Notes to Accounts of Balaji Telefilms Ltd.

Mar 31, 2025

(p) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation and
the amount can be reliably estimated. Provisions are
measured at the present value of Management''s
best estimate of the expenditure required to settle
the present obligation at the end of the reporting
period. Provisions are not recognized for future
operating losses.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

Where the likelihood of outflow of resources is
remote, no provision or disclosure as specified in
Ind AS-37 - "Provision, contingent liabilities and
contingent assets” is made.

(q) Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognized in
respect of employee''s services up to the end
of the reporting period and are measured at
the amount expected to be paid when the
liabilities are settled.

(ii) Post-employment obligations

The Company operates the following post¬
employment schemes:

(a) defined benefit plans such as gratuity;

(b) defined contribution plans such
as provident fund

Defined benefit plans:

The Company has taken a Company Gratuity
cum Life Assurance Policy from the Life
Insurance Corporation of India (LIC).

The liability/asset recognized in the balance
sheet in respect of defined benefit gratuity plans
is the present value of the defined obligation
at the end of the reporting period less the fair
value of plan assets. Contributions are made to
LIC in respect of gratuity based upon actuarial
valuation done at the end of every financial year
using ''Projected Unit Credit Method''.

The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligation and the fair value
of plan assets. This cost is included in
employee benefit expense in the Statement of
Profit and Loss.

Remeasurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the Statement of Changes
in Equity and in the Balance Sheet.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognized
immediately in profit or loss as past service cost.

Defined contribution plans:

Contributions to Provident Fund and Pension
Fund are charged to the Statement of
Profit and Loss as incurred. Provident fund
contributions are made to a government
administered provident fund towards which the
Company has no further obligations beyond its
monthly contributions.

(r) Share-Based Payments

Share-based compensation benefits are provided to
employees via "Balaji Telefilms ESOP, 2017” ("BTL
ESOP 2017'''') and "Balaji Telefilms ESOP, 2023"
("BTL ESOP 2023'''')

The fair value of options granted under the BTL ESOP
2017 and BTL ESOP 2023 scheme is recognised as
an employee benefits expense with a corresponding
increase in equity. The total amount to be expensed
is determined by reference to the fair value of the
options granted:

- excluding any impact of service conditions

- including the impact of any non-vesting
conditions (e.g. the requirement for employees
to save or holdings shares for a specific
period of time)

The total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied. At the
end of each period, the entity revises its estimates of
the number of options that are expected to vest based
on the service conditions. It recognises the impact of
the revision to original estimates, if any, in profit or
loss, with a corresponding adjustment to equity.

(s) Earnings Per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the
Company

- by the weighted average number of equity
shares outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings per
share to take into account:

- the after income tax effect of interest and
other financing costs associated with
dilutive potential equity shares, and

- the weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of
all dilutive potential equity shares.

(t) Rounding of Amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest two
decimal digits after lacs as per the requirement of
Schedule III of the Act, unless otherwise stated.

Note 3: Critical Estimates and Judgements

The preparation of financial statements requires the use
of accounting estimates which, by definition, will seldom
equal the actual results. This note provides an overview
of the areas that involve a higher degree of judgement
or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions
turning out to be different than those originally assessed.
Estimates and judgements are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.
Detailed information about each of these estimates
and judgements is included in relevant notes together
with information about the basis of calculation for each
affected line item in the financial statements.

The areas involving critical estimates or judgements are:

Estimated useful life of Property, Plant and Equipment
/Intangible Assets

The Company reviews the useful lives and carrying amount
of property, plant and equipment and intangible assets at
the end of each reporting period. This reassessment may
result in change in depreciation and amortization expense
in future periods.

Estimation of Current Tax Expense and Income Tax
Payable / Receivable

The calculation of Company''s tax charge necessarily
involves a degree of estimation and judgement in respect
of certain items whose tax treatment cannot be finally
determined until resolution has been reached with the
relevant tax authority or, as appropriate, through a formal
legal process. The final resolution of some of these
items may give rise to material adjustment to taxable
profits/losses.

Estimation of Defined Benefit Obligation

The Company''s obligation on account of gratuity is
determined based on actuarial valuations. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.

These include the determination of the discount rate,
future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term
nature, this liability is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate, the

Management considers the interest rates of government
bonds in currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only at
interval in response to demographic changes. Future salary
increases are based on expected future inflation rates.

Estimation of Contingent Liabilities

The Company exercises judgement in measuring and
recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or other
outstanding claims. Judgement is necessary in assessing
the likelihood 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 liability may
be different from the originally estimated as provision or
contingent liability.

Recognition of Deferred Tax Assets

The recognition of deferred tax assets is based upon
whether it is probable that sufficient taxable profits will
be available in the future against which the reversal
of temporary differences will be offset. In assessing
the realizability of deferred tax assets, the Company
considers the extent to which it is probable that the
deferred tax asset will be realized. The ultimate realization
of deferred tax assets is dependent upon the generation
of future taxable profits during the periods in which those
temporary differences and tax loss carry-forwards become
deductible. The Company considers the expected reversal
of deferred tax liabilities, projected future taxable income
and tax planning strategies in making this assessment.

Impairment of Trade Receivables

Trade receivables are typically unsecured and are derived
from revenue earned from customers. Credit risk has been
managed by the Company through establishing credit
limits and continuously monitoring the creditworthiness
of customers to which the Company grants credit terms in
the normal course of business. On account of adoption of
Ind AS 109, the Company uses expected credit loss model
to assess the impairment loss or gain. The Company uses
a provision matrix and forward-looking information and
an assessment of the credit risk over the expected life of
the financial asset to compute the expected credit loss
allowance for trade receivables.

Fair valuation

Some of the Company’s assets and liabilities are
measured at fair value for financial reporting purpose. In
estimating the fair value of an asset and liability Company
uses market observable data to the extent available. When
Level 1 inputs are not available, the Company engages
third party qualified valuer to establish the appropriate
techniques and input to valuation model. Information
about the valuation techniques used in determining the
fair value of various assets are disclosed in Note 52.

Determination of Lease Term

In determining the lease term, Management considers all facts
and circumstances that creates an economic incentive to
exercise an extension option, or not to exercise a termination
option. Extension option (or period after termination option)
are only included in the lease term if the lease is reasonably
certain to be extended (or not terminated).

The lease term is reassessed if an option is actually
exercised (or not exercised) or the Company becomes
obliged to exercise it.

The assessment of reasonable certainty is only revised if a
significant event or a significant change in circumstances
occurs, which affects this assessment, and that is within
the control of the lessee.

Inventory

a) Estimation of pattern of amortization of inventory of
internet series:

The Company periodically reviews the expected
pattern of realization of economic benefits relating
to original web series taking into account the to
date and future expected viewing patterns. This
reassessment may result is change in amortization
of content in future periods on a prospective basis.

b) Net realisable value:

is the estimated selling price in the ordinary
course of business less the estimated costs of
completion and costs necessary to make the sale.
The Company evaluates the realizable value and / or
revenue potential of inventory based on the type of
programming asset.

Estimates and judgements are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events
that may have a financial impact on the Company
and that are believed to be reasonable under
the circumstances.

The Company has recognized deferred tax asset on account of accumulated losses and unabsorbed depreciation
of the merged entities considering the expected utilization of unused tax losses aggregating H 9,375.16 Lacs as at
April 1, 2024, based on probability of taxable profits over the period of availability of the tax losses.

In accordance with the Indian Accounting Standard 12 (Ind AS 12) on "Income Taxes”, deferred tax assets and
liabilities should be recognized for all timing differences. However, considering the expected utilisation of unused
tax losses based on future projection and the requirement of the Ind AS 12 the deferred tax asset is not accounted
for, to the extent of H 8,021.14 Lacs as at March 31, 2025 on accumulated tax losses of H 31,867.85 Lacs. However,
the same will be reassessed at subsequent reporting date and will be accounted for in the year in which reasonable
certainty in accordance with the aforesaid Ind AS 12 is established.

(iv) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of H 2 per share. Each shareholder is eligible
for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the
Company, the shareholders will be eligible to receive the remaining assets of the Company, after distribution of all
preferential amounts, in proportion to their shareholding.

(v) During the five years immediately preceding March 31, 2025, no shares were bought back and no shares were
issued for consideration other than cash nor as bonus shares.

(vi) Shares reserved for Issue under options

Information relating to Balaji Telefilms Employee Stock Option Scheme, including details of option issued, exercised
and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note 51.

(vii) The Board of Directors of the Company approved the allotment of 1,78,59,776 (One Crore Seventy-Eight Lac Fifty
Nine Thousand Seven Hundred and Seventy Six) Equity Shares of the Company of face value of H 2/- (Rupees Two)
each ("Equity Shares”), on preferential basis on February 07, 2025

Nature and purpose of reserves :

A. General Reserve : General reserve is created out of transfer from retained earnings and is a free reserve.

B. Securities Premium account : Securities Premium is created to record the premium on issue of shares. The reserve
is utilised in accordance with the provisions of the Companies Act, 2013.

C. Capital Reserve :Capital Reserve, being consideration over net assets taken over, recognised as per the scheme of
arrangement sanctioned by National Company Law Tribunal in earlier years.

D. Share options outstanding account : The share options outstanding account is used to recognise the grant date fair
value of option issued to employees under Balaji Telefilms ESOP, 2017 and Balaji Telefilms ESOP, 2023.

E. Amalgamation Adjustment Account : Amalgamation Adjustment Account is created on account of merger of Alt
Digital Media Entertainment Limited and Marinating Films Private Limited (refer note 58)

(1) In an earlier year, the company had received a Show Cause Notice (SCN) from the Service Tax Department for the
period April 2008 to March 2010, amounting to H 2943 lacs, related to exports made to one of its customers. In a
similar case involving the company for the earlier period of April 2006 to March 2008, the Service Tax Department
adjudicated in the company''s favor and dropped the demand of H 6348 lacs. The Department filed an appeal against
this decision with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), which was dismissed by the
Hon''ble CESTAT in their order dated March 9, 2016. Subsequently, the Department filed an appeal against this order
with the High Court on October 19, 2016, which is currently pending adjudication.

(2) In the Assessment Years 2010-11 and 2011-12, the Income Tax Department raised a demand on the grounds that
the company had short-deducted TDS on Telecasting fees amounting to H 218.08 lacs. The company contested this
assessment order, and the Hon''ble Mumbai Income Tax Appellate Tribunal (ITAT) dismissed the order. The Income
Tax Department subsequently filed an appeal against the ITAT''s order in the Hon''ble High Court of Judicature at
Bombay in February 2018, and the hearing is yet to take place as the appeal is still in the pre-admission stage.

With respect to Income Tax matters, a search was conducted on the company''s premises on 30 April 2013. Following
this search, block assessments under section 153A of the Income-tax Act, 1961 (Act) were conducted for the
Assessment Years 2007-08 to 2012-13. The company did not appeal against the additions made in the assessment
orders for these years. However, penalties were levied for these assessment years, which the company challenged
before the Income-tax Appellate Tribunal-Mumbai (ITAT). The company accounted for the penalty amount as an
exceptional item in the financial statements for the year ended March 31,2018.

Subsequently, the ITAT deleted the penalties levied, and the Income Tax Department refunded the penalties
amounting to H1,044.44 lacs along with interest of H138.33 lacs under the Act to the company. This was disclosed
as an exceptional item in the financial statements for the year ended March 31,2021.

Following this, the Income Tax Department preferred an appeal before the Hon''ble High Court (HC) Bombay
challenging the deletion of the penalties by the ITAT. This appeal is still in the pre-admission stage.

Note: Future cash outflow/ uncertainties, if any in respect of above are determinable only on receipt of judgement/
decision pending with various forum/ authorities.

44 The Company has investments in subsidiaries namely Balaji Motion Pictures Limited (BMPL) and Ding Infinity Private
Limited (DING) aggregating to H 1104.26 lacs (Previous year H 1114.16 lacs). Further, the Company has given loans
(including accrued interest) of H 408.70 lacs to BMPL (Previous year H 832.29 lacs)

As at March 31, 2025, the accumulated losses in each of the components have eroded the net-worth. An impairment
provision of H50 lacs has been provided of its investment in DING. However, basis the management evaluation there is no
requirement of impairment provision of its investment in BMPL.

Recoverable amounts for BMPL and DING has been determined with the assistance of external valuation expert , further
subjected by management to sensitivity analysis in terms of expected cash flows, discount rate and terminal growth rate.
The Company is committed to provide financial support to BMPL and DING for a period of at least 12 months from the
date of signature of these financial statements, in case if assistance is needed.

During the Financial year ended March 31, 2025, the Company considered indicators of impairment for investments in
subsidiaries held either directly or indirectly, such as declines in operational performance or changes in the outlook of
future profitability or weaker market conditions, among other potential indicators.

The Company estimated the recoverable amount based on the value in use of the underlying businesses. The computation
uses cash flow forecasts based on the most recent financial budgets and strategic forecasts which covers future
projections taking the analysis into perpetuity. Key assumptions for the value in use computations are those regarding
the discount rates, growth rates, market demand, expected changes to selling prices and costs. Changes in revenue,
costs and demand are based on historical experience and expectations of future changes in the market.

47 Employee Benefits

a) Defined Contribution Plans

The employees and the Company make pre-determined contributions to the provident fund. Amount recognized as
expense amounts to H 64.80 lacs (Previous Year H74.21 lacs)

b) Defined Benefit Plans
Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is as per the Payment
of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it
is payable to employees on retirement or on termination of employment. In case of death while in service, the
gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme
administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to
previous period.

The Company expects to contribute H 51.83 lacs to the gratuity fund during the next financial year. (Previous
Year H 39.14 lacs)

The expected rate of return on plan assets is based on the average long term rate of return expected on investments
of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Interest rate risk : A fall in the discount rate which is linked to the Government Securities will increase the present
value of the liability requiring higher provision.

Salary Risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk : The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return on
plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced
mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk : The plan faces the ALM risk as to the matching cash flow. Since the plan is invested
in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality Risk : Since the benefits under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk.

As at the year-end, the stock options granted under Tranche I and Tranche II of Balaji Telefilms ESOP Scheme 2023 as
referred in Note 51 are dilutive in nature and accordingly diluted earning per share is calculated.

49 Segment Information

The Company has presented data relating to its segments in its consolidated financial statements. Accordingly, in
terms of paragraph 4 of the Indian Accounting Standard (Ind AS 108) "Operating Segments”, no disclosure related to its
segments are presented in the Standalone Financial Statements.

51 Share based payments

The Nomination and Remuneration Committee ("NRC”) of the Board of Directors of the Company has formulated the Balaji Telefilms ESOP, 2017
("the ESOP Scheme 1”) to grant Stock Options to eligible employees of the Company and its subsidiaries. The ESOP Scheme has been adopted
by the NRC by a Resolution passed at its meeting held on February 13, 2018 pursuant to the enabling authority granted under resolution passed
by the members of the Company by way of Postal Ballot or electronic voting held on December 30, 2017. ESOP Scheme has been formulated in
accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("the SEBI
Regulations”), as amended.

The NRC, vide a resolution passed at its meeting held on May 19, 2018, and June 20, 2018 has granted Options, 1,663,734 Options on May 19,
2018 and 2,125,239 Options on June 20, 2018 to the eligible employees of the Company and its subsidiaries (as per terms decided by the NRC).

