We have audited the Standalone Financial Statements of Sun TV Network Limited (“the Company”), which comprisethe Balance Sheet as at March 31, 2025, the Statement of Profit and Loss, including the Statement of OtherComprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended,and notes to the Standalone Financial Statements, including a summary of material accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaidStandalone Financial Statements give the information required by the Companies Act, 2013, as amended (“the Act”)in the manner so required and give a true and fair view in conformity with the accounting principles generally acceptedin India, of the state of affairs of the Company as at March 31,2025, its profit including other comprehensive income,its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs),as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described inthe ‘Auditor’s Responsibilities for the Audit of the Standalone Financial Statements’ section of our report. We areindependent of the Company in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountantsof India together with the ethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theStandalone Financial Statements for the financial year ended March 31,2025. These matters were addressed in thecontext of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we donot provide a separate opinion on these matters. For each matter below, our description of how our audit addressedthe matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. Wehave fulfilled the responsibilities described in the ‘Auditor’s responsibilities for the audit of the Standalone FinancialStatements’ section of our report, including in relation to these matters. Accordingly, our audit included theperformance of procedures designed to respond to our assessment of the risks of material misstatement of theStandalone Financial Statements. The results of our audit procedures, including the procedures performed toaddress the matters below, provide the basis for our audit opinion on the accompanying Standalone FinancialStatements.
Key audit matters
How our audit addressed the key audit matter
Allowance for credit losses (as described in Note 2 (s) & Note 10 of the Standalone Financial Statements)
The Company assesses allowances for creditlosses, based on Expected Credit Loss (ECL)model, using ‘simplified approach’ in accordancewith Ind AS 109, Financial Instruments formeasurement and recognition of impairment losseson trade receivables.
Management evaluates and calculates the expectedcredit losses using a provision matrix based onhistorical credit loss experience, performance ofageing analysis, profiling of receivables,assessment of credit risk, expected cash flowsincluding timing of such cash flows, consideration ofreasonable and necessary information to assessthe ability and intention to pay.
The appropriateness of the provision for expectedcredit loss is subjective due to the high degree ofjudgment applied by management in determining theamount of expected credit loss allowances. Due tothe significance of trade receivables and the relatedestimation uncertainty this is considered a key auditmatter.
Our audit procedures included, the following:
• We obtained understanding of management'sprocess over estimation of allowance for creditloss and evaluated the Company's impairmentpolicy and methodology;
• We evaluated the design and tested theoperating effectiveness of key financial controlsover the management's process of estimationand accrual of ECL.
• Evaluated the assumptions used in the ECLmodel and impairment provision matrix. Theseconsiderations include whether there are regularreceipts from the customers, commitment planreceived from the customers if any, theCompany's past collection history, assessmentof customer's credit ability, as well as anassessment of the subsequent realization ofreceivables from customers, as applicable.
• We have obtained the ageing analysis of tradereceivables. We have tested on a sample basis,the ageing of trade receivables at year end anddiscussed with management the reasons of anylong outstanding amounts where no provisionswere recorded.
• We also evaluated management's assumptionsused in determining the allowance for expectedcredit loss, through detailed analysis of ageingof receivables, testing of subsequent collections,assessment of material overdue individual tradereceivables and past trends of bad debtscharged to the statement of profit and loss.
• We assessed the mathematical accuracy ofprovision computation based on modelconsidered by the management.
• We have assessed the disclosures made by themanagement in Standalone FinancialStatements.
Impairment Assessment of Investments in Joint Venture (as described in Note 2(s), Note 7 & Note 45 of
the Standalone Financial Statements)
During the current year, impairment assessment wasperformed by the management on the Company'sinvestments in South Asia FM Limited (“SAFM”) asSAFM as well as its investees had incurred losses /were operating near breakeven in last few years. Theimpairment assessment was performed bycomparing the carrying value of these investments totheir recoverable amount to determine whether animpairment was required to be recognised.
For the purpose of the above impairment testing,value in use has been determined by forecasting anddiscounting future cash flows. The determination ofthe recoverable amount of the investments involvedjudgment due to inherent uncertainty in theassumptions supporting the recoverable amount ofthese investments.
Based on the above assessment, the Company hasrecorded an impairment charge of INR 73.52 croresas the recoverable amount is lower than the carryingvalue and disclosed as 'exceptional items' in theStatement of Profit and Loss.
