Notes to Accounts of Sun TV Network Ltd.

Mar 31, 2025

r) Provisions

A provision is recognized when the Company has a present obligation as a result of past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the
liability. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates. The expense relating to a provision is presented in the statement of profit and loss.

s) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories:

? Debt instruments at amortized cost

? Debt instruments at fair value through profit or loss (FVTPL)

? Equity instruments at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

? The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

? Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

Debt instrument at FVTPL

Financial assets are classified as at FVTPL when the financial asset is held for trading or it is designated as at
FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized
in the Statement of Profit and loss account.

In addition, the Company may elect to classify a debt instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, the Company doesn’t have any debt instruments that qualify for
FVTOCI classification.

Equity investments

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading are classified as FVTPL. For all other equity instruments, the Company decides to classify the
same either as at FVTOCI or FVTPL. However, there are no such instruments that have been classified
through FVTOCI, and all equity instruments are routed through FVTPL.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized
in the P&L.

Equity investment in Subsidiary and Joint Venture

Investment in subsidiary and joint venture is carried at cost less accumulated impairment loss in the separate
financial statements as permitted under Ind AS 27.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognized (i.e. removed from the Company’s balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement;
and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure:

? Financial assets that are debt instruments, and are measured at amortized cost e.g. debt securities, deposits,
trade receivables and bank balance

? Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognizing impairment loss allowance based on 12-month ECL. Lifetime ECL are the expected
credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-
month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months
after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity is required to consider:

? All contractual terms of the financial instrument (including prepayment, extension, call and similar options)
over the expected life of the financial instrument. However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual
term of the financial instrument

? Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the
expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the
historically observed default rates are updated and changes in the forward-looking estimates are analyzed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the statement of profit and loss (P&L). This amount is reflected under the head ‘Other Expenses’ in
the P&L. The balance sheet presentation for various financial instruments is described below:

? Financial assets measured as at amortized cost: ECL is presented as an allowance, i.e., as an integral part of
the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until
the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying
amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the
basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a timely basis.

Financial Liabilities

Initial recognition and measurement

The Company’s financial liabilities include deposits, trade and other payables. These are recognized
initially at amortized cost net of directly attributable transaction costs.

Subsequent measurement

After initial recognition, they are subsequently measured at amortized cost using the EIR method. Gains and
Losses are recognised in profit or loss when the liabilities are derecognized as well as through the EIR
amortization process.

The EIR amortization is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made

to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected to be
infrequent.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there is
a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

t) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the Standalone Financial Statements.

u) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an asset, it is recognised as income in
equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and depreciated / released to profit or loss over the expected useful life in a pattern of consumption of
the benefit of the underlying asset.

v) Segment Reporting

Based on internal reporting provided to the Chief operating decision maker, the Company’s operations
predominantly related to Media and Entertainment and, accordingly, this is the only operating segment. The
management committee reviews and monitors the operating results of the business segment for the purpose
of making decisions about resource allocation and performance assessment using profit or loss and return on
capital employed.

w) Dividend

The Company recognises a liability to pay dividend to equity holders when the distribution is authorised, and
the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders / board of directors as may be applicable read along
with the relevant provisions of the Companies Act, 2013. A corresponding amount is recognised directly
in equity.

x) Exceptional Items

An item of income or expense which by its size, type or incidence is such that its disclosure improves the
understanding of the performance of the Company, such income or expense is classified as an exceptional
item and accordingly, disclosed as such in the Standalone Financial Statements.

y) New and amended standards

(i) Ind AS 116 - Lease Liability in Sale and Leaseback

The Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024, which amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and
Leaseback.

The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in
a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or
loss that relates to the right of use it retains.

The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be applied
retrospectively to sale and leaseback transactions entered into after the date of initial application of
Ind AS 116. The amendment does not have impact on the Company’s Standalone Financial Statements.

(ii) Ind AS 117 - Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification
dated 12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024,
which is effective from annual reporting periods beginning on or after 1 April 2024. Ind AS 117 Insurance
Contracts is a comprehensive new accounting standard for insurance contracts covering recognition and
measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104 Insurance Contracts.

The application of Ind AS 117 had no impact on the Standalone Financial Statements as the Company has
not entered any contracts in the nature of insurance contracts covered under Ind AS 117.

z) Significant accounting judgements, estimates and assumptions

The preparation of the Company’s Standalone Financial Statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following
judgements, which have the most significant effect on the amounts recognised in the Standalone Financial
Statements:

Amortisation of intangible assets

Acquired Satellite Rights for the broadcast of feature films and other long-form programming such as multi¬
episode television serials are stated at cost.

The Management has estimated the useful life of film broadcasting rights (satellite rights) taken into
consideration of pattern of the expected future economic benefits and prevailing industry practices.
Accordingly cost of such rights are amortised over a period of four years, from the date of first telecast of the
film, in a graded manner.

The cost related to program broadcasting rights / multi episodes series are amortized based on the telecasted
episodes.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the Standalone Financial Statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in
the assumptions when they occur.

Provision for taxes

The Company''s tax expense for the year is the sum of the total current and deferred tax charges. The
calculation of the total tax expense necessarily involves a degree of estimation and judgement in respect of
certain items. A deferred tax asset is recognised when it has become probable that future taxable profit will
allow the deferred tax asset to be recovered. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future
taxable profits together with future tax planning strategies.

Provision for expected credit losses of trade receivables and contract assets

The Company uses a provision matrix to calculate ECLs for trade receivables. Please refer note 2 (s) above
to refer the significant estimates and assumptions made by the Management. The information about
the ECLs on the Company’s trade receivables is disclosed in Note 38.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment leave encashment benefit and the
present value of the gratuity obligation are determined using 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, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.

aa) Events after the reporting period

If the Company receives information after the reporting period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period, it will assess whether the information affects the
amounts that it recognises in its Standalone Financial Statements. The Company will adjust the amounts
recognised in its Standalone Financial Statements to reflect any adjusting events after the reporting period and
update the disclosures that relate to those conditions in light of the new information. For non-adjusting events
after the reporting period, the Company will not change the amounts recognised in its Standalone Financial
Statements but will disclose the nature of the non-adjusting event and an estimate of its financial effect, or a
statement that such an estimate cannot be made, if applicable.

bb)Standards issued, but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of
issuance of the Company’s financial statements are disclosed below. The Company will adopt this new and
amended standard, when it becomes effective.

Lack of exchangeability - Amendments to Ind AS 21

The Ministry of Corporate Affairs notified amendments to Ind AS 21 The Effects of Changes in Foreign
Exchange Rates to specify how an entity should assess whether a currency is exchangeable and how it should
determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of
information that enables users of its financial statements to understand how the currency not being
exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance,
financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after 1 April 2025. When applying
the amendments, an entity cannot restate comparative information.

The amendments are not expected to have a material impact on the Company’s financial statements.

(ii) Terms/Rights attached to Equity Shares

The Company has one class of equity shares having a face value of Rs.5.00 each. Each shareholder is eligible for one
vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31,2025, the Board of Directors have declared interim dividends of Rs.15 per share in
aggregate at their respective Board meetings (March 31,2024: Rs.16.75/- share)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The
distribution will be in proportion to the number of equity shares held by the shareholders.

Information about the Company''s performance obligations are summarised below:

The performance obligation for Income from Advertisement and Sale of Broadcast Slots is satisfied upon telecast /
airing of the commercial. The performance obligation for Income from Subscription is satisfied upon the rendering of
services over the period of subscription in accordance with the terms of the agreement. The performance obligation
for Income from Cricket franchise is satisfied upon rendering of services as per the terms of the agreement with the
cricket boards, sponsors and conclusion of the matches for which tickets are sold. The performance obligation for
Income from Movie distribution is satisfied upon rendering of services as per the terms of contract entered into with
distributors and digital streaming platforms. The payment for the above is generally due within 30-90 days.

Note 30. Employee Benefit Plans

A) Defined Contribution Plans

i) Contribution to Provident Fund: Contributions towards Employees Provident Fund made to the Regional /
Employee Provident Fund are recognised as expenses in the year in which the services are rendered.

ii) Contribution to Employee State Insurance: Contributions to Employees State Insurance Scheme are
recognised as expense in the year in which the services are rendered.

B) Defined Benefit Plan - Gratuity

The Company has a defined benefit Gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service.
The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for
the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees
reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and
investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level
such that no plan deficits (based on valuation performed) will arise.

The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the Statement of Profit and
Loss and the funded status and amounts recognised in the Balance Sheet for the Gratuity plan.

Information on approved scheme of amalgamation

The National Company Law Tribunal, Division Bench, Chennai, approved the Composite Scheme of Arrangement
("the SAFL Scheme") for the amalgamation between South Asia FM Limited (Joint Venture of the Company,
hereinafter referred to as "Amalgamated Company") and its Joint Ventures / Associate Companies (together referred
to as "Amalgamating Companies") under Sections 230 and 232 of the Companies Act, 2013, on December 9, 2024,
and the said order was communicated to the amalgamated company and amalgamating companies on December 17,
2024. The SAFL Scheme became effective on February 1,2025, post fulfilling the conditions precedent in Clause 36.1
of the Scheme, which, inter alia, included obtaining relevant approvals by the Ministry of Information & Broadcasting to
transfer Phase III license of amalgamating companies in the name of the amalgamated company and the subsequent
filing of the SAFL Scheme with the Registrar of Companies.

Terms & Conditions of Transactions with Related Parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.
For the years ended March 31, 2025 and March 31, 2024, the company has not recorded any impairment of
receivables relating to amounts owed by related parties . This assessment is undertaken each financial year through
examining the financial position of the related parties and the market in which the related parties operate.

Note 36. Description of valuation techniques used and key inputs to valuation on investment in
Tax free and Taxable Bonds:

The valuation for tax free and taxable bonds are based on valuations performed by an accredited independent valuer.
The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method
recommended by the International Valuation Standards.

The Company has disclosed fair value of the tax free and taxable bonds using IMaCS standard methodology which
captures the market condition as on the given day of valuation on a "T 1" basis.

The Company has no restrictions on the disposal of its tax free bonds.

Significant Unobservable Inputs:

The Independent Valuer has made a detailed study based on standard methodology for scrip-level valuation and has
considered the available primary market and secondary market trades for valuation of bonds on the reporting date.
Outlier trades if any, are identified and excluded. Widespread Polling is also considered with market participants to
understand the movement in the levels. In the case of liquid instruments, the valuation is arrived at based on the value
of bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread-over
benchmark is arrived at and the same is carried forward.

Note 37. Fair Value disclosure on Investment Properties:

The Company’s Investment properties consist of office premises / commercial properties let out on lease.

As at March 31,2025 and March 31,2024, the fair values of the properties are Rs.130.20 crores and Rs.116.61 crores
respectively.

These valuations are based on valuations performed by a Registered Valuer as defined under Rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. The valuation model used is in accordance with a method
recommended by the International Valuation Standards.

The Company has no restrictions on the disposal of its Investment properties and no contractual obligations to
purchase, construct or develop Investment properties or for repairs, maintenance and enhancements.

Description of valuation techniques used and key inputs to valuation on Investment Properties:

The Company has fair valued the office premises and commercial property let out on lease using Market Approach
method.

Significant Unobservable Inputs:

The Independent Valuer has made a detailed study of prevailing market rate for the land and commercial buildings in
the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities,
depreciation and other leasehold improvements made by the Company to the respective properties.

Note 38. Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities, include trade and other payables. The Company has various financial
assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees
the management of these risks. The Company’s senior management ensures that the Company’s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarised below.

Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market Risk comprises two types of risks: Currency risk and other price risk, such as Equity price risk.
The value of financial instruments may change as a result of changes in the foreign currency exchange rates,
equity price fluctuation, liquidity and other market changes. Future-specific market movements cannot be normally
predicted with reasonable accuracy. Financial instruments affected by Market Risk include investment in equity
instruments etc..

Foreign Currency Risk

Foreign Currency Risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates
primarily to the Company’s operating activities. The impact of foreign exchange rate fluctuations is evaluated by
assessing its exposure to exchange rates risks. Exposure to foreign exchange fluctuation risks is with monetary
receivables / payables denominated in USD, GBP, ZAR and SGD.

Credit Risk

Credit Risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual
obligations and arises principally from the Company’s receivables, deposits given, investments made and balances at
bank. Credit Risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as
well as concentration of risks. Credit Risk is controlled by analysing credit limits and creditworthiness of customers on
a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

The maximum exposure to the Credit Risk is equal to the carrying amount of financial assets as of March 31,2025 and
March 31, 2024 respectively. On account of adoption of Ind AS 109 on ‘Financial Instruments’, the Company uses
''Expected Credit Loss'' model to assess the impairment loss or gain.

The allowance for lifetime expected credit loss on trade receivables for the years ended March 31,2025 and 2024,
was Rs.143.15 Crores and Rs.171.10 Crores respectively. The reconciliation of allowance for doubtful trade
receivables is as follows:

For the purpose of the Company’s capital management, ''Capital'' includes issued equity capital, securities premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. The Company’s policy for capital management aims to enhance capital
efficiency by the long-term improvement of its value through business growth, while maintaining a sound financial
structure. Indicators for monitoring the capital management include total equity attributable to owners of the Company
and ROCE (ratio of Profit before taxes to total equity attributable to owners of the Company).

The Company has used 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
software. Further, there are no instances of audit trail feature being tampered with. Additionally, the audit trail of prior
year has been preserved as per the statutory requirements for record retention.

Note 45. Impairment of investments in Joint Venture - Exceptional Item

During the year ended March 31,2025, considering the business environment of the Joint Venture (South Asia FM
Limited) and other economic factors, the Company identified an indicator for impairment of its investment in the Joint
Venture. The Company''s evaluation involved comparing the carrying value of its investment with its recoverable
amount which was determined basis the expected future cash flows expected to be generated.

The future cash flows considered key assumptions such as revenue growth, margins, etc. with due consideration for
potential risks given the current economic environment. The discount rates used were based on weighted average
cost of capital and reflects market assessment of the risk specific to the asset as well as time value of money. The
recoverable amount estimates were based on judgements, estimates, assumptions and market data as on the
reporting date and ignored subsequent change in the economic and market conditions.

The future cash flows were discounted using the post tax nominal discount rate of 17.70% derived from the post tax
weighted average cost of capital, including risk premium.

Accordingly, the Company determined the recoverable amount for its investment to be 375.82 crores and recorded an
impairment provision of Rs. 73.52 crores.

Note 46. Approval of Financial Statements

The Standalone Financial Statements were reviewed and recommended by the Audit Committee and have been
approved by the Board of Directors at their meeting held on May 30, 2025.

As per our report of even date

For S.R. Batliboi & Associates LLP On behalf of the Board of Directors

Chartered Accountants For Sun TV Network Limited

ICAI Firm Regn. No: 101049W/E300004

per Aravind K Kalanithi Maran Mahesh Kumar Rajaraman

Partner Chairman Managing Director

Membership No: 221268 DIN: 00113886 DIN: 05263229

Place : Chennai R. Ravi V C Unnikrishnan

Date : May 30, 2025 Company Secretary Chief Financial Officer

M.No.A13804

---

Mar 31, 2024

r) Provisions

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. The expense relating to a provision is presented in the statement of profit and loss.

s) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories:

? Debt instruments at amortized cost

? Debt instruments at fair value through profit or loss (FVTPL)

? Equity instruments at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

? The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

? Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

Debt instrument at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or it is designated as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and loss account.