The Options granted would vest over a period of 3 years (Refer Tables 1 and 2 below). Once vested, the option remain exercisable for the period of
3 years from the last vesting date. The options have lapsed during the year.

The NRC, vide a resolution passed at its meeting held on January 8, 2021, granted additional 14,00,000 Employee Stock Options to the eligible
employees of the Company. Each option when exercised would be converted into one equity share of Rs. 2/- each, fully paid up, of the Company.
The resolution passed by NRC on January 8, 2021 included a variation in terms of the Scheme. The variation was that all the options granted under
the aforesaid grant would vest after completion of 12 months from date of grant. Once vested, the option remain exercisable for the period of 3
years from the last vesting date. (Refer Table 3 below)

Furthermore, Additional Options were granted during FY 2021-22 and 2022-23 at the NRC''s meetings held as follows:

On February 11,2022, granted 2,50,000 Employee Stock Options to the eligible employees of the subsidiary Company. Each option when exercised
would be converted into one equity share of Rs. 2/- each, fully paid up, of the Company. The Options granted would vest after completion of 12
months from date of grant. Once vested, the option remain exercisable for the period of 3 years from the last vesting date. (Refer Table 4 below)

The Nomination and Remuneration Committee ("NRC”) of the Board of Directors of the Company has formulated the Balaji Telefilms ESOP, 2023
("the ESOP Scheme 2”) to grant Stock Options in the form of Options to the eligible employees of the Company and its subsidiaries. The ESOP
Scheme has been adopted by the NRC by a Resolution passed at its meeting held on February 14, 2023 pursuant to the enabling authority granted
under resolution passed by the members of the Company by way of Postal Ballot or electronic voting held on March 29, 2023 respectively. ESOP
Scheme has been formulated in accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits)
Regulations, 2014 ("the SEBI Regulations”), as amended.

Options were granted during 2023-24 at the NRC''s meetings held as follows:

On November 9, 2023, granted 21,14,552 Employee Stock Options under Balaji Telefilms ESOP scheme, 2023 to the eligible employees of the
Company. Each option when exercised would be converted into one equity share of Rs. 2/- each, fully paid up, of the Company. The Options granted
would vest after completion of 12 months (Refer Table 5 below). Once vested, the option remain exercisable for the period of 3 years from the
last vesting date.

On February 9, 2024, granted 2,50,000 Employee Stock Options under Balaji Telefilms ESOP scheme, 2023 to the eligible employees of the Company.
Each option when exercised would be converted into one equity share of Rs. 2/- each, fully paid up, of the Company. The Options granted would vest
after completion of 12 months (Refer Table 6 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

Options were granted during 2024-25 at the NRC''s meetings held as follows:

On November 14, 2024, granted 20,00,000 Employee Stock Options under Balaji Telefilms ESOP scheme, 2023 to the eligible employees of the
Company. Each option when exercised would be converted into one equity share of Rs. 2/- each, fully paid up, of the Company. The Options granted
would vest after completion of 12 months (Refer Table 7 below). Once vested, the option remain exercisable for the period of 3 years from the
last vesting date.

On February 11, 2025, granted 1,00,000 Employee Stock Options under Balaji Telefilms ESOP scheme, 2023 to the eligible employees of the
Company. Each option when exercised would be converted into one equity share of Rs. 2/- each, fully paid up, of the Company. The Options granted
would vest after completion of 12 months (Refer Table 8 below). Once vested, the option remain exercisable for the period of 3 years from the
last vesting date.

When exercisable, each option is convertible into one equity share. The exercise price of the options is based on the stock exchange last closing
market price after deducting 25% discount as determined by the Members of Nomination and Remuneration Committee.

The model inputs for options granted under ESOP Scheme, 2017 during the year ended March 31, 2023, March 31,2022,

March 31,2021 and March 31, 2019 includes:

a) Options are granted for no consideration and vest upon completion of service for a period of one to three years from
the date of grant. Vested options are exercisable for a period of three years after last vesting date.

b) Exercise price as given in the table above for each grant.

c) Grant date as per the table above for each grant.

d) Expiry date as per the table above for each grant.

e) Share price at grant date: H119.80 (Tranche 1), H123.45 (Tranche 2) and H69.65 (Tranche 3), H87.10 (Tranche 6),
H42.50 (Tranche 7) and H 50.80 (Tranche 8)

f) Expected price volatility of the Company’s shares: 46.05% (Tranche 1), 45.87% (Tranche 2), 42.59% (Tranche 3),
43.16% (Tranche 6), 43.41% (Tranche 7) and 43.90% (Tranche 8)

g) Expected dividend yield: 0.91% (Tranche 1 and 2), 0.67% (Tranche 3), 0.62% (Tranche 6), 0.62% (Tranche 7)and
0.62% (Tranche 8)

h) Risk-free interest rate: 7.92% (Tranche 1), 8.05% (Tranche 2), 4.92% (Tranche 3), 5.70% (Tranche 6), 7.25%
(Tranche 7) and 7.04% (Tranche 8)

The model inputs for options granted under ESOP Scheme, 2023 during the year ended March 31, 2025 includes:

a) Options are granted for no consideration and vest upon completion of service for a period of one year from the date
of grant. Vested options are exercisable for a period of three years after last vesting date.

b) Exercise price as given in the table above for each grant.

c) Grant date as given in the table above for each grant.

d) Expiry date as given in the table above for each grant.

e) Share price at grant date: H 73.70 (Tranche I), H 128.40 (Tranche II) , H 58.38 (Tranche III) & H 68.37 (Tranche IV)

f) Expected price volatility of the Company’s shares: 45.60% (Tranche I), 47.64% (Tranche II), 47.06% (Tranche III) &
48.19% (Tranche IV)

g) Expected dividend yield: 0.52% (Tranche I), 0.52% (Tranche II), 0.48% (Tranche III) & 0% (Tranche IV)

h) Risk-free interest rate: 7.38% (Tranche I), 7.24% (Tranche II), 6.86% (Tranche III) & 6.75% (Tranche IV)

The expected price volatility is based on the historic volatility (based on the remaining life of the options).

52 Fair Value Measurements

Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous market
to which the Company has access at that date. The fair value of a liability reflects its non-performance risk. The best
evidence of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair
value of the consideration given or received.

The fair value of financial instruments as referred to in note above have been classified into three categories
depending on the inputs used in valuation technique. The hierarchy gives highest priority to quoted prices in
active market for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable
inputs (Level 3 measurement). The categories used are as follows:

Level-1 Hierarchy includes financial instruments measured using quoted price. Mutual funds are valued at
the closing NAV.

Level-2 The fair value of financial instruments that are not traded in an active market is determined using
valuation technique which maximise the use of observable market data and rely as little as possible on entity
-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in Level-2.

Level -3 If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation technique used to value financial instruments include:

1) The mutual funds are valued using closing NAV available in the market.

2) Fair value of remaining Financial instrument determined using discounted cash flow analysis

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the
Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial loss
from defaults. The Company uses publicly available financial information and its own trading records to rate its
major customers. The Company''s exposure and credit ratings of its counterparties are regularly monitored and the
aggregate value of transactions concluded is spread amongst counterparties.

(i) Credit Risk Management

Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments
in mutual funds. The Company has diversified portfolio of investment with various number of counter-parties
which have good credit ratings and hence the risk is reduced. The credit worthiness of such banks and financial
institutions is evaluated by the management on an ongoing basis and is considered to be good. As a practice,
the Company only invests with high rated banks/institutions.

The Company’s maximum exposure to credit risk as at March 31, 2025 and March 31, 2024 is the carrying
value of each class of financial assets as disclosed in note 52.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by it as at March 31, 2025 and March
31, 2024. The credit worthiness of such lessors is evaluated by the management on an ongoing basis and is
considered to be good.

Trade receivables, Unbilled revenue and Contract assets

To measure the expected credit losses, trade receivables,unbilled revenue and contract assets have been
Company based on shared credit risk characteristics and the days past dues. The Contract assets relate to
unbilled work in progress and have substantially the same risk characteristics as the trade receivables for

the same types of contracts. The Company has therefore concluded that the expected loss rates for trade
receivables are a reasonable approximation of the loss rate for the contract assets.

Trade receivables,unbilled revenue and contract assets are typically unsecured and are derived from revenue
earned from customers. Credit risk has been managed by the Company through credit approvals, establishing
credit limits and continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business. Exposures to customers outstanding at the end of each
reporting period are reviewed by the Company to determine incurred and expected credit losses.

The Company measures the expected credit loss of trade receivables, contract assets and other financial
assets which are subject to credit risk, based on historical trend, industry practices and the business
environment in which the entity operates and adjusted for forward looking information. Loss rates are based
on actual credit loss experience and past trends.

The Company has used practical expedient by computing the expected credit loss allowance for trade
receivables based on provision matrix. The provision matrix taken into account historical credit loss experience
and adjusted to reflect current and forward looking information. The expected credit loss allowance is based
on ageing of the days the receivables are due.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk
management framework for the management of the Company’s short-, medium- and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking
facilities by regularly monitoring forecast and actual cash flows.

(C) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price
risk such as equity price risk. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.

(a) Foreign currency risk exposure:

The Company’s exposure to foreign currency risk at the end of reporting period expressed in ? lacs,
are as follows:

55 CAPITAL MANAGEMENT

The Company''s objectives when managing capital are to

- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders
and benefits for other stakeholders, and

- Maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and
market confidence and to sustain future development and growth of its business.

The Company considers the following components of its balance sheet to be managed capital:

Total equity as shown in the balance sheet including reserves, retained earnings and share capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders,
return capital to shareholders or issue new shares.

57 Additional regulatory Information required by Schedule III

a) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions Prohibition Act, 1988 (45 of 1988) and Rules made thereunder.

b) Borrowing secured against current assets

The Company has borrowed funds from banks on the basis of security of current assets and Company''s premises.
The quarterly returns/ statements filed by the Company with the bank is in agreement with books of accounts.

c) Wilful defaulter

The Company has not been declared wilful defaulter by any banks or financial institution or government or any
government authority.

d) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

e) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under Companies Act 2013

f) Compliance with approved scheme(s) of arrangements

The Company has complied with the scheme of arrangement which has an accounting impact on current or previous
financial year (Refer note 58).

g) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (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

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

h) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

i) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

j) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current
or previous year. There are no intangible assets.

Other Regulatory Information

a) Utilisation of borrowings availed from banks and financials institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were was taken.

b) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

58 The Board of Directors in their meeting on May 30, 2024, considered and approved the Draft Composite Scheme
of Arrangement between Balaji Telefilms Limited (the "Company”), Alt Digital Media Entertainment Limited ("Alt”), and
Marinating Films Private Limited ("MFPL”) and their respective shareholders, under sections 230 to 232, read with sections
52 and 66 of the Companies Act, 2013 (the "Scheme”). The Scheme inter alia provides for capital reduction in Alt and the
Company and amalgamation of Alt and MFPL with BTL from the appointed date of April 1,2024 (the "Appointed Date”).

The Company on June 13, 2025 received a certified true copy of the order dated June 10, 2025, from the NCLT, approving the
Scheme which was subsequently filed with the Registrar of Companies, Mumbai on June 20, 2025 (the "Effective Date”).

Upon coming into effect of this Scheme and with effect from the Appointed Date, all the assets, liabilities and reserves of
both the Transferor Companies, have been transferred to and vested in the Company.

The amalgamation has been accounted for in accordance with the "Pooling of Interest Method” of accounting as laid
down in Appendix C of Ind AS 103 (Business combinations of entities under common control). Consequently, all the
corresponding figures in the Standalone Financial statement of the Company for the previous years have been restated
to give effect to the Scheme. The capital reduction in Alt has been given effect to, prior to giving effect to amalgamation
adjustments prescribed by the Scheme.

Further, in accordance with Scheme, the company has given effect to the capital reduction in Alt and the Company.
As a result, an amount of H 69,393.52 Lacs has been adjusted against securities premium account and an amount
of H 1,113.23 Lacs has been adjusted against retained earnings of the Company.

59 The Company had advances/ receivable from one of its co-producer and film director amounting to H 1,619 lacs,
which was under arbitration. During the current year, the Company received an arbitration award (including interest and
legal expenses) in favor of the Company. On receipt of the award, the Company has entered into settlement agreement
with the co-producer for recovering the amounts. Consequently, an amount of H 530 lacs to be recovered in excess of the
amounts receivable as mentioned above have been recognised in the statement of profit and loss account as ''Gain on
arbitration award'' under note 34- Other income''.

60 Approval of Financial Statements

The Financial Statements were approved for issue by the Board of Directors on July 3, 2025
As per our report of even date

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 117366W / W-100018

Pallavi Sharma Jeetendra Kapoor Shobha Kapoor

Partner (Chairman) (Managing Director)

Membership No: 113861 (DIN : 00005345) (DIN : 00005124)

Sanjay Dwivedi Tannu Sharma

(Group Chief Executive Officer & (Group Head Secretarial)

Group Chief Financial Officer)

Place : Mumbai Place : Mumbai

Date : July 3, 2025 Date : July 3, 2025

---

Mar 31, 2024

(iv) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the Company, the shareholders will be eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

(v) During the five years immediately preceding March 31,2024, no shares were bought back and no shares were issued for consideration other than cash nor as bonus shares.

(vi) Shares reserved for Issue under options

Information relating to Balaji Telefilms Employee Stock Option Scheme, including details of option issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note 50.

Nature and purpose of reserves :

A. General Reserve: General reserve is created out of transfer from retained earnings and is a free reserve.

B. Securities Premium Account: Securities Premium is created to record the premium on issue of shares. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

C. Capital Reserve: Capital Reserve, being consideration over net assets taken over, recognized as per the scheme of arrangement sanctioned by National Company Law Tribunal in earlier years.

D. Share options outstanding reserve: The share options outstanding reserve account is used to recognize the grant date fair value of option issued to employees under Schemes - Balaji Telefilms ESOP, 2017 and Balaji Telefilms ESOP 2023.

(i) Cash Credit Facilities from Axis Bank repayable on demand at Interest rate of 6.5% Repo 3% = Presently at 9.5% p.a. In current year, Cash credit is primarily secured against current assets of the Company both Present and Future, and Collateral charge by way of mortgage of Company’s Premises at Killfire, Andheri (West), Mumbai - 400053. (In previous year Cash credit was Primarily Secured against current assets of the Company both Present and Future, and Collateral charge by way of mortgage of Company’s Premises at Killfire, Andheri (West), Mumbai - 400053 and Fixed Deposits of '' 1,011 Lacs with Axis Bank)

(ii) Loan from Related parties is secured against Net receivable of a Film. (In previous year Theatrical distribution rights of a Film)

Management expects that transaction price allocated to the unsatisfied contracts as on March 31,2024''12,018 Lacs will be recognized as revenue during the next reporting period and balance '' 2,045 Lacs in subsequent periods. The amount disclosed above does not include variable consideration which is constrained. All other contracts are for periods of one year or less.

The Revenue recognized is equivalent to the contract price and there is no element of discount, rebates, incentives, etc. which are adjusted to revenue.

(!) In an earlier year, the Company has received a Show Cause Notice (SCN) from the Service Tax Department for the period April 2008 to March 2010, amounting to '' 2,943 Lacs, related to exports made to one of its customers. In a similar case involving the Company for the earlier period of April 2006 to March 2008, the Service Tax Department adjudicated in the Company’s favor and dropped the demand of '' 6,348 Lacs. The Department filed an appeal against this decision with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), which was dismissed by the Hon’ble CESTAT in their order dated March 9, 2016. Subsequently, the Department filed an appeal against this order with the High Court on October 19, 2016, which is currently pending adjudication.

