1. WACC Summary MSM and Maa TV September 10, 2012 Draft – For Discussion Only

2. MSM / Maa TV WACCs Two valuations were completed as part of the MSM India minority buyout transaction, a DT valuation for internal approval and BSR (KPMG) valuation for RBI approval purposes These WACCs vary by 1.9% This difference is largely driven by 1) the Beta estimates for each, and 2) company-specific risks Fortunately BSR’s WACC is the higher of the two, suggesting a lower valuation and higher likelihood of approval by the Reserve Bank of India The next page describes the difference between the two methods and reasons for the 1.9% variance The final page shows WACC calculations used for both MSM assignments as well as the calculation used for Maa TV 2

3. MSM WACCs 3 Total difference between MSM and BSR is 1.9% Two items make up 89% of the total difference 1) Levered  for Equity - 46% of the difference – BSR used Bloomberg, which includes two-year weekly returns as part of its calculation. DT calculated its beta from one-year daily returns. The longer the period used, the closer the  should be to the market (1). This is why the BSR  is higher than DT’s 2) Company-specific risk – 43% of the difference – BSR added 1% to the discount rate to compensate for the risk regarding the continuation of IPL at the end of the forecast. DT was comfortable with 0% since IPL will likely be replaced with something similar.

4. MSM and Maa TV WACC Comparison Most significant variance between Maa TV and MSM assignments is the cost of debt During the Maa TV assignment, DT presented MSM management with a range of different costs of debt, noting that the lower end was the one that got the overall discount rate to make sense. Since Man Jit was comfortable that Maa could secure debt at 8.5%, this is what was used.