activities (1,14,41,41,110) (35,07,26,377)

C Cash Flow from Financing Activities

Payment made on Shares bought back (2,29,73,05,893)
Redemption of Debentures (45,00,00,000)
Net Proceeds from Longterm borrowings (60,45,49,291) (28,66,04,572)
Net Proceeds from Short term borrowings (see below mentioned note) 4,05,03,26,381 1,45,47,07,401
Repayment of borrowings of amalgamated subsidiaries, net of cash
balances (50,88,34,986)
Interest paid (7,33,87,72,125) (59,01,14,992)
Net Cash (used in)/ generated from Financing Activities (6,64,03,00,927) 6,91,52,851

Net Increase / (Decrease) in cash and cash equivalents (A+B+C) (6,87,92,30,857) 1,12,15,22,839
Cash and Cash Equivalents at the beginning of the period
7,03,79,60,018 5,91,64,37,179
Cash and Cash Equivalents at the end of the period
15,87,29,161 7,03,79,60,018

Note: Non-cash items related to the items stated in note no.27.11are net considered in the above cash flow statement
The Accompanying Notes and other explanatory information form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the board
For C B Mouli & Associates
Chartered Accountants
T. Venkattram Reddy T. Vinayak Ravi Reddy
Chairman Vice-Chairman

Mani Oommen
Partner P. K. Iyer
M.No. 24046
Vice-Chairman

Secunderabad, January 21, 2013

28
Deccan Chronicle Holdings Limited
Annual Report 2011-12
SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OFTHE FINANCIAL STATEMENTS AS AT 30th SEPTEMBER, 2012

1. CORPORATE INFORMATION
The Company is in the businesses of Printing and publication of newspapers and periodicals, sports and entertainment, chain of leisure
stores offering various consumers lifestyle products.The Company is the publisher of English Daily Newspapers –“Deccan Chronicle”,“The
Asian Age”, “Financial Chronicle”and “Andhra Bhoomi”a Telugu Daily, Weekly and Monthly. The Company is the owner of the Hyderabad
Franchise of the Indian Premier League (IPL) “Deccan Chargers”, created by the Board of Control for Cricket in India (BCCI), presently
franchise ownership is under dispute before arbitration. Odyssey is a neighborhood leisure store offering consumer lifestyle products like
books, music, stationery, gift items, toys, eyeware etc.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis for preparation of financial statements
The financial statements have been prepared in accordance with the Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 to the extent applicable. The accounts are prepared under historical cost convention and on going concern basis,
with revenue recognized, expenses accounted on their accrual and in accordance with Generally Accepted Accounting Principles in India.
The accounting policies have been consistently applied and followed by the Company.

2.2. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities, at the date of the financial
statements and of the result of operations during the reporting period. Although these estimates are based upon management's best
knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amount of assets or liabilities in future periods.

2.3. Inventory
Raw materials, stores, spares and& consumables useable in the printing and publication of newspapers and periodicals are valued at cost
on FIFO basis. Cost includes applicable taxes, duties and transportation, handling and interest cost. Inventories of Odyssey stores are
valued at the lower of cost and net realizable value. Cost is determined by the weighted average cost method.

2.4. Fixed assets and depreciation

Fixed Assets are stated at cost of acquisition less accumulated depreciation. Expenditure which are of capital in nature are capitalized at
cost, which comprises of purchase price (net of rebates and discounts), import duties, levies and all other expenditure directly
attributable to cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets
are also included to the extent they relate to the period till such assets are ready to put to use. Depreciation on fixed assets is provided on
the basis of Straight Line Method, at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956. On additions
and disposals, depreciation is provided for the period of use during the period under report. Brand and Editorial content property rights
relating to Asian Age grouped under Intangibles which we are acquired are amortized on straight line basis over period of ten years.

2.5. Capital work in progress

Advances paid towards the acquisition of fixed assets and direct expenses pertaining to the cost of those assets, not put to use before
the period end are disclosed under 'Capital work in progress’.

2.6. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. Specifically, the following basis is adopted.
Advertisements: Advertisement revenue is recognized, net of discount and commission, as and when advertisement is published/sold.
Further, advertisement revenue earned, as per arrangement with BCCI, from sale of media rights, ticket revenue from the viewer ship in
stadium, sponsorship and in-stadia advertisement etc., are recognized on accrual / intimation by BCCI.
Circulation Revenue: Circulation revenue is recognized, net of commission, on dispatch of newspapers and periodicals.
Sale of merchandise: Revenue from sale of merchandise is recognized when significant risks and rewards in respect of ownership of
products are transferred to the customer.
Other Operating Income: Sale of scrap is recognized upon passing of title/sale invoice is made and interest income is recognized on time
proportionate basis.

2.7. Foreign currency transactions

Foreign exchange transactions are accounted at the rates prevailing on the date of transactions. Monetary assets and liabilities relating to
foreign currency transactions unsettled at the end of the period are translated at period end rates. The difference in translation of
monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognized in the Statement of Profit
and Loss.

2.8. Retirement benefits

Retirement benefits in the form of Provident Fund are charged to the Statement of Profit & Loss of the period when the contributions to
the respective funds are due and/or paid. Gratuity, which is a defined benefit plan, is provided as per actuarial valuation, determined by an
independent actuary, as on balance sheet date.

