HT Media Ltd — Audit Report / Information 2020

Dec 1, 2020

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HT MEDIA LIMITED

Regd. Office: Hindustan Times House

18-20, Kasturba Gandhi Marg New Delhi - 110001 Tel.: 66561234 Fax: 66561270 www.hindustantimes.com E-mail: corporatedept@hindustantimes.com GIN: L22121DL2002PLC117874

Ref: HTML/CS/02/2020

1[st] December, 2020

BSE Limited P.J. Towers, Dalal Street MUMBAI - 400 001

The National Stock Exchange of India Limited

Exchange Plaza, C/1, G Block Bandra-Kurla Complex Bandra (E) MUMBAI - 400 05[1]

Scrip Code: 5[3] 2662

Trading Symbol: HTMEDIA

Dear Sirs,

Sub: Statement on impact of audit qualifcation on the revised Audited (Standalone & Consolidated) Financial Results fr the quarter and financial year ended on[31][st ] March,2020

In continuation to our letter dated 27[th ] November, 2020 and reference and pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the statement on impact of audit qualification on the revised Audited (Standalone & Consolidated) Financial Results for the quarter and financial year ended on 31[st ] March, 2020.

This is for your information and record.

Thanking you,

Yours faithfully,

For HT MEDIA LIMITED

,·,

,� JJ,�---1.J __,,,,­

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(Dinesh Mittal) Group General Counsel & Company Secretary

Encl: As above

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Statement on lm�act of Audit Qualifications submitted
alongwith Annual Audited Standalone Financial Results
Statement on lm�act of Audit Qualifications for the Financial Year ended March 31[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016] 1 2020
I. SI. Beginning of Comparative period Comparative period [FY 2018-19)
No. (INR in lakhsJ (INR in lakhsJ
Particulars Audited Figures Adjusted Figures Audited Figures Adjusted Figures
(as reported before ( audited figures after (as reported before (audited figures after
adjusting adjusting for adjusting adjusting for
for qualifications) qualifications) for qualifications) qualifications)
1. Turnover/ Total income 144,683 144,087
2. Total Expenditure 161,884 161,877
rincludino exceotional item)
Net ProfiV(Loss) before tax (17,201) (17,790)
4. Net ProfiV(Loss) after tax (13,894) (14,279)
Earnings Per Share (6.03) (6.19)
6. Total Assets 353,080 352,519 370,608 369,679
7. Total Liabilities 175,008 175,018 208,420 208,447
8. Net Worth 178,072 177,501 162,188 161,232
Any other financial item(s) (as felt
9. appropriate by the Nil Nil Nil Nil
manaoementl
II. Audit Qualification (each audit gualification segaratel�):
3.
5.
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a. Details of Audit Qualification: As discussed in Note 15 to the revised standalone annual financial results, pursuant to a whistleblower complaint received, an investigation was conducted which brought out certain deficiencies in the Radio business and instances of reporting higher revenue, incorrect debtors, contractual liabilfties and trade payables w#h consequential impact on provision tor doubtful debts and taxes etc. relating to a significant stream of revenue of the radio business in the Company. Further, as brought out by the investigation. such practices were continuing since last few years. As mentioned in the note, the Company has identified an amount of INR 1,115 lakhs, which pertains to deficiencies in revenue recognised for financial years 201718 and 2018-19 in the Radio business. After adjusting the increase in other expenses and the deferred tax credit, the total decrease in the opening retained earnings is INR 956 lakhs. The Company has accounted for such adjustment in the retained earnings as at April 1, 2019 instead of restating the corresponding figures for the year ended March 31, 2019. This constitutes a departure from the applicable Ind AS prescribed under section 133 of the Act, thereby resulting in the nonadjustment in the amounts reported for corresponding year ended March 31.2019 w#h respect to revenue from operations, expenses and taxes as well as trade receivables and other #ems of the balance sheet. However, this does not have any impact on the loss for the year ended March 31, 2020 or on total equity as at March 31, 2020.

b. Type of Audit Qualification : Qualified Opinion

• c. Frequency of qualification: Appeared first time

d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views: Management's Views: The Company has taken cognizance of the certain anomalies alleged by the whistleblower. which have been affirmed by the investigation conducted by a reputed law firm who in turn also appointed leading accounting firms. The anomalies affirmed are restricted to the pure money transaction segment of radio business of the Company.

Accordingly, to reflect true and fair view of the Company's financials, the financial statements for the year ended 2019-20 have been revised. In respect of anomalies pertaining to periods on or before March 31, 2019, nnancial impact has been assessed and adjusted against the retained earnings as on April 1, 2019 on ground of materialfy instead of restating comparative period.

e. For Audit Qualification(s) where the impact is not quantified by the auditor: Not Applicable (i) Management's estimation on the impact of audit qualification: Not Applicable

(ii) If management is unable to estimate the impact, reasons for the same: Not Applicable

