The Company recognises provisions when a present obligation(legal or constructive) as a result of a past event exists and itis probable that an outflow of resources embodying economicbenefits will be required to settle such obligation and the amountof such obligation can be reliably estimated.
The amount recognised as a provision is the best estimate ofthe consideration required to settle the present obligation at theend of the reporting period, taking into account the risks anduncertainities surrounding the obligation. When a provision ismeasured using the cash flow estimated to settle the presentobligation, its carrying amount is the present value of those cashflows (when the effect of the time value of money is material).
A contingent liability is a possible obligation that arises from pastevents whose existence will be confirmed by the occurance ornon-occurance of one or more uncertain future events beyondthe control of the Company or a present obligation that isnot recognised because it is not probable that the outflow ofresources will be required to settle the obligation. A contingentliability also arises in extremely rare cases where there is a liabilitythat cannot be recognised because it cannot be measuredreliably. The Company does not recognise a contingent liabilitybut discloses its existence in the financial statements.
Contingent assets are not recognised in the financial statements,however they are disclosed where the inflow of economicbenefits is probable. When the realisation of income is virtuallycertain, then the related asset is no longer a contingent assetand is recognised as an asset.
A provision for onerous contracts is recognised in the statementof profit and loss when the expected benefits to be derived bythe Company from a contract are lower than the unavoidablecost of meeting its obligations under the contract. The provisionis measured at the present value of the lower of the expectedcost of terminating the contract and the expected net cost ofcontinuing with the contract. Before a provision is established,the Company recognises any impairment loss on the assetsassociated with that contract.
As per Ind AS 115 "Revenue from contracts with customers" - Acontract with a customer exists only when the parties to the
contract have approved it and are committed to perform theirrespective obligations, the Company can identify each party'srights regarding the distinct goods or services to be transferred("performance obligations"), the Company can determine thetransaction price for the goods or services to be transferred, thecontract has commercial substance and it is probable that theCompany will collect the consideration to which it will be entitledin exchange for the goods or services that will be transferred tothe customer.
Revenues are recorded for the amount of consideration to whichthe Company expects to be entitled in exchange for performanceobligations upon transfer of control to the customer and ismeasured at the amount of transaction price net of returns,applicable tax and applicable trade discounts, allowances,Goods and Services Tax (GST) and amounts collected on behalfof third parties.
I Broadcasting revenue - Advertisement revenue (net ofdiscount and volume rebates) is recognised when therelated advertisement or commercial appears before thepublic i.e. on telecast. Subscription revenue (net of share tobroadcaster) is recognised on time basis on the provisionof television/digital broadcasting service to subscribers.
II Sale of media content - Revenue is recognised when thesignificant risks and rewards have been transferred to thecustomers in accordance with the agreed terms.
III Commission revenue - Commision of space selling isrecognised when the related advertisement or commercialappears before the public i.e. on telecast.
IV Revenue from theatrical distribution of films is recognisedover a period of time on the basis of related sales reports.
V Revenue from other services is recognised as and whensuch services are completed/performed.
VI Interest income is accrued on a time basis, by reference tothe principal outstanding and at the effective interest rate(EIR) applicable.
VII Dividend income is recognised when the Company's rightto receive dividend is established.
VIII Rent income is recognised on accrual basis as per theagreed terms on straight line basis.
Employee benefits include salaries, wages, contribution toprovident fund, gratuity, post-retirement medical benefits andother terminal benefits.
Employee benefits such as salaries, wages, short-termcompensated absences, cost of bonus, ex-gratia andperformance linked rewards falling due wholly within twelvemonths of rendering the service are classified as short-termemployee benefits and are expensed in the period in whichthe employee renders the related service. The obligations arepresented as current liability in the balance sheet if the entity
does not have an unconditional right to defer the settlement foratleast 12 months after reporting date.
Payments to defined contribution plans viz. Governmentadministered provident funds and pension schemes arerecognised as an expense when employees have renderedservice entitling them to the contributions.
For defined retirement benefit plans in the form of gratuity , thecost of providing benefits is determined using the projected unitcredit method, with actuarial valuations being carried out at theend of each annual reporting period. Remeasurement, comprisingactuarial gains and losses, the effect of the changes to the assetceiling (if applicable) and the return on plan assets (excludingnet interest), is reflected immediately in the balance sheet witha charge or credit recognised in other comprehensive income inthe period in which they occur. Remeasurement recognised inother comprehensive income is reflected immediately in retainedearnings and is not reclassified to statement of profit and loss.Past service cost is recognised in statement of profit and lossin the period of a plan amendment. Net interest is calculated byapplying the discount rate at the beginning of the period to thenet defined benefit liability or asset. Defined benefit costs arecategorised as follows:
I service cost (including current service cost, past servicecost, as well as gains and losses on curtailments andsettlements);
II net interest expense or income; and
III remeasurement
The Company presents the first two components of definedbenefit costs in statement of profit and loss in the line item'Employee benefits expense'. Curtailment gains and losses areaccounted for as past service costs.
The retirement benefit obligation recognised in the balancesheet represents the actual deficit or surplus in the Company'sdefined benefit plans. Any surplus resulting from this calculationis limited to the present value of any economic benefits availablein the form of refunds from the plans or reductions in futurecontributions to the plans.
A liability for a termination benefit is recognised at the earlierof when the entity can no longer withdraw the offer of thetermination benefit and when the entity recognises any relatedrestructuring costs.
Liabilities recognised in respect of other long-term employeebenefits are measured at the present value of the estimatedfuture cash outflows expected to be made by the Company inrespect of services provided by employees up to the reportingdate.
The Company recognises compensation expense relatingto share-based payments in net profit using fair-value inaccordance with Ind AS 102, Share-Based Payment. Theestimated fair value of awards is charged to statement of profitand loss on a straight-line basis over the requisite serviceperiod for each separately vesting portion of the award as if the
award was in-substance, multiple awards with a correspondingincrease to share based payment reserves.
The functional currency of the Company is Indian Rupees (T).
I Foreign currency transactions are accounted at theexchange rate prevailing on the date of such transactions.
II Foreign currency monetary items are translated using theexchange rate prevailing at the reporting date. Exchangedifferences arising on settlement of monetary items or onreporting such monetary items at rates different from thoseat which they were initially recorded during the period, orreported in previous financial statements are recognisedas income or as expenses in the period in which they arise.