29
2.9. Borrowing costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such asset.
A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs are charged to
Statement of Profit and Loss.

2.10. Leases
Assets taken on finance lease are capitalized at the inception of the lease at the lower of the fair value or the present value of minimum
lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and interest
cost, so as to obtain a constant periodic rate of interest on outstanding liability for each period. Operating leases in respect of office and
other equipment, house for employees, Office buildings are cancelable / renewable by mutual consent on agreed terms. Lease payments
under an operating lease are recognized as an expense in the Statement of Profit and Loss.

2.11. Earnings per share

Basic and Diluted Earnings Per Share (EPS) is reported in accordance with Accounting Standard 20 on Earning Per Share. EPS is computed
by dividing the net profit or loss after tax for the period by weighted average number of Equity shares outstanding during the period.
Diluted EPS is computed by dividing the net profits or loss after tax for the period by the weighted average number of equity shares
outstanding during the period as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

2.12.Taxation
Provision for Current tax is made based on the tax liability computed in accordance with the relevant tax rates and provisions of Income
Tax Act, 1961. Deferred tax is measured based on the tax rates and tax laws enacted or substantially enacted at the Balance Sheet date.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be
available against which deferred tax assets can be realized.

2.13. Impairment of Fixed assets

An Asset is treated as impaired when the carrying value of assets exceeds its recoverable value. An impairment loss is charged to
Statement of Profit & Loss as an expense immediately, when the asset is identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there has been a change in the estimate of recoverable amount based on external and internal sources of
information.

2.14. Provisions, contingent liabilities and contingent assets

The Company recognizes a provision when there is a present obligation as a result of past obligating event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made
when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is
a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision is made.

2.15. Cash Flow Statement

The Cash Flow Statement is prepared under the indirect method as per Accounting Standard 3“Cash Flow Statement”.

2.16. Segment Reporting

The Company is primarily in the business of printing and publication of newspapers and periodicals and related advertisement revenues.
The Company's operations are geographically spread across India and do not have any operations in economic environments with
different risks and returns. Accordingly, pursuant to the accounting standards, no segment disclosure has been made in these financial
statements, as the Company has only one geographical segment.

30
Deccan Chronicle Holdings Limited
Annual Report 2011-12

3. Share Capital (Amount in `)

As at 30th September 2012 As at 31st March 2011
Particulars
Number of shares Amount Rs. Number of shares Amount Rs.
(a) Authorised Share Capital
Equity shares of Rs.2/- each 35,00,00,000 70,00,00,000 35,00,00,000 70,00,00,000
(b) Issued Share Capital
Equity shares of Rs.2/- each 20,89,72,219 41,79,44,438 24,34,72,219 48,69,44,438
(c) Subscribed and fully paid up Share Capital
Equity shares of Rs.2/- each 20,89,72,219 41,79,44,438 24,34,72,219 48,69,44,438

Total 20,89,72,219 41,79,44,438 24,34,72,219 48,69,44,438

3 (a) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
As at 30th September 2012 As at 31st March 2011
Particulars
Number of shares Amount Rs. Number of shares Amount Rs.
Equity shares of Rs.2/- each with voting rights
At the beginning of the period 24,34,72,219 48,69,44,438 24,22,22,784 48,44,45,568
Add: Issued during the period - Fresh Issue
/ Conversion of FCCB's 12,49,435 24,98,870
Less: Shares Bought Back during the period 3,45,00,000 6,90,00,000

Outstanding at the end of the period 20,89,72,219 41,79,44,438 24,34,72,219 48,69,44,438

Details of Shares Bought Back during the year

In terms of public announcement dated 6 May, 2011 for buyback of equity shares, the company had bought back and extinguished
3,45,00,000 equity shares being the maximum equity shares authorised for buy back and accordingly the buy back was completed on 29
August, 2011

3 (b) Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates: Nil

3 (c) Details of shares held by each shareholder holding more than 5% shares:

As at 30th September 2012 As at 31st March 2011

Particulars
Number of shares Number of shares
% Holdings % Holdings
held held
Equity shares of Rs.2/- each with voting rights
T.Venkattram Reddy 2,61,53,332 12.52 5,14,27,416 21.12
T.Vinayak Ravi Reddy 2,61,65,445 12.52 5,14,27,416 21.12
P.K.Iyer 2,79,32,744 13.37 5,14,27,416 21.12
Religare Finvest Ltd 3,02,49,275 14.48

3 (d) Shares issued for consideration other than for cash

2,17,50,250 Equity Shares issued in earlier years for consideration other than cash as fully paid pursuant to take over of Partnership firm
Deccan Chronicle and upon amalgamation of Deccan Chronicle Pvt. Ltd & Nandi Publishers Pvt. Ltd. with the Company.

3(e) 13,82,60,500 fully paid Equity Shares were issued as Bonus shares in the earlier years.