In addition, the Company may elect to classify a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, the Company doesn’t have any debt instruments that qualify for FVTOCI classification.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL. However, there are no such instruments that have been classified through FVTOCI and all equity instruments are routed through FVTPL.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

Equity investment in Subsidiary and Joint Venture

Investment in subsidiary and joint venture is carried at cost in the separate financial statements as permitted under Ind AS 27.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

? The rights to receive cash flows from the asset have expired, or

? The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement;

and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

? Financial assets that are debt instruments, and are measured at amortized cost e.g. debt securities, deposits, trade receivables and bank balance

? Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month ECL. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12- month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

? All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument

? Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward- looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses’ in the P&L. The balance sheet presentation for various financial instruments is described below:

? Financial assets measured as at amortized cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the

basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis.

Financial liabilities

Initial recognition and measurement

The Company’s financial liabilities include deposits, and trade and other payables. These are recognized initially at amortized cost net of directly attributable transaction costs.

Subsequent measurement

After initial recognition, they are subsequently measured at amortized cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

The EIR amortization is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Reclassification of financial assets:

The Company determines classification of financial assets and liabilities on initial recognition.After initial recognition, no reclassification is made for financial assets which are equityinstruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

t) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existencein the financial statements.

u) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and depreciated / released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset.

v) Segment reporting

Based on internal reporting provided to the Chief operating decision maker, the Company’s operations predominantly related to Media and Entertainment and, accordingly, this is the only operating segment. The management committee reviews and monitors the operating results of the business segment for the purpose of making decisions about resource allocation and performance assessment using profit or loss and return on capital employed.

w) Dividend

The Company recognises a liability to pay dividend to equity holders when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders / board of directors as may be applicable read along with the relevant provisions of the Companies Act, 2013. A corresponding amount is recognised directly in equity.

x) Recent accounting pronouncements

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company’s standalone financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction -Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at 1 April 2022.

y) Significant accounting judgements, estimates and assumptions

The preparation of the Company’s Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Standalone Financial Statements:

Amortisation of intangible assets

Acquired Satellite Rights for the broadcast of feature films and other long-form programming such as multiepisode television serials are stated at cost.

The Management has estimated the useful life of film broadcasting rights (satellite rights) taken into consideration of pattern of the expected future economic benefits and prevailing industry practices. Accordingly cost of such rights are amortised over a period of four years, from the date of first telecast of the film, in a graded manner.

The cost related to program broadcasting rights / multi episodes series are amortized based on the telecasted episodes

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Standalone Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Provision for taxes

The Company''s tax expense for the year is the sum of the total current and deferred tax charges. The calculation of the total tax expense necessarily involves a degree of estimation and judgement in respect of certain items. A deferred tax asset is recognised when it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Provision for expected credit losses of trade receivables and contract assets

The Company uses a provision matrix to calculate ECLs for trade receivables. Please refer note 2 (r) above to refer the significant estimates and assumptions made by the Management. The information about the ECLs on the Company’s trade receivables is disclosed in Note 38.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment leave encashment benefit and the present value of the gratuity obligation are determined using 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, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Note 30. Employee Benefit Plans

A) Defined Contribution Plans

i) Contribution to Provident Fund : Contributions towards Employees Provident Fund made to the Regional / Employee Provident Fund are recognised as expenses in the year in which the services are rendered.

ii) Contribution to Employee State Insurance : Contributions to Employees State Insurance Scheme are recognised as expenses in the year in which the services are rendered.

B) Defined Benefit Plan - Gratuity

The Company has a defined benefit Gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a Trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aims to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the Gratuity plan.

Note 36. Description of valuation techniques used and key inputs to valuation on investment in Tax free and Taxable Bonds:

The valuation for tax free and taxable bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has disclosed fair value of the tax free and taxable bonds using IMaCS standard methodology which captures the market condition as on the given day of valuation on a "T 1" basis.

The Company has no restrictions on the disposal of its tax free bonds.

Significant Unobservable Inputs:

The Independent Valuer has made a detailed study based on standard methodology for scrip-level valuation and has considered the available primary market and secondary market trades for valuation of bonds on the reporting date. Outlier trades if any, are identified and excluded. Widespread Polling is also considered with market participants to understand the movement in the levels. In the case of liquid instruments, the valuation is arrived at based on the value of bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread-over benchmark is arrived at and the same is carried forward.

Note 37. Fair Value disclosure on Investment Properties:

The Company’s Investment Properties consist of office premises/ commercial properties let out on lease.

As at March 31,2024 and March 31,2023, the fair values of the properties are Rs.116.61 crores and Rs.113.83 crores respectively.

These valuations are based on valuations performed by a Registered Valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has no restrictions on the disposal of its Investment Properties and no contractual obligations to purchase, construct or develop Investment Properties or for repairs, maintenance and enhancements.

Description of valuation techniques used and key inputs to valuation on Investment Properties:

The Company has fair valued the office premises and commercial property let out on lease using Market Approach method.

Significant Unobservable Inputs:

The Independent Valuer has made a detailed study of prevailing market rate for the land and commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depreciation and other leasehold improvements made by the Company to the respective properties.

Note 38. Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market Risk comprises of two types of risks: Currency risk and other price risk, such as Equity price risk. The value of financial instruments may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future-specific market movements cannot be normally predicted with reasonable accuracy. Financial instruments affected by Market Risk include investment in equity instruments etc.

Foreign Currency Risk

Foreign Currency Risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. As per the Forex policy, the Company takes forward contracts for transactions where the foreign currency risk on account of movement in exchange rate is expected to be high and which is material to the Company. The impact of foreign exchange rate fluctuations is evaluated by assessing its exposure to exchange rates risks. Exposure to foreign exchange fluctuation risks is with monetary receivables / payables denominated in AED, AUD, USD, GBP, ZAR and SGD.

Credit Risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations and arises principally from the Company’s receivables, deposits given, investments made and balances at bank. Credit Risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit Risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

The maximum exposure to the Credit Risk is equal to the carrying amount of financial assets as of March 31,2024 and March 31, 2023 respectively. On account of adoption of Ind AS 109 on ‘Financial Instruments’, the Company uses ''Expected Credit Loss'' model to assess the impairment loss or gain.

The allowance for lifetime expected credit loss on trade receivables for the years ended March 31,2024 and 2023, was Rs.171.10 Crores and Rs.186.89 Crores respectively. The reconciliation of allowance for doubtful trade receivables is as follows:

The Company''s prime source of liquidity is cash and cash equivalents and the cash flow generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of March 31, 2024, the Company had a working capital of Rs.5,700.34 crores (March 31, 2023: Rs.4,876.07 crores) including cash and cash equivalents of Rs.284.84 crores (March 31, 2023: Rs.127.13 crores) and current investment of Rs.4,549.21 crores (March 31,2023: Rs. 3,499.34 crores).

As of March 31, 2024 and March 31, 2023, there are no material liabilities which are outstanding. Accordingly, no Liquidity Risk is perceived.

Note 39. Capital Management

For the purpose of the Company’s capital management, ''Capital'' includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s policy for capital management aims to enhance capital efficiency by the long-term improvement of its value through business growth, while maintaining a sound financial structure. Indicators for monitoring the capital management include total equity attributable to owners of the Company and ROCE (ratio of Profit before taxes to total equity attributable to owners of the Company).

Note 44. Maintenance of Audit trail

The Company has used 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 software. Further, there are no instance of audit trail feature being tampered with.

Note 45. Approval of Financial Statements

The Standalone Financial Statements were reviewed and recommended by the Audit Committee and have been approved by the Board of Directors at their meeting held on May 24, 2024.

As per our report of even date

For S. R. Batliboi & Associates LLP On behalf of the Board of Directors

Chartered Accountants For Sun TV Network Limited

ICAI Firm Regn. No: 101049W/E300004

per Aravind K Kalanithi Maran Mahesh Kumar Rajaraman

Partner Chairman Managing Director

Membership No: 221268 DIN: 00113886 DIN: 05263229

Place : Chennai R. Ravi V C Unnikrishnan

Date : May 24, 2024 Company Secretary Chief Financial Officer

M.No.A13804

---

Mar 31, 2023

The Company has one class of equity shares having a face value of Rs.5.00 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31,2023, the Board of Directors have declared an interim dividend of Rs.5 per share (100%), Rs.3.75 per share (75%), Rs.3.75 per share (75%) and Rs. 2.50 per share (50%) at their respective Board meeting held on August 12, 2022, November 11, 2022, February 3, 2023 and March 13, 2023. (March 31, 2022: Rs.13.75 /- share)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Disclosure for Ind AS 115:

Disaggregated revenue information

Revenue is recognized when the performance obligations under the contract with customers are satisfied. In respect of all classes of revenue from operations as disclosed above, the performance obligation is satisfied at a point in time. For disaggregation of revenue by geographical regions, refer Note 33 - Segment information.

Trade Receivables and Contract assets / liabilities

Trade receivable and Unbilled revenue : The Company classifies the right to consideration in exchange for deliverables as contract receivable / unbilled revenue. A receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of billings is recorded as unbilled revenue and is classified as a other current asset. Trade receivable and unbilled revenues are presented net of impairment in Note 10 and Note 8.2 respectively. Deferred income / unearned revenue : Billings in excess of revenue recognised are disclosed as “Deferred Revenues” under other current liabilities - Note 19;

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

Note 29. Leases disclosures

The Company has entered into operating leases on KU band Satellite transponders on non cancellable operating lease, with lease terms between 1 and 5 years. The Company has also entered into operating lease arrangements for office premises.

A) Defined Contribution plans

i) Contribution to Provident Fund : Contributions towards Employees Provident Fund made to the Regional / Employee Provident Fund are recognised as expenses in the year in which the services are rendered.

ii) Contribution to Employee State Insurance : Contributions to Employees State Insurance Scheme are recognised as expense in the year in which the services are rendered.

B) Defined benefit plan - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan.

The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Based on the experience of the previous years, the Company expects to contribute about Rs.1.40 crores to the gratuity fund in the next year. However, the actual contribution by the Company will be based on the actuarial valuation report received from the insurance Company.

The Company contributes all ascertained liabilities towards gratuity to the Sun TV Network Ltd Employees Group Gratuity Trust and the Trustees also administer the contributions so made to the trust. As of March 31, 2023 and March 31,2022 the plan assets have been primarily invested in insurer managed funds.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis are based on a change in significant assumption, keeping all other assumptions constant. The sensitivity analysis may not be a representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another.

Note 31. Contingencies A) Contingent Liabilities

a. Matters wherein management has concluded that the Company’s liability is probable has been provided for.

b. Contingent liability is disclosed in case of:

i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

ii) a present obligation arising from past events, when no reliable estimate is possible. (Refer note below for the related disclosure)

Contingent assets are disclosed where an inflow of economic benefits is probable. Provision, contingent liabilities, and contingent assets are reviewed at each Balance Sheet date.

c. Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process, in relation to civil and criminal matters.

Disputed taxes not provided for in respect of:	As at March 31, 2023	As at March 31, 2022
a) Claims related to Income Tax**	20.23	10.35
b) Claims related to Custom duty	-	63.63
c) Claims related to Service Tax*	29.09	27.27
d) Claims related to Goods and Service Tax*	4.41	-
Total	53.73	101.25

*The Company received show cause cum demand notice from the Service Tax and Goods and Service Tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices /orders received with various authorities. The Company based on the judicial pronouncements and other submissions that believes its position is likely to be accepted by the authorities.

**The Company is contesting certain disallowances to the taxable income and demands raised by the Income tax authorities. The management, based on internal assessment and considering the views of its tax advisors, believe that its position will likely be upheld in the appellate process and ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position and results of operations.

B) Commitments for capital contracts
Particulars	As at March 31, 2023	As at March 31, 2022
Estimated amount of contracts remaining to be executed on capital expenditure and not provided for Outstanding commitments on capital contracts	0.18	0.17
Commitments for acquisition of film and program broadcasting rights, Production and distribution related rights	393.96	228.75

The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables and other current and non current financial liabilities and financial assets approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method and assumptions used to estimate the fair values is the fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date.

Note 36. Description of valuation techniques used and key inputs to valuation on investment in tax free and taxable bonds:

The valuation for tax free and taxable bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has disclosed fair value of the tax free and taxable bonds using IMaCS standard methodology which captures the market condition as on given day of valuation on T 1 basis.

The Company has no restrictions on the disposal of its tax free bonds.

Significant unobservable Inputs:

The Independent valuer has made detailed study based on standards methodology for scrip level valuation and have considered the available secondary market and primary market trades for valuation of bonds on reporting date. Outlier trades if any are identified and excluded. Widespread Polling is also considered with market participant to understand the movement in levels. In the case of liquid instruments, the valuation is arrived at based on the value bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread over benchmark is arrived at and the same is carried forward.

Note 37. Fair value disclosure on Investment properties:

The Company’s investment properties consists of office premises/ commercial properties let out on lease.

As at March 31,2023 and March 31,2022, the fair values of the properties are Rs.113.83 crores and Rs.105.93 crores respectively.

These valuations are based on valuations performed by an registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Description of valuation techniques used and key inputs to valuation on investment properties:

The Company has fair valued the office premises and commercial property let out on lease using Market approach method.

Significant unobservable Inputs

The independent valuer has made detailed study of prevailing market rate for the commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depreciation and other leasehold improvements made by the Company to the respective properties.

Note 38. Financial risk management objectives and policies

The Company''s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk. The value of financial instruments may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy. Financial instrument affected by market risk includes investment in equity instruments etc.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. As per the Forex policy, the Company, takes forward contract for transactions where the foreign currency risk on account of movement in exchange rate expected to be high and which is material to the Company. The impact of foreign exchange rate fluctuations is evaluated by assessing its exposure to exchange rates risks. Exposure to foreign exchange fluctuation risks is with monetary receivables / payables denominated in AFD Alin IlSn HAH RRP 7ARanHSm

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31,2022 and as forecasted for volatile currencies.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations and arises principally from the Company’s receivables, deposits given, investments made and balances at bank. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as

well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

The maximum exposure to the credit risk is equal to the carrying amount of financial assets as of March 31,2023 and March 31, 2022 respectively. On account of adoption of Ind AS 109 on ‘Financial Instruments’, the Company uses expected credit loss model to assess the impairment loss or gain.

Liquidity risk

The Company''s prime source of liquidity is cash and cash equivalents and the cash flow generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of March 31, 2023, the Company had a working capital of Rs.4,876.07 crores (March 31, 2022 - Rs.4,359.90 crores) including cash and cash equivalents of Rs.127.13 crores (March 31,2022 - Rs.215.73 crores) and current investment of Rs.3,499.34 crores (March 31,2022 - Rs. 2,421.98 crores).