III Non-monetary foreign currency items are measured interms of historical cost in the foreign currency and are notretranslated.
Current and deferred tax are recognised in the statementof profit and loss, except when they relate to items that arerecognised in other comprehensive income or directly in equity,in which case, the current and deferred tax are also recognisedin other comprehensive income or directly in equity respectively.
Current tax is the amount of income taxes payable inrespect of taxable profit for a year. Current tax for currentand prior periods is recognised at the amount expectedto be paid to or recovered from the tax authorities,using the tax rates and tax laws that have been enactedor substantively enacted at the balance sheet date.Management periodically evaluates positions taken in thetax returns with respect to situations in which applicabletax regulations are subject to interpretation and establishesprovisions where appropriate.
Tax assets and tax liabilities are offset where the entity hasa legally enforceable right to offset and intends either tosettle on a net basis, or to realise the asset and settle theliability simultaneously.
Deferred tax is recognised on temporary differencesbetween the carrying amounts of assets and liabilities inthe financial statements and the corresponding tax basesused in the computation of taxable profit. Deferred taxliabilities are generally recognised for all taxable temporarydifferences. Deferred tax assets are generally recognisedfor all deductible temporary differences to the extent thatit is probable that taxable profits will be available againstwhich those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are notrecognised if the temporary difference arises from theinitial recognition (other than in a business combination)of assets and liabilities in a transaction that affects neitherthe taxable profit nor the accounting profit. In addition,deferred tax liabilities are not recognised if the temporarydifference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewedat the end of each reporting period and reduced to theextent that it is no longer probable that sufficient taxableprofits will be available to allow all or part of the asset to berecovered.
Deferred tax liabilities and assets are measured at the taxrates that are expected to apply in the period in which theliability is settled or the asset realised, based on tax rates(and tax laws) that have been enacted or substantivelyenacted by the end of the reporting period.
The measurement of deferred tax liabilities and assetsreflects the tax consequences that would follow from themanner in which the Company expects, at the end of thereporting period, to recover or settle the carrying amountof its assets and liabilities.
The Company recognises deferred tax liability for all taxabletemporary differences associated with investments insubsidiaries and associates, except to the extent that bothof the following conditions are satisfied:
• When the Company is able to control the timing of thereversal of the temporary difference; and
• it is probable that the temporary difference will not
reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there isa legally enforceable right to offset current tax assets andliabilities.
Accruals for uncertain tax positions require managementto make judgements of potential exposures. Accrualsfor uncertain tax positions are measured using eitherthe most likely amount or the expected value amountdepending on which method the entity expects to betterpredict the resolution of the uncertainty. Tax benefitsare not recognised unless the tax positions will probablybe accepted by the tax authorities. This is based uponManagement's interpretation of applicable laws andregulations and the expectation of how the tax authoritywill resolve the matter. Once considered probable ofnot being accepted, Management reviews each materialtax benefit and reflects the effect of the uncertainty indetermining the related taxable amounts.
Basic earnings per share are calculated by dividing the net profitfor the year attributable to equity share holders by the weightedaverage number of equity shares outstanding during the year.
Diluted earnings per share are computed by dividing the profitafter tax as adjusted for dividend, interest and other chargesto expense or income (net of any attributable taxes) relatingto the dilutive potential equity shares (including FCCBs) bythe weighted average number of equity shares considered forderiving basic earnings per share and the weighted averagenumber of equity shares which could have been issued onconversion of all dilutive potential equity shares.
An item of income or expense which by its size, type or incidencerequires disclosure in order to improve an understanding of theperformance of the Company is treated as an exceptional itemand the same is disclosed in the profit or loss and in the notesforming part of the financial statements.
The carrying amounts of the Company's non-financial assets,other than inventories and deferred tax assets are reviewed ateach reporting date to determine whether there is any indicationof impairment. If any indication exists, or when annual impairmenttesting for an asset is required, the Company estimates theasset's recoverable amount. For goodwill and intangible assetsthat have indefinite lives or that are not yet available for use, animpairment test is performed each year end.
An asset's recoverable amount is the higher of an asset's or CashGenerating Unit's (CGU) fair value less costs of disposal andits value in use. In assessing value in use, the estimated futurecash flows are discounted to their present value using a pre¬tax discount rate that reflects current market assessments ofthe time value of money and the risks specific to the asset orthe cash generating unit. In determining fair value less costs ofdisposal, recent market transactions are taken into account. Ifno such transactions can be identified, an appropriate valuationmodel is used. These calculations are corroborated by valuationmultiples or other available fair value indicators. For the purposeof impairment testing, assets are Companyed together into thesmallest Company of assets that generate cash inflows fromcontinuing use that are largely independent of the cash inflowsof other assets or Companys of assets (the 'cash generatingunit').
The goodwill acquired in a business combination is, for thepurpose of impairment testing, allocated to cash-generatingunits that are expected to benefit from the synergies of thecombination.
An impairment loss is recognised in the profit or loss if theestimated recoverable amount of an asset or its cash-generatingunit is lower than it carrying amount. Impairment lossesrecognised in respect of cashgenerating units are allocated firstto reduce the carrying amount of any goodwill allocated to theunits and then to reduce the carrying amount of the other assetsin the unit on a pro-rata basis.
An impairment loss in respect of goodwill is not reversed. Inrespect of other assets, impairment losses recognised in priorperiods are assessed at each reporting date for any indicationsthat the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a favourable change in theestimates used to determine the recoverable amount. Animpairment loss is reversed only to the extent that the asset'scarrying amount does not exceed its recoverable amount, norexceed the carrying amount that would have been determined,net of depreciation or amortisation, if no impairment loss hadbeen recognised.
Financial guarantee contracts are recognised as a financialliability at the time the guarantee is issued. The liability is initiallymeasured at fair value and subsequently at the higher of:
• the amount determined in accordance with the expectedcredit loss model as per Ind AS 109 - Financial Instruments;and
• the amount initially recognised less, where appropriate,cumulative amount of income recognised in accordance withthe principles of Ind AS 115 - Revenue from Contracts withCustomers.
The fair value of financial guarantees is determined based onthe present value of the difference in cash flows between thecontractual payments required under the debt instrument andthe payments that would be required without the guarantee, orthe estimated amount that would be payable to a third partyfor assuming the obligations. Where guarantees in relationto loans or other payables of associates are provided for nocompensation, the fair values are accounted for as contributionsand recognised as part of the cost of the investment
The Company reviews its carrying value of investments carriedat cost (net of impairment, if any) annually.If the recoverableamount is less than its carrying amount, the impairment loss isaccounted for in the statement of profit and loss.