31
4. Reserves & Surplus
(Amount in `)
As at 30th September As at 31st March
Particulars
2012 2011

(a) Capital Redemption Reserve

Opening balance 53,09,522 53,09,522
Add : Additions during the year 6,90,00,000
Closing balance (A) 7,43,09,522 53,09,522

(b) General Reserve

Opening balance 1,00,43,05,314 1,42,58,38,73
Add : Amount transferred from Statement of Profit/loss 60,00,00,000
Less: Utilised during the year (6,90,00,000) (1,02,15,33,419)
Closing balance (B) 93,53,05,314 1,00,43,05,314

(c) Securities premium reserve

Opening balance 5,22,46,03,716 5,09,64,52,586
Add : Premium on shares/FCCBs issued during the year 12,81,51,130
Less: Utilised during the period for buy back of shares (2,22,83,05,893)
Closing balance (c) 2,99,62,97,823 5,22,46,03,716

(d) Debenture Redemption reserve

Opening balance 80,64,36,000 30,64,36,000
Add : Amount transferred from Statement of Profit/loss 50,00,00,000
Closing balance (D) 80,64,36,000 80,64,36,000

(e) Surplus / (Deficit) in Statement of Profit and Loss

Opening balance 5,27,38,39,980 5,26,16,60,097
Add : Surplus / (Deficit) for the year (10,40,40,36,725) 1,62,58,27,883
Less: Transfers during the year
Change in treatment of franchise rights / Others (51,36,48,000)
Transfer to Debenture redemption Reserve (50,00,00,000)
Transfer to General Reserve (60,00,00,000)

Closing balance (E) (5,13,01,96,745) 5,27,38,39,980

Total (A+B+C+D+E) (31,78,48,086) 12,31,44,94,532

5. Long-term borrowings
(Amount in `)
As at 30th September 2012 As at 31st March 2011
Particulars

Secured
(I) Non-Convertible Debentures 2,10,00,00,000 2,55,00,00,000
(ii) Term Loans
- From Banks 17,70,49,091 27,49,70,091
- From Others 4,10,29,993 54,76,58,284
2,31,80,79,084 3,37,26,28,375
Less: Current maturities of Long-Term Debt 84,60,66,793 69,14,67,615

Total 1,47,20,12,291 2,68,11,60,760

Nature of Security, Rate of Interest andTerms of Repayment:

The above mentioned long term debentures and term loans are secured by the movable properties of the Company which were acquired
by using above said loans and also refer Note No. 27.18

32
33
13. Statement of Fixed Assets & Depreciation (Amount in `)
Gross Block Depreciation Net Block
Sl. as at as at up to for the up to as at as at
Annual Report 2011-12

Particulars Additions Deletions Deletions

No. 01/04/2011 30/09/2012 01/04/2011 period 30/09/2012 30/09/2012 31/03/2011
1 Land 1,14,49,98,984 - - 1,14,49,98,984 - - - - 1,14,49,98,984 1,14,49,98,984
2 Buildings 2,13,81,21,592 1,78,63,531 - 2,15,59,85,123 25,25,34,672 10,78,83,574 - 36,04,18,246 1,79,55,66,877 1,88,55,86,920
3 Plant & Machinery 5,38,25,94,212 1,55,86,692 42,22,809 5,39,39,58,095 1,15,82,43,161 38,51,87,732 5,26,706 1,54,29,04,187 3,85,10,53,908 4,22,43,51,051
Deccan Chronicle Holdings Limited

4 Aircraft 38,85,21,086 - - 38,85,21,086 8,72,67,158 3,27,25,184 - 11,99,92,342 26,85,28,744 30,12,53,928

5 Computers 39,24,80,232 29,54,477 3,15,719 39,51,18,990 23,38,72,322 9,38,79,822 1,40,694 32,76,11,450 6,75,07,540 15,86,07,910

6 Furniture & Fixtures 70,71,91,092 4,05,52,579 14,85,40,805 59,92,02,866 12,34,06,158 6,64,65,487 4,03,42,504 14,95,29,141 44,96,73,724 58,37,84,934

7 Vehicles 24,99,81,626 19,15,150 2,68,21,899 22,50,74,877 7,33,72,298 3,45,58,556 72,10,993 10,07,19,860 12,43,55,016 17,66,09,328

Total 10,40,38,88,824 7,88,72,429 17,99,01,232 10,30,28,60,021 1,92,86,95,769 72,07,00,355 4,82,20,897 2,60,11,75,227 7,70,16,84,794 8,47,51,93,055

Previous Year 9,81,55,64,594 63,77,69,204 4,94,44,980 10,40,38,88,818 1,47,38,94,432 46,86,56,134 1,38,54,803 1,92,86,95,763 8,47,51,93,055 -

b) IntangibleAssets: (Amount in `)
1 Intangible Assets 33,69,62,014 5,14,566 - 33,74,76,580 17,33,57,482 9,16,44,501 - 26,50,01,983 7,24,74,597 16,36,04,531

Previous Year 33,99,94,212 4,11,804 34,44,002 33,69,62,014 12,97,22,379 4,70,79,106 34,44,002 17,33,57,483 16,36,04,531 -

c)CapitalWork-in-Progress (Amount in `)
Particulars As at 30th Sept. 2012 As at 31st March 2011

Opening Balance 62,83,30,620 37,68,25,978

Add: Additions made during the period* 1,70,16,05,400 25,15,04,642
Less: Capitalisation / adjustments during the period (45,39,68,591) -
Closing Blance 1,87,59,67,429 62,83,30,620