As of March 31,2023 and March 31,2022 there are no material liability which is outstanding. Accordingly, no liquidity risk is perceived.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

Note 39. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

Note 43. The Company has no borrowings or charge created as at March 31, 2023 and March 31,2022. In earlier years, the Company had registered "Satisfaction of Charges" with Registrar of Companies (ROC) in respect of 3 charges amounting to Rs.0.29 Crores; However these charges are appearing as "open" in MCA website due to non updation and the Company is following up with MCA for necessary corrections.

Note 44. The Company has reclassified / regrouped previous year figures to conform to this year''s classification. Note 45. Approval of financial statements

The standalone financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on May 19, 2023.

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Mar 31, 2022

Note 7.3.1 - Investment in Bharat bonds ETF

The Company holds 2,50,000 Bharat Bonds Exchange Traded Fund issued by Edelweiss Mutual Fund ("issuer"), having face value of Rs.1000/- per bond. These bonds listed on the Stock Exchange, carry the highest credit rating of AAA. These bonds have a defined maturity period and will mature in April, 2023 and at maturity, Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the debentures till maturity or upon the sale of the same to another investor before the debentures are redeemed by the issuer.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Note 7.3.2 - Investment in Nippon India ETF Nifty SDL-2026 units issued by Nippon India Mutual Fund

During the current year, the Company invested in the long term 744,079 units of Nippon India ETF Nifty SDL- 2026 issued by Nippon India Mutual Fund ("issuer"), having face value of Rs.10/- per unit. These units are listed on the Stock Exchange and proceeds from the sale of these units would predominantly be utilized for investment into State Development Loans (SDLs) representing Nifty SDL Apr 2026 Top 20 Equal Weight Index. The units have a defined maturity period and will mature in April 30, 2026. Upon maturity, the Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the unit till maturity or upon the sale prior to the maturity.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

During the current year, the Company invested in the long term 978,260 units of Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 issued by Nippon India Mutual Fund ("issuer"), having face value of Rs.10/- per unit. These units are listed on the Stock Exchange and proceeds from the sale of these units would predominantly be utilized for investment into Central Public Sector Enterprises (CPSEs), Public Financial Institutions(PFIs) and State Development Loans (SDLs) of Top 5 States / union Territory representing Nifty CPSE Bond Plus SDL Sep 2024, 50:50 Index. The units have a defined maturity period and will mature in September 30, 2024. Upon maturity, the Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the unit till maturity or upon the sale prior to the maturity.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Note 7.3.4 - Investment in Non-Convertible Debentures of Aseem Infrastructure Limited

During the current year,the Company holds 250 Non-Convertible Debentures issued by Aseem Infrastructure Limited ("issuer"), having face value of Rs.10,00,000/- per debenture. These bonds are listed on the Stock Exchanges and carry the highest credit rating of AAA. These bonds have a defined maturity period and will mature in October, 2024 and at maturity, Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the debentures till maturity or upon the sale of the same to another investor before the debentures are redeemed by the issuer.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Note 7.3.5 - Investment in units of India Infrastructure Trusts managed by Brookfield India Infrastructure Manager Private Limited

During the current year, the Company invested in the long term 24,00,000 units of India Infrastructure Trusts, an infrastructure investment trust (InvIT) whose Investment Managers are Brookfield India Infrastructure Manager Private Limited (“BIIMPL”). These units have a face value of Rs.100/- per unit and the initial investment proceeds were utilised to finance the construction of a pipeline system for transport of natural gas. The main customer for the InvIT is Reliance Industries Limited which company has executed a minimum guarantee to deliver an assured return of 9.24 % p.a. over the duration of the investment with a best case return of 12.65 % p.a. The InvIT has been assigned Corporate Credit rating of AAA/Stable by CRISIL and are not listed on any Stock Exchange. This InvIT has a defined maturity period and will mature in the year 2039 and the Company has the option to hold till maturity or sell prior to the maturity, at which time, the Company will get back the investments. The return on this investment will be realized during the period of holding and these units provide a steady cash flow distribution by way of interest/dividends/ principal payouts etc.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

During the current year, the Company invested in the long term 1,98,40,473 units of AXIS AAA Bond Plus SDL ETF issued by Axis Mutual Fund ("issuer"), having face value of Rs.1/- per unit. These units are listed on the Stock Exchange and proceeds from the sale of these units would predominantly be utilized for investment into AAA rated Corporate Bonds & State Development Loans (SDLs) represented by Nifty AAA Bond Plus SDL Apr 2026 50 : 50 Index. The units have a defined maturity period and will mature in April, 2026. Upon maturity, the Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the unit till maturity or upon the sale prior to the maturity.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Fair value hierarchy disclosures for investment in Non Convertible debentures have been provided in Note 35 - 37. Note 7.4.2 - Investment in Non Convertible debentures issued by Axis Finance

The Company holds 250 redeemable non-convertible debentures issued by Axis Finance Ltd ("issuer"), having face value of Rs. 10,00,000 /- debenture and the principal is protected at maturity. These debentures listed on the National Stock Exchange, carry the highest credit rating of AAA and will be redeemed in June 30, 2022 at a price being the last traded (closing) price of 6.45 Gsec 2049 as on 30th May 2022. The return on this investment will be realised either by holding the debentures till maturity or upon the sale of the same to another investor before the debentures are redeemed by the issuer.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Fair value hierarchy disclosures for investment in Non Convertible debentures have been provided in Note 35 - 37.

(ii) Term/Rights attached to Equity Shares

The Company has one class of equity shares having a face value of Rs.5.00 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31,2022, The Board of Directors have declared an interim dividend of Rs.3.75 per share (75%), Rs.2.50 per share (50%), Rs.2.50 per share (50%) and Rs. 5.00 per share (100%) at their respective Board meeting held on August 13, 2021, November 5, 2021, February 10, 2022 and March 7, 2022. (March 31,2021: Rs.5.00 /- share)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Disaggregated revenue information

Revenue is recognized when the performance obligations under the contract with customers are satisfied. In respect of all classes of revenue from operations as disclosed above, the performance obligation is satisfied at a point in time. For disaggregation of revenue by geographical regions, refer Note 33 - Segment information.

Trade Receivables and Contract assets / liabilities

Trade receivable and unbilled revenue : The Company classifies the right to consideration in exchange for deliverables as contract receivable / unbilled revenue.

A receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of billings is recorded as unbilled revenue and is classified as a financial asset. Trade receivable and unbilled revenues are presented net of impairment in Note 10 and Note 9.2 respectively.

Deferred income / unearned revenue : Billings in excess of revenue recognised are disclosed as “Deferred Revenues” under other current liabilities - Note 19; As against the opening balance of deferred revenue of Rs.27.20 crores , revenue recognised during the year amounts to Rs.23.79 crores ;

Note: "For the year ended March 31,2021 Taxes relating to earlier years" represents income tax determined by the Income Tax Authorities based on the Company''s application under the Direct Tax Vivad se Vishwas Act, 2020, in respect of pending income tax litigations pertaining to Financial years 2003-04 to 2016-17 amounting to Rs.236.66 crores and provision created on similar basis for the subsequent financial years 2017-18 to 2019-20 amounting to Rs.136.98 crores and recorded by the Company in the current financial year. This has been done inter alia to reduce pending income tax litigation in respect of the claims under Income Tax Act,1961 and de-risking the Company’s financial position, notwithstanding the fact that the Company’s position have consistently been upheld in the past by Appellate Authorities.

Note 28. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

A) Defined Contribution plans

i) Contribution to Provident Fund : Contributions towards Employees Providend Fund made to the Regional / Employee Provident Fund are recognised as expenses in the year in which the services are rendered.

ii) Contribution to Employee State Insurance : Contributions to Employees State Insurance Scheme are recognised as expense in the year in which the services are rendered.

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan.

The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Based on the experience of the previous years, the Company expects to contribute about Rs.1.65 crores to the gratuity fund in the next year. However, the actual contribution by the Company will be based on the actuarial valuation report received from the insurance Company.

Note 31. Contingencies A) Contingent Liabilities

a. Matters wherein management has concluded that the Company’s liability is probable has been provided for . Refer Note 42.

b. Contingent liability is disclosed in case of:

i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable. Provision,contingent liabilities, and contingent assets are reviewed at each Balance Sheet date.

c. Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote.This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process, in relation to civil and criminal matters.

^{Disputed taxes not pr0vided for in respect of:}_March 31,1022 March 31, ^

a) Claims related to Income Tax 10.35 10.35

b) Claims related to Custom duty**@ 63.63 63.63

c) Claims related to Service Tax*** 27.27 27.44

Total 101.25_101.42

** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has filed an appeal against the said demand, and based on its submissions at such appellate proceedings, management believes that the Company’s claim is likely to be accepted by the authorities.

@ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the previous year, the Company has received a formal show cause / demand notice containing a provisional demand of Rs. 63.13 crores. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 60.18 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and accordingly the company is confident of recovering the duty paid.

***The Company received show cause cum demand notice from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services.The Company has filed appeals for all such show cause notices /orders received with various authorities. The Company based on the judicial pronouncements and other submissions believes its position is likely to be accepted by the authorities.

B) Commitments for capital contracts
Particulars	As at March 31, 2022	As at March 31, 2021
a) Estimated amount of contracts remaining to be executed on capital expenditure and not provided for
Outstanding commitments on capital contracts	0.17	0.25
Commitments for acquisition of film and program broadcasting rights, Production and distribution related rights	228.75	428.55

Terms & Conditions of Transactions with Related Party

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended March 31, 2022, the company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31,2021: INR Nil).

The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables and other current and non current financial liabilities and financial assets approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method and assumptions used to estimate the fair values is the fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date.

Note 36. Description of valuation techniques used and key inputs to valuation on investment in tax free and taxable bonds:

The valuation for tax free bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has disclosed fair value of the tax free bonds using IMaCS standard methodology which captures the market condition as on given day of valuation on T 1 basis.

The Company has no restrictions on the disposal of its tax free bonds.

Significant unobservable Inputs:

The I ndependent valuer has made detailed study based on standards methodoloy for scrip level valuation and have considered the available secondary market and primary market trades for valuation of bonds on reporting date. Outlier trades if any are identified and excluded. Widespread Polling is also considered with market participant to understand the movement in levels. In the case of liquid instruments, the valuation is arrived at based on the value bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread over benchmark is arrived at and the same is carried forward.

The group’s investment properties consists of office premises/ commercial properties let out on lease.

As at March 31,2022 and March 31,2021, the fair values of the properties are Rs.103.57 crores and Rs.67.28 crores respectively.

These valuations are based on valuations performed by an registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Description of valuation techniques used and key inputs to valuation on investment properties:

The Company has fair valued the office premises and commercial property let out on lease using Market approach method

Significant unobservable Inputs

The independent valuer has made detailed study of prevailing market rate for the commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depreciation and other leasehold improvements made by the Company to the respective properties.

Note 38. Financial risk management objectives and policies

The group''s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk. The value of financial instruments may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy. Financial instrument affected by market risk includes investment in equity instruments etc.

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. As per the Forex policy, the Company, takes forward contract for transactions where the foreign currency risk on account of movement in exchange rate expected to be high and which is material to the Company. The impact of foreign exchange rate fluctuations is evaluated by assessing its exposure to exchange rates risks. Exposure to foreign exchange fluctuation risks is with monetary receivables / payables denominated in USD, CAD, ZAR and SGD.

The Company''s prime source of liquidity is cash and cash equivalents and the cash flow generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of March 31, 2022, the Company had a working capital of Rs.4,359.83 crores (March 31, 2021 - Rs.4,134.02 crores) including cash and cash equivalents of Rs.509.95 crores (March 31,2021 - Rs.461.28 crores) and current investment of Rs.2,391.70 crores (March 31,2021 - Rs. 2,393.25 crores ).

As of March 31,2022 and March 31,2021 there are no material liability which is outstanding. Accordingly, no liquidity risk is perceived.

Note 39. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s policy for capital management aims to enhance capital efficiency by the long-term improvement of its value through business growth, while maintaining a sound financial structure. Indicators for monitoring the capital management include total equity attributable to owners of the parent and ROCE (ratio of Profit before taxes to total equity attributable to owners of the parent).

Reason for change more than 25%

Current Ratio - Increase in Current Ratio is due to higher current tax provision in the previous year as the Company had opted to settle earlier year tax demand under Direct Tax Vivad se Vishwas Act, 2020 which had been reduced in the current year due to tax remittance.

Trade Payable Turnover Ratio - The Ratio for the financial year ended March 31,2021 was lower than normal levels because of the Covid induced impacts on production of serials/movies/other programming during the most months of that financial year. The operations stabilized during the subsequent financial year ended March 31,2022, and the ratio has risen as expenses on content acquisitions have normalised at pre-pandemic levels.

Return on Investment - Quoted in active market - During the year ended March 31, 2022, the debt markets were extremely volatile which necessitated certain mark to market provisions. Further on account of the uncertainty, the Company decided to hold most of its investments in short term papers on which yields are much lower.

Note 43. The Company has no borrowings or charge created as at March 31,2022 and March 31,2021. In earlier years, the Company has registered "Satisfaction of Charges" with Registrar of Companies (ROC) in respect of 3 charges amounting to Rs.0.29 Crores; However these charges are appearing as "open" in MCA website due to non updation and the Company is following up with MCA for necessary corrections.

Note 44. Impact of COVID-19 on its financial statements

The outbreak of COVID -19 pandemic and consequent lock down has impacted the regular business operations of the Company in the initial quarter. The financial statements for the year ended March 31, 2022 are therefore not comparable with those for the earlier periods presented. The Company has assessed the impact of the pandemic on its financial statements / position based on the internal and external information, to the extent known and available up to the date of approval of these financial statements and based on the current estimates, the Company expects no further adjustments to the carrying amounts as at March 31,2022 of the investments, intangible assets, receivables and other financial assets. This assessment and the outcome of the pandemic as regards the aforesaid matters is highly dependent on the circumstances / developments, as they evolve in the subsequent periods.

Note 45. Approval of financial statements

The standalone financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on May 27, 2022.

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Mar 31, 2021

Note 7.3.1- Investments in Bharat bonds - ETF

The Group holds 2,50,000 Bharat Bonds Exchange Traded Fund issued by Edelweiss Mutual Fund ("issuer"), having face value of Rs. 1000/- per bond. These bonds listed on the Stock Exchange, carry the highest credit rating of AAA. These bonds have a defined maturity period and will mature on April, 2023 and at maturity, Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the debentures till maturity or upon the sale of the same to another investor before the debentures are redeemed by the issuer.

The Company has irrevocably designated the debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Note 7.3.2 - Investment in Nippon India ETF Nifty SDL-2026 units issued by Nippon India Mutual Fund

During the current year, the Company invested in the long term 744,079 units of Nippon India ETF Nifty SDL- 2026 issued by Nippon India Mutual Fund ("issuer"), having face value of Rs.10/- per unit. These units are listed on the Stock Exchange and proceeds from the sale of these units would predominantly be utilized for investment into State Development Loans (SDLs) representing Nifty SDL Apr 2026 Top 20 Equal Weight Index. The units have a defined maturity period and will mature on 30th April, 2026. Upon maturity, the Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the unit till maturity or upon the sale prior to the maturity.