3 key accounting judgements and estimates
The preparation of the Company's financial statementsrequires the Management to make judgements, estimates andassumptions that affect the reported amounts of revenues,expenses, assets and liabilities, and the accompanyingdisclosures, and the disclosure of contingent liabilities.Uncertainty about these assumptions and estimates could resultin outcomes that require a material adjustment to the carryingamount of assets or liabilities affected in future periods.
The key assumptions concerning the future and other keysources of estimating the uncertainty at the reporting date, thathave a significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities within the next financialyear, are described below:
The Company's tax jurisdiction is India. Significant judgementsare involved in estimating budgeted profits for the purpose ofpaying advance tax, determining the provision for income taxes,including amount expected to be paid / recovered for uncertaintax positions.
in assessing the realisability of deferred tax assets, managementconsiders whether some portion or all of the deferred tax assetswill not be realised. The ultimate realisation of deferred tax assetsis dependent upon the generation of future taxable incomeduring the periods in which the temporary differences becomedeductible. Management considers the scheduled reversals ofdeferred income tax liabilities, projected future taxable incomeand tax planning strategies in making this assessment. Based onthe level of historical taxable income and projections for futuretaxable income over the periods in which the deferred income taxassets are deductible, management believes that the Companywill realise the benefits of those deductible differences. Theamount of the deferred income tax assets considered realisable,however, could be reduced in the near term if estimates of futuretaxable income during the carry forward period are reduced.
Property, plant and equipment represent a significant proportionof the asset base of the Company. The charge in respect ofperiodic depreciation is derived after determining an estimateof an asset's expected useful life and the expected residualvalue at the end of its life. The useful lives and residual valuesof Company's assets are determined by the managementat the time the asset is acquired and reviewed periodically,including at each financial year end. The lives are based onhistorical experience with similar assets as well as anticipationof future events, which may impact their life, such as changes intechnical or commercial obsolescence arising from changes orimprovements in production or from a change in market demandof the product or service output of the asset.
Research costs are expensed as incurred. Developmentexpenditures on an internally generated assets are recognisedas an intangible asset when the Company can demonstratecriteria specified for capitalisation has been fulfilled. Significantjudgements are involved for assessing recognition criteria andanalyse that the cost incurred for subsequent developmentimprove the functionality and enhance the asset's economicbenefits potential.
Goodwill is tested for impairment on an annual basis andwhenever there is an indication that the recoverable amount ofa cash generating unit is less than its carrying amount based ona number of factors including operating results, business plans,future cash flows and economic conditions. The recoverableamount of cash generating units is determined based on higherof value-in-use and fair value less cost to sell. The goodwillimpairment test is performed at the level of the cash-generatingunit or Companys of cash-generating units which are benefittingfrom the synergies of the acquisition and which representsthe lowest level at which goodwill is monitored for internalmanagement purposes.
Market related information and estimates are used to determinethe recoverable amount. Key assumptions on which managementhas based its determination of recoverable amount include
estimated long term growth rates, weighted average cost ofcapital and estimated operating margins. Cash flow projectionstake into account past experience and represent management'sbest estimate about future developments.
In estimating the future cash flows / fair value less cost ofdisposal, the Company has made certain assumptions relating tothe future customer base, future revenues, operating parameters,capital expenditure and terminal growth rate which the Companybelieves reasonably reflects the future expectation of theseitems. However, if these assumptions change consequent tochange in future conditions, there could be further favorable/ adverse effect on the recoverable amount of the assets.The assumptions will be monitored on periodic basis by theCompany and adjustments will be made if conditions relating tothe assumptions indicate that such adjustments are appropriate.
The costs of providing pensions and other post-employmentbenefits are charged to the Statement of Profit and Loss inaccordance with Ind AS 19 on 'Employee benefits' over theperiod during which benefit is derived from the employees'services. The costs are assessed on the basis of assumptionsselected by the Management. These assumptions include salaryescalation rate, discount rates, expected rate of return on assetsand mortality rates.
When the fair values of financials assets and financial liabilitiesrecorded in the balance sheet cannot be measured based onquoted prices in active markets, their fair value is measuredusing valuation techniques, including the discounted cash flowmodel, which involve various judgements and assumptions.
in accordance with ind AS 109 - Financial instruments, theCompany applies ECL model for measurement and recognitionof impairment loss on the trade receivables or any contractualright to receive cash or another financial asset that result fromtransactions that are within the scope of ind AS 115 - Revenuefrom Contracts with Customers.
For this purpose, the Company follows 'simplified approach' forrecognition of impairment loss allowance on the trade receivablebalances, contract assets and lease receivables. The applicationof simplified approach requires expected lifetime losses to berecognised from initial recognition of the receivables based onlifetime ECLs at each reporting date.
As a practical expedient, the Company uses a provision matrixto determine impairment loss allowance on portfolio of its tradereceivables. The provision matrix is based on its historicallyobserved default rates over the expected life of the tradereceivables and is adjusted for forward-looking estimates. Atevery reporting date, the historical observed default rates areupdated and changes in the forward-looking estimates areanalysed.
I n case of other assets, the Company determines if there hasbeen a significant increase in credit risk of the financial assetsince initial recognition. if the credit risk of such assets has not
increased significantly, an amount equal to twelve months ECLis measured and recognised as loss allowance. However, if creditrisk has increased significantly, an amount equal to lifetime ECLis measured and recognised as loss allowance.
The Company has several types of inventory such as generalentertainment, movies and music. Such inventories are expensed/amortised based on certain estimates and assumptions madeby Company, which are as follows:
i Reality shows, chat shows, events, game shows andsports rights: are fully expensed on telecast/upload whichrepresents best estimate of the benefits received from theacquired rights.
ii The cost of program (own production and commissionedprogram) are amortised over a period of three financialyears over which revenue is expected to be generated fromexploitation of programs.
iii Cost of movie rights - The Company's expectation is thatsubstantial revenue from such movies is earned duringthe period of five years from the date of acquisition oflicense to broadcast / upload on digital platform. Hence, itis amortised on a straight line basis over the license periodor sixty months from the date of acquisition/rights startdate, whichever is shorter.