* Additions for the current year represent Capital Advances for purchase of land and buildings and refer Note No. 27.11
6. Deferred Tax Liabilities (Net) (Amount in `)
As at 30th September, As at 31st March,
Particulars
2012 2011
(a) Deferred Tax Liability / (Asset) at the beginning of the period 83,26,82,859 79,69,12,151
(b) Deferred Tax (Asset) on timing differences due to:
Income Tax losses to the extent of Deferred Tax Liability (Refer (83,26,82,859) -
Note No. 27.19)
(c) Deferred Tax Liability on timing differences due to:
2,88,39,708
Depreciation -
- 69,31,000
Amalgamation Expenses

Total - 83,26,82,859

7. Other Long-Term Liabilities (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011

- Trade Deposits 7,92,69,644 7,37,36,382

Total 7,92,69,644 7,37,36,382

8. Long-Term Provisions (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011

Employee Benefits 10,24,74,304 10,02,74,015

Total 10,24,74,304 10,02,74,015

9. Short Term Borrowings (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
(a) Secured Term loans:
(i) Term loans from banks 18,06,88,67,274 3,00,00,00,000
(ii) Term loans from others 5,58,07,45,402 -
(b) Unsecured Term loans:
(i) Term loans from banks 50,00,00,000 -
(ii) Term loans from others 1,75,00,00,000 -
Secured Working Capital Facilities / Overdraft Facility 5,58,73,68,124 1,45,34,66,021
(d) Other Financial Facilities - Unsecured 5,45,00,00,000 -
(e) Unsecured Inter corporate deposits 62,00,00,000 -

Total 37,55,69,80,800 4,45,34,66,021

Nature of Security andTerms of Repayment

a. All the above secured loans and financial facilities are secured by hypothication of / creation of charge on movable and non-movable
assets of the Company and personally secured on the assets of promoters directors and personal guarantee of directors and also refer Note
No: 27.18

10. Trade Payables: (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
(a) Micro, Small and Medium Enterprises * - -
(b) Others 1,52,31,26,166 22,48,86,604

Total 1,52,31,26,166 22,48,86,604

34
Deccan Chronicle Holdings Limited
Annual Report 2011-12

* There are no Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to
whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have
been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have
been identified on the basis of information available with the Company.This has been relied upon by the auditors.

11. Other current liabilities (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
(a) Current maturities of long-term borrowings (Refer Note 5) 84,60,66,793 69,14,67,615
(b) Statutory dues
- TDS Payable 1,99,23,929 75,18,182
- P.F & E.S.I payable 51,20,300 59,65,048
Other Payables
- Salaries Payable 6,25,10,327 5,06,66,218
- Expenses - Materials & Services 35,02,01,913 15,48,29,322
- Others 5,26,61,720 14,36,802

Total 1,33,64,84,982 91,18,83,187

12. Short-Term Provisions (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011

Employee Benefits 50,13,733 65,10,654

Total 50,13,733 65,10,654

14. Long-term loans and advances (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
To Others - Unsecured, Considered Good
- Security Deposit with Govt. Depts 2,26,84,355 2,10,58,450
- Security Deposit with Others 5,00,85,147 12,41,17,677
- Rent Advances (Refer Note No: 27.13) 14,98,62,551 28,64,98,922

Total 22,26,32,053 43,16,75,049

15. Other Non-Current assets (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
Trade receivables outstanding for a period exceeding 12 months
from the date they are due for payment
Unsecured, considered good 13,63,23,730 13,25,18,640

Total 13,63,23,730 13,25,18,640

16. Inventories (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
(a) News Print 8,76,22,574 79,37,90,872
(b) Inks 80,07,349 2,02,04,734
(c) Plates 1,04,71,865 60,34,918
(d) Retail Items 9,31,65,186 50,06,15,887
(e) Consumables 1,15,76,226 1,34,47,507
Total 21,08,43,200 1,33,40,93,918

35
17. Trade Receivables (Amount in `)
As at 30th September, As at 31st March,
Particulars
2012 2011
Trade receivables outstanding for a period less than six months
from the date they are due for payment
Unsecured, considered good 1,17,39,71,483 2,27,38,61,993
Unsecured, considered doubtful - -
Less: Provision for doubtful debts -
-
Trade receivables outstanding for a period exceeding six months
from the date they are due for payment
Unsecured, considered good 13,74,92,520 17,72,34,399
Unsecured, considered doubtful - -
Less: Provision for doubtful debts - -

Total 1,31,14,64,003 2,45,10,96,392

18. Cash and cash equivalent (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
(a) Cash on hand 1,35,98,093 98,53,910
(b) Balances with banks
In current accounts 13,64,89,125 2,63,21,19,398
In deposit accounts 86,41,943 4,39,59,86,710

Total 15,87,29,161 7,03,79,60,018

19. Short-term loans and advances (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
To Related Parties - Unsecured, Considered Good
Advances to Companies where Key Managerial Persons are having
significant Influence & Interest
- Other Advances 28,79,78,349
To Others - Unsecured, Considered Good
- Advances for Expenses and Services 18,66,408 4,69,91,964
- Other Advances 13,01,11,767 98,67,47,318

Total 41,99,56,524 1,03,37,39,282

20. Other current assets (Amount in `)

As at 30th September, As at 31st March,
Particulars
2012 2011
(a) Income Tax Refund Receivable 20,58,69,657 16,44,34,264
(b) TDS Receivable / Advance Income Tax 27,03,24,727 5,04,11,109
Accrued Income 53,60,00,000 18,29,82,574