(2) In the Assessment Years 2010-11 and 2011-12, the Income Tax Department raised a demand on the grounds that the Company had short-deducted TDS on Telecasting fees amounting to '' 218.08 Lacs. The Company contested this assessment order, and the Hon’ble Mumbai Income Tax Appellate Tribunal (ITAT) dismissed the order. The Income Tax Department subsequently filed an appeal against the ITAT’s order in the Hon’ble High Court of Judicature at Bombay in February 2018, and the hearing is yet to take place as the appeal is still in the pre-admission stage.

With respect to Income Tax matters, a search was conducted on the Company’s premises on 30 April 2013. Following this search, block assessments under section 153A of the Income-tax Act, 1961 (Act) were conducted for the Assessment Years 2007-08 to 2012-13. The Company did not appeal against the additions made in the assessment orders for these years. However, penalties were levied for these assessment years, which the Company challenged before the Income-tax Appellate Tribunal-Mumbai (ITAT). The Company accounted for the penalty amount as an exceptional item in the financial statements for the year ended March 31,2018.

Subsequently, the ITAT deleted the penalties levied, and the Income Tax Department refunded the penalties amounting to ''1,044.44 Lacs along with interest of ''138.33 Lacs under the Act to the Company. This was disclosed as an exceptional item in the financial statements for the year ended March 31,2021.

Following this, the Income Tax Department preferred an appeal before the Hon’ble High Court (HC) Bombay challenging the deletion of the penalties by the ITAT. This appeal is still in the pre-admission stage.

42 The Company has investments in subsidiaries namely Balaji Motion Pictures Limited (BMPL), ALT Digital Media Entertainment Limited (ALT), Marinating Films Private Limited (MFPL) and Ding Infinity Private Limited (DING) aggregating to '' 82,020.62 Lacs (Previous year '' 81,936.78 Lacs).

Further, the Company has receivables on account of loans (including accrued interest) of '' 832.29 Lacs from BMPL (Previous year '' 617.98 Lacs) and '' 10,297.20 Lacs from ALT (Previous year '' 309.08 Lacs). As per the latest audited balance sheet of BMPL for the year ended March 31, 2024, the accumulated losses have fully eroded the net-worth of the Company and as per the latest audited balance sheet of ALT and MFPL the net worth is partially eroded as at March 31, 2024. DING has been incurring continuous losses since aquisition. However, basis the management evaluation there is no requirement of impairment provision of its investments in and loans to such subsidiaries, as the carrying amount of the investments does not exceed its recoverable amount.

Recoverable amounts for BMPL, ALT, MFPL and DING has been determined with the assistance of external valuation expert. The Company is committed to provide financial support to BMPL, ALT, MFPL and DING for a period of at least 12 months from the date of signature of these financial statements, in case if assistance is needed.

For Chhayabani Balaji Entertainment Private Limited, in the financial year 2019-20, Company had taken an impairment charge of '' 240.70 Lacs. Based on the approvals of Company’s Board of Directors, Chhayabani Balaji Entertainment Private Limited has filed for liquidation on October 22, 2020. Further, as per disolution order dated April 1 1, 2022 Chhayabani Balaji Entertainment Private Limited has ceased to be a Company effective this date.

During the Financial year ended March 31, 2024, the Company considered indicators of impairment for investments in subsidiaries held either directly or indirectly, such as declines in operational performance or changes in the outlook of future profitability or weaker market conditions, among other potential indicators. The Company estimated the recoverable amount based on the value in use of the underlying businesses. The computation uses cash flow forecasts based on the most recent financial budgets and strategic forecasts

which covers future projections taking the analysis into perpetuity. Key assumptions for the value in use computations are those regarding the discount rates, growth rates, market demand, expected changes to selling prices and costs. Changes in revenue, costs and demand are based on historical experience and expectations of future changes in the market.

For detailed assessment on ALT refer note 57.

(i) There are no provision for doubtful debts, amounts written off or written back during the year in respect of debts due from or due to related parties.

(ii) Figures in bracket relate to the previous financial year.

(iii) The Company provides long term benefits in the form of gratuity and leave encashment to its key managerial person along with all employees, cost of the same is not identifiable separately and hence not disclosed.

(iv) Includes amount cross charged to subsidiary.

45 EMPLOYEE BENEFITSa) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to '' 59.94 Lacs (Previous Year '' 56.12 Lacs)

b) Defined Benefit Plans Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is as per the Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to previous period.

The Company expects to contribute '' 39.14 Lacs to the gratuity fund during the next financial year. (Previous Year '' 54.22 Lacs)

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities will increase the present value of the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk. Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

c) Other Long term employee benefits:

The liability towards non-funded compensated absences (privilege leave) for the year ended March 31, 2024 based on actuarial valuation carried out by using Projected Unit Credit Method resulted in increase in liability by '' 10.36 Lacs. (Previous Year Nil)

As at the year-end, the stock options granted under Tranche I and Tranche II of Balaji Telefilms ESOP Scheme 2023 as referred in Note 50 are dilutive in nature and accordingly diluted earning per share is calculated.

47 SEGMENT INFORMATION

The Company has presented data relating to its segments in its Consolidated Financial Statements. Accordingly, in terms of paragraph 4 of the Indian Accounting Standard (Ind AS 108) "Operating Segments", no disclosure related to its segments are presented in the Standalone Financial Statements.

49 The Company has advances / receivable from one of its co-producers and a film director (the "Parties"), amounting to '' 1,619 Lacs which are subject to litigation as at March 31,2024. On the basis of the evaluation carried out by the management of the matter under litigation, in consultation with the legal counsel, and the management assessment of the ability of the Parties to settle, the amounts are considered good and fully recoverable.

50 SHARE BASED PAYMENTS

The Nomination and Remuneration Committee ("NRC") of the Board of Directors of the Company has formulated the Balaji Telefilms ESOP 2017 ("the ESOP Scheme 1") to grant Stock Options to eligible employees of the Company and its subsidiaries. The ESOP Scheme has been adopted by the NRC by a Resolution passed at its meeting held on February 13, 2018 pursuant to the enabling authority granted under resolution passed by the members of the Company by way of Postal Ballot or electronic voting held on December 30, 2017. ESOP Scheme has been formulated in accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("the SEBI Regulations"), as amended.

The NRC, vide a resolution passed at its meeting held on May 19, 2018, and June 20, 2018 has granted Options, 1,663,734 Options on May 19, 2018 and 2,125,239 Options on June 20, 2018 to the eligible employees of the Company and its subsidiaries (as per terms decided by the NRC).

The Options granted would vest over a period of 3 years (Refer Tables 1 and 2 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date

The NRC, vide a resolution passed at its meeting held on January 08, 2021, granted additional 14,00,000 Employee Stock Options to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The resolution passed by NRC on January 08, 2021 included a variation in terms of the Scheme. The variation was that all the options granted under the aforesaid grant would vest after completion of 12 months from date of grant. Once vested, the option remain exercisable for the period of 3 years from the last vesting date. (Refer Table 3 below)

Furthermore, Additional Options were granted during F.Y. 2021-22 and 2022-23 at the NRC’s meetings held as follows:

On June 18, 2021, granted 3,00,000 Employee Stock Options to the eligible employee of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest over a period of 3 years (Refer Table 4 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On August 10, 2021, granted 18,00,000 Employee Stock Options to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. Out of 18,00,000 Options granted, 12,00,000 Options grant would vest after completion of 12 months from date of grant and balance 6,00,000 would vest over a period of 3 years (Refer Tables 5 and 6 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On February 11,2022, granted 2,50,000 Employee Stock Options to the eligible employees of the subsidiary Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest after completion of 12 months from date of grant. Once vested, the option remain exercisable for the period of 3 years from the last vesting date. (Refer Table 7 below)

On July 15, 2022, granted 10,00,000 Employee Stock Options to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest over a period of 3 years (Refer Table 8 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On August 30, 2022, granted 18,00,000 Employee Stock Options to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest over a period of 3 years (Refer Table 9 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

The Nomination and Remuneration Committee ("NRC") of the Board of Directors of the Company has formulated the Balaji Telefilms ESOR 2023 ("the ESOP Scheme 2") to grant Stock Options in the form of Options to the eligible employees of the Company and its subsidiaries. The ESOP Scheme has been adopted by the NRC by a Resolution passed at its meeting held on February 14, 2023 pursuant to the enabling authority granted under resolution passed by the members of the Company by way of Postal Ballot or electronic voting held on March 29, 2023 respectively. ESOP Scheme has been formulated in accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("the SEBI Regulations"), as amended.

Options were granted during 2023-24 at the NRC’s meetings held as follows:

On November 09, 2023, granted 21,14,552 Employee Stock Options under Balaji Telefilms ESOP scheme, 2023 to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest after completion of 12 months (Refer Table 10 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On February 9, 2024, granted 2,50,000 Employee Stock Options under Balaji Telefilms ESOP scheme, 2023 to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest after completion of 12 months (Refer Table 11 below). Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

When exercisable, each option is convertible into one equity share. The exercise price of the options is based on the stock exchange last closing market price after deducting 25% discount as determined by the Members of Nomination and Remuneration Committee.

During the year ended March 31, 2024 the Company recorded an employee compensation expense of '' 22.80 Lacs (previous year write back of '' 46.22 Lacs) in the statement of profit and loss. (Refer summary of options granted given below).

Certain employees of the Subsidiaries are allotted employee stock options of the Company. The Company does not charge any cost for this benefit, Accordingly, fair value of the award granted to subsidiary''s employees is recognized over the vesting period; and the same is treated as a capital contribution to the subsidiary. Accordingly, '' 891.62 Lacs (previous year : '' 807.79 Lacs) was added to the cost of the investments as a capital contribution at the year end.

During the year ended March 31,2024 an employee has excercised 3,98,525 options (2,76,303 options from Tranche 1 and 1,22,222 options from Tranche 2) provided under Balaji ESOP scheme, 2017.

* The fair value at grant date is determined using the Binomial Tree Model which takes into account the

exercise price, the term of the option, the share price at grant date and expected price volatility of the

underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The model inputs for options granted under ESOP Scheme, 2017 during the year ended March 31, 2023,

March 31,2022, March 31,2021 and March 31,2019 includes:

a) Options are granted for no consideration and vest upon completion of service for a period of one to three years from the date of grant. Vested options are exercisable for a period of three years after last vesting date.

b) Exercise price as given in the table above for each grant.

c) Grant date as per the table above for each grant.

d) Expiry date as per the table above for each grant.

e) Share price at grant date: ''119.80 (Tranche 1), '' 123.45 (Tranche 2) and '' 69.65 (Tranche 3), '' 87.10 (Tranche 6), '' 42.50 (Tranche 7) and '' 50.80 (Tranche 8)

f) Expected price volatility of the Company’s shares: 46.05% (Tranche 1), 45.87% (Tranche 2), 42.59% (Tranche 3), 43.16% (Tranche 6), 43.41% (Tranche 7) and 43.90% (Tranche 8)

g) Expected dividend yield: 0.91% (Tranche 1 and 2), 0.67% (Tranche 3), 0.62% (Tranche 6), 0.62% (Tranche 7)and 0.62% (Tranche 8)

h) Risk-free interest rate: 7.92% (Tranche 1), 8.05% (Tranche 2), 4.92% (Tranche 3), 5.70% (Tranche 6), 7.25% (Tranche 7) and 7.04% (Tranche 8)

The model inputs for options granted under ESOP Scheme, 2023 during the year ended March 31, 2024 includes:

a) Options are granted for no consideration and vest upon completion of service for a period of one year from the date of grant. Vested options are exercisable for a period of three years after last vesting date.

b) Exercise price as given in the table above for each grant.

c) Grant date as given in the table above for each grant.

d) Expiry date as given in the table above for each grant.

e) Share price at grant date: '' 73.70 (Tranche I) and '' 128.40 (Tranche II)

f) Expected price volatility of the Company’s shares: 45.60% (Tranche I) and 47.64% (Tranche II)

g) Expected dividend yield: 0.52% (Tranche I) and 0.52% (Tranche II)

h) Risk-free interest rate: 7.38% (Tranche I) and 7.24% (Tranche II)

The expected price volatility is based on the historic volatility (based on the remaining life of the options). 51 FAIR VALUE MEASUREMENTS

''Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-performance risk. The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received.

(i) Fair Value hierarchy

This section explains the judgements and estimates made in determining the fair value of the financial instruments that are (a) recognized and measured fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in valuation technique. The hierarchy gives highest priority to quoted prices in active market for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable inputs (Level 3 measurement). The categories used are as follows:

Level-1 Hierarchy includes financial instruments measured using quoted price. Mutual funds are valued at the closing NAV.

Level-2 The fair value of financial instruments that are not traded in an active market is determined using valuation technique which maximise the use of observable market data and rely as little as possible on entity -specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level-2.

Level -3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation technique used to value financial instruments include:

1) The mutual funds are valued using closing NAV available in the market.

The carrying value of current trade receivables, cash and cash equivalents, current loans, other current financial assets, short term borrowings, trade payables and other current financial liabilities are considered to be the same as their fair values due to their short term nature. The fair value of noncurrent financial asset is not materially different than its carrying value.

52 FINANCIAL RISK MANAGEMENT Risk management framework

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the management is responsible for overseeing the Company’s risk assessment and management policies and processes.

(A) Credit Risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company uses publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and credit ratings of its counterparties are regularly monitored and the aggregate value of transactions concluded is spread amongst counterparties. (i) Credit Risk Management

Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments in mutual funds. The Company has diversified portfolio of investment with various number of counter-parties which have good credit ratings and hence the risk is reduced. The credit worthiness

of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good. As a practice, the Company only invests with high rated banks/institutions. The Company’s maximum exposure to credit risk as at March 31, 2024 and March 31, 2023 is the carrying value of each class of financial assets as disclosed in note 51.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by it as at March 31,2024 and March 31,2023. The credit worthiness of such lessors is evaluated by the management on an ongoing basis and is considered to be good.

Trade receivables, unbilled revenue and contract assets

To measure the expected credit losses, trade receivables, unbilled revenue and contract assets have been grouped based on shared credit risk characteristics and the days past dues. The Contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rate for the unbilled revenue and contract assets.

Trade receivables, unbilled revenue and contract assets are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses.

The Company measures the expected credit loss of trade receivables, unbilled revenue, contract assets and other financial assets which are subject to credit risk, based on historical trend, industry practices and the business environment in which the entity operates and adjusted for forward looking information. Loss rates are based on actual credit loss experience and past trends.

The Company has used practical expedient by computing the expected credit loss allowance for trade receivables based on provision matrix. The provision matrix has taken into account historical credit loss experience and adjusted to reflect current and forward looking information. The expected credit loss allowance is based on ageing of the days the receivables are due.

The following table summarizes the Gross carrying amount of the financial assets and provision made:

There is no Provision or reversal of provsion made for the receivables and loans for year ended March 31,2024 and March 31,2023.

Of the Trade Receivables balance as at March 31,2024 of ''12,562.27. Lacs (as at March 31,2023 of ''22,318.72 Lacs), the top 3 customers of the Company represent the balance of'' 9,015.79 Lacs as at March 31,2024 ( as at March 31,2023 of '' 17,206.06 Lacs).