IV The cost of educational content acquired is amortised ona straight line basis over the license period or 60 monthsfrom the date of acquisition/right start date, whichever isshorter.
V Films produced and /or acquired for distribution/sale ofrights:
Cost is allocated to each right based on managementestimate of revenue. Film rights are amortised as under :
a Satellite rights - Allocated cost of right is expensedimmediately on sale.
b Theatrical rights - Amortised in the month oftheatrical release.
c intellectual Property Rights (IPRs) - Allocated cost ofIPRs are amortised over 5 years from release of film.
d Music and Other Rights - allocated cost of each rightis expensed immediately on sale.
ind AS 116 - Leases requires lessees to determine the leaseterm as the non-cancellable period of a lease adjusted with anyoption to extend or terminate the lease, if the use of such optionis reasonably certain. The Company makes an assessment onthe expected lease term on a lease-by-lease basis and therebyassesses whether it is reasonably certain that any options toextend or terminate the contract will be exercised. in evaluatingthe lease term, the Company considers factors such as anysignificant leasehold improvements undertaken over the leaseterm, costs relating to the termination of the lease and the
importance of the underlying asset to Company's operationstaking into account the location of the underlying asset andthe availability of suitable alternatives. The lease term in futureperiods is reassessed to ensure that the lease term reflects thecurrent economic circumstances.
The Company exercises judgement in determining if a particularmatter is possible, probable or remote. The Company alsoexercises judgement in measuring and recognising provisionsand the exposures to contingent liabilities related to pendinglitigation or other outstanding claims subject to negotiatedsettlement, mediation, government regulation, as well as othercontingent liabilities. Judgement is necessary in assessing thelikelihood that a pending claim will succeed, or a liability will arise,and to quantify the possible range of the financial settlement.Because of the inherent uncertainty in this evaluation process,actual losses may be different from the originally estimatedprovision. Provisions are reviewed at each balance sheet dateand adjusted to reflect the current best estimate. If it is no longerprobable that the outflow of resources would be required tosettle the obligation, the provision is reversed.
The Company uses the acquisition method of accounting toaccount for business combinations. The acquisition date is thedate on which control is transferred to the acquirer. Judgementis applied in determining the acquisition date, determiningwhether control is transferred from one party to another andwhether acquisition constitute a business or asset acquisition.Control exists when the Company is exposed to, or has rights tovariable returns from its involvement with the entity and has theability to affect those returns through power over the entity. inassessing control, potential voting rights are considered only ifthe rights are substantive.
The factors that the Company considers in determining theamortisation policy has been derived basis management'sexpectation of overall performance of content on historicaltrends and future expectations.
For inventory, the management assesses estimate of futurerevenue potential.Based on such assessment if the net realisablevalue of key item of inventory is below its carrying value, suchinventories are written down to their net realisable value inaccordance with the requirements of ind AS 2, inventories ('indAS 2').
4 recent Indian accounting standards (ind as)
Ministry of Corporate Affairs ("MCA") notifies newstandards or amendments to the existing standardsunder Companies (indian Accounting Standards) Rulesas issued from time to time. For the year ended March 31,2025, MCA has notified Ind AS - 117 Insurance Contractsand amendments to ind AS 116 - Leases, relating to saleand leaseback transactions which is not applicable to the
Company w.e.f. April 1, 2024. The Company has reviewedthe new pronouncements and based on its evaluation hasdetermined that it does not have any impact in its financialstatements.
New standards and amendments to existing Standardswhich are issued but are not yet effective and have notbeen early adopted by the Group.
There are no new and amended standards that are issued,but not yet effective.
The Code on Social Security, 2020 ('Code') relatingto employee benefits during employment and post¬employment benefits received Presidential assent inSeptember 2020. The Code has been published in theGazette of India. However, the date on which the Code willcome into effect has not been notified. The Company willassess the impact of the Code when it comes into effectand will record any related impact in the period the Codebecomes effective.
I Capital redemption reserve is created on redemption of redeemable preference shares issued,
ii Capital reserve Is related to merger / demerger / acquisition of business undertakings,
iii General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.
iv Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends, or otherdistributions paid to shareholders. It includes impact of remeasurement gain / (losses) net of taxes on defined benefit plans on accountof changes In actuarial assumptions or experience adjustments within the plans,
v. Equity portion of Foreign Currency Convertible Bonds: The equity portion is the residual amount after deducting the fair value of thefinancial liability portion from the net proceeds of the FCCBs.
* indirect tax disputes primarily include disputes for the service tax demand, availment of inadmissible input tax credit under Goods andService Tax (GST) and others. The Company has filed/in the process of filing submission before the relevant authorities. The Company hasreviewed all its pending indirect tax dispute litigations and proceedings and has adequately provided for where provisions are required anddisclosed as contingent liabilities where applicable, in its Standalone financial statements.
Further, during the year the Company had received show cause cum demand notice (SCN) from indirect Tax Authorities in relation toavailment of inadmissible input tax credit under Goods and Service Tax (GST) aggregating to ' 1,736 Million (inclusive of consequential interest& penalty) which forms part of contingent liability. The Company had made payments/reversal of input credit of the SCN amount have beenmade under protest and to ensure the interest accrual on the same are limited. The Management based on legal advice, believes that thesebalances are recoverable and is taking the necessary legal recourse to challenge the SCN under the available law which have been initiated.
$ Income-tax demands mainly include appeals filed by the Company before various appellate authorities against disallowance of expenses/claims, non-deduction/short deduction of tax at source, transfer pricing adjustments etc. The Management is of the opinion that its tax casesare likely to be decided in its favour and hence no provision is considered necessary.
# The amount represents the best possible estimate arrived at on the basis of available information. The Company has engaged reputedadvocates to protect its interests and has been advised that it has strong legal positions against such disputes.
@ The Company has received legal notices of claims/lawsuits filed against it relating to infringement of copyrights, defamation suits etc. inrelation to the programs produced/other matters. in the opinion of the Management, no material liability is likely to arise on account of suchclaims/law suits.
A class action suit has been filed against the Company in US Court with respect to digital data protection matter. Based on the availableinformation and legal advice, the Management believes that no adjustments are required to the accompanying statements, as there arereasonable grounds of defence.
a Estimated amount of contracts remaining to be executed for capital expenditure not provided for (net of advances) is ' 318 Million ('304 Million).
b Other commitments as regards media content and others (net of advances) are ' 15,764 Million (' 26,410 Million).