(iii) Auditors' Comments on (i) or (ii) above: Not Applicable

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�
For B S R and Associates For and on alf of HT Media Limited
Chartered Accountants (Firm Registration Number: 128901W) �
RAJESH Digitally signed by RAJESH ARORA
ARORA Date: 2020.12.01 14:21:20 +05'30'
Rajesh Arora Fl h Gup a
Partner roLpChief ncial
Membership No. 076124 IC
Place: Guru ram g Pia, : New Delhi
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Digitally signed by PRAVEEN SOMESHWAR
DN: c=IN, o=Personal,
PRAVEEN 2.5.4.20=4c9c1dfff6b72a674c1aae72ef03b
e6952ac0bd1c738a0659950b55dac28a3a2
, postalCode=122009, st=HARYANA,
serialNumber=2ffcf4d79a1f898740f1ea01c
SOMESH 3e8e71c2b79f5ee1e1eb89aae8101f2861d1018, cn=PRAVEEN SOMESHWAR,
l=GURGAON,
pseudonym=07c2a3bb17b34d9ea4fa83e8
WAR 7b102ad1 Date: 2020.12.01 11:20:48 +05'30'
Praveen Someshwar
Managing Director &
Chief Executive Officer
Place: New Delhi
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Statement on lmQact of Audit Qualifications submitted
alongwith Annual Audited Consolidated Financial Results
Statement on lmQact of Audit Qualifications for the Financial Year ended March 31, 2020
[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016}
I. SI. Beginning of Comparative period Comparative period (FY 2018-19)
No. (INR in lakhs) (INR in lakhs)
Particulars Audited Figures Adjusted Figures Audited Figures Adjusted Figures
(as reported before (audited figures after (as reported before {audited figures after
adjusting adjusting for adjusting adjusting for
for qualifications) qualifications) for qualifications) qualifications)
1. Turnover I Total income 243,471 242,875
2 Total Expenditure 247,081 247,074
I (indudina exceotional item)
3. Net ProfiU(Loss) before tax (3,610) (4,199)
4. Net ProfiU(Loss) after tax 1,589 1,204
5. Earnings Per Share (0.52) (0.69)
6. Total Assets 494,388 493,827 498,984 498,056
7. Total Liabilities 205,794 205,804 211,491 211,519
Net Worth 288,594 288,023 287,493 286,537
Any other financial item(s) (as felt
9. appropriate by the Nil Nil Nil Nil
manaaemenO
II. Audit Qualification {each audit gualification se�arately}:
8.
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a. Details of Audit Qualification: As discussed in Note 10 to the revised consolidated annual financial results pursuant to a whistleblower complaint received, an investigation was conducted which brought out certain deficiencies in the Radio business and instances of reporting higher revenue, incorrect debtors, contractual liabilities and trade payables with consequential impact on provision for doubtful debts and taxes etc. relating to a significant stream of revenue of the radio business in the Holding Company and its subsidiary company, NRL. Further, as brought out by the investigation, such practices were continuing since last few years.

As mentioned in the note, the Group has identified an amount of INR 1,115 lakhs, which pertains to deficiencies in revenue recognised for financial years 2017-18 and 2018-19 in the Radio business. After adjusting the increase in other expenses and the deferred tax credit, the total decrease in the opening retained earnings is INR 956 lakhs. The Group has accounted for such adjustment in the retained earnings as at April 1, 2019 instead of restating the corresponding figures for the year ended March 31, 2019. This constitutes a departure from the applicable Ind AS prescribed under section 133 of the Act, thereby resulting in the nonadjustment in the amounts reported for corresponding year ended March 31, 2019 with respect to revenue from operations, expenses and taxes as well as trade receivables and other items of the balance sheet. However, this does not have any impact on the loss for the year ended March 31, 2020 or on total equity as at March 31, 2020.

• b. Type of Audit Qualification : Qualified Opinion

• c. Frequency of qualification: Appeared first time

d. For Audit Qualification(s} where the impact is quantified by the auditor, Management's Views: The Group has taken cognizance of the certain anomalies alleged by the whistleblower, which have been affirmed by the investigation conducted by a reputed law firm who in tum also appointed leading accounting firms. The anomalies affirmed are restricted to the pure money transaction segment of radio business inthe Holding Company and its subsidiary company, NRL.

Accordingly, to reflect true and fair view of the Group's financials, the financial statements for the year ended 2019-20 have been revised. In respect of anomalies pertaining to periods on or before March 31, 2019, financial impact has been assessed and adjusted against the retained earnings as on April 1, 2019 on ground of materiality instead of restating comparative period.

e. For Audit Qualification(s) where the impact is not quantified by the auditor: Not Applicable (i) Management's estimation on the impact of audit qualification: Not Applicable (ii) lf management is unable to estimate the impact, reasons for the same: Not Applicable (iii) Auditors· Comments on (i) or (ii) above: Not Applicable

For B S R and Associates Chartered Accountants (Firm Registration Numbec 128901W)

RAJESH Digitally signed by RAJESH ARORA Date: 2020.12.01 ARORA 14:23:28 +05'30'

Rajesh Arora Partner Membership No. 076124 Place: Gurugram

For and on behalf of HT Media Limited

Digitally signed by PRAVEEN SOMESHWAR PRAVEEN DN: c=IN, o=Personal, 2.5.4.20=4c9c1dfff6b72a674c1aae72ef03be 6952ac0bd1c738a0659950b55dac28a3a2, postalCode=122009, st=HARYANA, serialNumber=2ffcf4d79a1f898740f1ea01c3 SOMESH e8e71c2b79f5ee1e1eb89aae8101f2861d1018, cn=PRAVEEN SOMESHWAR, l=GURGAON, pseudonym=07c2a3bb17b34d9ea4fa83e87 b102ad1 WAR Date: 2020.12.01 11:21:14 +05'30'

Praveen Someshwar Managing Director & Chief Executive Officer Place: New Delhi Place: Mukteshwar