No significant changes in estimation techniques or assumptions were made during the reporting period.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company’s short-, medium-and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities by regularly monitoring forecast and actual cash flows.

(C ) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(a) Foreign currency risk exposure:

The Company does not have any exposure to foreign currency risk as at March 31, 2024 (Previous year Nil).

(c) Price risk (i) Exposure

The Company’s exposure to price risk arises from investment held by the Company in mutual funds and classified in the balance sheet as fair value through profit or loss.

Investments are made by the finance team under the policies approved by the Board of Directors. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

53 CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to

- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business.

The Company considers the following components of its balance sheet to be managed capital:

Total equity as shown in the balance sheet including reserves, retained earnings and share capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders or issue new shares.

55 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

a) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions Prohibition Act, 1988 (45 of 1988) and Rules made thereunder.

b) Borrowing secured against current assets

The Company has borrowed funds from banks on the basis of security of current assets and Company’s premises. The quarterly returns/ statements filed by the Company with the bank is in agreement with books of accounts.

c) Wilful defaulter

The Company has not been declared wilful defaulter by any banks or financial institution or government or any government authority.

d) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

e) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under Companies Act 2013

f) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

g) Utilization of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (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 group (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

h) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

i) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

j) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current or previous year. There are no intangible assets.

Other Regulatory Information

a) Title deeds of immovable properties not held in name of the Company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 4 to the standalone financial statements, are held in the name of the Company.

b) Utilization of borrowings availed from banks and financials institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were was taken.

c) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

Notes:

1. Earnings for Debt service = Net profit after tax Depreciation and amortization Finance cost Other adjustments *

* Other adjustments include all non cash items like fair valuation of investments, provision for doubtful debts & Obsolescence, forex exchange gain/loss less finance cost paid.

2. Debt Service = Current Borrowings

3. Working Capital = Current assets - Current Liabilities

4. EBIT = Profit before Interest and tax Finance cost

5. Total Purchases = Cost of Production / Acquisition Fees Marketing and distribution expenses Other expenses

6. Net Profit After Taxes : This excludes exceptional item.

57 The Company has investment in equity shares of a subsidiary, namely, ALT Digital Media Entertainment Limited (ALT) amounting to '' 79,557 Lacs as at March 31, 2024. Further, as at March 31,2024, the Company has outstanding trade receivables and loans given amounting to '' 1,781 Lacs and '' 10,297 Lacs respectively. As per the audited financial statements the net-worth of ALT as at March 31,2024 is '' 7,773 Lacs.

Since March 2019 the Company carries out an annual review of the valuation of ALT Digital at each year-end. For the year ended March 2024, the Company engaged independent valuation experts, Big4, to carry out the enterprise valuation of ALT. In performing the valuation, the experts have independently tested the business assumption for these projections and have factored the performance of financial year 23-24. Based on the valuation performed, the experts independently valued ALT Digital at 32% premium to its carrying cost at '' 1,20,990 Lacs.

In the previous years, ALT has focused on cost rationalization, right sizing of staff and reducing the cash burn, focused performance marketing resulting into positive operating cash inflow. ALT now emphasizes a studio-centric approach, producing high-quality shows that will be distributed not only on its platform but also across other OTT apps. This strategic shift ensures better cash flows and profitability. The efforts of management are reflective of improved operating performance of ALT. The EBITDA losses have been consistently reducing from '' 13,555 Lacs in financial year 21-22 to '' 6,591 Lacs (51% reduction) in financial year 22-23 to '' 2,104 Lacs in financial year 23-24 (68% reduction). As on March 2024, ALT also has liquid investments in Mutual Fund of '' 1,950 Lacs.

ALT continues to work on it’s business plan to drive its subscription business, foray into AVOD model and has an order book of over '' 23,000 Lacs of web-series for the leading OTT platforms, syndication/licenses of the content and definitive agreement are in place for over '' 10,000 Lacs. The Management is hopeful that these efforts will yield further positive results in the coming year.

ALT has maintained a steady run-rate of revenue and undertaken significant cost cutting measures and any improvement on time lines is expected to have significant growth in EBIDTA in future years. Also, ALT has started its own shows for ALTT platform which is an new addition from previous years to boost the SVOD sales coupled with enhanced performance marketing spend. A leading professional agency has been hired to drive the customer acquisition and also AVOD and Meta platform revenue. This agency also manages many other leading platforms for this line of revenue. Accordingly the management of ALT has plans in place to ensure successful execution of it’s strategies incorporating learnings of the previous year.

There is lag in meeting the targets in the last six months, primarily due to delays in certain shows by the leading OTT platform, the delivery of it is expected in financial year 24-25. The management is confident of covering the shortfall in coming year with enhanced content and marketing and continuing the cost efficiency built in the previous year.

The Board of Directors of the Company had given an in-principle approval to merge ALT into the Company at its meeting held on February 09, 2024. At their meeting held on May 30, 2024 the Board of Directors have approved the Scheme of Arrangement for the said merger which will be placed before the shareholders for their approval in the ensuing General Meeting.

Basis the business plans provided by the management of ALT, which have been validated by an independent valuation specialist for the purpose of determining enterprise value of ALT, as well as considering the future merger plan of ALT with the Company, the management is of the view that there is no adjustment required to the carrying value of the Company’s investment in ALT together with amounts loaned to ALT and trade receivables from ALT.

The Company’s revised strategy, profitability through partner deals, and favorable macroeconomic conditions position it well for both the near and long-term future. Overall, the Company remains optimistic about its prospects in the dynamic OTT landscape.

58 The Board of Directors in their meeting held on February 09, 2024 granted approval for proposed amalgamation of Alt Digital Media Entertainment Limited (''ALT'') and Marinating Films Private Limited (''MFPL''), wholly owned Subsidiaries of the Company, with Balaji Telefilms Limited (''BTL'') (Holding Company) In their meeting on May 30, 2024, the Board of Directors considered and approved the Draft Composite Scheme of Arrangement between Balaji Telefilms Limited (BTL), ALT, and MFPL and their respective shareholders, under sections 230 to 232, read with sections 52 and 66 of the Companies Act, 2013 (“The Scheme"). The Scheme inter alia provides for capital reduction in the books of the Company and amalgamation of ALT and MFPL with BTL.

The Scheme is subject to approvals of shareholders and / or creditors, and other concerned regulatory authorities as the case may be.

59 The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. However, the audit trail feature was not enabled for certain direct changes to data when using certain privileged / administrative access rights to the underlying database. The privileged access to database was restricted to limited set of users who necessarily require this access for maintenance and administration of the database. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software.

Subsequent to the year end, the Company has initiated the necessary steps for compliance of the regulation. The Company has established and maintained an adequate internal control framework over its financial reporting and based on its assessment, has concluded that the internal controls for the year ended March 31,2024 were effective.

60 The figures for the previous year have been regrouped, wherever necessary to conform to current year classification.

61 APPROVAL OF FINANCIAL STATEMENTS

The Financial Statements were approved for issue by the Board of Directors on May 30, 2024

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Mar 31, 2023

The total cash outflow for leases for the year ended March 31, 2023 was '' 351.37 Lacs (for year ended March 31,2022 : '' 545.11 Lacs).

(iii) Extension and termination options:

Extension and termination options are included in a number of property leases. These are used to maximize operational flexibility in terms of managing the assets used in the Company’s operations. The majority of extension and termination options held are exercisable only by the Company and not with the respective lessor.

(iv) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the Company, the shareholders will be eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

(v) During the five years immediately preceding March 31, 2023, no shares were bought back and no shares were issued for consideration other than cash nor as bonus shares.

(vi) Shares reserved for Issue under options

Information relating to Balaji Telefilms Employee Stock Option Scheme, including details of option issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note no. 42.

Nature and purpose of reserves :

A. General Reserve : General reserve is created out of transfer from retained earnings and is a free reserve.

B. Securities Premium Account : Securities Premium is created to record the premium on issue of shares. The reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

C. Capital Reserve : Capital Reserve, being consideration over net assets taken over, recognized as per the scheme of arrangement sanctioned by National Company Law Tribunal in earlier years.

D. Share options outstanding account : The share options outstanding account is used to recognize the grant date fair value of option issued to employees under Balaji Telefilms ESOP 2017.

(i) Cash Credit Facilities from Axis Bank repayable on demand at Interest rate of 6.5% Repo 3% = Presently at 9.5% p.a. Primarily Secured against current assets of the Company both Present and Future, and Collateral

charge by way of mortgage of Company’s Premises at Killfire, Andheri (West), Mumbai - 400053 and Fixed Deposits of '' 1,011 Lacs with Axis Bank.

(ii) Loan from Related parties is secured against Theatrical distribution rights of a Film.

Net debt reconciliation

This section sets out an analysis of net debt and the movements in net debt for the year ended March 31,2023

Management expects that transaction price allocated to the unsatisfied contracts as on March 31,2023''13,500 Lacs will be recognized as revenue during the next reporting period and balance '' 2,284 Lacs in subsequent periods. The amount disclosed above does not include variable consideration which is constrained. All other contracts are for periods of one year or less.

The Revenue recognized is equivalent to the contract price and there is no element of discount, rebates, incentives, etc. which are adjusted to revenue.

33 CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR) ('' in Lacs)
Particulars	As at March 31, 2023	As at March 31, 2022
In respect of Service Tax Matters (Also Refer note 1 below) In respect of VAT Matters In respect of Income Tax Matters (Also Refer note 2 below)	2,943.00	2,943.00 145.50
- TDS Matters	249.51	249.51
In respect of Claim against the Company not acknowledged as debt	200.01	200.01

(!) Apart from the above, the Company had received a Show Cause Notice (SCN) for demand of '' 6,348 Lacs from Service Tax Department, Mumbai for the period April 2006 to March 2008 on exports made to one of the customers of the Company. On an appeal to Commissioner of Service Tax, the matter was adjudicated in the Company’s favour. The department had further filed an appeal against the said order with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) which was dismissed by the Hon’ble CESTAT vide their order dated March 09, 2016. Department has further filed an appeal against the said order with the High Court on October 19, 2016 and same is pending for adjudication.

(2) Apart from the above, in respect of Income Tax Matters, a search was conducted on the premises of the Company on April 30, 2013. Pursuant to the aforesaid search, block assessment under section 153A of the Income-tax Act, 1961 (Act) was conducted for Assessment Years 2007- 08 to 2012-13. The Company did not appeal against the additions made in the assessment orders for the aforesaid assessment years. However, penalties were levied for the said assessment years, which were challenged by the Company before the Income-tax Appellate Tribunal-Mumbai (ITAT). The Company had accounted for the penalty amount as an exceptional item in the financial statements for the year ended March 31,2018. Subsequently, the ITAT had deleted the penalty levied and the Income tax department had refunded the penalties amounting to '' 1,044.44 Lacs along with interest of '' 138.33 Lacs under the Act to the Company, which was disclosed as an exceptional item in the financial statements for the year ended March 31,2021. Subsequently, the Income tax department has preferred an appeal before the Hon’ble High Court (HC) Bombay challenging the deletion of penalty by ITAT, the appeal is still in Pre-Admission stage.

34 The Company has investments in subsidiaries namely Balaji Motion Pictures Limited (BMPL), ALT Digital Media Entertainment Limited (ALT) and Marinating Films Private Limited (MFPL) aggregating to '' 81,436.78 Lacs (Previous year '' 64,359.81 Lacs).

Further, the Company has receivables on account of loans (including accrued interest) of '' 617.98 Lacs from BMPL (Previous year '' 675.16 Lacs) and '' 309.08 Lacs from ALT (Previous year '' 1,199.72 Lacs). As per the latest audited balance sheet of BMPL for the year ended March 31,2023, the accumulated losses have fully eroded the net-worth of the Company and as per the latest audited balance sheet of ALT and MFPL the net worth is partially eroded as at March 31, 2023. However, basis the management evaluation there is no requirement of impairment provision of its investments in and loans to such subsidiaries, as the carrying amount of the investments does not exceed its recoverable amount.

Recoverable amounts for BMPL, ALT and MFPL has been determined with the assistance of external valuation expert. The Company is committed to provide financial support to BMPL, ALT and MFPL for a period of at least 12 months from the date of signature of these financial statements, in such case if assistance is needed.

For Chhayabani Balaji Entertainment Private Limited, in the financial year 2019-20, Company had taken an impairment charge of ''240.70 Lacs. Based on the approvals of Company’s Board of Directors, Chhayabani Balaji Entertainment Private Limited has filed for liquidation on October 22, 2020. Further, disolution order dated April 11,2022 Chhatabani Balaji Entertainment Private Limited ceased to be a Company effective this date.

During the year ended March 31,2023, the Company considered indicators of impairment for investments in subsidiaries held either directly or indirectly, such as declines in operational performance or changes in the outlook of future profitability or weaker market conditions, among other potential indicators.

The Company estimated the recoverable amount based on the value in use of the underlying businesses. The computation uses cash flow forecasts based on the most recently approved financial budgets and strategic forecasts which covers future projections taking the analysis into perpetuity. Key assumptions for the value in use computations are those regarding the discount rates, growth rates, market demand, expected changes to selling prices and costs. Changes in revenue, costs and demand are based on historical experience and expectations of future changes in the market.

(i) There are no provision for doubtful debts, amounts written off or written back during the year in respect of debts due from or due to related parties.

(ii) Figures in bracket relate to the previous financial year.

(iii) The Company provides long term benefits in the form of gratuity to its key managerial person along with all employees, cost of the same is not identifiable separately and hence not disclosed.

(iv) Includes amount cross charged to subsidiary.

37 EMPLOYEE BENEFITS

a) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to ''56.12 Lacs (Previous Year ''87.99 Lacs)

b) Defined Benefit Plans Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is as per the Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to previous period.

The Company expects to contribute '' 54.22 Lacs to the gratuity fund during the next financial year. (Previous Year '' 49.51 Lacs)

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities will increase the present value of the liability requiring higher provision.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk. Mortality Risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

As at the year-end, the stock options granted under Tranche 7 and Tranche 8 as referred in Note 42 are dilutive in nature and accordingly diluted earning per share is calculated.

39 SEGMENT INFORMATION

The Company has presented data relating to its segments in its Consolidated Financial Statements. Accordingly, in terms of paragraph 4 of the Indian Accounting Standard (Ind AS 108) "Operating Segments", no disclosure related to its segments are presented in the Standalone Financial Statements.

41 The Company has advances / receivable from one of its co-producers and a film director, amounting to '' 1,619 Lacs which are subject to litigation as at March 31,2023. On the basis of the evaluation carried out by the management, in consultation with the legal counsel, the amounts are considered good and fully recoverable.

42 SHARE BASED PAYMENTS

The Nomination and Remuneration Committee ("NRC") of the Board of Directors of the Company has formulated the Balaji Telefilms ESOR 2017 ("the ESOP Scheme") to grant Stock Options in the form of Options to the eligible employees of the Company and its subsidiaries. The ESOP Scheme has been adopted by the NRC by a Resolution passed at its meeting held on February 13, 2018 pursuant to the enabling authority granted under resolution passed by the members of the Company by way of Postal Ballot or electronic voting held on December 30, 2017. ESOP Scheme has been formulated in accordance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 ("the SEBI Regulations"), as amended.

The NRC, vide a resolution passed at its meeting held on May 19, 2018, and June 20, 2018 has granted Options ("Options"), 1,663,734 Options on May 19, 2018 and 2,125,239 Options on June 20, 2018 to the eligible employees of the Company and its subsidiaries (as per terms decided by the NRC).