Total 1,01,21,94,384 39,78,27,947

21. Revenue from Operations (Amount in `)

For the period ended For the year ended
Particulars
30th September 2012 31st March 2011
(a) Advertisement Revenue 6,22,60,28,602 8,16,84,36,489
(b) Circulation Revenue 1,06,02,58,301 60,91,79,843
(c) Sale of Merchandise / Retail Sales 57,45,17,797 98,40,12,735

Total 7,86,08,04,700 9,76,16,29,067

36
Deccan Chronicle Holdings Limited
Annual Report 2011-12

22. Other income (Amount in `)

For the period ended For the year ended
Particulars
30th September 2012 31st March 2011
(a) Interest income from Fixed Deposits 14,83,47,457 27,99,12,773
(b) Other Miscellaneous Income 42,49,90,556 27,55,10,231

Total 57,33,38,013 55,54,23,004

23. Consumption of Materials and Cost of Purchases & Services (Amount in `)

For the period ended For the year ended
Particulars
30th September 2012 31st March 2011
(a) News Print 3,74,60,80,205 2,34,23,62,637
(b) Ink 27,27,78,405 11,52,37,259
(c) Plates 9,83,75,087 13,51,82,381
(d) Other Raw-Materials 5,64,59,855 3,54,28,021
(e) Printing Charges 10,88,26,010 4,51,10,343
(f ) Material Handling Charges 15,69,74,001 11,24,25,839
(g) News Service Charges 29,19,39,480 12,79,17,155
(h) Franchisee Charges 94,42,56,240 47,21,28,120
(I) Cost of Retail Items 62,71,54,372 51,02,54,815
(j) Repairs and Maintenance 20,46,75,598 24,72,57,689
(k) Consumption of Electricity and fuel 17,18,45,787 11,75,51,294

Total 6,67,93,65,040 4,26,08,55,553

24. Employee benefits expense (Amount in `)

For the period ended For the year ended
Particulars
30th September 2012 31st March 2011
(a) Salaries & Wages 1,24,96,15,350 81,18,41,692
(b) Director's Remuneration (Refer Note No.27.6) 9,67,35,843 11,32,90,333
( c) Staff Welfare Expenses 1,05,69,874 1,23,50,878
(d) Contribution to Statutory Funds 3,13,49,218 3,07,32,622

Total 1,38,82,70,285 96,82,15,525

25. Finance costs # (Amount in `)

For the period ended For the year ended
Particulars
30th September 2012 31st March 2011
(a) Interest on Term Loans & Working Capital Facilities* 5,51,21,83,089 28,15,37,502
(b) Interest on Debentures & Other Financial instruments 1,67,67,92,714 27,32,30,958
(c) Bank & Other Financial Charges 14,97,96,322 3,53,46,532
-
Total 7,33,87,72,125 59,01,14,992

# Refer Note No. 27.11

* including interest on Inter-corporate loans and advances

37
26. Other expenses (Amount in `)
For the period ended For the year ended
Particulars
30th September 2012 31st March 2011
(a) Advertisement expenses 8,57,59,307 11,66,13,978
(b) Audit fee 84,27,000 82,72,500
(c) Courier charges & Postage Charges 1,71,22,651 98,39,043
(d) Donations 30,251 -
(e) Insurance charges 1,55,17,532 1,60,28,999
(f ) Legal & professional charges (Incl. Players cost) 1,19,39,42,228 44,89,44,860
(g) Marketing & Promotion (Incl. Match Conducting exp) 26,17,92,400 23,98,79,732
(h) Packing & Distribution 19,76,16,481 12,17,04,072
(i) Miscellaneous expenses 3,51,15,939 2,61,03,013
(j) Printing & stationery 1,40,67,831 1,81,57,195
(k) Rent 38,10,71,203 28,58,09,842
(l) Security Service 5,69,63,461 3,49,35,488
(m) Subscriptions and fees 44,08,593 31,16,983
(n) Taxes & licenses 2,84,11,706 2,40,52,650
(o) Telephone 3,09,66,445 3,24,51,955
(p) Accrued Interest Receivable written off 19,81,54,585 -
(q) Traveling, Conveyance & Stay expenses 16,36,17,053 21,94,57,529
Profit / (Loss) on sale of assets 9,71,45,098 79,03,587
(s) Write off of odyssey related advances(Refer Note No.27.13) 65,91,16,719 -

Total 3,44,92,46,483 1,61,32,71,426

27.1 Contingent Liabilities

The details of the Contingent Liabilities to the extent not provided as follows:
(Amount in `)
As at 30th As at 31st
Sl.No Particulars
September 2012 March 2011
a Claims against the Company not acknowledged as debt
Writ Petitions filed against the Company at various courts 89,41,80,000 —

b Guarantees given by the Banks towards performance &

Contractual Commitments 5,10,527 56,76,916
c Corporate Guarantee given towards obtaining of Loan by
related party entity 50,00,00,000 --
d Letters of Credit 29,45,520 1,07,54,307
e Income Tax Demand disputed before CIT and ITAT 2,83,46,109 ---
f Provident fund demand disputed with provident fund
organization 9,84,871 ---

27.2. Impairment of Fixed Assets

In the opinion of the management, there are no impaired assets requiring provision for impairment loss as per the Accounting Standard
28 as at the period ended 30th September, 2012.