37 On 26 August 2022, the Company had entered into an agreement with Star india Private Limited ("Star") for setting out the basis on which Starwould be willing to grant sub-license rights in relation to television broadcasting rights of the international Cricket Council's (ICC) Men's andUnder 19 (U-19) global events for a period of four years (ICC 2024-2027) on an exclusive basis (Alliance Agreement). The Company/Board hadidentified this acquisition of strategic importance ensuring the Company is present in all 3 segments of the media and entertainment business.The performance of the Alliance Agreement was subject to certain conditions precedent including submission of financial commitments,provision of bank guarantee and corporate guarantee and pending final ICC approval for sub-licensing to the Company.
During the previous year, Star had sent letters to the Company through its legal counsel alleging breach of the Alliance agreement on accountof non-payment of dues for the rights in relation to first installment of the rights fee aggregating to USD 203.56 Million (' 16,934 Million)along-with the payment for bank guarantee commission and deposit interest aggregating ' 170 Million and financial commitments includingfurnishing of corporate guarantee/ confirmation as stated in the Alliance agreement. Based on the legal advice, the management believesthat Star by its conduct has acted in breach of the Alliance Agreement and is in default of the terms thereof. Consequently, Star has acted inrepudiatory breach of the Alliance Agreement and accordingly on 8 January 2024 the Company has terminated the Alliance Agreement onaccount of such breaches and has also sought refund of ' 685 Million paid to Star.
During the previous year, Star had initiated arbitration proceedings before London Court of international Arbitration (LCIA) against theCompany through its Notice of Arbitration dated 14 March 2024 (Arbitration Notice) by which it had sought specific performance of theAlliance Agreement by the Company or in the alternative had sought to compensate Star for damages that was not quantified by Star.
Further, Star through its communication dated 20 June 2024, terminated the Alliance Agreement and have opted to only seek damagesduring the Arbitration proceedings.
As per the procedural order of LCIA dated 18 July 2024 (Procedural Order), Star on 16 September 2024, filed its Statement of Case beforethe LCiA Arbitral Tribunal, has inter alia, sought to declare that the Alliance Agreement between Star and the Company has been validlyterminated by Star and also filed for damages to be determined as of the date of the Tribunal's award (with such damages quantified, as at 31August 2024 as proxy date of the award, at US$940 Million) along with costs, expenses and applicable interest until full payment. Based onreview of the Statement of Case, no additional legal grounds of claim have been made out.
As per the Procedural Order the Company has filed its Statement of Defence and Counterclaim on the 23 December 2024 and categoricallyrefuted all claims and assertions made by Star including its claims for damages, and in the Counterclaim the Company has claimed thepayments made to Star aggregating to US $ 8 Million plus interest. The Company is taking necessary steps to defend Star's claim in theArbitration. Currently, the arbitration is at its initial stage and the LCiA Arbitral Tribunal is yet to determine if the Company is liable in anymanner. The Company will, on merits continue to strongly contest all claims by Star and reserves all its rights.
The arbitration is presently in the phase of document production. Star will now be filing its Reply and Defence to Counterclaim on 6 June 2025and the Company is required to file its Rejoinder to Reply to Defence to Counterclaim on 1 August 2025.
The Board continues to monitor the progress of aforesaid matter. The management, based on a legal advise and its internal assessment, hasdetermined that the Company is not in default of the Alliance Agreement and believes that the claims made by Star are unfounded and legallynot tenable. The Company has strong and valid grounds to defend any claims in respect of above matter.
Accordingly, the Company does not expect any material adverse impact with respect to the above as in its view the contract has beenrepudiated and no adjustments are required to the accompanying standalone financial Statement.
38 The Company in May 2016 had issued a Letter of Comfort (LOC) to the Yes Bank Limited with respect to Company's support to ATL MediaLimited (ATL), an overseas wholly owned subsidiary of the Company incorporated in Mauritius. The LOC was provided confirming Company'sintention, among other matters, to support ATL by infusing equity/debt for meeting all its working capital requirements, debt requirements,business expansion plans, honoring the Put Option, take or pay agreements and guarantees. ATL had entered into Put Option agreement withLiving Entertainment Limited, Mauritius (LEL), a related party of the Company for acquiring the shares of a subsidiary of LEL.
In earlier years, the Company received communication from the Bank mentioning defaults committed by LEL in repayment of their loans tothe Bank and calling upon the Company to support ATL in connection with honouring the Put Option. However, the Bank and LEL remained indiscussion to settle the borrowing.
The Company is of the view, based on legal advice, that the LOC neither provides any guarantee, commitment or assurance to pay the Bank.On 26 June 2020, the Bank filed a plaint seeking ad-interim relief in the Hon'ble High Court of Bombay on the grounds that the aforesaid LOCprovided to the Bank is a financial guarantee.
The Hon'ble High Court of Bombay, vide Orders dated 30 June 2020 and 19 August 2020 has refused/dismissed the adDinterim relief soughtby the Bank, including as part of the appeal proceedings filed by the Bank that were in favour of the Company. The primary suit filed by theBank on 26 June 2020 is yet to be heard by the Hon'ble High Court of Bombay.
The Management has assessed the nature of the LOC and based on legal advice obtained, the LOC has not been considered as a financialguarantee by the Management, which would require recognition of a liability in the books of account of the Company. Further, based on anindependent valuation of ATL obtained, the Management has determined that the LOC also does not result in any executory contract that isonerous on the Company which requires any recognition of liability in the books of account of the Company.
39 Electricity and water charges and repairs and maintenance (plant and machinery) are net off recoveries ' 161 Million (' 147 Million).
The disclosures as per Ind AS 19 on 'Employee Benefits' are as follows:a Defined contribution plans
'Contribution to provident and other funds' is recognised as an expense in Note 25 'Employee benefits expense' of the Statement ofProfit and Loss.
The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit Credit Method, whichrecognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separatelyto build up the final obligation.
Interest risk: A decrease in the bond interest rate will increase the plan liability.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of mortality ofplan participants both during and after their employment. An increase in the life expectancy of the plan participants will increasethe plan's liability.
Salary risk: The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participants.As such, an increase in the salary of plan participants will increase the plan's liability.