Accordingly, the impairment assessment ofinvestments in joint venture was determined to be akey audit matter in our audit of the StandaloneFinancial Statements due to the significantjudgement and management estimates involvedaround the impairment assessment.
Our audit procedures in relation to the management’s
assessment included the following:
• We evaluated the design and tested theoperating effectiveness of relevant key financialcontrols in relation to management assessmentof the impairment including the indicators andvaluation methodology applied in determiningthe recoverable amount.
• With the involvement of our valuation experts, weevaluated key assumptions and methodologiesused in the impairment analysis including thediscount rates and growth rates, by comparisonto externally available industry, economic andfinancial data.
• We performed sensitivity analysis of keyassumptions used in forecasting future cashflows. Assessed key drivers as compared toprevious year / actual performance to evaluatereasonability of the inputs and assumptions usedin the cash flow forecasts.
• We compared the carrying value of theinvestment to the estimated discounted futurecash flows determined by the management andthe consequent allowance for impairment.
• We tested the arithmetical accuracy of the modelused in the impairment assessment.
• We evaluated the appropriateness ofdisclosures related to investments in the financialstatements in respect of impairment ofinvestment in joint venture.
We have determined that there are no other key audit matters to communicate in our report.
The Company's Board of Directors is responsible for the other information. The other information comprises theinformation included in the Annual report, but does not include the Standalone Financial Statements and our auditor'sreport thereon. The Annual Report is expected to be made available to us after the date of this auditor's report.
Our opinion on the Standalone Financial Statements does not cover the other information and we will not express anyform of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other informationidentified above when it becomes available and, in doing so, consider whether such other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.
When we read the Annual report, if we conclude that there is a material misstatement therein, we are required tocommunicate the matter to those charged with governance.
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to thepreparation of these Standalone Financial Statements that give a true and fair view of the financial position, financialperformance including other comprehensive income, cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, asamended. This responsibility also includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to cease operations, or has norealistic alternative but to do so.
Those Charged with Governance are also responsible for overseeing the Company's financial reporting process.Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably be expected to influencethe economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including thedisclosures, and whether the Standalone Financial Statements represent the underlying transactions and eventsin a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the Standalone Financial Statements for the financial year ended March 31,2025 and aretherefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the Central Government ofIndia in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure 1” a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge andbelief 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 appearsfrom our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account ;
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standardsspecified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, asamended;
(e) On the basis of the written representations received from the directors as on March 31, 2025 taken on recordby the Board of Directors, none of the directors is disqualified as on March 31,2025 from being appointed as adirector in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to Standalone FinancialStatements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” tothis report;
(g) In our opinion, the managerial remuneration for the year ended March 31,2025 has been paid / provided by theCompany to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act.
(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its StandaloneFinancial Statements - Refer Note 31 to the Standalone Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses;
iii. There has been an instance of delay in transferring amounts, required to be transferred, to the InvestorEducation and Protection Fund ('IEPF') by the Company with respect to its 2nd interim dividend of FY2017-18 amounting to INR 1,02,628/- by 15 days and the same was paid to IEPF on January 29, 2025.
iv. a) The management has represented that, to the best of its knowledge and belief, no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any other sources or kindof funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”),with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds have beenreceived by the Company from any persons or entities, including foreign entities (“Funding Parties”), withthe understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly orindirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of theUltimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate inthe circumstances, nothing has come to our notice that has caused us to believe that the representationsunder sub-clause (a) and (b) contain any material misstatement.
v. The interim dividends declared and paid by the Company during the year and until the date of this auditreport is in accordance with Section 123 of the Act.
vi. Based on our examination which included test checks, the Company has used accounting software formaintaining its books of account which has a feature of recording audit trail (edit log) facility and the samehas operated throughout the year for all relevant transactions recorded in the software (refer Note 44 to theStandalone Financial Statements). Further, during the course of our audit we did not come across anyinstance of audit trail feature being tampered with. Additionally, the audit trail of prior year has beenpreserved by the Company as per the statutory requirements for record retention.
Chartered AccountantsICAI Firm Regn. No: 101049W/E300004
Partner
Place of Signature: Chennai Membership No: 221268
Date : May 30, 2025 UDIN: 25221268BMOUGV7702