The Options granted would vest over a period of 3 years - the first 25% to vest at the end of one year from the grant date, 35% to vest at the end of second year from the grant date and balance 40% to vest at the end of third year from the grant date. Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

The NRC, vide a resolution passed at its meeting held on January 08, 2021, granted additional 14,00,000 Employee Stock Options ("Options") to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The resolution passed by NRC on January 08, 2021 included a variation in terms of the Scheme. The variation was that all the options granted under the aforesaid grant would vest after completion of 12 months from date of grant. Once vested, the option remain exercisable for the period of 3 years from the last vesting date. Furthermore, Additional Options were granted during 2021-22 and 2022-23 at the NRC''s meetings held as follows:

On June 18, 2021, granted 3,00,000 Employee Stock Options ("Options") to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest over a period of 3 years - the first 25% to vest at the end of one year from the grant date, 35% to vest at the end of second year from the grant date and balance 40% to vest at the end of third year from the grant date. Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On August 10, 2021, granted 18,00,000 Employee Stock Options ("Options") to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. Out of 18,00,000 Options granted, 12,00,000 Options grant would vest after completion of 12 months from date of grant and balance 6,00,000 would vest over a period of 3 years - the first 25% to vest at the end of one year from the grant date, 35% to vest at the end of second year from the grant date and balance 40% to vest at the end of third year from the grant date. Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On February 11,2022, granted 2,50,000 Employee Stock Options ("Options") to the eligible employees of the subsidiary Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest after completion of 12 months from date of grant. Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On July 15, 2022, granted 10,00,000 Employee Stock Options ("Options") to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest over a period of 3 years - the first 25% to vest at the end of one year from the grant date, 35% to vest at the end of second year from the grant date and balance 40% to vest at the end of third year from the grant date. Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

On August 30, 2022, granted 18,00,000 Employee Stock Options ("Options") to the eligible employees of the Company. Each option when exercised would be converted into one equity share of '' 2/- each, fully paid up, of the Company. The Options granted would vest over a period of 3 years - the first 25% to vest at the end of one year from the grant date, 35% to vest at the end of second year from the grant date and balance 40% to vest at the end of third year from the grant date. Once vested, the option remain exercisable for the period of 3 years from the last vesting date.

When exercisable, each option is convertible into one equity share. The exercise price of the options is based on the stock exchange last closing market price after deducting 25% discount as determined by the Members of Nomination and Remuneration Committee.

During the year ended March 31, 2023 the Company recorded an employee compensation write back of (''46.22) Lacs (previous year '' 153.59 Lacs expense) in the statement of profit and loss. (Refer Summary of options granted given below).

Certain employees of the Subsidiaries are allotted employee stock options of the Company. The Company does not charge any cost for this benefit, Accordingly, fair value of the award granted to subsidiary''s employees is recognized over the vesting period; and the same is treated as a capital contribution to the subsidiary. Accordingly, '' 807.79 Lacs (previous year : '' 805.82 Lacs) was added to the cost of the investments as a capital contribution at the year end.

Fair value of options granted

The fair value at grant date of options was '' 72.01 per option for options granted on May 19, 2018 (Tranche 1), '' 74.33 per option for options granted on June 20, 2018 (Tranche 2), '' 34.05 per option for options granted on January 08, 2021 (Tranche 3), '' 38.62 per option for options granted on June 18, 2021 (Tranche 4), '' 32.82 per option for options granted on August 10, 2021 (Tranche 5 - Part 1), '' 38.47 per option for options granted on August 10, 2021 (Tranche 5 - Part 2), '' 43.63 per option for options granted on February 11, 2022 (Tranche 6), '' 25.14 per option for options granted on July 15, 2022 (Tranche 7) and '' 30 per option for options granted on August 30, 2022 (Tranche 8). The fair value at grant date is determined using the Binomial Tree Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The model inputs for options granted during the year ended March 31, 2023, March 31, 2022, March 31,2021 and March 31,2019 includes:

a) Options are granted for no consideration and vest upon completion of service for a period of one to three years from the date of grant. Vested options are exercisable for a period of three years after last vesting date.

b) Exercise price: '' 90 (Tranche 1), '' 93 (Tranche 2) , ''52.01 (Tranche 3), '' 50.18 (Tranche 4), , '' 50.18

(Tranche 5), '' 65.33 (Tranche 6), '' 31.88 (Tranche 7), '' 38.10 (Tranche 8)

c) Grant date: May 19, 2018 (Tranche 1), June 20, 2018 (Tranche 2) , January 08, 2021 (Tranche 3), June 18, 2021 (Tranche 4), August 10, 2021 (Tranche 5), February 1 1,2022 (Tranche 6), July 15, 2022 (Tranche 7) and August 30, 2022 (Tranche 8)

d) Expiry date: May 18, 2024 (Tranche 1), June 19, 2024 (Tranche 2), January 07, 2025 (Tranche 3), June 17, 2027 (Tranche 4), August 09, 2025 (Tranche 5 Part 1), August 09, 2027 (Tranche 5 Part 2), February 10, 2026 (Tranche 6), July 14, 2028 (Tranche 7) and August 29, 2028 ((Tranche 8)

e) Share price at grant date: ''119.80 (Tranche 1), ''123.45 (Tranche 2), ''69.65 (Tranche 3), ''66.90 (Tranche 4), ''66.90 (Tranche 5), ''87.10 (Tranche 6), ''42.50 (Tranche 7), '' 50.80 (Tranche 8)

f) Expected price volatility of the Company’s shares: 46.05% (Tranche 1), 45.87% (Tranche 2), 42.59%

(Tranche 3), 44.71% (Tranche 4), 41.73% (Tranche 5 Part 1), 43.89% (Tranche 5 Part 2), 43.16%

(Tranche 6), 43.41% (Tranche 7) and 43.90% (Tranche 8)

g) Expected dividend yield: 0.91% (Tranche 1 and 2), 0.67% (Tranche 3), 0.67% (Tranche 4), 0.67% (Tranche 5), 0.62% (Tranche 6), 0.62% (Tranche 7) and 0.62% (Tranche 8)

h) Risk-free interest rate: 7.92% (Tranche 1), 8.05% (Tranche 2), 4.92% (Tranche 3), 6.03% (Tranche 4), 5.49% (Tranche 5 Part 1), 6.15% (Tranche 5 Part 2), 5.70% (Tranche 6), 7.25% (Tranche 7), 7.04% (Tranche 8)

The expected price volatility is based on the historic volatility (based on the remaining life of the options). 43 FAIR VALUE MEASUREMENTS

''Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-performance risk. The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received.

(i) Fair Value hierarchy

This section explains the judgements and estimates made in determining the fair value of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

The carrying value of current trade receivables, cash and cash equivalents, current loans, other current financial assets, short term borrowings, trade payables and other current financial liabilities are considered to be the same as their fair values due to their short term nature. The fair value of noncurrent financial asset is not materially different than its carrying value.

The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in valuation technique. The hierarchy gives highest priority to quoted prices in active market for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable inputs (Level 3 measurement). The categories used are as follows:

Level-1 Hierarchy includes financial instruments measured using quoted price. Mutual funds are valued at the closing NAV.

Level-2 The fair value of financial instruments that are not traded in an active market is determined using valuation technique which maximize the use of observable market data and rely as little as possible on entity -specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level-2.

Level -3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation technique used to value financial instruments include:

1) The mutual funds are valued using closing NAV available in the market.

44 FINANCIAL RISK MANAGEMENT Risk management framework

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the management is responsible for overseeing the Company’s risk assessment and management policies and processes.

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company uses publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and credit ratings of its counterparties are regularly monitored and the aggregate value of transactions concluded is spread amongst counterparties.

(i) Credit Risk Management

Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments in mutual funds. The Company has diversified portfolio of investment with various number of counter-parties which have good credit ratings and hence the risk is reduced. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good. As a practice, the Company only invests with high rated banks/institutions. The Company’s maximum exposure to credit risk as at March 31, 2023 and March 31, 2022 is the carrying value of each class of financial assets as disclosed in note 43.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by it as at March 31,2023 and March 31,2022. The credit worthiness of such lessors is evaluated by the management on an ongoing basis and is considered to be good.

Trade receivables, unbilled revenue and contract assets

To measure the expected credit losses, trade receivables, unbilled revenue and contract assets have been grouped based on shared credit risk characteristics and the days past dues. The Contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rate for the unbilled revenue and contract assets.

Trade receivables, unbilled revenue and contract assets are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses.

The Company measures the expected credit loss of trade receivables, unbilled revenue, contract assets and other financial assets which are subject to credit risk, based on historical trend, industry practices and the business environment in which the entity operates and adjusted for forward looking information. Loss rates are based on actual credit loss experience and past trends.

The Company has used practical expedient by computing the has credit loss allowance for trade receivables based on provision matrix. The provision matrix has taken into account historical credit loss experience and adjusted to reflect current and forward looking information. The expected credit loss allowance is based on ageing of the days the receivables are due.

Of the Trade Receivables balance as at March 31,2023 of ''22,318.72. Lacs (as at March 31,2022 of '' 26,607.60 Lacs), the top 3 customers of the Company represent the balance of '' 17,206.06 Lacs as at March 31,2023 ( as at March 31,2022 of '' 23,823.54 Lacs).

No significant changes in estimation techniques or assumptions were made during the reporting period.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities by regularly monitoring forecast and actual cash flows.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprizes three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(a) Foreign currency risk exposure:

The Company does not have any exposure to foreign currency risk as at March 31, 2023 (Previous year Nil).

(c) Price risk (i) Exposure

The Company’s exposure to price risk arises from investment held by the Company in mutual funds and classified in the balance sheet as fair value through profit or loss.

Investments are made by the finance team under the policies approved by the Board of Directors. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

45 CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to

- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business.

The Company considers the following components of its balance sheet to be managed capital: Total equity as shown in the balance sheet including reserves, retained earnings and share capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders or issue new shares.

48 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

a) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions Prohibition Act, 1988 (45 of 1988) and Rules made thereunder.

b) Borrowing secured against current assets

The Company has borrowed funds from banks on the basis of security of current assets and Company’s premises. The quarterly returns/ statements filed by the Company with the bank is in agreement with books of accounts.

c) Wilful defaulter

The Company has not been declared wilful defaulter by any banks or financial institution or government or any government authority.

d) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

e) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under Companies Act 2013

f) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

g) Utilization of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (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 group (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

h) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

i) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

j) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current or previous year. There are no intangible assets.

Other Regulatory Information

a) Title deeds of immovable properties not held in name of the Company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 4(a) to the standalone financial statements, are held in the name of the Company.

b) Utilization of borrowings availed from banks and financials institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

c) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

Notes:

1. Earnings for Debt service = Net profit after tax Depreciation and amortization Finance cost Other adjustments *

* Other adjustments include all non cash items like fair valuation of investments, provision for doubtful debts & Obsolescence, forex exchange gain/loss less finance cost paid.

2. Debt Service = Current Borrowings

3. Working Capital = Current assets - Current Liabilities

4. EBIT = Profit before Interest and tax Finance cost

5. Total Purchases = Cost of Production / Acquisition Fees Marketing and distribution expenses Other expenses

50 The figures for the previous year have been regrouped, wherever necessary to conform to current year classification.

51 APPROVAL OF FINANCIAL STATEMENTS

The Financial Statements were approved for issue by the Board of Directors on May 30, 2023

52 The Financial Statements of the Company for the year ended March 31, 2022, were audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 20, 2022.

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Mar 31, 2018

Note 1: Background

Balaji Telefilms Limited (‘the Company’) was incorporated on November 10, 1994 under the Companies Act, 1956. The Company has established itself as a leader in television content in India particularly for Hindi language content and has also successfully ventured in the regional television content market and event business. The company is also in the business of production of films. The registered office and principal place of business of the Company is at Andheri (West), Mumbai.

Note 2: Critical Estimates and Judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. This note provides an overview of the areas that involve a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are: Estimated useful life of Tangible Assets:

The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.

Estimation of Current Tax Expense and Income Tax Payable / Receivable:

The calculation of Company’s tax charge necessarily involves a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these items may give rise to material adjustment to taxable profits/losses.

Estimation of Defined Benefit Obligation:

The Company’s obligation on account of gratuity is determined based on actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, this liability is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates.

Estimation of Contingent Liabilities:

The company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood 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 liability may be different from the originally estimated as provision or contingent liability.

Recognition of Deferred Tax Assets:

The recognition of deferred tax assets is based upon whether it is probable that sufficient taxable profits will be available in the future against which the reversal of temporary differences will be offset. To determine the future taxable profits, the management considers the nature of the deferred tax assets, recent operating results, future market growth, forecasted earnings and future taxable income in the jurisdictions in which the company operates.

Impairment of Trade Receivables:

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The company uses a provision matrix and forward-looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

The average credit period on sales is 75 days. No interest is charged on trade receivables overdue. The Company has generally recognised an allowance for doubtful debts at 100% against receivables from whom recoverability is uncertain.

Trade receivables disclosed above include amounts that are past due at the end of the reporting period for which the Company has not recognised an allowance for doubtful debts because there has not been a significant change in credit quality and the amounts are still considered recoverable.

In determining the recoverability of a trade receivable, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period.

The Company has provided Rs. 345.70 (Previous Year Rs. 232.57) lacs towards doubtful receivables as at March 31, 2018

(iii) Terms and rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the company, the shareholders will be eligible to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding.

(iv) No shares are issued for consideration other than cash during the 5 years immediately preceding March 31, 2018.

Nature and purpose of reserves :

A. General Reserve : General reserve is created out of transfer from retained earnings and is a free reserve.

B. Securities Premium Account : Security Premium is created to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

C. Capital Reserve : Capital Reserve represents excess of net assets taken over pursuant to the scheme of arrangement sanctioned by National Company Law Tribunal (Refer note 30.12).

Notes:

(a) Micro, Small and Medium Enterprises :

The balances above includes Rs. Nil (Previous Year Rs. Nil) due to Micro and Small Enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act).

No interest is paid / payable during the year to any Micro / Small Enterprise registered under the MSME. There were no delayed payments during the year to any Micro or Small Enterprise registered under the MSME Act.

The above information has been determined to the extent such parties could be identified on the basis of the information available with the Management regarding the status of suppliers under the MSME Act.

Pursuant to the notices issued to Balaji Motion Pictures Limited (BMPL), pertaining to the films division acquired by company under scheme of merger (Refer Note 30.12), under Section 153A of Income-tax Act, 1961 (in respect of proceedings initiated under section 132) the assessments for all the relevant assessment years were completed by the Department during the quarter ended June 30, 2015. During the year ended March 31, 2017, the BMPL has filed appeals with the Income-tax Appellate Tribunal (ITAT), against the Orders passed by the Commissioner of Income-tax (Appeals) confirming the penalty imposed by the assessing officer. During the year ended March 31, 2018, ITAT deleted the penalty for Assessment year 2010-11 and order is awaited for AY 2013-14.