Notes:
1 The current service cost recognised as an expense is included in Note 25 'Employee benefits expense' as gratuity. Theremeasurement of the net defined benefit liability is included in other comprehensive income.
2 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotionand other relevant factors including supply and demand in the employment market. The above information is certified by theActuary,
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increaseand mortality, The sensitivity analysis above have been determined based on reasonably possible changes of the respectiveassumptions occurring at the end of the reporting period, while holding all other assumptions constant,
a Gross amount required to be spent by the Company is ' 227 Million (' 307 Million)
b Amount spent during the year ended 31 March 2025 on ongoing projects:
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to the stakeholders through optimisation of debt and equity balance, The Company is not subject to any externally imposed capital requirements,The Company's Risk Management Committee reviews the capital structure of the Company,
The following is net gearing ratio at the end of reporting period: (net debt divided by total 'equity').
Net debt = Total borrowings (including lease liabilities) less (Cash and cash equivalents Bank balance other than cash and cashequivalents (excluding balance earmarked for unclaimed dividend) Current investments),
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a currenttransaction between willing parties, other than in a forced or liquidation sale,
There have been no transfer between Level 1, Level 2 and Level 3 for year ended 31 March 2025 and 31 March 2024.
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonableapproximation of their fair values, since, the Company does not anticipate that the carrying amounts would be significantly differentfrom the values that would eventually be received or settled,
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities,
Quantative disclosures of fair value measurement hierarchy for assets and liabilities as at:
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of thesefinancial liabilities is to finance the Company's operations. The Company's principal financial assets include investments, loans, unsecuredinterest free deposits, trade and other receivables and cash and cash equivalents that are derived directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk, The Company's Senior Management oversees the management ofthese risks,
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in marketprices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk.
The Company undertakes transactions denominated in foreign currencies, consequently exposures to exchange rate fluctuationsarise, The Management has taken a position not to hedge this currency risk,
The carrying amounts of financial assets and financial liabilities are denominated in currencies other than its functional currencyare as follows:
The following table details the Company's sensitivity to a 10% increase and decrease in the rupee against the relevant foreigncurrencies. 10% is the sensitivity rate used while reporting foreign currency risk internally to key management personnel andrepresents Management's assessment of the reasonably possible change in foreign exchange rates, The sensitivity analysisincludes only outstanding foreign currency denominated in monetary items and adjusts their translation at the year end for a 10%change in foreign currency rates. A positive number below indicates an increase in profit where the Rupee strengthens 10% againstthe relevant currency. For a 10% weakening of the Rupee against the relevant currency, there would be a comparable impact onthe profit and equity and the balance would be negative.
The Company is mainly exposed to USD currency fluctuation risk.
The Company's sensitivity to foreign currency assets has decreased during the current year mainly due to overall decrease inassets in foreign currency.
The Company's sensitivity to foreign currency liabilities has increased during the current year mainly on account of overallincrease in liabilities in foreign currency.
The borrowing of the Company includes FCCB and vehicle loan which carries fixed coupon rate and consequently the Companyis not exposed to interest rate risk.
The Company's investment in debt instruments and loans given by the Company are at fixed interest rates, consequently theCompany is not exposed to interest rate risk.
The Company also invests in debt mutual fund schemes of leading fund houses. Such investments are susceptible to market pricerisks that arise mainly from changes in interest rate which may impact the return and value of such investments. However, giventhe relatively short tenure of underlying portfolio of the debt mutual fund schemes in which the Company has invested, such pricerisk is not significant.
The Company is exposed to price risks arising from equity investments and mutual funds. The Company's equity investments areheld for strategic rather than trading purposes.
The sensitivity analysis below has been determined based on the exposure to price risks of the investments at the end of thereporting period. If the prices had been 10% lower / higher.
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations andarises principally from the Company's receivables, deposits given, loans given, investments made and balances at bank.
The maximum exposure to the credit risk at the reporting date is primarily from investments made, loans given and tradereceivables.
I n case of trade receivables, the Company does not hold any collateral or other credit enhancements to cover its credit risks.Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuouslymonitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.On account of adoption of Ind AS 109 on 'Financial Instruments', the Company uses expected credit loss model to assess theimpairment loss or gain.
Trade receivables are non-interest bearing and the average credit period is 45 days. The Company's exposure to customers isdiversified and except for one customers, no other customer contributes to more than 10 % of outstanding trade receivables andunbilled revenue.
Based on historical data, loss on collection of receivables is not material hence no additional provision is considered. Theunsatisfied performance obligation is expected to be completed in one year or less.
The Company considers a financial asset in default when contractual payments are 180 days past due. However, in certain cases,the Company may also consider a financial asset to be in default when internal or external information indicates that the Companyis unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by theCompany. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
A The Company had provided commitments for funding shortfalls in Debt Service Reserve Account (DSRA guarantee) inrelation to certain financial facilities availed from banks by Siti Networks Limited (SNL), an unrelated entity. During theyear ended 31 March 2023, the Company had reached a settlement with certain lenders of SNL and paid the settlementamounts. Full payments have been made in accordance with the terms of settlement and the Company has stepped intothe shoes of the lenders of SNL as per the applicable law to recover the amounts from SNL, as confirmed by the InsolvencyResolution Professional (IRP) of SNL. During the year the Company has assigned and transferred these rights to a third partyfor a consideration of ' 220 Million. The Company had fully provided for payments made towards the settlement amountsin earlier years and therefore, the aforementioned consideration of ' 220 Million has been accounted for as a gain andpresented under exceptional items.. The Company continues to carry adequate provisions for any remaining DSRA claim.
Further, the IRP of SNL had accepted operational creditor claims of the Company and the same will be settled as part of theoverall resolution process.
Considering the financial condition of SNL, the Company without prejudice to its legal rights had fully provided for thebalances recoverable from SNL till the date of admission of claim by IRP and continues to recognise revenue from SNL onconservative basis.
B The Company, in an earlier year, had given an Inter-corporate Deposit (ICD) aggregating ' 1,500 Million. On account of delaysin recovery of the amount, the ICD was assigned to certain related parties (refer note 46) to secure payment of ' 1,706Million (including accrued interest up to the date of assignment). Further, since there are delays in receiving payment fromthese related parties, the aforesaid amount has been provided during an earlier year. The Company has initiated arbitrationproceedings against the said parties for recovering the amounts and the the arbitrator granted an award in favour of theCompany. During the year, the Company has filed execution application to enforce the award.