During the current year, the Company invested in the long term 978,260 units of Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 issued by Nippon India Mutual Fund ("issuer"), having face value of Rs.10/- per unit. These units are listed on the Stock Exchange and proceeds from the sale of these units would predominantly be utilized for investment into Central Public Sector Enterprises (CPSEs), Public Financial Institutions(PFIs) and State Development Loans (SDLs) of Top 5 States / union Territory representing Nifty CPSE Bond Plus SDL Sep 2024, 50:50 Index. The units have a defined maturity period and will mature on 30th September, 2024. Upon maturity, the Company will get back the investments along with return indicated. The return on this investment will be realized either by holding the unit till maturity or upon the sale prior to the maturity.

The Company holds 250 redeemable non-convertible debentures issued by Axis Finance Ltd ("issuer"), having face value of Rs. 10,00,000 /- debenture and the principal is protected at maturity. These debentures listed on the National Stock Exchange, carry the highest credit rating of AAA and will be redeemed on June 30, 2022 at a price being the last traded (closing) price of 6.45 Gsec 2049 as on 30th May 2022. The return on this investment will be realised either by holding the debentures till maturity or upon the sale of the same to another investor before the debentures are redeemed by the issuer.

The Company has irrevocably designated these debentures to be subsequently measured at FVTPL, in order to eliminate measurement inconsistency.

Fair value hierarchy disclosures for investment in Non Convertible debentures have been provided in Note 35.

(ii) Term / Rights attached to Equity Shares

The Company has one class of equity shares having a face value of Rs. 5.00 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31,2021 ,The Board of Directors have declared an interim dividend of Rs. 5.00 per share (100%) at their Board meeting held on February 8,2021. (March 31,2020: Rs. 25.00/-per share)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Disclosure for Ind AS 115:

Trade Receivables and Contract assets / liabilities

Trade receivable and Unbilled revenue : The Company classifies the right to consideration in exchange for deliverables as contract receivable / unbilled revenue.

A receivable is a right to consideration that is unconditional upon passage of time. Revenues in excess of billings is recorded as unbilled revenue and is classified as a financial asset. Trade receivable and unbilled revenues are presented net of impairment in Note 10 and Note 9.2 respectively.

Deferred income / unearned revenue : Billings in excess of revenue recognised are disclosed as “Deferred Revenues” under other current liabilities - Note 19; As against the opening balance of deferred revenue of Rs. 11.25 crores, revenue recognised during the year amounts to Rs. 10.66 crores;

‘"Taxes relating to earlier years" represents income tax determined by the Income Tax Authorities based on the Company''s application under the Direct Tax Vivad se VishwasAct, 2020, in respect of pending income tax litigations pertaining to Financial years 2003-04 to 2016-17 amounting to Rs.236.66 crores and provision created on similar basis for the subsequent financial years 2017-18 to 2019-20 amounting to Rs.136.98 crores and recorded by the Company in the current financial year. This has been done inter alia to reduce pending income tax litigation in respect of the claims under Income Tax Act,1961 and de-risking the Company’s financial position, notwithstanding the fact that the Company’s position have consistently been upheld in the past by Appellate Authorities.

29.5. The average incremental borrowing rate applied to lease liabilities is 10.50%

29.6. Ind AS 116 resulted in an increase in cash inflows from operating activities and an increase in cash outflows from financing activities on account of lease payments.

Note 30. Employee benefit plansA) Defined Contribution plans

i) Contribution to Provident Fund : Contributions towards Employees Providend Fund made to the Regional / Employee Provident Fund are recognised as expenses in the year in which the services are rendered.

ii) Contribution to Employee State Insurance : Contributions to Employees State Insurance Scheme are recognised as expense in the year in which the services are rendered.

B) Defined benefit plan - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan.

a. Matters wherein management has concluded that the Company’s liability is probable has been provided for. Refer Note 38.

b. Contingent liability is disclosed in case of:

i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable. Provision, contingent liabilities, and contingent assets are reviewed at each Balance Sheet date.

c. Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote.This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process, in relation to civil and criminal matters.

* During the Financial year, to inter alia reduce pending income tax litigation in respect of the claims under Income Tax Act, 1961, the Company had made necessary applications under the Direct Tax Vivad se VishwasAct, 2020 in respect of the Financial years 2003-04 to 2016-17. The same have been approved by the Income Tax Department based on which taxes demanded have been recorded in full as required and accounted for in the books of accounts as of March 31,2021 resulting in significant drop in disputed income taxes as at March 31,2021. Rs.204.02crores has also been since paid.

** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has filed an appeal against the said demand, and based on its submissions at such appellate proceedings, management believes that the Company’s claim is likely to be accepted by the authorities.

@ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the previous year, the Company has received a formal show cause / demand notice containing a provisional demand of Rs. 63.13 crores. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 60.18 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and accordingly the company confident of recovering the duty paid.

***The Company received show cause cum demand notice from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices /orders received with various authorities. The Company based on the judicial pronouncements and other submissions believes its position is likely to be accepted by the authorities.

The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables and other current and non current financial liabilities and financial assets approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method and assumptions used to estimate the fair values is the fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date.

There have been no transfers between Level 1 and Level 2 during the period.

Note 35.1 Description of valuation techniques used and key inputs to valuation on investment in tax free bonds:

The valuation for tax free bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has disclosed fair value of the tax free bonds using IMaCS standard methodology which captures the market condition as on given day of valuation on T 1 basis.

The Company has no restrictions on the disposal of its tax free bonds.

Significant unobservable Inputs:

The Independent valuer has made detailed study based on standards methodoloy for scrip level valuation and have considered the available secondary market and primary market trades for valuation of bonds on reporting date. Outlier trades if any are identified and excluded. Widespread Polling is also considered with market participant to understand the movement in levels. In the case of liquid instruments, the valuation is arrived at based on the value bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread over benchmark is arrived at and the same is carried forward.

The Company’s investment properties consists of office premises let out on lease.

As at March 31, 2021 and March 31, 2020, the fair values of the properties are Rs.67.28 crores and Rs.61.20 crores respectively.

These valuations are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of investment properties. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties orfor repairs, maintenance and enhancements.

Significant unobservable Inputs

The independent valuer has made detailed study of prevailing market rate for the commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depreciation and other leasehold improvements made by the Company to the respective properties.

Note 36. Financial risk management objectives and policies

The Company''s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk. The value of financial instruments may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy. Financial instrument affected by market risk includes investment in equity instruments etc.

Liquidity risk

The Company''s prime source of liquidity is cash and cash equivalents and the cash flow generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of March 31, 2021, the Company had a working capital of Rs.4,160.67 crores (March 31, 2020 - Rs.3,460.24 crores) including cash and cash equivalents of Rs.461.28 crores (March 31, 2020 - Rs.402.48 crores) and current investment of Rs.2,393.25 crores (March 31,2020 - Rs. 1,957.95 crores).

As of March 31,2021 and March 31,2020 there are no material liability which is outstanding. Accordingly, no liquidity risk is perceived.

Note 37. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s policy for capital management aims to enhance capital efficiency by the long-term improvement of its value through business growth, while maintaining a sound financial structure. Indicators for monitoring the capital management include total equity attributable to owners of the parent and ROE (ratio of Profit before taxes to total equity attributable to owners of the parent).

Note 39. Impact of COVID-19 on its financial statements

The outbreak of CO VID -19 pandemic and consequent lockdown has impacted the regular business operations of the Company. The financial statements for the year ended March 31,2021 are therefore not comparable with those for the earlier periods presented. The Company has assessed the impact of the pandemic on its financial statements / position based on the internal and external information, to the extent known and available up to the date of approval of these financial statements and based on the current estimates, the Company expects no further adjustments to the carrying amounts as at March 31,2021 of the investments, intangible assets, receivables and other financial assets. This assessment and the outcome of the pandemic as regards the aforesaid matters is highly dependent on the circumstances / developments, as they evolve in the subsequent periods.

Note 40. Approval of financial statements

The financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on June 11,2021.

---

Mar 31, 2019

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2019

(All amounts are in crores of Indian Rupees, unless otherwise stated)

Note 28. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The followinq reflects the income and share data used in the basic and diluted EPS computations:

	Year Ended
	March 31, 2019	March 31, 2018
Profit after tax (Rs. in crores)	1,394.86	1,093.04
Weighted average number of shares
- Basic	39,40,84,620	39,40,84,620
- Diluted	39,40,84,620	39,40,84,620
Earning per share of Rs. 5.00 each
- Basic	35.39	27.74
- Diluted	35.39	27.74

Note 29. Operating lease disclosures Company as a lessee -

a) Lease commitment for transponders

The Company has entered into operating leases on KU band Satellite transponders on non cancellable operating lease, with lease terms between 1 and 5 years.

The Company has paid Rs.22.21 crores (March 31, 2018: Rs.22.42 crores) during the year towards minimum lease payment.

The Operating lease agreements, are renewable on a periodic basis and can be extended upto a maximum of 5 years from their respective dates of inception. There are no price escalation clause in the agreement.

Future minimum rentals payable under non-cancellable operating leases as at March 31, 2019 are as follows:

	Year Ended
	March 31, 2019	March 31, 2018
Within one year	22.11	17.33
After one year but not more than five years	23.11	39.00
More than five years	-	-
	45.22	56.33

b) Other operating lease commitments

The Company has entered into operating lease arrangements for office premises. The leases are non-cancellable / lock in period for a period of 2 to 3 years and after which it may be renewed / cancellable based on the mutual agreement of the parties.

The Company has paid Rs.1.54 crores (March 31, 2018: Rs.0.84 crores) during the year towards minimum lease payment.

Future minimum rentals payable under non-cancellable operating leases as at March 31, 2019 are as follows:

	Year Ended
	March 31, 2019	March 31, 2018
Within one year	0.85	1.03
After one year but not more than five years	0.71	0.22
More than five years	-	-
	1.56	1.25
Lease rentals paid during the year in respect of cancellable operating lea	6.35	6.69

Note 30. Employee benefit plans - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan.

Statement of Profit and Loss

Particulars	Year ended March 31, 2019	Year ended March 31, 2018
Recognized in profit or loss:
Current service cost	2.08	2.05
Net Interest income on benefit obligation / assets	0.08	(0.12)
Recognized in other comprehensive income:
Remeasurement gains / (losses) in other comprehensive income
arising from changes in demographic assumptions	0.06	0.28
Remeasurement gains / (losses) in other comprehensive income arising from changes in financial assumptions	0.04	(0.77)
Experience adjustments	0.68	1.00
Return on Plan Assets (greater) / less than Discount rate	0.05	0.10
Recognized in other comprehensive income	0.83	0.61
Net benefit expense	2.16	1.93

Particulars	As at March 31, 2019	As at March 31, 2018
Defined benefit obligation	15.91	13.16
Fair value of plan assets	13.43	12.07
Plan Liability / (Asset)	2.48	1.09

Changes in the present value of the defined benefit obligation are as follows:

Particulars	As at March 31, 2019	As at March 31, 2018
Opening defined benefit obligation	13.16	11.93
Current service cost	2.08	2.05
Interest cost	0.95	0.82
Remeasurement gains / (losses) on obligation	0.78	0.50
Benefits paid	(1.06)	(2.14)
Closing defined benefit obligation	15.91	13.16

Changes in the fair value of plan assets are as follows:

Particulars	As at March 31, 2019	As at March 31, 2018
Fair value of planned assets at the beginning of the year	12.07	11.42
Expected return on plan assets	0.93	0.94
Contributions	1.59	1.96
Benefits paid	(1.13)	(2.14)
Remeasurement gains / (losses) on plan assets	(0.03)	(0.11)
Fair value of plan assets at the end of the year	13.43	12.07

The principal actuarial assumptions used in determining gratuity obligation for the company''s plans are shown below:

Particulars	As at March 31, 2019	As at March 31, 2018
Discount rate	7.52%	7.55%
Expected rate of return on assets	7.52%	8.25%
Employee turnover	9.32%	10.00%
Mortality rates	Indian Assured	Indian Assured
	Lives Mortality (2006-08)	Lives Mortality (2006-08)

The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Based on the experience of the previous years, the Company expects to contribute about Rs. 2.16 crores to the gratuity fund in the next year. However, the actual contribution by the Company will be based on the actuarial valuation report received from the insurance company.

The major categories of plan assets of the fair value of the total plan assets are as follows:

Investments details: Funds with LIC Total	Gratuity plan
	March 31, 2019	March 31, 2018
	13.43	12.07
	13.43	12.07

The Company contributes all ascertained liabilities towards gratuity to the Sun TV Network Ltd Employees Group Gratuity Trust and the Trustees also administer the said contributions so made to the trust. As of March 31, 2019 and March 31, 2018 the plan assets have been primarily invested in insurer managed funds.

A quantitative sensitivity analysis for significant assumption as at March 31, 2019 is as shown below:

Gratuity plan: Assumptions
	March 31, 2019
	Discount rate		Future salary increases
Sensitivity Level Impact on defined benefit obligation	1% increase 1% decrease		1% increase	1 % decrease
	(1.14)	1.29	1.14	(1.04)

A quantitative sensitivity analysis for significant assumption as at March 31, 2018 is as shown below:

		March 31, 2018
Assumptions	Discount rate		Future salary increases
Sensitivity Level	1% increase	1 % decrease	1% increase	1 % decrease
Impact on defined benefit obligation	(0.78)	0.87	0.74	(0.68)

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Maturity profile of defined benefit obligation:
	March 31, 2019	March 31, 2018
Expected contribution to the plan for the next annual reporting period	2.16	2.04
1 to 5 Years	6.06	6.12
6 to 10 Years	3.80	3.35
Total expected payments	12.02	11.51

The average duration of the defined benefit plan obligation at the end of the reporting period is 7.98 years (March 31, 2018 : 6.85 years).

Note 31. Contingencies A) Contingent Liabilities

a. Matters wherein management has concluded that the Company''s liability is probable has been provided for. Refer Note 38.

b. Contingent liability is disclosed in case of:

i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable. Provision, contingent liabilities, and contingent assets are reviewed at each Balance Sheet date.

c. Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process, in relation to civil and criminal matters.

Disputed taxes not provided for in respect of:	March 31, 2019	March 31, 2018
a) Claims related to Income Tax*	736.32	542.43
b) Claims related to Custom duty**@	63.63	63.63
c) Claims related to Service Tax***	25.46	25.66
Total	825.41	631.72

*The Company received demands of income tax disallowing the manner of allowance claimed by the Company for certain expenses. The Company''s appeal in respect of various years has been allowed by both the first and the second appellate authorities in the previous years. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the concerned authorities.

** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has filed an appeal against the said demand, and based on its submissions at such appellate proceedings, management believes that the Company''s claim is likely to be accepted by the authorities.

@ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the previous year, the Company has received a formal show cause / demand notice containing a provisional demand of Rs. 63.13 crores. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 60.18 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and accordingly the company confident of recovering the duty paid.

***The Company received show cause cum demand notice from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices / orders received with various authorities. The Company based on the judicial pronouncements and other submissions believes its position is likely to be accepted by the authorities.