27.3. Disclosure pursuant to Accounting Standard (AS) – 15(Revised)“Employees Benefits”:

I) The summarized position of Post-employment benefits and long term employee benefits recognized in the Statement of Profit & Loss
and Balance Sheet as required in accordance with Accounting Standard – 15 (Revised) are as under:-

38
Deccan Chronicle Holdings Limited
Annual Report 2011-12

ii) (a) Changes in the Benefit Obligations: (Amount in `)

Gratuity
Particulars
2011 - 12 2010 - 11
Present Value of Obligation as at the beginning of the period 10,67,84,670 7,41,51,855
Interest Cost 1,28,14,160 60,80,452
Current Service Cost 58,59,832 54,20,850
Benefits Paid (1,38,81,446) (50,81,736)
Actuarial loss / (gain) on Obligations (40,89,179) 2,62,13,249
Present Value of Obligation at period end 10,74,88,037 10,67,84,670

(b) Amount Recognized in Balance Sheet: (Amount in `)

Gratuity
Particulars
2011 - 12 2010 - 11
Estimated Present Value of obligations as at the end of the period 10,74,88,037 10,67,84,670

Fair value of Plan Assets as at the end of the period –

-
Net Liability recognized in Balance Sheet
10,74,88,037 10,67,84,670

(c) Expenses recognized in Statement of Profit & Loss: (Amount in `)

Gratuity
Particulars
2011 - 12 2010 - 11
Current Service Cost 58,59,832 54,20,850
Interest Cost 1,28,14,160 60,80,452
Expected return on Plan Asset – –
Net Actuarial (Gain)/Loss recognized in the period (40,89,179) 2,62,13,249
Total expenses recognized in Statement of Profit & Loss 1,45,84,813 3,77,14,551

(d) Principal Actuarial Assumption:

Gratuity
Particulars
2011 - 12 2010 - 11
Discount Rate 8.00% 8.00%
Salary Escalation Rate 4.00% 4.00%
Retirement Age 58 58

(e) The entire present value of funded obligation at the period end is unfunded and hence, fair value of assets is not furnished.

27.4. Related Party Transactions

The following are the related parties as per AS-18

Associated Companies Key Management Personnel

India Travel Bureau Pvt Ltd Andhra Bhoomi Publication (W) Pvt Ltd TVenkattram Reddy
Deccan Chronicle Marketeers Pvt Ltd Deccan Chronicle (Rajahmundry) Pvt Ltd TVinayak Ravi Reddy
Deccan Chronicle(Secunderabad) Pvt Ltd P K Iyer
Associated Concerns N Krishnan(Resigned on 29.06.2012)
Sri T.C. Reddy H.U.F. Nandi Publishers Pvt Ltd
Aviotech Pvt Ltd
Relatives of Key Management Personnel Inline4 Motors Pvt Ltd
T Vijay Reddy Flyington Freighters Ltd
T Manjula Reddy Nagarjuna Travels and Hotels Pvt. Ltd.
T Gayatri Reddy

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 The following are the Ttransactions with the above related parties:
(Amount in `)
Volume of transactions Amount of outstanding
No. Description
for the period as at 30.09.2012
6,32,49,382 5,41,16,525
1 Payments for / against rendering of Services and materials (745,00,000) (3,60,47,000)
9,78,22,712 9,00,347
2 Key Management Personnel (Remuneration) (11,44,23,904) (Nil)
39,99,996 2,00,000
3 Rent (32,05,864) (Nil)
Nil Nil
4 Sale of Investments (23,13,60,000) (Nil)
51,57,293 62,189
5 Salary to relatives of KMP (Nil) (Nil)
33,61,78,349 33,61,78,349
6 Advance for services, Rent and capital works (Nil) (Nil)
170,16,05,400 170,16,05,400
7 Capital advance for purchases on Property (Nil) (Nil)
1,66,69,684 1,66,69,684
8 Fixed Assets (Nil) (Nil)

Figures in brackets relate to previous year

27.5 Earnings Per Share (EPS)

Basic and Diluted Earnings per share:

Particulars 2011-12 2010 - 2011

Profit After Tax (Rs.) – (A) (1040,40,36,725) 162,58,27,883

Weighted average No. of equity shares as denominator for
calculating Basic and Diluted EPS. (No.) – (B) 21,60,41,749 24,34,72,219
Basic and Diluted EPS (Rs.) – (A/B) (48.16) 6.68

27.6. Managerial Remuneration

As per the approval by shareholders and as per the provisions of the Companies Act, the directors were paid remuneration of Rs.
9,44,22,712/- till 31st March, 2012. Thereafter due to insufficiency of profits, remuneration to the executive directors has been reduced to
`. 2,00,000/- p.m. each from April 2012 till September 2012 which is the maximum permissible remuneration as per the provisions of
Companies Act, 1956. For the accounting period ended 30th September, 2012 the excess managerial remuneration drawn as per the
provisions of the Companies Act needs to be ratified by the Shareholders and also the management is in the process of getting necessary
approvals from the appropriate authorities.