C The carrying amount of allowance for credit impaired of current financial assets as below:
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financialinstitutions with high credit ratings assigned by credit rating agencies. The credit risk on mutual funds is limited with highcredit ratings assigned by credit rating agencies. Further, no major investments in external non-convertible debentures andother debt instruments.
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company's principal source of liquidityare cash and cash equivalents and the cash flow generated from operations. The Company consistently generated cash flowsfrom operations which together with the available cash and cash equivalents and current investment provides adequate liquidityin short term as well as in the long term. Trade and other payables are non-interest bearing and the average credit term is 45 days.
The table below provides ageing of trade payables outstanding from due date of payments as at 31 March 2025.
I Wholly owned (direct and indirect subsidiaries)
Asia Multimedia Distribution Inc.; Asia Today Limited ; Asia Today Singapore Pte Limited; Asia TV USA Limited; Asia TV Limited; ATLMedia FZ-LLC; ATL Media Ltd.; Zee Studios Limited (formerly known as Essel Vision Productions Limited); Expand Fast Holdings(Singapore) Pte. Limited (stuck off on 4 September 2023); OOO Zee CIS Holding LLC; OOO Zee CIS LLC; Taj TV Limited; Zee TVSouth Africa (Proprietary) Limited; Zee Unimedia Limited (ceased to be subsidiary w.e.f. 17 August 2023); Z5X Global FZ-LLC; ZeeEntertainment UK Limited (Formerly known as Zee UK Max Limited) (Incorporated on 28 September 2023); Asia TV GmbH; ZeeMultimedia Worldwide (Mauritius) Limited; Zee Entertainment Middle East FZ-LLC ; Zee Media Kenya Limited
Margo Networks Private Limited (extent of holding 90%)b Joint Venture
Media Pro Enterprise India Private Limited (extent of holding 50% through Zee Studios Limited)
Asian Satellite Broadcast Private Limited; Cyquator Media Services Private Limited; Creantum Security Solutions Private Limited (Upto31 March 2024); Digital Subscriber Management and Consultancy Services Private Limited; Diligent Media Corporation Limited; EdisonsInfrapower & Multiventures Private Limited; Essel Corporate LLP; Essel Finance Business Loans Limited; Essel Finance ManagementLLP; Essel Infra Projects Limited; Elouise Green Mobility Limited (formerly known as Essel Green Mobility Limited); Essel Realty PrivateLimited; Essel Utilities Distribution Company Limited; Evenness Business Excellence Services Private Limited ; Konti Infrapower &Multiventures Private Limited; Living Entertainment Enterprises Private Limited; Omnitrade Marketing Services Private Limited; PanIndia Network Infravest Limited; Pan India Network Limited; Real Media FZ-LLC; Veria International Limited; Widescreen Holdings PrivateLimited; Zen Cruises Private Limited (upto 31 March 2024), E-City Digital Cinemas Private Limited (upto 31 March 2024); Play Games24x7 Private Limited.
Mr. Punit Goenka, CEO (MD & CEO upto 17 November 2024); Mr. Rohit Kumar Gupta (CFO upto 18 June 2024); Mr Mukund Galgali (CFOeffective 19 June 2024) & Deputy CEO; Mr. Ashish Agarwal (Company Secretary); Mr. R Gopalan (Independent Director - Chairman);Mr. Adesh Kumar Gupta (Non-Executive Director - ceased to be a Director w.e.f. 16 December 2023); Mr. Piyush Pandey (IndependentDirector - resigned w.e.f. 23 March 2023); Ms. Alicia Yi (Independent Director - ceased to be a Director w.e.f. 13 July 2023); Mr. SashaMirchandani (Independent Director - ceased to be a Director w.e.f. 24 December 2023 ); Mr. Vivek Mehra (Independent Director -ceased to be a Director w.e.f. 24 December 2023); Mr. Uttam Prakash Agarwal (Independent Director - appointed w.e.f. 17 December2023); Mr. Shishir Babhubhai Desai (Independent Director - appointed w.e.f. 17 December 2023); Ms. Deepu Bansal (IndependentDirector - appointed w.e.f. 13 October 2023); Mr. Venkata Ramana Murthy Pinisetti (Independent Director - appointed w.e.f. 17 December2023); Mr. Saurav Adhikari (Independent Director - appointed w.e.f. 29 November 2024); Ms. Divya Karani (Independent Director -appointed w.e.f. 23 January 2025).
Amit Goenka
None of the aforesaid companies are related parties in accordance with related party definition as per Section 2(76) of the Companies Act,2013.
48 a The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entity(ies)
(intermediaries) with the understanding that the intermediary shall;
i directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company(ultimate beneficiaries) or
ii provide any guarantee, security, or the like to or on behalf of the ultimate beneficiaries.
b The Company has not received any fund from any other person(s) or entity(ies), including foreign entity(ies) (funding party) with theunderstanding (whether recorded in writing or otherwise) that the funding party shall;
i directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the fundingparty (ultimate beneficiaries) or
ii provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
49 Disclosure required under Section 22 of Micro, Small and Medium Enterprises Development Act, 2006.
The information regarding Micro or Small Enterprises as required by the Micro, Small and Medium Enterprises Development (MSMED) Act,2006 has been determined to the extent such parties have been identified on the basis of information available with the Company, which hasbeen relied upon by the auditors.
i The Company has not been declared wilful defaulter by any bank or financial institution or any lender.