B) Commitments for capital contracts

Particulars	March 31, 2019	March 31, 2018
a) Estimated amount of contracts remaining to be executed on capital expenditure and not provided for
Outstanding commitments on capital contracts	0.31	0.63
Commitments for acquisition of film and program broadcasting rights	231.29	272.68

Note 32 Related party transactions Names of the related parties

Individual owning an interest in voting power of the Company that gives them control

Mr. Kalanithi Maran

Enterprises in which Key Management Personnel or their relatives have significant influence

Kal Comm Private Limited	Sun Foundation
Kal Cables Private Limited	Murasoli Maran Family Trust
Sun Direct TV Private Limited	Kal Media Services Private Limited
Udaya FM Private Limited	Kal Airways Private Limited
Sun Distribution Services Private Limited	Network Cable Solutions Private Limited
Sun Business Solutions Private Limited	Gemini TV Distribution Services Private Limited
Kal Publications Private Limited
Subsidiary Company
Kal Radio Limited
Joint Venture / Associates of the Joint Venture
South Asia FM Limited	Digital Radio (Mumbai) Broadcasting Limited
Asia Radio Broadcast Private Limited	Pioneer Radio Training Services Private Limited
Digital Radio (Kolkata) Broadcasting Limited	Digital Radio (Delhi) Broadcasting Limited
Optimum Media Services Private Limited	South Asia Multimedia Private Limited
Deccan Digital Networks (Hyderabad) Private Limited	AV Digital Networks (Hyderabad) Private Limited
Metro Digital Networks (Hyderabad) Private Limited

Key Management Personnel

Mr. Kalanithi Maran - Executive Chairman

Mr. K. Vijaykumar - Managing Director and Chief Executive Officer (upto March 31, 2019)

Mr. R. Mahesh Kumar- President (Managing Director with effect from April 1, 2019)

Mrs. Kavery Kalanithi - Executive Director

Mr. V.C. Unnikrishnan - Chief Financial Officer

Mr. R. Ravi - Company Secretary

Directors

Mr. S. Selvam - Non Executive Director

Mr. J. Ravindran - Independent Director

Mr. M.K. Harinarayanan - Independent Director

Mr. Nicholas Martin Paul - Independent Director

Mr. R. Ravivenkatesh - Independent Director

Relatives of Key Management Personnel

Mrs. Mallika Maran

Ms. Kaviya Kalanithi Maran (Executive Director with effect from April 1, 2019)

Terms & Conditions of Transactions with Related Party

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended March 31, 2019, the company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2018: INR Nil).

Transactions and balances with related parties
Particulars	Enterprises in which Key Management Personnel or their relatives have significant influence		Subsidiary/ Joint Ventures / Associates of the Joint Venture		Key Managerial Personnel / Relatives of Key Managerial Personnel / Directors
	31.03.2019	31.03.2018	31.03.2019	31.03.2018	31.03.2019	31.03.2018
Income:
Subscription Income
Sun Distribution Services Private Limited	155.55	240.28	-	-	-	-
Sun Direct TV Private Limited	278.39	232.84	-	-	-	-
Kal Media Services Private Limited	135.55	82.43	-	-	-	-
Gemini TV Distribution Services Private Limited	59.73	-	-	-	-	-
Advertising Income
Kal Publications Private Limited	0.30	0.35	-	-	-	-
Income from IPL
Sun Direct TV Private Limited	-	3.00	-	-	-	-
Digital Radio (Delhi) Broadcasting Limited	-	-	3.55	3.00	-	-
Digital Radio (Mumbai) Broadcasting Limited	-	-	2.43	2.00	-	-
Kal Radio Limited	-	-	-	2.00	-	-
Digital Radio (Kolkata) Broadcasting Limited	-	-	2.21	2.00	-	-
Income from Movie distribution
Sun Business Solutions Private Limited	51.06	-	-	-	-	-
Finance Income
Sun Direct TV Private Limited	9.98	7.92	-	-	-	-
Rental and Business Support Income
Kal Radio Limited	-	-	0.77	0.68	-	-
South Asia FM Limited	-	-	0.30	0.26	-	-
Sun Direct TV Private Limited	1.89	1.81	-	-	-	-
Kal Publications Private Limited	1.36	1.30	-	-	-	-
Others	0.91	0.96	-	-	-	-
Movie Content Income
Sun Direct TV Private Limited	4.43	9.34	-	-	-	-
Program production expenses
Kal Publications Private Limited	4.38	4.39	-	-	-	-
Pay channel service charges
Sun Distribution Services Private Limited	51.34	20.73	-	-	-	-
Kal Media Service Private Limited	-	5.71	-	-	-	-
Legal and Professional Fees
Mrs. Mallika Maran	-	-	-	-	0.02	0.02
Rent Expense
Kal Publications Private Limited	2.90	2.79	-	-	-	-
Expenditure on Corporate Social Responsibility
Sun Foundation	16.66	11.26	-	-	-	-
Selling Expenses
Kal Publications Private Limited	0.07	0.02	-	-	-	-
Sun Business Solutions Private Limited	0.51	-	-	-	-	-
Sun Direct TV Private Limited	1.41	-	-	-	-	-
Remuneration paid (including ex-gratia/bonus)
Salary - Mr. Kalanithi Maran	-	-	-	-	13.87	13.83
Salary - Mrs. Kavery Kalanithi	-	-	-	-	13.87	13.83
Salary - Mr. K Vijaykumar	-	-	-	-	0.96	0.95
Salary - Mr. V.C. Unnikrishnan	-	-	-	-	1.02	0.90
Salary - Mr. R Ravi	-	-	-	-	0.26	0.23
Salary - Ms. Kaviya Kalanithi Maran	-	-	-	-	0.28	0.28
Salary - Mr. R. Mahesh Kumar	-	-	-	-	2.06	1.61
Ex-gratia / Bonus- Mr. Kalanithi Maran	-	-	-	-	73.63	73.67
Ex-gratia / Bonus- Mrs. Kavery Kalanithi	-	-	-	-	73.63	73.67
Ex-gratia / Bonus- Mr. K. Vijaykumar					0.33	0.26
Sitting Fees Paid to Directors
Mr. S. Selvam	-	-	-	-	0.01	0.01
Mr. J. Ravindran	-	-	-	-	0.03	0.03
Mr. M.K. Harinarayanan Mr. Nicholas Martin Paul	-	-	-	-	0.04 0.05	0.03 0.03
Mr. R.Ravivenkatesh	-	-	-	-	0.04	0.03
Dividends Paid
Mr. Kalanithi Maran	-	-	-	-	369.46	295.56
Reimbursement/(Recovery) of Cost of shared services (Net)
Kal Publications Private Limited	0.26	0.22	-	-	-	-
Balances Outstanding: Accounts Receivable
Sun Direct TV Private Limited	174.48	151.32	-	-	-	-
Sun Distribution Services Private limited	43.74	76.40	-	-	-	-
Kal Media Services Private Limited	64.97	41.65	-	-	-	-
Gemini TV Distribution Services Private Limited	35.68	-	-	-	-	-
Sun Business Solutions Private Limited	3.97	-	-	-	-	-
Kal Publications Private Limited	0.05	-	-	-	-	-
Other Receivables
Kal Publications Private Limited	0.38	0.56	-	-	-	-
Sun Direct TV Private Limited	0.32	2.50	-	-	-	-
Kal Radio Limited	-	-	0.08	0.07	-	-
South Asia FM Limited	-	-	0.05	0.03	-	-
Digital Radio (Delhi) Broadcasting Limited Others	0.08	0.08	-	0.05	-	-
Rental and other deposits
Kal Publications Private Limited	0.06	0.06	-	-	-	-
Security Deposit received
Kal Radio Limited	-	-	0.00	0.00	-	-
Kal Publications Private Limited	0.01	0.01	-	-	-	-
Accounts Payable / Other Current Liabilities Sun Distribution Services Private Limited	30.24	4.21
Kal Publications Private Limited	0.80	0.68	-	-	-	-
Kal Media Service Private Limited	-	1.13	-	-	-	-
Kal Radio Limited	-	-	0.08	0.09	-	-
Sun Direct TV Private Limited	1.63	-	-	-	-	-
Remuneration / Ex-gratia / Bonus Payable
Mr. Kalanithi Maran	-	-	-	-	74.78	74.83
Mrs. Kavery Kalanithi Mr. K Vijaykumar Ms.Kaviya Kalanithi Maran Mr. R. Mahesh Kumar	-	-	-	-	74.78 0.33 0.02 0.35	74.83 0.29 0.02 0.34
Mr. V.C. Unnikrishnan	-	-	-	-	0.21	0.20
Mr. R Ravi					0.05	0.04

Note: As the liabilities for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, the amounts pertaining to the Directors are not included above.

NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2019

(All amounts are in crores of Indian Rupees, unless otherwise stated)

Note 33. Segment information

Based on the internal reporting provided to the chief operating decision maker, Media and Entertainment is the only operating segment for the company.

Geographic information	Year ended
Revenue from customers	March 31, 2019	March 31, 2018
India	3,446.32	2,691.27
Outside India	216.95	171.18
Total revenues per statement of profit or loss	3,663.27	2,862.45

There are no sales to external customers more than 10% of the total revenue.

	As at
Non-current operating assets	March 31, 2019	March 31, 2018
India	1,153.51	1,267.80
Rest of the world	-	-
Total	1,153.51	1,267.80

Non-current assets for this purpose consist of property, plant and equipment, investment properties, intangible assets, capital work in progress and other non current assets (other than financial instruments).

Note 34. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

	Carrying value		Fair value
	March 31, 2019	March 31, 2018	March 31, 2019	March 31, 2018
Financial assets (Non Current & Current)
Other investments (Tax free bonds)	240.09	193.41	238.92	194.85
Investments in Non Convertible debentures	res 25.41	-	25.41	-
Investment in Mutual funds and quoted
equity shares	2,071.44	1,505.10	2,071.44	1,505.10
	2,336.94	1,698.51	2,335.77	1,699.95

The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables, and other current and non current financial liabilities and financial assets approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method and assumptions used to estimate the fair values is the fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date.

Note 35. Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities:

Quantitative disclosures fair value measurement hierarchy for assets as at March 31, 2019:

		Fair Value Measurement using
Particulars	Date of Valuation	Total	Quoted Price in active markets (Level 1)	Significant observable inputs (Level 2)	Significant unobservable inputs (Level 3)
Asset measured at fairvalue: FVTPL financial investments:
Quoted Equity Shares	March 31, 2019	14.99	14.99	-	-
Investment in Non Convertible debentures	March 31, 2019	25.41	25.41	-	-
Unquoted Mutual Funds	March 31, 2019	2,056.45	2,056.45	-	-
Assets for which fair values are disclosed: Tax free bonds (unquoted) (Refer Note 35.1 )	March 31, 2019	238.92		238.92
Investment Properties (Refer Note 35.2)	March 31, 2019	70.39	-	70.39	-

There have been no transfers between Level 1 and Level 2 during the period.

Quantitative disclosures fair value measurement hierarchy for assets as at March 31, 2018:

		Fair Value Measurement using
Particulars	Date of Valuation	Total	Quoted Price in active markets (Level 1)	Significant observable inputs (Level 2)	Significant Unobservable inputs (Level 3)
Asset measured at fairvalue: FVTPL financial investments:
Quoted Equity Shares	March 31, 2018	11.48	11.48	-	-
Unquoted Mutual Funds	March 31, 2018	1,493.62	1,493.62	-	-
Assets for which fair values are disclosed:
Tax free bond (unquoted) (Refer Note 35.1 )	March 31, 2018	194.85	-	194.85	-
Investment Properties (Refer Note 35.2)	March 31, 2018	69.22	-	69.22	-

There have been no transfers between Level 1 and Level 2 during the period.

Note 35.1 Description of valuation techniques used and key inputs to valuation on investment in tax free bonds:

The valuation for tax free bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards.

The Company has disclosed fair value of the tax free bonds using IMaCS standard methodology which captures the market condition as on given day of valuation on T 1 basis.

The Company has no restrictions on the disposal of its tax free bonds. Significant unobservable Inputs:

The Independent valuer has made detailed study based on standards methodoloy for scrip level valuation and have considered the available secondary market and primary market trades for valuation of bonds on reporting date. Outlier trades if any are identified and excluded. Widespread Polling is also considered with market participant to understand the movement in levels. In the case of liquid instruments, the valuation is arrived at based on the value bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread over benchmark is arrived at and the same is carried forward.

Note 35.2 Fair value disclosure on Investment properties:

The Company''s investment properties consists of office premises let out on lease. As at March 31, 2019 and March 31, 2018, the fair values of the properties are Rs. 70.39 crores and Rs. 69.22 crores respectively. These valuations are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of investment properties. The valuation model used is in accordance with a method recommended by the International Valuation Standards. The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Reconciliation of fairvalue:
Particulars	Amount
Opening balance as at April 1, 2017	75.75
Fair value difference	(6.64)
Additions	0.11
Opening balance as at April 1, 2018	69.22
Fair value difference	1.17
Additions	-
Closing balance as at March 31, 2019	70.39

Description of valuation techniques used and key inputs to valuation on investment properties:

The Company has fair valued the office premises property let out on lease using Market approach method.

Significant unobservable Inputs

The independent valuer has made detailed study of prevailing market rate for the commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depreciation and other leasehold improvements made by the Company to the respective properties.

Note 36. Financial risk management objectives and policies

The Company''s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fairvalue of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk. The value of financial instruments may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy. Financial instrument affected by market risk includes investment in equity instruments etc.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. As per the Forex policy, the Company, takes forward contract for transactions where the foreign currency risk on account of movement in exchange rate expected to be high and which is material to the Company. The impact of foreign exchange rate fluctuations is evaluated by assessing its exposure to exchange rates risks. Exposure to foreign exchange fluctuation risks is with monetary receivables / payables denominated in USD, AUD, CAD and GBP.