3.1 Pursuant to action under Section 132 of the Income-tax Act, 1961 during the financial year 2013-14, the Company filed Return of Income u/s 153A for the respective years from FY 2006-07 to FY 2013-14. Income Tax Department completed the assessment thereof u/s 143(3) read with Section 153A in the financial year 2015-16. However, since there were differences in the original returns filed u/s 139(1) and those filed u/s 153A for the respective years, orders levying penalty were passed. The Company succeeded in cancelling the penalty for one of the year Penalty procedings for other years is still pending for disposal before the Income-tax Appellate Tribunal, Mumbai. The Order u/s 132B dated September 27, 2017 is received by the Company. The Company, as a matter of abundant precaution, has adjusted the net penalty amount against the advance tax balance appearing in the books and the resultant charge (net of interest on refund due) amounting to Rs. 905.07 lacs is debited to the Statement of Profit and Loss and disclosed under Exceptional Items for the year ended March 31, 2018.

3.2 The Company has investments in subsidiaries/body corporates namely Balaji Motion Pictures Limited (BMPL), ALT Digital Media Entertainment Limited (ALT), Chhayabani Balaji Entertainment Private Limited (CBEPL) and Marinating Films Private Limited (MFPL) aggregating to Rs. 31,419.69 lacs (Previous year Rs. 15,834.47 lacs including investment in Event Media LLP (EMLLP)). Further, the Company has also given loans and advances aggregating to Rs. 886.38 lacs to BMPL (Previous year Rs. 282.53 lacs given to BMPL, ALT and EMLLP). As per the latest audited balance sheet of BmPl and MFPL for the year ended March 31, 2018, the accumulated losses have fully eroded the net-worth of the respective companies. However, no provision for diminution in the value of the investments is considered necessary as the investments are strategic longterm investments and the diminution in the value of investments is temporary in nature. As per the latest audited balance sheet of CBEPL the investment is substantially eroded and in ALT the investment is partially eroded as at March 31, 2018, these investments have been recently made and the diminution in the value is temporary in nature. The company is committed to provide financial support to BMPL, ALT, CBEPL and MFPL for a period of atleast 12 months from the date of signature of these financial statements, in such case if assistance is needed.

Note

(i) There are no provision for doubtful debts, amounts written off or written back during the year in respect of debts due from or due to related parties.

(ii) Figures in bracket relate to the previous year.

(iii) The company provides long term benefits in the form of gratuity to its key managerial person along with all employees, cost of the same is not identifiable seperately and hence not disclosed.

3.3 Employee Benefits

a) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to Rs. 88.19 lacs (Previous Year Rs. 81.21 lacs)

b) Defined Benefit Plans Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is as per the Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance sheet.

The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to previous period.

The Company’s policy is driven by considerations of maximizing returns while ensuring credit quality of the debt instruments. The asset allocation for plan assets is determined based on investment criteria prescribed under the Indian Income Tax Act, 1961, and is also subject to other exposure limitations. The Company evaluates the risks, transaction costs and liquidity for potential investments. To measure plan asset performance, the Company compares actual returns for each asset category with published benchmarks.

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Note: Where required by Ind AS 24 an entity discloses information about: (a) related party transactions with post-employment benefit plans; and (b) post-employment benefits for key management personnel.

Note: Where required by Ind AS 37 an entity discloses information about contingent liabilities arising from post employment benefit obligations.

3.4 Lease Transactions

Amount of lease rentals charged to the Statement of profit and loss in respect of operating leases is Rs. 1,768.50 Lacs (Previous Year Rs.1,782.06 Lacs)

3.5 Segment Information

The company has presented data relating to it’s segments in it’s Consolidated Financial Statements. Accordingly, in term of paragraph 4 of the Indian Accounting Standard (Ind AS 108) “Operating Segments”, no disclosure related to it’s segments are presented in the Standalone Financial Statements.

3.6 The company is in arbitration/ litigation in respect of certain advances recoverable from vendors out standing as at March 31, 2018. On the basis of the evaluation carried out by the company, in consultation with the lawyers, the amounts are considered recoverable.

3.7 The composite Scheme of Arrangement and Amalgamation (the ‘Scheme’) between the Company and two of its subsidiaries viz. Balaji Motion Pictures Limited (‘BMPL’) and Bolt Media Limited (‘Bolt’), for the merger of Bolt and the film production undertaking of BMPL with the Company and the consequent capital reduction in the books of BMPL has been approved by the National Company Law Tribunal (Mumbai bench) (‘NCLT’) and subsequently filed with the Registrar of Companies, Securities and Exchange Board of India and Stock Exchanges by December 15, 2017 (the ‘Effective date’). Pursuant to the Scheme becoming effective, the same has been accounted for in accordance with ‘Pooling of Interest’ method specified in Appendix C of Ind-AS 103 Business Combinations.

* For the purpose of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic affairs member S.O. 3407(E), dated the November 8, 2016.

(b) The reporting or disclosure related to SBNs is not applicable to the Company for the year ended March 31, 2018

3.8 The Company has adopted the employee stock option plan by the name of Balaji Telefilms ESOP, 2017. The members of the company have approved the scheme by passing Special Resolution by way of Postal Ballot on December 30, 2017. The Nomination and Remuneration Committee made note of the approved scheme and recommended the same to the Board for signing at its meeting held on February 13, 2018. The scheme has received In principal-approval from BSE and NSE on April 13, 2018 and April 26, 2018 respectively.

3.9 Fair Value Measurements

‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-performance risk. The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received.

(i) Fair Value hierarchy

This section explains the judgements and estimates made in determining the fair value of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed the accounting standard. An explanation of each level follows underneath the table.

The carrying value of trade receivables, cash and cash equivalents, loans, trade payables and other financial assets and liabilities are considered to be the same as their fair values due to their short term nature.

The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs used in valuation technique. The hierarchy gives highest priority to quoted prices in active market for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable inputs (Level 3 measurement). The categories used are as follows:

Level-1 Hierarchy includes financial instruments measured using quoted price.

Level-2 The fair value of financial instruments that are not traded in an active market is determined using valuation technique which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level -3 If one or more of the significant inputs is not based on observable market data, the instrument is include in Level 3.

(ii) Valuation technique used to determine fair value

Specific valuation technique used to value financial instruments include:

1) The mutual funds are valued using closing NAV available in the market.

2) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(iii) Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 items for the year ended March 31, 2018

(iv) Valuation input and sensitivity assessment

Expected growth rate is the significant unobservable input which has been used in the level 3 fair valuation mesurements. The sensitivity to changes in the expected growth rate to the valuation as at March 31, 2018 is as follows:

- Investment in Indus Balaji Investor Trust (growth rate considered - 5%): Increasing/Decreasing the expected growth rate by 1% would change the fair value by Rs. 285.94 lacs and (Rs. 226.06) lacs respectively.

- Investment in preference shares of Marinating Films Private Limited (growth rate considered - 5%): Increasing/Decreasing the expected growth rate by 1% would change the fair value by Rs. 29.01 lacs and (Rs. 27.99) lacs respectively.

- Investment in preference shares of Chhayabani Balaji Entertainment Private limited (growth rate considered - 5%):

Increasing/Decreasing the expected growth rate by 1% would change the fair value by Rs. 4.80 lacs and (Rs. 4.20) lacs respectively.

(v) Valuation process

The valuation of financial assets required for financial reporting purposes is done by an independent valuer appointed by the management. Assumptions used for the valuation are provided by the finance department of the Company after discussion with the chief financial officer (CFO) and business unit heads.

3.10 Financial Risk Management Risk management framework

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the management is responsible for overseeing the Company’s risk assessment and management policies and processes.

(A) Credit Risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company uses publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and credit ratings of its counterparties are regularly monitored and the aggregate value of transactions concluded is spread amongst counterparties.

(i) Credit Risk Management

Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments in mutual funds. The Company has diversified portfolio of investment with various number of counter-parties which have good credit ratings and hence the risk is reduced. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good. As a practice, the company only invests with high rated banks/institutions. The Company’s maximum exposure to credit risk as at March 31, 2018 and March 31, 2017 is the carrying value of each class of financial assets as disclosed in note 30.15.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by it as at March 31, 2018 and March 31, 2017. The credit worthiness of such lessors is evaluated by the management on an ongoing basis and is considered to be good.

Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company’s short-, medium- and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities by regularly monitoring forecast and actual cash flows.

(C ) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(a) Foreign currency risk exposure:

The Company does not have any exposure to foreign currency risk as at March 31, 2018 (Previous year Rs. Nil).

(b) Interest rate risk

The Company does not have any borrowings and is thus not exposed to interest rate risk as at March 31, 2018 (Previous year Rs. Nil).

(c) Price risk

(i) Exposure

The company’s exposure to investments arises from investment held by the company in mutual funds and classified in the balance sheet as fair value through profit or loss.

To manage its price risk arising from investments in mutual funds, the company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the company. Preference investments in subsidiaries are held for strategic purpose and are not trading in nature.

3.11 Capital Management

The company considers the following components of its Balance Sheet to be managed capital:

Total equity as shown in the balance sheet including reserves, retained earnigs and share capital.

The company aim is to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

3.12 Recent accounting pronouncements - Standards issued but not yet effective :

The Ministry of Corporate Affairs (“MCA”) notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 (the ‘Rules’) on March 28, 2018. The rules notify the new revenue standard Ind AS 115, Revenue from contracts with customers and also bring in amendments to existing Ind AS. The rules shall be effective from reporting periods beginning on or after April 1, 2018 and cannot be early adopted.

a. Ind AS 115, Revenue from contracts with customers

Ind AS 115, Revenue from contracts with customers deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a promised good or service and thus has the ability to direct the use and obtain the benefits from the good or service in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard replaces Ind AS 18 Revenue and Ind AS 11 Construction contracts and related appendices.

The new standard is mandatory for financial years commencing on or after April 1, 2018 and early application is not permitted. The standard permits either a full retrospective or a modified retrospective approach for the adoption.

The Company is evaluating the requirements of the new revenue standard (Ind AS 115) and the effect on the financial statements, if any.

b. Appendix B to Ind AS 21 Foreign currency transactions and advance consideration

The MCA has notified Appendix B to Ind AS 21, Foreign currency transactions and advance consideration. The appendix clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency-denominated contracts.

The Company is evaluating the requirements of the amendment and the effect on the financial statements, if any.

c. Amendments to Ind AS 12 Income taxes regarding recognition of deferred tax assets on unrealised losses

The amendments clarify the accounting for deferred taxes where an asset is measured at fair value and that fair value is below the asset’s tax base. They also clarify certain other aspects of accounting for deferred tax assets set out below:

- A temporary difference exists whenever the carrying amount of an asset is less than its tax base at the end of the reporting period.

- the estimate of future taxable profit may include the recovery of some of an entity’s assets for more than its carrying amount if it is probable that the entity will achieve this. for example, when A fixed-rate debt instrument is measured at fair value, however, the entity expects to hold and collect the contractual cash flows and it is probable that the asset will be recovered for more than its carrying amount.

- Where the tax law restricts the source of taxable profits against which particular types of deferred tax assets can be recovered, the recoverability of the deferred tax assets can only be assessed in combination with other deferred tax assets of the same type.

- Tax deductions resulting from the reversal of deferred tax assets are excluded from the estimated future taxable profit that is used to evaluate the recoverability of those assets. This is to avoid double counting the deductible temporary differences in such assessment.

An entity shall apply the amendments to Ind AS 12 retrospectively in accordance with Ind AS 8. However, on initial application of the amendment, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity.

The Company is evaluating the requirements of the amendment and the effect on the financial statements, if any.

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Mar 31, 2017

1. On April 30, 2013, the Income-tax Department visited the premises of the Company and initiated proceedings under Section 132 of the Income-tax Act, 1961. Pursuant to the notices under Section 153A of Income-tax Act, 1961 the assessments for all the relevant assessment years were completed by the Department during the quarter ended June 30, 2015. Consequently, the Company has computed the differential tax liability aggregating to Rs, 27 lacs for these years and accounted for the same in the quarter ended June 30, 2015. Further, the Company has filed applications for rectification of two Assessment Orders which had discrepancies, which is pending with the Department. During the year ended March 31, 2017, the Company has filed appeals with the Income-tax Appellate Tribunal (ITAT), against the Orders passed by the Commissioner of Income-tax (Appeals) confirming the penalty imposed by the assessing officer.

2. As per information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

3. The Company has investments in subsidiaries namely Balaji Motion Pictures Limited (BMPL), Bolt Media Ltd (BML), ALT Digital Media entertainment Limited (ALT), Chhayabani Balaji Entertainment Private Limited (CBEPL), Marinating Films Private Limited (MFPL) and Event Media LLP (EMLLP) aggregating to Rs, 18,639.47 lacs (Previous year Rs, 18,639.47 lacs). Further, the Company has also given loans and advances (including Interest) aggregating to Rs, 23,161.75 lacs (Previous year Rs, 23,238.44 lacs) to BMPL, BML and EMLLP. As per the latest audited balance sheet of BMPL, BML and EMLLP for the year ended March 31, 2017, the accumulated losses have fully eroded the net-worth of the respective companies. However, no provision for diminution in the value of the investments is considered necessary as the investments are strategic long-term investments and the diminution in the value is temporary in nature.

4. Related Party Transactions

(a) Name of related parties and description of relationship.

Name of the Related Party_Relationship_

Balaji Motion Pictures Limited Subsidiary Company (control exist)

Marinating Films Private Ltd Subsidiary Company (control exist)

Bolt Media Limited Subsidiary Company (control exist)

ALT Digital Media Entertainment Limited Subsidiary Company (control exist)

Chhayabani Balaji Entertainment Private Limited Subsidiary Company (control exist)

Event Media LLP Subsidiary Body Corporate

IPB Capital Advisors LLP Associate

Mr. Jeetendra Kapoor Key management person

Mrs. Shobha Kapoor_Key management person_

Ms. Ekta Kapoor Key management person

Mr. Tusshar Kapoor_Key management person_

Mr. Sameer Nair Key management person

Balaji Films & Telly Investments Limited Key management person having significant influence

5. Employee Benefits

a) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to Rs, 70.17 lacs (previous year Rs, 51.37 lacs).

b) Defined Benefit Plans

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

The Company''s policy is driven by considerations of maximizing returns while ensuring credit quality of the debt instruments. The asset allocation for plan assets is determined based on investment criteria prescribed under the Indian Income Tax Act, 1961, and is also subject to other exposure limitations. The Company evaluates the risks, transaction costs and liquidity for potential investments. To measure plan asset performance, the Company compares actual returns for each asset category with published benchmarks.

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Note: Where required by Ind AS 24 an entity discloses information about: (a) related party transactions with postemployment benefit plans; and (b) post-employment benefits for key management personnel.

Note: Where required by Ind AS 37 an entity discloses information about contingent liabilities arising from post employment benefit obligations.

6. Lease Transactions

Amount of lease rentals charged to the Statement of profit and loss in respect of operating leases is Rs, 1,782.06 Lacs (previous year Rs, 1,652.32 Lacs).

7. Segment Information

The Company is primarily engaged in the business of production of television content, which, in the context of Ind AS 108 on Operating Segments, constitutes a single reportable segment.

8. During the current year, the Board of Directors of the Company have approved a composite Scheme of Arrangement between the Company and two of its subsidiaries viz. Balaji Motion Pictures Limited (BMPL) and Bolt Media Limited (Bolt), which envisages merger of Bolt and of the film production undertaking of BMPL with the Company and consequent Capital reduction in the books of BMPL. The Company has received the observation letters from National Stock Exchange of India Limited and BSE Limited on the Scheme. Based on the commencement notification of certain sections of the Companies Act, 2013 related to the powers of the National Company Law Tribunal (NCLT), the Company has filed its application for the sanction of the Scheme with the NCLT. Based on the Order passed by the NCLT, the Company has arranged for a meeting of its Equity shareholders on May 24, 2017.