27.7. There are no amounts due and outstanding to be credited to Investors Education & Protection Fund as on 30th Sept., 2012 (As on 31st
March, 2011: Nil)

27.8. Auditors' Remuneration (excluding service tax) and expenses :

(Amount in `)
S.No Particulars 2011-12 2010 - 2011

1. Statutory Audit 55,00,000 55,00,000

2. Tax Audit 10,00,000 10,00,000
3. Other Services 10,00,000 10,00,000
Total 75,00,000 75,00,00

40
Deccan Chronicle Holdings Limited
Annual Report 2011-12

27.9. Information as per para 4D of part II of Sch.VI of the Companies Act

i) CIF value of Imports and Expenditure in Foreign Currency (Amount in `)

Particulars 2011-12 2010 - 2011

Raw Materials and Traded Goods 262,54,59,565 204,63,03,000

Traveling Expenses - 34,59,000
News service charges 2,06,65,386 40,48,373

Aircraft maintenance 29,42,914 Nil

Professional Fee(including Player and support staff ) 73,92,76,469 17,66,72,000

Other Expenses 85,122 -

Total 285,36,02,418 223,04,82,000

ii) Income in foreign currency is `. 15,24,94,924

27.10. Confirmation of Balances

The management has not obtained the Confirmation of Balance from Loan Lenders, Trade Payable, Trade Receivables and Loans and
Advances as at 30th September, 2012. In the absence of confirmation of balances from the above parties as at 30th September, 2012, any
provision to be made for any adverse variation in the carrying amounts are not quantified. However the management has certified to the
Board of Directors that the above amounts shall be recovered or settled at the values stated in the normal course of business.

The Company has borrowed on the security of its immovable properties and of its related parties. Pending settlement of dues to the
lenders, some of the lenders have transferred the ownership of the said immovable properties onto their name under the nature of“Debt
Asset Swap Arrangement”. In the event of settlement of dues to the lenders, the assets shall revert back to the original owners. Pending
reconciliation of amount of loan liability adjusted by the loan lenders, on the said transfer of assets of the Company and of its related
th
parties, any profit / (loss) on transfer of assets is not quantified for the accounting period ended 30 September 2012.

27.11. Restructuring of Operations and reinstatement of Liabilities and Assets:

The Management has undertaken an exhaustive review of its policies with regard to its sale of advertisement, circulation and Brand
building strategies. The review has highlighted significant inadequacies in the nature of the operations of these departments and hence
the management has decided to discontinue such practice. Pursuant to the review the parties who had entered into arrangements and
agreed to take on some of the liabilities incurred in developing the business have since reneged on those arrangements and the company
had no other option but to reinstate the liabilities to protect its credibility with the lenders and the management has decided to resolve
the issues based on a legal settlement. As per the legal settlement it is decided to acquire the Brand based on the valuation report for
Intangibles/Brands obtained from independent valuers to the extent of `. 3,700.00 Crores. The parties have also given their personal
properties to the extent of `.170.16 crores as collateral to the lenders on which the Company has already availed loans.To the extent of the
collateral security in the form of Immovable Assets, the parties have agreed to enter into sale agreements and hence these amounts are
shown as Capital Work in Progress – Advances for purchase of properties. The parties are still in the process of transfer of the legal titles to
the Intangibles/Brands to the extent of dues to the Company amounting to `. 2,905.32 Crores and these amounts are shown as Intangible
Assets under Development Brand under Fixed Assets. For the above assets/ expenditure recorded in the books, corresponding liability in
th
the form of borrowings have been reinstated in the balance sheet as at 30 Sep 2012. As per the legal settlement, the Company has
decided to write off the financial charges related to the borrowings for the period from 1-4-2011 to 30-09-2012 to the extent of `. 638.22
crores as interest and financial charges on the borrowings in the Statement of Profit and Loss.
By reinstating the above transactions, the management confirms that there is no effect on the results already published for the
previous years, except for reinstatement of liabilities and assets as at the end of the accounting period.

27.12. Franchise rights of “Deccan Chargers”

The Company is the owner of the Hyderabad Franchise of the Indian Premier League (IPL) “Deccan Chargers”, created by the Board of
Control for Cricket in India (BCCI). This is an indefinite right and the Company can operate the franchise as long as the IPL tournaments are
conducted by BCCI. The consideration for acquiring the franchise rights of `. 428.04 Crores is payable to BCCI over a period of 10 years,
which is renewable, in equal installments commencing from 2008 (IPL-1). The income accrues to the Company on this Franchise by way of
share of central revenue, collections, telecast rights, ticket sales, sponsorship etc.
During this accounting period, the BCCI, suo motto, terminated the Franchise of the Company citing that the Company has breached
some of the terms of the Franchise Agreement. Against the termination, the Company has filed a writ petition before the Hon'ble Bombay
High Court, to withdraw the termination by BCCI. After due consideration of the facts and other conditions, the High Court of Bombay has
directed BCCI and the Company to approach the Arbitrator for resolution of the dispute. However, the High Court of Bombay has
confirmed the termination of franchise agreement by BCCI against which the Company had filed a Special Leave Petition (SLP) before the
Hon'ble Supreme Court of India, which was rejected at the admission stage. As per the directions of the High Court of Bombay, the
Company filed claim petition before the Arbitrator against the BCCI for loss of profit, loss of brand creation, damages, etc. pending
outcome of the arbitration, income on this disputed loss of profit has not been recognized for the period under review.