		March 31, 2019		March 31, 2018
Particulars	Foreign Currency Mar 31, 2018 1. Corporate information Sun TV Network Limited (''Sun TV'' or ''the Company'') was incorporated on December 18, 1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange (''BSE’) and the National Stock Exchange (''NSE’) in India. The Company has its registered office at Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai - 600 028. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company''s flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company also has the license to operate an Indian Premier League (‘IPL’) franchise “Sun Risers Hyderabad”. During the current year, the Company has also launched OTT platform “ SUNNXT”. These standalone financial statements are approved for issue by the Company’s Board of Directors on May 11, 2018. As at March 31, 2018 and March 31, 2017, the fair values of the properties are Rs. 69.22 crores and Rs. 75.75 crores respectively. These valuations are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of investment properties. The valuation model used is in accordance with a method recommended by the International Valuation Standards. The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements Description of valuation techniques used and key inputs to valuation on investment properties: The Company has fair valued the office premises property let out on lease using Market approach method. Significant unobservable Inputs The independent valuer has made detailed study of prevailing market rate for the commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depreciation and other leasehold improvements made by the Company to the respective properties. Fair value hierarchy disclosures for investment in tax free bonds have been provided in Note 35, other notes relating to fair value disclosure are given below. The Companies investment in tax free bonds primarily consists of bonds issued by the Government Companies. The valuation for tax free bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards. The Company has no restrictions on the disposal of its tax free bonds. Description of valuation techniques used and key inputs to valuation on investment in tax free bonds: The Company has disclosed fair value of the tax free bonds using IMaCS standard methodology which captures the market condition as on given day of valuation on T 1 basis. Significant unobservable Inputs: The Independent valuer has made detailed study based on standards methodoloy for scrip level valuation and have considered the available secondary market and primary market trades for valuation of bonds on reporting date. Outlier trades if any are identified and excluded. Widespread Polling is also considered with market participant to understand the movement in levels. In the case of liquid instruments, the valuation is arrived at based on the value bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread over benchmark is arrived at and the same is carried foward. Trade receivables are non-interest bearing and are generally on terms of 60 to 90 days Trade receivable consists of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of the accounts receivable. Refer note given under impairment of financial assets - 2(r ) - Financial instruments for ECL model adopted by the Company. (ii) Term/Rights attached to Equity Shares The Company has one class of equity shares having a face value of Rs. 5.00 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2018,The Board of Directors have declared an interim dividend of Rs. 2.50 per share (50%) each at their Board meetings held on August 11, 2017, November 10, 2017, February 9, 2018 and March 12, 2018 respectively. (March 31, 2017: Rs.10.00 /- share) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders. There is no overdue amount payable to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 as at or during the year ended March 31, 2018 & 2017. Accordingly, no interest has been paid / payable to any Micro and Small Enterprises during the current and previous year. Terms and conditions of the above financial liabilities: Trade payables are non interest bearing and are normally settled within due dates For terms and conditions with related parties, refer to Note 32 Government grants have been received for import of plant and equipment in the nature of export promotion scheme. There are no unfulfilled conditions or contingencies attached to these grants. Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. Note 2. Operating lease disclosures Company as a lessee – a) Lease commitment for transponders The Company has entered into operating leases on KU band Satellite transponders on non cancellable operating lease, with lease terms between 1 and 5 years. The Company has paid Rs.22.42 crores (March 31, 2017: Rs.23.14 crores) during the year towards minimum lease payment. The Operating lease agreements, are renewable on a periodic basis and can be extended upto a maximum of 5 years from their respective dates of inception. There are no price escalation clause in the agreement. b) Other operating lease commitments The Company has entered into operating lease arrangements for office premises. The leases are non-cancellable / lock in period for a period of 2 to 3 years and after which it may be renewed / cancellable based on the mutual agreement of the parties. The Company has paid Rs.0.84 crores (March 31, 2017: Rs.0.51 crores) during the year towards minimum lease payment. Future minimum rentals payable under non-cancellable operating leases as at March 31, 2018 are, as follows: Note 3. Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on cessation of employment at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise. The scheme is funded with an insurance company (LIC) in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Based on the experience of the previous years, the Company expects to contribute about Rs. 2.00 crores to the gratuity fund in the next year. However, the actual contribution by the Company will be based on the actuarial valuation report received from the insurance company. The Company contributes all ascertained liabilities towards gratuity to the Sun TV Network Ltd Employees Group Gratuity Trust and the Trustees also administer the said contributions so made to the trust. As of March 31, 2018 and March 31, 2017 the plan assets have been primarily invested in insurer managed funds. The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Note 4. Contingencies A) Contingent Liabilities a. Matters wherein management has concluded that the Company’s liability is probable has been provided for Refer Note 38. b. Contingent liability is disclosed in case of: i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and ii) a present obligation arising from past events, when no reliable estimate is possible. Contingent assets are disclosed where an inflow of economic benefits is probable. Provision, contingent liabilities, and contingent assets are reviewed at each Balance Sheet date. c. Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process, in relation to civil and criminal matters. *The Company received demands of income tax disallowing the manner of allowance claimed by the Company for certain expenses. The Company’s appeal in respect of various years has been allowed by both the first and the second appellate authorities in the previous years. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the concerned authorities. ** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has filed an appeal against the said demand, and based on its submissions at such appellate proceedings, management believes that the Company’s claim is likely to be accepted by the authorities. @ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the previous year, the Company has received a formal show cause / demand notice containing a provisional demand of Rs. 63.13 crores. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 60.18 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and accordingly the company confident of recovering the duty paid. ***The Company received show cause cum demand notice from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices /orders received with various authorities. The Company based on the judicial pronouncements and other submissions believes its position is likely to be accepted by the authorities. C) Commitments for other contracts i) Royalty Payable to Ministry of Information and Broadcasting (‘MIB’) The Company has obtained licenses to permit them to carry FM operations in Chennai, Coimbatore and Tirunelveli. The Company is required to pay royalty of 4% of gross revenue earned from these FM Operations during the financial year or 2.5 % of One Time Entry Fees paid, whichever is higher to Ministry of Information and Broadcasting. ii) Franchise rights commitments From the 2018 I PL season, the Company is required to pay BCCI, license fees at 20% on the income earned by the franchisee for the relevant IPL Season. Note 5 Related party transactions Names of related parties Individual owning an interest in voting power of the Company that gives them control Mr. Kalanithi Maran Enterprises in which Key Management personnel or their relatives have significant influence Kal Comm Private Limited Kal Publications Private Limited Kal Cables Private Limited Sun Foundation Sun Direct TV Private Limited Murasoli Maran Family Trust Udaya FM Private Limited Kal Media Services Private Limited Sun Distribution Services Private Limited Kal Airways Private Limited Sun Business Solutions Private Limited Network Cable Solutions Private Limited Subsidiary Company Kal Radio Limited Joint Venture South Asia FM Limited Digital Radio (Mumbai) Broadcasting Limited Asia Radio Broadcast Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Kolkata) Broadcasting Limited Digital Radio (Delhi) Broadcasting Limited Optimum Media Services Private Limited South Asia Multimedia Private Limited Associates Deccan Digital Networks (Hyderabad) Private Limited Metro Digital Networks (Hyderabad) Private Limited AV Digital Networks (Hyderabad) Private Limited Key Management personnel Mr. Kalanithi Maran - Executive Chairman Mr. K. Vijaykumar - Managing Director and Chief Executive Officer Mr. R. Mahesh Kumar - President Mrs. Kavery Kalanithi - Executive Director Mr. V.C. Unnikrishnan - Chief Financial Officer Mr. R. Ravi - Company Secretary Mr. S. Selvam - Non Executive Director Mr. J. Ravindran - Independent Director Mr. M.K. Harinarayanan - Independent Director Mr. Nicholas Martin Paul - Independent Director Mr. R. Ravivenkatesh - Independent Director Relatives of Key Management personnel Mrs. Mallika Maran Ms. Kaviya Kalanithi Maran Terms & Conditions of Transactions with Related Party The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended March 31, 2018, the company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2017: INR Nil). Based on the internal reporting provided to the chief operating decision maker, Media and Entertainment is the only operating segment for the company. Non-current assets for this purpose consist of property, plant and equipment, investment properties, intangible assets, capital work in progress and other non current assets (other than financial instruments). Note 6. Fair values Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values: The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables, Financial guarantee and other current and non current financial liabilities and financial assets approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method and assumptions used to estimate the fair values is the fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date. Note 7. Fair value hierarchy The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities: The Company''s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below. Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk. The value of financial instruments may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable acuracy. Financial instrument affected by market risk includes investment in equity instruments etc. Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. As per the Forex policy, the Company, takes forward contract for transactions where the foreign currency risk on account of movement in exchange rate expected to be high and which is material to the Company. The impact of foreign exchange rate fluctuations is evaluated by assessing its exposure to exchange rates risks. Exposure to foreign exchange fluctuation risks is with monetary receivables / payables denominated in USD, AUD, CAD and GBP. Foreign currency sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017 and as forecasted for volatile currencies. Credit risk Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk is equal to the carrying amount of financial assets as of March 31, 2018 and March 31, 2017 respectively. Liquidity risk The Company''s prime source of liquidity is cash and cash equivalents and the cash flow generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. As of March 31, 2018, the Company had a working capital of Rs. 2,481.20 crores (March 31, 2017 - Rs. 1,890.53 crores) including cash and cash equivalents of Rs. 275.23 crores (March 31, 2017 - Rs. 655.16 crores ) and current investment of Rs.1,505.10 crores (March 31, 2017 - Rs. 545.48 crores). As of March 31, 2018 and March 31, 2017 there are no material liability which is outstanding. Accordingly, no liquidity risk is perceived. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments. Note 8. Capital management For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s policy for capital management aims to enhance capital efficiency by the long-term improvement of its value through business growth, while maintaining a sound financial structure. Indicators for monitoring the capital management include total equity attributable to owners of the parent and ROE (ratio of net profit to total equity attributable to owners of the parent). The Company''s policy is to keep the ROE between 33% to 38%. The Company has achieved the same over past 2 years. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017. Mar 31, 2017 1. Corporate information Sun TV Network Limited (‘Sun TV’ or ‘the Company’) was incorporated on December 18, 1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange (‘BSE’) and the National Stock Exchange (‘NSE’) in India. The Company has its registered office at Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai - 600 028. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company’s flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company also has the license to operate an Indian Premier League (‘IPL’) franchise “Sun Risers Hyderabad”. The financial statements are approved for issue by the Company’s Board of Directors on May 26, 2017. Note 2. Investment Properties As at March 31, 2017, March 31, 2016 and April 01, 2015 the fair values of the properties are Rs.75.75 crores Rs. 67.41 crores and Rs.58.18 crores respectively. These valuations are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of investment properties. The valuation model used is in accordance with a method recommended by the International Valuation Standards. The Company has no restrictions on the disposal of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements Fair value hierarchy disclosures for investment properties have been provided in Note 37. Description of valuation techniques used and key inputs to valuation on investment properties: The Company has fair valued the office premises property let out on lease using Market approach method. Significant unobservable Inputs The independent valuer has made detailed study of prevailing market rate for the commercial buildings in the areas wherein the office premises property is being let out by the Company. This has been adjusted for amenities, depriciation and other lease hold improvement made by the Company to the respective properties. The valuations for tax free bonds are based on valuations performed by an accredited independent valuer. The valuer is a specialist in valuing these types of Bonds. The valuation model used is in accordance with a method recommended by the International Valuation Standards. The Company has no restrictions on the disposal of its tax free bonds Fair value hierarchy disclosures for investments in tax free bonds have been provided in Note 37. Description of valuation techniques used and key inputs to valuation on investment in tax free bonds: The Company has fair valued the tax free bonds using IMaCS standard methodology which captures the market condition has on the given day of valuation on T 1 basis. Significant unobservable Inputs The independent valuer has made detailed study based on standard methodology for scrip level valuation and have considered the available secondary market and primary market trades for valuation of bonds on reporting date. Outlier trades if any are identified and excluded. Widespread Polling is also conducted with market participant to understand the movement in levels. In the case of illiquid instruments, the valuation is arrived at based on the value bonds with similar maturity issued by similar issuers or securities are linked to a benchmark and a spread over benchmark is arrived at and the same is carried forward. (i) Term/Rights attached to Equity Shares The Company has one class of equity shares having a face value of Rs.5.00 each. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2017, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 10.00 /- share (March 31, 2016: Rs.15.50 /- share) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders. 3. Trade payables There is no overdue amount payable to Micro and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Further, the company has not paid any interest to any Micro and Small Enterprises during the current and previous year. Terms and conditions of the above financial liabilities: Trade payables are non interest bearing and are normally settled within due dates For terms and conditions with related parties, refer to Note 34 Government grants have been received for import of Property, plant & equipment ( PP&E ) in the nature of export promotion scheme. There are no unfulfilled conditions or contingencies attached to these grants. The company is in the process of making necessary applications to obtain related redemption letters from the DGFT. Government grants have been received for import of Property, plant & equipment ( PP&E ) in the nature of export promotion scheme. There are no unfulfilled conditions or contingencies attached to these grants. The company is in the process of making necessary applications to obtain related redemption letters from the DGFT. During the previous year, Company’s aircraft sustained damage due to floods in Chennai. The determination of the financial effects thereof was pending as of March 31, 2016 in view of highly technical nature of the assessment involved. Subsequently in the current year, upon completion of such technical assessment, this aircraft has been assessed as being beyond economic repair and declared a total loss. Accordingly, the carrying value of the aircraft as at the date of the incident of Rs. 242.03 crores has been recorded as impairment loss in the previous year. The Company has recognised insurance claim of Rs. 260 crores received from the insurers.The impairment loss on account ofthe damage to the aircraft and related proceeds receivable from the insurance company, as discussed above, have been recorded and disclosed as exceptional item. The major components of income tax expense for the years ended March 31, 2017 and March 31, 2016 are: Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for March 31, 2016 and March 31, 2017 : The tax on the Company’s profit before tax differs from the theoretical amount that would arise using the standard rate of corporation tax in India (34.608%) as follows: Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. Note 4. Significant accounting judgements, estimates and assumptions The preparation of the Company’s Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Judgements In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Standalone Financial Statements: Amortisation of intangibles Acquired Satellite Rights for the broadcast of feature films and other long-form programming such as multi-episode television serials are stated at cost. Future revenues cannot be estimated with any reasonable accuracy as these are susceptible to a variety of factors, such as the level of market acceptance of television products, programming viewership, advertising rates etc., and accordingly cost related to film is fully expensed on the date of first telecast of the film and the cost related to program broadcasting rights / multi episodes series are amortized based on the telecasted episodes. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Standalone Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. Provision for taxes The Company’s tax expense for the year is the sum of the total current and deferred tax charges. The calculation of the total tax expense necessarily involves a degree of estimation and judgement in respect of certain items. A deferred tax asset is recognised when it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Defined benefit plans (gratuity benefits) The cost of the defined benefit gratuity plan and other post-employment leave encashment benefit and the present value of the gratuity obligation are determined using 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, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Further details about defined benefit obligations are given in note 32. Note 5. Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk management policy. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The Company contributes all ascertained liabilities towards gratuity to the Sun TV Network Limited Employees Group Gratuity Trust. Trustees administer contributions made to the trust. As of March 31, 2017, March 31, 2016 and April 1, 2015, the plan assets have been primarily invested in insurer managed funds. A quantitative sensitivity analysis for significant assumption as at March 31, 2017 is as shown below: The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Note 6. Commitments and Contingencies a) Leases Operating lease commitments — Company as lessee The Company has entered into operating leases on KU band Satellite transponder on non cancellable operating lease, with lease terms between 1 and 10 years renewable on periodic basis. The Company has paid Rs.23.14 crores (March 31, 2016: Rs.21.63 crores) during the year towards minimum lease payment The operating lease arrangements, are renewable on a periodic basis and can be extended upto a maximum of 5 years from their respective dates of inception. There are no price escalation clause in the agreement. Future minimum rentals payable under non-cancellable operating leases as at March 31, 2017 are, as follows: b) Contingent Liabilities i) Matters wherein management has concluded the Company’s liability to be probable and have accordingly provided for in the books. Refer Note 45. ii) Matters wherein management has concluded the Company’s liability to be possible and have accordingly disclosed below iii) Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceeding and claims, in different stages of process, in relation to civil and criminal matters. * The Company received demands of income tax disallowing the manner of allowance claimed by the Company for certain expenses. The Company’s appeal in respect of various years has been allowed by both the first and the second appellate authorities in the previous years. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the revenue authorities. ** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company’s claim is likely to be accepted by the authorities. @ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the earlier year, the Company has received a formal show cause notice containing a provisional demand of Rs. 63.13 crores. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 60.18 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and is accordingly confident of recovering the duty paid. ***The Company received show cause notice from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices /orders received with various authorities. The Company based on the judicial pronouncements and other arguments believes its position is likely to be accepted by the authorities. b) Royalty Payable to Ministry of Information and Broadcasting (‘MIB’) The Company has obtained licenses to permit them to carry FM operations in Chennai, Coimbatore and Tirunelveli. The Company is required to pay royalty of 4% of gross revenue earned from these FM Operations during the financial year or 2.5 % of One Time Entry Fees paid, whichever is higher to Ministry of Information and Broadcasting. c) Franchise rights commitments As per the terms of the franchise agreement entered into by the Company with the BCCI, the Company has a commitment to pay BCCI, Rs. 85.05 crores per annum from 2014 season to 2017 season. From the 2018 IPL season, the Company is required to pay license fees at 20% on the Franchise Income earned during the relevant year from the operation of the IPL franchise to BCCI. In the current year the Company has paid an amount aggregating to Rs. 25.52 crores as franchise license fee for the 2017 IPL season. d) Financial guarantees The Company during the year has extended Financial Guarantee to South Asia FM Limited (Joint Venture) for their bank borrowing of Rs.29.50 crores ( March 31, 2016: Nil, April 1, 2015: Nil). The Company has offered its Fixed Deposit of Rs.32.00 crores as a collateral security against such borrowings of the investee. The carrying amounts of the related financial guarantee contracts were Rs.2.91 crores at March 31, 2017 (Also refer note 13 and note 16.) Note 7 Related party transactions Names of related parties Individual owning an interest in voting power of the Company that gives them control Mr. Kalanithi Maran Enterprises in which Key Management personnel or their relatives have significant influence Kal Comm Private Limited Kal Cables Private Limited Sun Direct TV Private Limited Udaya FM Private Limited Sun Distribution Services Private Limited Sun Business Solutions Private Limited Kal Publications Private Limited D.K. Enterprises Private Limited Sun Foundation Murasoli Maran Family Trust Kal Media Services Private Limited Kal Airways Private Limited Subsidiary Companies Kal Radio Limited Joint Venture South Asia FM Limited Asia Radio Broadcast Private Limited Digital Radio (Kolkata) Broadcasting Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited Associates Deccan Digital Networks (Hyderabad) Private Limited Metro Digital Networks (Hyderabad) Private Limited AV Digital Networks (Hyderabad) Private Limited Key Management personnel Mr. Kalanithi Maran - Executive Chairman Mr. K Vijaykumar - Managing Director and Chief Executive Officer Mr. R Mahesh Kumar - President Mrs. Kavery Kalanithi - Executive Director Mr.V C Unnikrishnan - Chief Financial Officer Mr. R. Ravi - Company Secretary Mr. S. Selvam - Non Executive Director Mr. J. Ravindran - Independent Director Mr. M.K. Harinarayanan - Independent Director Mr. Nicholas Martin Paul - Independent Director Mr. R.Ravivenkatesh - Independent Director Relatives of Key Management personnel Mrs. Mallika Maran Ms. Kaviya Kalanithi Maran Terms & Conditions of Transactions with Related Party The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended March 31, 2017, the company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2016: Nil, April 1, 2015: Nil). Based on internal reporting provided to the chief operating decision maker, Media and Entertainment is the only operating segment for the company. Non-current assets for this purpose consist of property, plant and equipment, investment properties, intangible assets, capital work in progress and other non current assets (other than financial instruments). Note 8. Fair values Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values: The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables, Financial guarantee and other current and non current financial liabilities and financial assets approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method and assumptions used to estimate the fair values is the fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date. The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities: Note 9. Financial risk management objectives and policies The Company’s principal financial liabilities, include trade and other payables. The Company has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below. Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk. The Value of financial instrument may change as a result of changes in the foreign currency exchange rates, equity price fluctuation, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy .Financial instrument affected by market risk includes invesment in equity instruments etc. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities.As per the Forex policy, the Company, takes forward contract for transactions where the foreign currency risk on account of movement in exchange rate expected to be high and which is material to the Company. The impact of foreign exchange rate fluctuations is evaluated by assessing its exposure to exchange rates risks. Major exposure to foreign exchange fluctuation risks is with Monetary receivables / payables denominated in USD. Foreign currency sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.The sensitivity analysis in the following sections relate to the position as at March 31, 2017, March 31, 2016 and April 1, 2015. Credit risk Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk is equal to the carrying amount of financial assets as of March 31, 2017, March 31, 2016 & April 1, 2015 respectively. Liquidity risk The Company’s prime source of liquidity is cash and cash equivalents and the cash flow generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. As of March 31, 2017, the Company had a working capital of Rs.1,890.53 crores (March 31, 2016 - Rs. 1,915.21 crores ; April 1, 2015 - Rs. 1,562.52 crores) including cash and cash equivalents of Rs. 655.16 crores (March 31, 2016 - Rs. 552.93 crores ; April 1, 2015 - Rs. 393.21 crores) and current investment of Rs. 545.48 crores (March 31, 2016 -Rs. 230.59 crores ; April 1, 2015 - Rs. 244.92 crores). As of March 31, 2017, March 31, 2016 & April 1, 2015, there are no material liability which is outstanding. Accordingly, no liquidity risk is perceived. Collateral A collateral on the Fixed Deposit of the Company (amounting to Rs.32.50 crores ) has been made against the loan of Rs. 29.50 crores taken by the Company’s investee (Joint Venture). Refer note 33 (d). Note 10. Capital management For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company’s policy for capital management aims to enhance capital efficiency by the long-term improvement of its value through business growth, while maintaining a sound financial structure. Indicators for monitoring the capital management include total equity attributable to owners of the parent and ROE (ratio of net profit to total equity attributable to owners of the parent). The Company’s policy is to keep the ROE between 35% to 38%. The Company has achieved the same over past 2 years. Note 11. Provisional Attachment order from Enforcement Directorate During the year, the Hon’ble Special Court hearing the related proceedings in connection with an investigation not involving the Company, passed an order, as a result of which, the provisional attachment stands released. During the previous year, certain Freehold Land and Buildings of the Company aggregating Rs. 266 crores had been provisionally attached vide an order of the Enforcement Directorate, Ministry of Finance, Government of India, (“Enforcement Directorate”), under the prevention of Money Laundering Act, 2002 (“PMLA”). Whilst the appeal process in this matter is pending, Company continues to be in possession of the said properties / deposits / mutual fund investments, the management is confident of a successful outcome from the same and accordingly is of the view that no accounting adjustments are considered necessary in this standalone financial statements in this regard. Note 12. First-time adoption of Ind AS These financial statements, for the year ended 31 March 2017, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP) and Companies Account (Amendment) rules, 2016, as amended. Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2015, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016. Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions : 1 Ind AS 16 - Property, plant and equitment are opted to be carried as recognised in its previous GAAP financials as deemed cost at the transition date. The Company has elected to continue with the carrying value as at 1st April, 2015 for all of its investment properties, Intangible assets and property plant & equipment as recognised in its Previous GAAP financial as deemed cost at the transition date. 2 Ind AS 103 - Business Combinations has not been applied to amalgamation / merger, which are are considered businesses under Ind AS that occurred before date of transition i.e April 1, 2015. The Company has used this exemption for the merger of Gemini TV Private Limited and the Satellite Television Business of Udaya TV Private Limited in earlier years. Estimates The estimates at April 1, 2015 and at March 31, 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from Impairment of financial assets based on expected credit loss model where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2015 (i.e. the date of transition to Ind-AS) and as of March 31, 2016. Effect of the Transition to Ind AS Reconciliations of the Company’s balance sheets prepared under Indian GAAP and Ind AS as of April 1, 2015 and March 31, 2016 are also presented in Note 42. Reconciliations of the Company’s income statements for the year ended March 31, 2016 prepared in accordance with Indian GAAP and Ind AS in Note 43. Notes: (a) Deferred credit terms with customers Under Indian GAAP, the Company accounted for revenue from operations at its transaction value. Under Ind AS, where the inflow of cash is deferred, revenue is determined at its fair value by discounting all future receipts using an imputed rate of interest. The difference between the transaction value and discounted value is recognized as interest income on EIR basis. (b) Multiple arrangements Under Indian GAAP, the Company has accounted for various components of a multiple-element arrangement as a single contract at its transaction value. However, under Ind AS, the Group has identified separately each components of a combined transaction and recognized revenue on each component at its fair value. (c) Investments carried at FVTPL Under Indian GAAP, the Company accounted for investments in unquoted mutual funds as investment measured at the lower of cost and market value. Under Ind AS, the Group has measured such investments at fair value. The difference between fair value and Indian GAAP carrying amount has been recognized in statement of profit and loss account as fair value gain/loss. (d) Actuarial gain/loss on defined benefit plans Under Indian GAAP, the Company recognized actuarial gains/losses and expected rate of return on defined benefit plans in the income statement. Under Ind AS, the Company has recognized the actuarial gains/losses and the return on assets (excluding interest) relating to retirement benefit plans in other comprehensive income. However, this has no impact on total comprehensive income and total equity. (e) Impairment of financial assets Under Indian GAAP, provisioning on trade receivables was made on incurred loss model. Under Ind AS, the provision has been created based on the expected credit loss model. (f) Government Grants Under Indian GAAP, the Company has accounted for fixed assets net of the import duty exemption provided. Under Ind AS, the Government grant is to be separately identified and recognised as deferred revenue and fixed assets is to be accounted at the gross value including the duty saved portion. The income is to be recognised over the life of the respective assets and depreciation is to be charged on the grossed value of fixed assets. (g) Other financial assets Under Indian GAAP, the Company measures the rental deposits paid to the lessor and rental deposits received from customers at transaction value. Under Ind AS, the deposits have been measured at fair value and the difference between the fair value and the transaction cost has been recorded as prepaid lease rent / deferred revenue. (h) Deferred tax Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. On transitional adjustments, the corresponding deferred taxes have been recognized. (i) Other comprehensive income Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS. (j) Investment Properties Under Indian GAAP, investment properties were presented as part Property, plant and equipment. Under Ind AS, investment properties are required to be separately presented on the face of the Balance Sheet. (k) Statement of cash flows The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows. Note 13. Disclsoure On Specified Bank Notes (SBNs) During the year, the Company had specified bank notes(SBNs) and other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBNs and other notes as per the notification is given below: For the purposes 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 number S.O. 3407(E), dated the 8th November, 2016. Note 14. As required by Accounting Standard (Ind - AS-37) “Provisions, Contingent Liabilities and Contingent Assets” the details of Provisions are set out as under. Mar 31, 2016 1 Litigations & Claims Note 1 : a) Matters wherein management has concluded the Company''s liability to be probable and have accordingly provided for in the books. Refer Note 37. b) Matters wherein management has concluded the Company''s liability to be possible and have accordingly disclosed under Note (2) Contingent Liability c) Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceeding and claims, in different stages of process, in relation to civil and criminal matters. * The Company received demands of income tax disallowing the manner of allowance claimed by the Company for certain expenses. The Company''s appeal in respect of various years has been allowed by both the first and the second appellate authorities in the previous years. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the revenue authorities. The Company has received demand of income tax disallowing certain expenditure claimed in Assessment Year 2013-14. The Company has made an appeal against the said demand and based on the legal advise obtained by it, the management believes that the Company''s claim is likely to be accepted by the appellate authorities. ** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company''s claim is likely to be accepted by the authorities. @ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the previous year, the company has received a formal show cause notice containing a provisional demand of Rs. 63.13 crores. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 61.08 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and is accordingly confident of recovering the duty paid. ***The Company received show cause notices from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices / orders received with various authorities. The Company based on the judicial pronouncements and other arguments believes its position is likely to be accepted by the authorities. 2 Leases Operating leases (As a Lessee) The Company has taken a KU band satellite transponder and office premises on non - cancellable operating lease. Further, there are no restrictions imposed by the lease arrangements and there are no subleases. Operating leases (As a lessor) The Company has leased out certain parts of its owned corporate office building to its related parties. These non cancellable leases have remaining terms of between 1 and 10 years. As per para 46 of Accounting Standard 19 Leases issued by the Institute of Chartered Accountants of India, the Gross block value of such leased property determined based on the area occupied aggregates to Rs. 19.25 crores (Previous Year - 19.92 crores) and the accumulated depreciation and net book value of the same was amounted to Rs. 6.42 crores (Previous Year - 5.80 crores) and Rs. 12.83 crores (Previous Year - 14.12 crores) respectively. 3 Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. 4 Related party transactions Names of related parties 1. Individual owning an interest in voting power of the Company that gives them control Mr. Kalanithi Maran 2. Enterprises in which Key Management personnel or their relatives have significant influence Kal Comm Private Limited Kal Airways Private Limited Kal Cables Private Limited Kal Publications Private Limited Sun Direct TV Private Limited D.K. Enterprises Private Limited Udaya FM Private Limited Sun Foundation Sun Distribution Services Private Limited Murasoli Maran Family Trust Sun Business Solutions Private Limited Kal Media Services Private Limited SpiceJet Limited (Upto February 23, 2015) 3. Subsidiary Companies South Asia FM Limited Kal Radio Limited 4. Associates of South Asia FM Limited AV Digital Networks (Hyderabad) Private Limited Asia Radio Broadcast Private Limited Digital Radio (Kolkata) Broadcasting Limited Metro Digital Networks (Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 5. Key Management personnel Mr. Kalanithi Maran – Executive Chairman Mr. K Vijaykumar – Managing Director and Chief Executive Officer Mrs. Kavery Kalanithi – Executive Director Mr. V C Unnikrishnan – Chief financial Officer Mr. R. Ravi – Company Secretary 6. Relatives of Key Management personnel Mrs. Mallika Maran 5 Segment information The Company considers business segments as its primary segment. The Company''s operations predominantly relate to Media and Entertainment and, accordingly, this is the only primary reportable segment. 