9.Capital management

The Company''s capital management objectives are:

- to ensure the company''s ability to continue as a going concern

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of the statement of financial position.

Financial Risk Management objectives

The Company''s activities expose it to a variety of financial risks viz. credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factors.

1) Credit risk management

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the Company. The Company deals with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company uses publicly available financial information and its own trading records to rate its major customers. The Company''s exposure and credit ratings of its counterparties are regularly monitored and the aggregate value of transactions concluded is spread amongst counterparties.

2) Liquidity risk management

The responsibility for liquidity risk management rests with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company''s short-, medium- and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities by regularly monitoring forecast and actual cash flows.

3) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

10. The figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

Notes to the reconciliation

(a) Fair Valuation of Investment in Trust - BTL has taken independent valuation of its investments in trust and accordingly recognized the gain in accumulated reserves on transition as at April 1, 2015. As per the Valuation report there is no change in the value till March 31, 2016 from the valuation done. Accordingly, no further gain has been recognized FY 2015-16 and FY 2016-17.

(b) Fair Valuation of Investment in preference shares of Marinating Films Private Limited (Marinating) - BTL has taken independent valuation of its investments and accordingly recognized the gain in accumulated reserves on transition as at April 1, 2015. As per the Valuation report there is no change in the value till March 31, 2017 from the valuation done. Accordingly, no further gain has been recognized FY 2015-16 and FY 2016-17.

(c) Fair Valuation of Investment in preference shares of Chhayabani Balaji Entertainment Private Limited - BTL has taken independent valuation of its investments as on March 31, 2016 and accordingly recognized the loss in statement of profit and loss for the FY 16-17. As per the Valuation report there is no change in the value till March 31, 2017 from the valuation done. Accordingly, no further gain has been recognized in FY 2016-17.

(d) Fair valuation of other financial assets: Under Ind AS, other financial assets viz., security deposits given for rented premises, have been accounted at fair value. The difference between the fair value and carrying value is treated as notional rent.

(e) Deferred taxes: Under Ind AS, deferred tax is computed as per Balance Sheet approach instead of the Profit and Loss approach under IGAAP and includes the impact on account of the above.

(f) Fair valuation of investments in mutual funds: Under the Ind AS, the Investments in mutual funds have been accounted at fair value through Statement of Profit and Loss instead of accounting at lower of cost and fair value under IGAAP.

(g) Proposed Dividend : Under Ind AS, the liability for final dividend is recognized in the period in which it is approved by shareholders. Accordingly, final dividend proposed and accounted for under the previous GAAP has been adjusted in equity.

(h) Remeasurement cost of net defined benefit liability: The Remeasurement cost arising primarily due to change in actuarial assumptions has been recognized in Other Comprehensive Income (OCI) under Ind AS instead of Statement of Profit and Loss under previous GAAP.

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Mar 31, 2016

1. On April 30, 2013 the Income-tax Department visited the premises of the Company and initiated proceedings under Section 132 of the Income-tax Act, 1961. Pursuant to the notices under Section 153A of Income-tax Act, 1961 the assessments for all the relevant assessment years were completed by the Department during the quarter ended June 30, 2015. Consequently, the Company has computed the differential tax liability aggregating to Rs, 27 lacs for these years and accounted for the same in the quarter ended June 30, 2015. Further, the Company has filed applications for rectification of two Assessment Orders which had discrepancies, which is pending with the Department.

Note: Amounts pertaining to the previous year relate to payments made to previous joint auditors.

2. As per information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

3. The Company has investments in subsidiaries namely Balaji Motion Pictures Limited (BMPL), Bolt Media Ltd (BML), ALT Digital Media Entertainment Limited (ALT), Chhayabani Balaji Entertainment Private Limited (CBEPL), Marinating Films Private Limited (MFPL) and Event Media LLP (EMLLP) aggregating to Rs, 18,508.01 lacs (Previous year Rs, 3,450.51 lacs). Further, the Company has also given loans and advances aggregating to Rs, 23,238.44 lacs (Previous year Rs, 10,997.24 lacs) to BMPL, ALT, BML and EMLLP As per the latest audited balance sheet of BMPL, BML, ALT, MFPL and EMLLP for the year ended March 31, 2016, the accumulated losses have fully eroded the net-worth of the respective companies. However, no provision for diminution in the value of the investments is considered necessary as the investments are strategic long-term investments and the diminution in the value is temporary in nature.

4 Regulation-34 (3) of the SEBI (Listing Obligation and disclosure Requirement) Regulation, 2015

Loans and advances in the nature of loans given to subsidiaries and associates :

5. Related party Transactions

(a) Name of related parties and description of relationship.

Name of the Related Party Relationship

Balaji Motion Pictures Limited Subsidiary Company (control exist)

Marinating Films Private Ltd Subsidiary Company (control exist)

Bolt Media Limited Subsidiary Company (control exist)

ALT Digital Media Entertainment Limited Subsidiary Company (control exist)

Chhayabani Balaji Entertainment Private Limited Subsidiary Company (control exist)

Event Media LLP Subsidiary Body Corporate

IPB Capital Advisors LLP Associate

Mr. Jeetendra Kapoor Key management person

Mrs. Shobha Kapoor Key management person

Ms. Ekta Kapoor Key management person

Mr. Tusshar Kapoor Key management person

Mr. Sameer Nair Key management person

Balaji Films & Telly Investments Limited Key management person having significant influence

Note

(i) There are no provision for doubtful debts, amounts written off or written back during the year in respect of debts due from or due to related parties.

(ii) Figures in bracket relate to the previous year.

6. Employee Benefits

a) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to Rs, 51.28 lacs (previous year Rs, 39.61 lacs).

b) Defined Benefit Plans

I Reconciliation of asset / (liability) recognized in the Balance Sheet (under pre-paid expenses , Refer Note 15)

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

7. Lease Transactions

Amount of lease rentals charged to the Statement of profit and loss in respect of operating leases is Rs, 1,594.85 Lacs (previous year Rs, 1,572.02 Lacs).

8. Segment information

The Company is primarily engaged in the business of production of television content, which, in the context of Accounting Standard 17 on ''Segment Reporting'', constitutes a single reportable segment.

9. The company did not have any long term contracts including derivative contracts for which any provision is required for foreseeable losses

10. During the previous year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company revised the estimated useful life of relevant assets to align the useful life with those specified in Schedule II. Pursuant to the transitional provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and adjusted an amount of Rs, 177.33 lacs (net of deferred tax credit of Rs, 85.17 lacs) against the opening balance in the Statement of Profit and Loss under Reserves and Surplus. The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs, 157.60 lacs and profit after tax for the year is lower by Rs, 106.47 consequent to the change in the useful life of the assets.

11. The Company has investments in Optionally Convertible Debentures in Aristo Learning Private Limited and Second School Learning Private Limited aggregating Rs, 465.81 lacs. These investments are strategic and non-current (long-term) in nature. However, considering the financial position of the respective investee companies, the Company, out of abundant caution, has during the previous year provided for these investments considering the diminution in their respective values.

12. The figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

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Mar 31, 2015

NOTE 1 CORPORATE INFORMATION

Balaji Telefilms Limited was incorporated on November 10, 1994 under the Companies Act, 1956. The Company has established itself as a leader in television content in India particularly for Hindi language content and has also successfully ventured in the regional television content market and event business.

Rs. in Lacs

As at As at March 31, March 31, 2015 2014

Note 2. Contingent liabilities (to the extent not provided for)

A contingent Liabilities

a) In respect of the demands (including interest) raised by Prasar Bharti 557.20 557.20 Broadcasting Corporation of India (Corporation), the Company has arrived at a one-time settlement with the Corporation by making a payment of Rs. 200.00 lacs as telecast fees which has been accounted for as an expense in the previous year. As per the terms of the settlement, the balance outstanding of Rs. 557.20 lacs would be settled by way of supply of various old regional television content. The Company has submitted the required content to the Corporation, the approval for which is being received by the Company in a phased manner. As a result, the Company does not expect any charge in the financial statements on receipt of entire approvals from the Corporation for the balance outstanding.

b) The Company in earlier years 17,708.81 17,708.81 had received notices of demand from the Department of Sales Tax, Government of Maharashtra, aggregating to Rs. 17,107.87 lacs (including interest and penalty) pertaining to the years 2000 to 2004. The Company has appealed against the said orders with the Deputy Commissioner (Appeals) and the same is pending adjudication. Further in the previous year, the sales tax authorities have levied an additional sales tax demand (including penalty and interest) under the Bombay Sales Tax Act aggregating of Rs. 515.44 lacs and under Works Contract Act aggregating to Rs. 85.50 lacs for the year 2004-05. The Company is contesting these additional claims by filing appeals with the respective appellate authorities. Further, the Company has also been assessed for the years 2005-06, 2006-07, 2007-08, 2008-09, 2009-2010 and 2010-11 under the above statutes where the matters contained in the aforesaid demand orders have been accepted by the authorities and has been adjudicated in favour of the Company.

c) The Company had received demand notices from the Office of the 9,245.00 9,245.00 Commissioner of Service Tax, Mumbai (excluding Interest and penalty) pertaining to Service tax for the period April 2006 to March 2010 on exports made to one of the customers of the Company. On appeal to the Commissioner of Service Tax, the matter pertaining to the period April 2006 to March 2008 was adjudicated in favour of the Company, wherein the demand amount was Rs. 63.48 Crs. The Commissioner has further filed an appeal against the said order with the Customs, Excise & Service Tax Appellate Tribunal. As per the notice of hearing received by us, the matter has been listed for hearing in the tribunal on June 3, 2015. On the same matter, a Show Cause Notice (SCN)for the period April 2008 to March 2010 has been issued with demand amount of Rs. 28.97 Crs. SCN is pending for adjudication with the Commissioner of Service Tax. Company has also received Show Cause Notice from the Office of the Commissioner of service Tax pertaining to service tax for the year 2010 to March 2011 for discharging service tax on export sales made to a customer. Liability in this case is Rs. 0.46 Crs. Company has prepared and submitted reply to the Commissioner of Service tax in the matter, on the same lines as done in earlier years.

Note 3. On April 30, 2013, the Income-tax Department visited the premises of the Company and initiated proceedings under Section 132 of the Income-tax Act, 1961. In this connection, the Company has received notices under section 153A of Income-tax Act,1961 and the Company has complied with the requirements of the said notices. Based on complaince of the requirement under Sec 153A, the Company has now received notices for providing various details to the assessing officers for carrying out assessments. The Company is in the process of complying with the requirements and is submitting required information. Since the proceedings are pending completion, the tax liability, if any, would be ascertained and provided on the completion of the assessments under these proceedings.

Note 4. As per information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

Note 5. The Company has investments in subsidaries namely Balaji Motion Pictures Limited (BMPL), Bolt Media Ltd (BML), Marinating Films Private Limited (MFPL) and Event Media LLP (EMLLP) aggregating to Rs. 3,450.51 lacs (Previous year Rs. 3,005.00 lacs). Further, the Company has also given loans and advances aggregating to Rs. 10,997.24 lacs (Previous year Rs. 11,418.34 lacs) to BMPL, BML and EMLLP. As per the latest audited balance sheet of BMPL, BML, MFPL and EMLLP for the year ended March 31,2015, the accumulated losses have fully eroded the net-worth of the respective companies. However, no provision for diminution in the value of the investments is considered necessary as the investments are strategic long-term investments and the diminution in the value is temporary in nature.

Note 6. Related Party Transactions

(a) Name of related parties and description of relationship.

Name of the Related party Relationship

Balaji Motion Pictures Limited Subsidiary Company (control exist)

Marinating Films Pvt Ltd Subsidiary Company (control exist)

Bolt Media Limited Subsidiary Company (control exist)

Event Media LLP Subsidiary Body Corporate

IPB Capital Advisors LLP Associate

Mr. Jeetendra Kapoor Key management person

Mrs. Shobha Kapoor Key management person

Ms. Ekta Kapoor Key management person

Mr. Tusshar Kapoor Key management person

Mr. Sameer Nair (from July 15, 2014) Key management person

Mr. Ramesh Sippy (till June 30,2014) Relative of Key management person

Balaji Films & Telly Investments Limited Key management person having significant influence

Note 7. Lease Transactions

Amount of lease rentals charged to the profit and loss accounts in respect of operating leases is Rs. 1,572.02 Lacs (previous year Rs. 764.35 Lacs).

Note 8. Segment information

The Company is primarily engaged in the business of production of television content, which, in the context of Accounting Standard 17 on 'Segment Reporting, constitutes a single reportable segment.

Note 9. During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1,2014, the Company revised the estimated useful life of relevant assets to align the useful life with those specified in Schedule II. Pursuant to the transitional provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1,2014, and adjusted an amount of Rs. 177.33 lacs (net of deferred tax credit of Rs. 85.17 lacs) against the opening balance in the Statement of Profit and Loss under Reserves and Surplus. The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 157.60 lacs and profit after tax for the year is lower by Rs. 106.47 consequent to the change in the useful life of the assets.

Note 10. The Company has investments in Optionally Convertible Debentures in Aristo Learning Private Limited and Second School Learning Private Limited aggregating Rs. 465.81 lacs. These investments are strategic and non-current (long-term) in nature. However, considering the current financial position of the respective investee companies, the Company, out of abundant caution, has,during the current year provided for these investments considering the diminution in their respective values.

Note 11. The Company during the year, pursuant to a memorandum of understanding (MOU) with Chhayabani Private Limited (CPL), on Feb 16, 2015 has formed Chhayabani Balaji Entertainment Private Limited (CBEPL). Subsequent to the year end, the Company has completed other formalities related to commencement of business.