41
27.13. Scaling down of operations of“Odyssey”
The Company has aggressively grown the Odyssey line of business and set up nearly 80 centers in the previous accounting periods. The
roll out plan entailed significant outlays in terms of infrastructure and inventory costs. The economic downturn resulted in significant
losses as the business is more of an aspiration business.The severe competition from online retailers with their national reach at lower cost
resulted in significant loss of customers. The high rentals and establishment costs did not help the cause and the Company had no option
but to scale down the operations significantly. The management has by way of review of operations of these lines of business decided to
reduce the outlets to nearly 8 during this accounting period. . Consequently a sum of `. 65.91 Crores has been written off in the Statement
of Profit and Loss for this period towards termination of lease deposits, assets, loans & advances, etc. The management is in the process of
recovering some of lease deposits and other loans & advances and the ultimate outcome and any provision to be made for irrecoverable
portion on these advances and deposits are not quantified.

27.14. Claims against the Company:

The Company has received notices from the Lenders for recovery of their dues and they have also filed petitions before the Debt Recovery
Tribunal for recovery of the dues by sale of properties, creating charge on the assets of the Company. Some of the lenders and creditors
have also filed Winding up petition before the High Court of Judicature at Hyderabad. However, the management is confident of
succeeding in all the litigations in the normal course. In the absence of the information on the ultimate outcome of these petitions,
notices, etc the management is not able to quantify any damage, claim over and above the dues, etc which needs to be provided for in the
accounts.

27.15. CapitalWork in Progress – Advance for Purchase of Property:

During this year the Company has reconciled and reinstated the liabilities and assets as stated in Note 27.11. The Company has also
entered into agreements with the persons who have given the immovable properties to borrow money in the name of the Company and
some of the parties have agreed to sell the properties to the Company, for which the Company has entered into Agreement of Sale.
Pending settlement of dues to the lenders by these parties and also pending obtaining of NOC from the lender, registration of sale deeds,
transfer of title deeds etc., these amounts are shown as capital work in progress - advances for purchase of property.The management is of
the view that these advances shall be carried in the balance sheet at the values stated and no provision, if any, is made for any short fall
which shall be considered upon final settlement.

27.16. Intangible Assets Under Development - Brand:

During this year the Company has reconciled and reinstated the liabilities and assets as stated in Note 27.11. As per the terms of the legal
settlement, for the dues recoverable, the parties have agreed to sell, transfer, assign their Brand, which was valued around `. 3700 Crores.
Pending completion of documentation, transfer, assign, etc., in the name of the Company, the said Brand valued to the extent of dues of `.
2,905.32 Crores has been shown as Intangible Assets Under Development – Brand and shall be capitalised to the Fixed Assets upon
completing the transfer of title. The management is of the view that these Intangible Assets under Development - Brand shall have the
value at least to the extent of the amount shown and no impairment is anticipated for the period ended 30th September, 2012.

27.17. Interest on Borrowings & Financial Charges:

As per the restructuring plan stated in Note 27.11, the interest and other financial charges claimed/ paid have been charged off as current
period expenses to the extent of `. 638.22 Crores.The management is in the process of negotiating with the lenders for reduction in rate of
interest, rephasement in the terms of borrowings etc., and pending settlement, the interest on these borrowings for the period from
May/June 2012 to September 2012 has not been provided for in the accounts. Pending details such as overdue interest, penalties,
damages, cost etc., the management is not able to quantify the shortfall in financial charges to be provided for during the accounting
th
period ended 30 September, 2012.

27.18. As stated in above notes, the lenders have not given any details regarding the penal interest charged, damages, cost of litigation
etc. for the loans became due and in the absence of the information the management has not furnished the details regarding the
outstanding loan liability, overdue payment, redemption, extension required as per Schedule VI of Companies Act, 1956 and other details
to be disclosed.

27.19. Provision forTax and DeferredTax

The provision for deferred tax/liability for the period ended 30th September, 2012 has been made in accordance with AS-22 on Accounting
for Taxes on Income. In the absence of sufficient future taxable income the management has not recognized deferred tax asset as at 30th
September, 2012.The current income tax for the period ended 30th September, 2012 was made as per the prevailing tax laws.

27.20. Leases
The Company entered into operating leases which are cancelable/ renewable with 2-3 months notices. The operating lease expenses for
the year is charged to the Statement of Profit and Loss. The details required to be furnished for the financial lease such as due within one
year, one to five years and beyond five years are not ascertainable due to the fact that some of the parties are under rephasement of loan
terms and conditions.

27.21 The Company has given Corporate Guarantee for the loans taken by M/s. Aviotech Ltd., a related party entity, to the extent of `. 50
Crores for the loans obtained by them from Future Capital Holdings Limited.

42
Deccan Chronicle Holdings Limited
Annual Report 2011-12

27.22. The accounting period of the Company has been extended up to 30th September, 2012 from 31st March, 2012 consisting of 18
months. As such the current period figures are not strictly comparable with the previous year figures which are for a period of 12 months.

27.23. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current period's classification / disclosure.

27.24. All Amounts in the financial statements are presented in Rupees, except for per share data and as otherwise stated.

As per our report of even date attached For and on behalf of the board
For C B Mouli & Associates
Chartered Accountants
T. Venkattram Reddy T. Vinayak Ravi Reddy
Chairman Vice-Chairman

Mani Oommen
Partner P. K. Iyer
M.No. 24046
Vice-Chairman

Secunderabad, January 21, 2013

43