II There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period,
iii There are no loans or advances (Other than those already disclosed under Note 46) in the nature of loans granted to Promoters,
Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, thatare repayable on demand or without specifying any terms or period of repayment,
55 The Board of Directors of the Company, at Its meeting on 21 December 2021, had considered and approved the Scheme of Arrangementunder Sections 230 to 232 of the Companies Act, 2013 (Scheme), whereby the Company and Bangla Entertainment Private Limited (BEPL)(an affiliate of Culver Max Entertainment Private Limited (Culver Max) (formerly known as Sony Pictures Networks India Private Limited) shallmerge In Culver Max In accordance with terms of Merger Corporation Agreement (MCA),
During the previous year, on 22 January 2024, Culver Max and BEPL had issued a notice to the Company purporting to terminate the MCAentered Into by the parties In relation to the Scheme and had sought termination fee of USD 90,000,000 (United States Dollars NinetyMillion) on account of alleged breaches by the Company of the terms of the MCA and initiated arbitration for the same before the SingaporeInternational Arbitration Centre (SIAC),
On 23 May 2024, the Company issued the notice of termination of the MCA to Culver Max, BEPL and Sony Pictures Entertainment ('SPE') onaccount of Culver Max, BEPL's failure to have good-faith negotiations and to remedy their breach of MCA terms and made a counter claim fortermination fee of USD 90,000,000 (United States Dollars Ninety Million) and continues to be entitled to claim damages for losses sustainedby the Company and Its stakeholders,
Pursuant to the approval of the Board of Directors, the Company had entered Into a non-cash settlement agreement with CMEPL and BEPLinter alia for settling all disputes related to the MCA and the Composite Scheme of Arrangement including withdrawal of all application(s),claim(s) and/or counterclaim(s) before the SIAC and relinquish all rights to file claim(s) and/or counterclaim(s) against each other includingfor USD 90 Million termination fee and other costs, Accordingly, the Scheme cannot be made effective In terms thereof,
Under the terms of the settlement, none of the parties will have any claims or continuing obligations or liabilities to each other,
Pursuant to the above settlement, the Company had obtained approval from the NCLT vide order dated 05 September 2024 effecting recallof the order dated 10 August 2023. Further, The Company, CMEPL and BEPL had on 30 August 2024 withdrawn its application and its rights tofile claim(s) and/or counterclaim(s) before SIAC and the arbitration proceedings is terminated vide SIAC, order dated on 17 September 2024.
In light of the above, no adjustments are required to the accompanying standalone financial statements with respect to aforesaid matter.
56 The Securities and Exchange Board of India (SEBI) had passed an ex-parte interim order dated 12 June 2023 and Confirmatory Order dated 14August 2023 (SEBI Order) against one of the current KMP of the Company for alleged violation of Section 4(1) and 4(2)(f) of SEBI (Prohibitionof Fraudulent and Unfair Trade Practices (FUTP) relating to Securities Market) Regulations, 2003,
On 30 October 2023, the Hon'ble Securities Appellate Tribunal (SAT) set aside the above order passed by SEBI granting relief to the currentKMP. The SAT order also recorded that the SEBI will continue with the investigation.
Pursuant to the above, SEBI has Issued various summons and sought comments/ information/explanation from Company, Its subsidiary,directors under period of consideration and KMPs who have been providing information to SEBI from time to time, as requested.
With respect to the ongoing enquiry being conducted by SEBI, a writ petition challenging the same was been filed by an ex-director (Petitioner)before the Hon'ble Bombay High Court against SEBI during the quarter ended 31 March 2024, wherein, the Company has been impleaded asa respondent. The Company had filed its reply to the writ petition. The Hon'ble Bombay High Court vide order dated 26 June 2024, providedcertain reliefs to the petitioner and this order has no implications with respect to the Company,
The management has Informed the Board of Directors that based on Its review of records of the Company / subsidiary, the transactions(Including refunds) relating to the Company/ subsidiary were against consideration for valid goods and services received,
Based on approval of Board, the Company has filed settlement application with respect to the ongoing investigation which subsequent to theyear-end has been rejected,
SEBI vide Its adjudicating order dated 02 January 2025 has disposed of the proceedings Initiated under the SCN dated 06 July 2022 ('SCN')and indicates that the content of the SCN will be treated as integral part of the further investigation report by SEBI,
The Board of Directors continues to monitor the progress of aforesaid matters, Based on the above, the management does not expect anymaterial adverse Impact on the Company / Group with respect to the above and accordingly, believes that no adjustments are required tothe accompanying Financial Statement,
During the previous year, the Company had received a follow-up communication from the Ministry of Corporate Affairs (MCA) for the ongoingInspection under section 206(5) of the Companies Act, 2013 against which the Company had submitted Its response,
57 In an earlier year, Zee Studio Limited, a subsidiary had been allotted plot of land on lease for the purpose of construction of film studio byRajasthan State Industrial Development & Investment Corporation Limited (RIICO), Jaipur, The subsidiary had constructed the studio on theaforesaid plot of land, This lease was subsequently cancelled by RIICO primarily on account of construction related dispute, The cancellationorder was challenged by ZSL by way of review application before the concerned authorities which has been rejected vide order dated 16October 2023,
Based on the legal opinion obtained, the subsidiary has Initiated the process for further necessary action for obtaining appropriate relief(including filing of appeal at appropriate forums). The management considering the merits and facts of the case including legal opinionbelieves it has a strong legal position and there is no impairment of the investment in the subsidiary,
58 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting softwarefor maintaining Its books of account, shall use only such accounting software which has a feature of recording audit trail of each and everytransaction, creating an edit log of each change made in the books of account along with the date when such changes were made andensuring that the audit trail cannot be disabled,
During the current financial year, the Company has used accounting software for maintenance of revenue, digital subscription, payroll andother accounting records, which have a feature of recording audit trail (edit log) facility and the same have been operated throughout theyear for all relevant transactions recorded in the software, Audit trail has been preserved by the Company in accordance with the statutoryrequirements for record retention, at both the application and database levels from the date of activation, Further, for accounting softwareused for maintenance of digital subscription records, audit trail feature was not enabled at database level up to 16 October 2024 and auditlogs have not been retained as per statutory requirements for record retention, Based on management's assessment, this does not pose anyImpact, as controls at the application layer are operating effectively, Additionally, the Company Is actively working to enhance the retentioncapability of audit trail logs for the said application,
59 Other than those disclosed elsewhere, there are no other subsequent events that occurred after the reporting date,
60 The standalone financial statements of the Company for the year ended 31 March 2025, were reviewed by the Audit Committee on 7 May2025 and subsequently approved for Issue by the Board of Directors at their respective meeting held on 8 May 2025,
In terms of our report attached For and on behalf of the Board of Directors
For Walker Ohandiok & Co LLP R Gopalan Uttam Prakash Agarwal Punit Goenka
Chartered Accountants Chairman Director CEO
Firm Registration no, - 001076N/N500013 DIN: 01624555 DIN: 00272983
Ashish Gupta Mukund Galgali Ashish Agarwal
Partner Deputy CEO and Company Secretary
Membership No. 504662 Chief Financial Officer
Place: New Delhi Place: Mumbai
Date: 8 May 2025 Date: 8 May 2025