Note 12. The figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

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Mar 31, 2014

In Lakhs

As at As at

March 31, 2014 March 31, 2013

1. Contingent liabilities and commitments (to the extent not provided for)

A Contingent Liabilities

a) In respect of the demands (including interest) raised by Prasar Bharti 557.20 757.20 Broadcasting Corporation of India (Corporation), the Company has arrived

at a one-time settlement with the Corporation by making a payment of Rs. 200.00 lacs as telecast fees which has been accounted for as an expense in the current year. As per the terms of the settlement, the balance outstanding of Rs.557.20 lacs would be settled by way of supply of various old regional television content. The Company has submitted the required content to the Corporation, the approval for which is being received by the Company in a phased manner. As a result, the Company does not expect any charge in the financial statements on receipt of entire approvals from the Corporation for the balance outstanding.

b) The Company in earlier years had received notices of demand from the 17,708.81 17,107.87 Department of Sales Tax, Government of Maharashtra,aggregating to Rs.17,107.87 lakhs (including interest and penalty) pertaining to the years 2000 to 2004. The Company has appealed against the said orders with the Deputy Commissioner (Appeals) and the same is pending adjudication. Further in the current year, the sales tax authorities have levied an additional sales tax demand (including penalty and interest) under the Bombay Sales Tax Act aggregating of Rs.515.44 lacs and under Works Contract Act aggrega ting to Rs.85.50 lacs for the year 2004-05. The Company is contesting these additional claims by filing appeals with the respective appellate authorities. Further, the Company has also been assessed for the years 2006-2007 and 2009-2010 under the above statutes where the matters con tained in the aforesaid demand orders have been accepted by the authorities.

c) The Company had received demand notices from the Office of the 9,245.00 9,245.00 Commissioner of Service Tax, Mumbai (excluding Interest and penalty) pertaining to Service tax for the period April 2006 to March 2010 on exports made to one of the custo mers of the Company. On appeal to the Commissioner of Service Tax, the matter pertaining to the period April 2006 to March 2008 was adjudicated in favour of the Company, wherein the demand amount was Rs. 63.48 Crs. The Commissioner has further filed an appeal against the said order with the Customs, Excise & Service Tax Appellate Tribunal. The matter is pending hearing. On the same matter, a Show Cause Notice (SCN) for the period April 2008 to March 2010 has been issued with demand amount of Rs. 28.97 Crs. SCN is pending for adjudication with the Commissioner of Service Tax.

d) The Company had received demand notice from the Office of the - 92.91

Commissioner of Service Tax, Mumbai pertaining to Service Tax for the period April 2006 to March 2009 on certain transactions. The Company has contested these claims and a hearing was granted to the Company. However, the Commissioner passed an adverse order confirming the tax demand and levied interest and penalty. The Company had filed an appeal before Customs, Excise and Service Tax Appellate Tribunal (CESTAT) against the demand. The CESTAT has remanded the matter back to the adjudicating authority for consideration of the issue afresh. The adjudicating authority has not granted any hearing yet.

e) The Company has received an order from the Chief Executive Officer (CEO)/ - 287.35

Collector towards lease rent and other related charges for use of facilities of Aarey Milk Colony (Aarey). The Company has contested these claims and has also filed a Writ Petition in the Bombay High Court. However, Bombay High Court while admitting the Writ Petition, called upon the Company to pay the amount to Aarey. The Company filed an appeal in the Supreme Court against the Order of the Bombay High Court. However, the Supreme Court directed the Company to pay the entire amount by June 7, 2013 and referred the matter to the Bombay High Court for adjudication. The Company has made a payment of Rs. 213.64 lacs towards the outstanding amount due to Aarey and also carried out the repair works of the godowns amounting to Rs. 35.83 lacs to their full satisfaction. Accordingly, The Chief Executive Officer, Aarey Milk Colony vide a letter dated 28/01/2014 confirmed that no amount is due from the Company.

B Commitments :

Future commitments towards capital contribution in Indus Balaji Investor Trust 800.00 1,300.00

2. The Company had applied to the Office of the Commissioner of Sales- tax, Mumbai, to ascertain whether the Company''s sales are liable to tax under the Sales- tax laws. Since, the Commissioner of Sales Tax did not decide the said application which was filed under the process of Determination of Disputed Questions (DDQ), the Company filed a Writ Petition before Honourable Bombay High Court for necessary direction. The Honorable Bombay High Court passed an Order on July 9, 2013 directing the Department to decide on the DDQ application of the Company. Pursuant to the directions of the Honorable Bombay High Court Order, the Department passed an Order on September 26, 2013. The Order states that since the Company has been already assessed on the subject for these years and the Company had already filed appeals against the said assessment orders, the application for DDQ is not maintainable and the Company is allowed to follow the normal process of appeal against these assessment orders. Refer note 23.1(A)(b).

3. On April 30, 2013, the Income-tax Department visited the premises of the Company and initiated proceedings under Section 132 of the Income-tax Act, 1961. In this connection, the Company has received notices under section 153A of Income-tax Act,1961 and the Company has complied with the requirements of the said notices. Since the proceedings are pending completion, the tax liability, if any, would be ascertained and provided on the completion of the assessments under these proceedings.

4. As per information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

5. The Company has investments in 30,000,000 and 50,000 equity shares of its 100% subsidiaries, namely Balaji Motion Pictures Limited (BMPL) and Bolt Media Limited (BML) aggregating to Rs. 3,000 lacs and Rs. 5 lacs respectively. Further, the Company has also given loan and advances aggregating to Rs. 10,965.37 Lacs (previous year Rs. 14,571.84 Lacs) to BMPL and Rs. 452.97 Lacs (previous year Rs. 73.13 Lacs) to BML. As per the latest audited balance sheet of BMPL and BML for the year ended March 31, 2014, the accumulated losses have fully eroded the net-worth of the respective companies. However, no provision for diminution in the value of the investments is considered necessary as the investments are strategic long term investments and the diminution in the value is temporary in nature.

6. Employee Benefits

a) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to Rs.34.62 Lacs (previous year Rs.37.41Lacs)

b) Defined Benefit Plans

7. Lease Transactions

Amount of lease rentals charged to the profit and loss account in respect of operating leases is Rs. 764.35 Lacs (previous year Rs. 93.60 Lacs).

8. Segment Information

(A) Information about primary segments

The Company has considered business segment as the primary segment for disclosure. The reportable business segments are as under:

(a) Commissioned Programmes : Income from sale of television serials to channels

(b) Sponsored Programmes : Income from telecasting of television serials on channels 23.17 The figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

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Mar 31, 2012

NOTE 1 CORPORATE INFORMATION

Incorporated on November 10, 1994, Balaji Telefilms Limited has established itself as one of the largest televison content production houses in India. With its footprint established in the hindi speaking market, it has now extended into the regional entertainment markets. With a library of over 100 television shows, Balaji has also ventured into the events business.

Notes

a) Building includes Rs. 220.86 Lacs (previous year Rs. 220.86 Lacs), being cost of ownership premises in co-operative society including cost of shares of face value of Rs. 0.01 Lac received under Bye-law of the society.

b) The Company, in the previous year, had invested in three adjacent plots of land admeasuring approximately 38,870 sq. mtrs. in aggregate, situated within the limits of Mira Bhayander Municipal Corporation. During the current year, the Company has sold the plots of land for a consolidated consideration aggregating to Rs. 5,100.00 Lacs on an 'as-is where-is' basis vide two separate transactions and has accounted for the profit on sale aggregating to Rs. 122.90 Lacs (net of related expenses). Part of the land has been sold to M/s JK Developers a sole proprietary firm owned by one of the Directors of the Company.

c) Transfer of assets pertains to sale of divisions (refer note 23.11)

d) Depreciation includes depreciation towards discontinued operations aggregating to Rs. 62.74 Lacs (Previous year Rs. 47.52 Lacs)

note 2 additional information to the financial statements and disclosure under accounting

STANDARDS

(Rs. in Lacs)

As at March As at March 31, 2012 31, 2011

2.1 CONTINGENT LIABILITIES AND COMMITMENTS (To THE ExTENT NOT

provided for)

A Contingent Liabilities

a) Claim against the Company not acknowledged as debts. This 495.00 495.00 represents demand raised by a Prasar Bharti Broadcasting

Corporation of India. The Company is of the view that the claim is not valid. Legal proceedings have been initiated for quashing the said demand. The amount disclosed is the minimum liability on this count excluding interest thereon which is presently not quantifiable.

b) The Company has received notices of demand from the 17,107.87 22,363.00 Department of Sales Tax, Government of Maharashtra pertaining

to the years 2000 to 2004 (Previous year 2000 to 2005). The department has sought to tax the Sales revenue of the Company under the 'Commissioned Programs' category to Sales tax under the Bombay Sales Tax Act, 1959. The Company has appealed against the said order of the Sales Tax Officer to the Deputy Commissioner (appeals) and the same is pending adjudication.

c) The Company had received demand notices from the Office of 9,245.00 9,245.00 the Commissioner of Service Tax, Mumbai (excluding Interest

and penalty) pertaining to Service tax for the period April 2006 to March 2010 on exports made to one of the customers of the Company. On appeal, the matter pertaining to the period April 2006 to March 2008 was adjudicated in favour of the Company.

The Commissioner has further filed an appeal against the adjudication with the Customs, Excise & Service Tax Appellate Tribunal. The matter is pending hearing.

d) The Company has received an order of compensatory loss from 18.51 18.51 the City Civil & Sessions Court, Greater Mumbai, stating that

the Company has unauthorized possession of the administrative place situated at Aarey Milk Colony. The Company has paid 50% of the amount aggregating to Rs. 18.51 Lacs under protest.

B Commitments

Future commitments towards capital contribution in Indus Balaji 3,200.00 -

Investor Trust (refer note 23.17).

2.2 The Company has applied to the Office of the Commissioner of Sales- tax, Mumbai, to ascertain whether the Company's sales are liable to tax under the Sales- tax laws. The matter is still pending before the Sales -tax authority. During the year the Company has received a letter from the office of Deputy Commissioner of Sales Tax inquiring about the Company's intentions on pursuing the Determination of Disputed Question (DDO), to which the Company has responded positively, in favor of getting a clarification in the matter. Refer note 23.1.(b)

2.3 As per information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006. Accordingly, disclosure as required by the said Act is given in Note 5.

2.4 The Company has investments in 30,000,000 equity shares of its 100% subsidiary Balaji Motion Pictures Limited (BMPL) at cost of Rs. 3,000 Lacs. Further, the Company has also given loans and advances aggregating to Rs. 4,696.78 Lacs (previous year Rs. 1,567.44 Lacs) to BMPL. As per the latest audited balance sheet of BMPL for the year ended March 31, 2012, the accumulated losses have partly eroded its net worth. However, no provision for diminution in the value of the investment is necessary in view of the investment being long term and of strategic importance and the diminution in the value being on account of temporary factors.

2.5 EMPLOYEE BENEFITS

a) Defined Contribution Plans

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognized as expense amounts to Rs. 73.36 Lacs (previous year Rs. 71.22 Lacs)

b) Defined Benefit Plans

2.6 The Company has obtained shareholders approval vide resolution passed through postal ballot, results whereof were declared on February 18, 2011, to sell and transfer as a going concern, on slump sale basis on such terms and conditions as are negotiated by the Board and/or the Managing Director, it's Mobile, Internet and Education division (Collectively the "Undertakings") at not less than fair value determined by an independent firm of Chartered Accountants or any other professional valuer and with effect from such date and in such manner as may be determined by the Board and/ or the Managing Director. During the year, the Company has entered into binding business transfer agreements, to sell its Mobile and Education division for a consolidated sum of Rs. 837.00 Lacs, based on fair value determined by an independent firm of Chartered Accountants. As per the terms of the agreements, the transactions would be effective on receipt of full consideration within a period not exceeding a period of 90 days from the date of the agreements. Accordingly, the net consideration of Rs. 824.80 Lacs has been accounted in the last quarter of the current year as "other operating income". The Management of the Company has decided to retain the internet division within the Company. The disclosures as required by AS 24 are as under:

b) The Company has also taken certain premises on cancellable operating lease basis.

c) Amount of lease rentals charged to the profit and loss account in respect of operating leases is Rs. 726.78 Lacs (previous year Rs. 782.74 Lacs).

2.7 SEGMENT INFORMOTION

A) Information about primary segments

The Company has considered business segment as the primary segment for disclosure. The reportable business segments are as under:

a) Commissioned Programmes : Income from sale of television serials to channels

B) Segment information for secondary segment reporting (by geographical segment).

The Company operates under one geographical segment and hence disclosures relating to geographical segment are not given.

2.8 Shareholders vide resolution passed through postal ballot, results whereof were declared on February 18, 2011, amended the objects clause of the Company to allow the Company to carry on inter-alia the business of providing financial services and other similar businesses. Subsequently, the Company management has decided to set up and sponsor Private Equity / Venture Capital Funds focusing on the Media & Entertainment and Education industry. Accordingly, the Company has committed to invest in two funds, set up by "Indus Balaji Investor Trust" and "Indus Balaji Education Investor Trust", both of which are Domestic Venture Capital Funds registered with SEBI. The Company has committed to invest upto Rs. 4,000 Lacs towards class A Units in 'Emerging Markets Media and Entertainment Opportunities Fund I-A', a Scheme of Indus Balaji Investor Trust. Of this, the first installment of Rs. 800.00 Lacs was invested during the financial year. The Company has a future commitment of upto Rs. 3,200 Lacs.

2.9 The figures of the previous year have been regrouped wherever necessary to correspond with those of the current year in-line with the Revised Schedule VI to the Companies Act, 1956.

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Mar 31, 2011

1. The Company has investments in 30,000,000 equity shares of its 100% subsidiary Balaji Motion Pictures Limited (BMPL) at cost of Rs.3,000 Lacs. As per the latest audited balance sheet of BMPL for the year ended March 31, 2011, the accumulated losses have partly eroded its net worth. However, no provision for diminution in the value of the investment is necessary in view of the investment being long term and of strategic importance and the diminution in the value being on account of temporary factors

Notes:

There are no provision for doubtful debts, amounts written off or written back during the year in respect of debts due from or due to related parties

II. Column number represents,

1. Subsidiary companies

2. Key management personnel

3. Relative of key management personnel

9. Segment Information

(A) Information about primary segments

The Company has considered business segment as the primary segment for disclosure. The reportable business segments are as under: (a) Commissioned Programmes : Income from sale of television serials to channels

(B) Segment information for secondary segment reporting (by geographical segment)

The Company has two reportable geographical segments based on location of customers i) Revenue from customers within India - loca

2. Lease Transactions

b) The Company has also taken certain premises on cancellable operating lease basis

c) Amount of lease rentals charged to the Profit and Loss Account in respect of operating leases is Rs. 807.58 Lacs (previous year Rs. 875.18 Lacs).

3. Employee Benefits

a) Defined Contribution Plans

Both the employees and the Company make predetermined contributions to the provident fund. Amount recognised as expense amounts to Rs. 88.94 Lacs (previous year Rs. 75.48 Lacs)

4. Discontinued Operations

The Company has obtained shareholders approval via resolution passed through postal ballot on February 18, 2011 to sell and transfer as a going concern, on slump sale basis on such terms and conditions as are negotiated by the Board and/or the Managing Director, it's Mobile, Internet and Education Divisions (Collectively the "Undertakings") at not less than fair value determined by an independent firm of Chartered Accountants or any other professional valuer and with effect from such date and in such manner as may be determined by the Board and/ or the Managing Director. The Board and/ or the Managing Director has also been authorised to do such acts, deeds and things for completing the sale and transfer of the Undertakings. Accordingly, the above undertakings are considered as 'discontinuing operations' in terms of Accounting Standard 24 on 'Discontinuing Operations' (AS 24)

5. As per information available with the Company, none of the creditors have confirmed that they are registered under the Micro, Smal and Medium enterprises Development Act, 2006. Accordingly, disclosure as required by the said Act is made on that basis

6. Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

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Mar 31, 2010

1. The Company has investments in wholly owned subsidiary Balaji Motion Pictures Limited (BMPL) aggregating to Rs. 3,000 Lacs. Further, the Company has also given interest free loans to BMPL aggregating to Rs. 3,453.09 Lacs. As per the latest audited balance sheet of BMPL for the year ended 31st March, 2010, the accumulated losses have substantially eroded its net worth. However, BMPL expects to release two movies in the next year, the production of which is already completed and is also in advanced stages of discussion with parties for additional movie ventures. Accordingly, no provision for diminution in the value of the investment and loans given is considered necessary at this stage in view of the investment being long term and of strategic importance and the diminution in the value being on account of temporary factors as aforesaid.

2. Related Party Disclosures

Notes:

I. There are no provision for doubtful debts, amounts written off or written back during the year in respect of debts due from or due to related parties.

II. Column number represents,

1. Subsidiary companies

2. Key management personnel

3. Relative of key management personnel

3. As per information available with the Company, none of the creditors have confrmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006. Accordingly, disclosure as required by the said Act is made on that basis.

4. Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.