6 Investment in Subsidiaries operating in Radio business Under the relevant frameworks of the Ministry of Information and Broadcasting of the Government of India (''MIB''), the Company, its subsidiaries and its investees involved in FM Radio operations had submitted applications to migrate existing FM Radio licenses (including six of which expired on March 31, 2015 and others expiring on various dates in FY 2016-17 and thereafter) from Phase II to the Phase III licensing regime as well as applications for participating in the e-auction process for new FM Radio frequencies in the Phase III licensing regime. The Company has direct / indirect investments in FM Radio operations aggregating Rs 620.20 crores, the recoverability of which is dependent upon maintaining profitable operations. Two investees of the Company were permitted to participate in e-auction process based on a favourable order of the Delhi High Court. The Union of India''s appeal there against has been dismissed by the Hon''ble Supreme Court, thereby setting aside the Government''s rejection of the applications citing security reasons; Subsequent to the balance sheet date, (a) two investees have been granted licences in respect of 3 stations, for which the Grant of Permission Agreement (''GOPA'') has been signed; (b) the MIB has offered migration of existing licenses owned by the Company''s investees to the Phase III licensing regime subject to payment of the requisite fees and compliance with other terms and conditions, which the management is confident of complying with. With respect to the Company and its subsidiaries, (a) An interim order of the Madras High Court had permitted these Companies to participate in the e-auctions in Phase III. (b) With reference to migration from Phase II to Phase III stated above, the relevant companies have been permitted to continue existing operations by way of interim orders by the Madras High court. While the matter continue to be sub-judice at the Madras High Court, having regard to the recent judgment of the Supreme Court as well post-year end events, in relation to investees of the Company, management is confident of receiving the required approvals against the applications by the Company and its subsidiaries, to enable continued profitable operations of these FM Radio stations and the recoverability of the Company''s investments, direct and indirect, in its radio operations. In the third quarter of the current year, the Company has also made additional investments of Rs 157.80 crores in South Asia FM Limited ("SAFM"), a subsidiary, against a rights issue by SAFM towards funding new licences and the migration plan as per Phase III licensing regime. 7 Provisional Attachment order from Enforcement Directorate During the quarter ended June 30, 2015, the Company and one of its subsidiaries, South Asia FM Limited ("SAFM"), received an order from the Enforcement Directorate, Ministry of Finance, Government of India, ("Enforcement Directorate") provisionally attaching certain Freehold Land and Buildings of the Company aggregating Rs. 266 crores, and fixed deposits with banks and mutual fund investments of SAFM aggregating Rs. 21.34 crores, under the Prevention of Money Laundering Act, 2002 ("PMLA") in connection with an investigation not involving the Company. With reference to the Provisional Attachment Order ("PAO") under PMLA, the Company has filed a Special Leave Petition ("SLP") challenging the said Order before the Hon''ble Supreme Court of India which has stayed the adjudication proceedings under the PMLA and accordingly the entities continue to be in full possession of these assets. Based on legal advise, management is confident that the said PAO is not legally tenable and is confident of a favourable outcome in due course and, accordingly, is of the view that no accounting adjustments are considered necessary in these financial statements in this regard. 8 Prior year comparatives Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification. Mar 31, 2015 1. Corporate Information Sun TV Network Limited ('Sun TV' or 'the Company') was incorporated on December 18, 1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange ('BSE') and the National Stock Exchange ('NSE') in India. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company's flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company's film production / distribution division 'Sun Pictures' undertakes production / distribution of movies in the Tamil language. The Company also has the license to operate an Indian Premier League ('IPL') franchise "Sun Risers Hyderabad". 2. Rights attached to equity shares The Company has only one class of equity shares having a par value of Rs.5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 11.25 /- share (March 31,2014: Rs. 9.50 /- share). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders. 3. Export Obligations The Company has obtained licenses under the Export Promotion Capital Goods (EPCG) Scheme for importing capital goods at a concessional rate of customs duty. Under the terms of the scheme, the Company has an export obligation equivalent to six to eight times the duty saved to be fulfilled within a period of six to eight years from date of import of the capital goods. Accordingly, the Company currently has an export obligation aggregating to Rs. 42.28 crores (March 31,2014 Rs. 64.19 crores ) 4. Royalty Payable to Ministry of Information and Broadcasting ('MIB') The Group has obtained licenses to permit them to carry FM operations in Chennai, Coimbatore and Tirunelveli. The Group is required to pay royalty of 4% of gross revenue earned from these FM Operations during the financial year or 2.5 % of One Time Entry Fees paid, whichever is higher to Ministry of Information and Broadcasting, as required by terms of requirements of the Grant of Permission Agreement between Sun TV Network Limited ("the Permission Holder") and Ministry of Information and Broadcasting ('MIB') dated September 4, 2006 ("GOPA"). 5. Franchise rights commitments As per the terms of the franchise agreement entered into by the Company with the BCCI, the Company has a commitment to pay BCCI, Rs. 85.05 crores per annum for the 2014 season to 2017 season. From the 2018 IPL season, the Company is required to pay license fees at 20% on the Franchise Income earned during the relevant year from the operation of the IPL franchise to BCCI. In the current year the Company has paid an amount aggregating to Rs. 25.52 crores as franchise license fee for the 2015 IPL season. 6. Litigations & Claims a) Matters wherein management has concluded the Company's liability to be probable and have accordingly provided for in the books. Refer Note 38. b) Matters wherein management has concluded the Company's liability to be probable and have accordingly disclosed under Note (2) Contingent Liability c) Matters wherein management is confident of succeeding in these litigations and have concluded the liability to the Company to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceeding and claims, in different stages of process, in relation to civil and criminal matters. 7. Contingent liability Particulars March 31, 2015 March 31, 2014 Income Tax* 331.14 276.86 Customs Duty** @ 63.63 63.63 Service tax *** 28.26 - 423.03 340.49 * The Company received demands of income tax disallowing the manner of allowance claimed by the Company for certain expenses. The Company's appeal in respect of various years has been allowed by both the first and the second appellate authorities in the previous years. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the revenue authorities. The Company has received demand of income tax disallowing certain expenditure claimed in Assessment Year 2012-13. The Company has made an appeal against the said demand and based on the legal advise obtained by it, the management believes that the Company's claim is likely to be accepted by the appellate authorities. ** The Company has received demand for differential customs duty aggregating to Rs. 0.50 crores on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company's claim is likely to be accepted by the authorities. @ Further to enquiries by the customs authorities on customs duty exemptions availed the Company has received a formal show cause notice containing a provisional demand of Rs. 63.13 crores in the previous year. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 61.08 crores under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and is accordingly confident of recovering the duty paid. ***The Company received show cause notices from the Service tax department seeking service tax on certain services and disallowances of input credit availed on certain services. The Company has filed appeals for all such show cause notices / orders received with various authorities. The Company based on the judicial pronouncements and other arguments believes its position is likely to be accepted by the authorities. Operating leases (As a lessor) The Company has leased out certain parts of its office buildings to its related parties. These non cancellable leases have remaining terms of between 1 and 10 years. As per para 46 of Accounting Standard 19 Leases issued by the Institute of Chartered Accountants of India, the gross block value of such leased property determined based on the area occupied aggregates to Rs.19.92 crores and the accumulated depreciation and net book value of the same was amounted to Rs.5.80 crores and Rs.14.12 crores respectively. 8. Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. 9. Related party transactions Names of related parties 1. Individual owning an interest in voting power of the Company that gives them control Mr. Kalanithi Maran 2. Enterprises in which Key Management personnel or their relatives have significant influence Kal Comm Private Limited SpiceJet Limited (Upto February 23, 2015) Kal Cables Private Limited Kal Publications Private Limited Sun Direct TV Private Limited D.K. Enterprises Private Limited Udaya FM Private Limited Sun Foundation Sun Distribution Services Private Murasoli Maran Family Trust Limited Sun Business Solutions Private Kal Media Services Private Limited Limited Kal Airways Private Limited 3. Subsidiary Companies South Asia FM Limited Kal Radio Limited 4. Associates AV Digital Networks (Hyderabad) Private Limited Asia Radio Broadcast Private Limited Digital Radio (Kolkata) Broadcasting Limited Metro Digital Networks (Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 5 Key Management personnel Mr. Kalanithi Maran - Executive Chairman Mrs. Kavery Kalanithi - Executive Director Mr. K Vijaykumar - Managing Director and Chief Executive Officer 6. Relatives of Key Management personnel Mrs. Mallika Maran 10. Provisional Attachment order from Enforcement Directorate Subsequent to March 31 2015, the Company and one of its subsidiaries, South Asia FM Limited ("SAFM"), have received an order from the Enforcement Directorate, Ministry of Finance, Government of India, provisionally attaching Freehold Land and Buildings of the Company aggregating Rs.266.76 crores and fixed deposits with banks and mutual fund investments aggregating Rs. 21.34 crores of SAFM, under the Prevention of Money Laundering Act, 2002 in connection with an investigation not involving the Company / SAFM. Based on the legal opinion received, the Management is confident that the said Provisional Attachment Order by the Enforcement Directorate is not tenable against the Company and / or SAFM. The Company has filed a Writ Petition challenging the said Order and the matter is pending before the Hon'ble High Court of Madras and management is confident of a favourable outcome in due course. Accordingly, the management is of the view that no accounting adjustments are considered necessary in these financial statements in this regard. Furthermore, the Company / the Group continue to be in full possession of the assets sought to be attached and continue to use the same in the normal course of its business. 11. Investment in Subsidiaries operating in Radio business The Ministry of Information and Broadcasting of the Government of India ('MIB') has, during the year, invited applications for the e-Auction of Private FM Radio Phase - III. The Company, its subsidiaries and its investees have filed applications to migrate their existing FM Radio licenses (including three of which expired on 31 March 2015 and others expiring on various dates in FY 2016-17 and thereafter) from Phase II to the Phase III licensing regime ("FM License Migration Applications"), which are currently being processed by the MIB and their communication is awaited. Management is confident of receiving the approvals for the Company's FM License Migration Applications, which is essential for the continued operations of these FM Radio stations and the recoverability of the Company's investments, direct and indirect, in its radio operations / investees. Accordingly, no impairment to asset values and / or diminution other than temporary in the value of the related assets/investments, have been considered necessary in this regard. 12. Prior year comparatives Previous year figures have been regrouped / reclassified, where necessary, to conform to this year's classification. As per our report of even date. Mar 31, 2014 1. Corporate Information Sun TV Network Limited (''Sun TV'' or ''the Company'') was incorporated on December 18, 1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange (''BSE'') and the National Stock Exchange (''NSE'') in India. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company''s flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company''s film production / distribution division ''Sun Pictures'' undertakes production / distribution of movies in the Tamil language. The Company also has the license to operate an Indian Premier League (''IPL'') franchise "Sun Risers Hyderabad". 2 Current investments Current investments (valued at lower of cost and fair value, unless stated otherwise) 3. Capital and other commitments b) Export Obligations The Company has obtained licenses under the Export Promotion Capital Goods (EPCG) Scheme for importing capital goods at a concessional rate of customs duty. Under the terms of the scheme, the Company has an export obligation equivalent to six times the duty saved to be fulfilled within a period of six to eight years from date of import of the capital goods. Accordingly, the Company currently has an export obligation aggregating to Rs. 641.9 million (March 31, 2013 Rs. 1,135.3 million) c) Royalty Payable to Ministry of Information and Broadcasting (''MIB'') The Company has obtained licenses to permit them to carry FM operations in Chennai, Coimbatore and Tirunelveli. The Company is required to pay royalty of 4% on the Gross revenues earned during the financial year from these FM operations, as required by terms of requirements of the Grant of Permission Agreement between Sun TV Network Limited ("the Permission Holder") and Ministry of Information and Broadcasting (''MIB'') dated September 4, 2006 ("GOPA"). d) Franchise rights commitments As per the terms of the franchise agreement entered into by the Company with the BCCI, the Company has a commitment to pay BCCI, Rs. 850.5 million per annum for the 2014 season to 2017 season. From the 2018 IPL season, the Company is required to pay license fees at 20% on the Franchise Income earned during the relevant year from the operation of the IPL franchise to BCCI. In the current year the Company has paid an amount aggregating to Rs. 255.2 million as franchise license fee for the 2014 IPL season. 4. Contingent liabilities Particulars March 31, 2014 March 31, 2013 Income Tax* 2,768.6 2,039.8 Customs Duty**@ 636.3 615.8 Total 3,404.9 2,655.6 *The Company received demands of income tax disallowing the manner of allowance claimed by the Company for certain expenses. The Company''s appeal in respect of various years has been allowed by both the first and the second appellate authorities in the current year. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the revenue authorities. The Company has received demand of income tax disallowing certain expenditure claimed in Assessment Year 2008- 09. The Company has made an appeal against the said demand and based on the legal advise obtained by it, the management believes that the Company''s claim is likely to be accepted by the appellate authorities. ** The Company has received demand for differential customs duty aggregating to Rs. 5.0 million on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company''s claim is likely to be accepted by the authorities. @ Further to enquiries by the customs authorities on customs duty exemptions availed by the Company in the previous year, the Company has received a formal show cause notice containing a provisional demand of Rs. 631.3 million. Then the Company has filed its responses to this notice and has also deposited a sum of Rs. 610.8 million under protest pending final resolution of the matter. The Management has been advised by senior counsels that appropriate legal remedies are available to the Company in this matter and is accordingly confident of recovering the duty paid. The Company is involved in certain legal proceedings and claims in relation to civil and criminal matters. These legal proceedings are currently pending adjudication before various courts and tribunals. Based on a review of the relevant facts and judicial precedents and as advised of its legal counsels, management is confident of succeeding in these litigations and consequently no provision has been made in the financial statements. 5. Leases Operating leases (As a Lessee) The Company has taken a KU band satellite transponder and office premises on non - cancellable operating lease. There are no escalation clauses in the lease agreements. Further, there are no restrictions imposed by the lease arrangements and there are no subleases. Operating leases (As a lessor) The Company has leased out its office buildings. These non cancellable leases have remaining terms of between 1 and 3 years. 6. Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The Company does not currently have any estimates of the contribution to be paid to the plan during the next year. Accordingly, the same has not been disclosed. 7. Related party transactions Names of related parties 1. Controlling Party Mr. Kalanithi Maran 2. Enterprises in which Key Management personnel or their relatives have significant influence Kal Publications Private Limited Sun Foundation SpiceJet Limited Murasoli Maran Family Trust Udaya FM Private Limited D.K. Enterprises Private Limited Sun Direct TV Private Limited Kungumam Nithiyagam Private Limited Sun Distribution Services Private Limited Kal Comm Private Limited Kal Investments (Madras) Private Limited Kal Media Services Private Limited Kal Airways Private Limited Kal Cables Private Limited Kal Holdings Private Limited Sun Business Solutions Private Limited 3. Subsidiary Companies South Asia FM Limited Kal Radio Limited 4. Associates AV Digital Networks (Hyderabad) Private Limited Asia Radio Broadcast Private Limited Digital Radio (Kolkata) Broadcasting Limited Metro Digital Networks (Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 5 Key Management personnel Mr. Kalanithi Maran – Executive Chairman Mrs. Kavery Kalanithi – Executive Director Mr. K Vijaykumar – Managing Director and Chief Executive Officer 6. Relatives of Key Management personnel Mrs. Mallika Maran 8. Prior year comparatives Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification. Mar 31, 2013 1. Corporate Information Sun TV Network Limited (''Sun TV'' or ''the Company'') was incorporated on December 18, 1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange (''BSE'') and the National Stock Exchange (''NSE'') in India. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company''s flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company''s film production / distribution division ''Sun Pictures'' undertakes production / distribution of movies in the Tamil language. During the current year, the Company has acquired license to operate an Indian Premier League (''IPL'') franchise in the city of Hyderabad from the Board of Control for Cricket in India (''BCCI''). 2. Contingent liabilities March 31, 2013 March 31, 2012 Income Tax* 2,039.8 1,488.6 Customs Duty**@ 615.8 5.0 Total 2,655.6 1,493.6 * The Company received demands of income tax in respect of earlier years, disallowing the manner of allowance claimed by the Company for certain expenses. The Company''s appeal in respect of various years has been allowed by the appellate authority in the current year. Accordingly, management believes that based on the favourable judgment as well as relying on judicial pronouncements and other arguments, its position is likely to be accepted by the revenue authorities. ** The Company has received demand for differential customs duty aggregating to Rs. 5.0 million on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company''s claim is likely to be accepted by the authorities. @ In response to enquiries by the Customs Authorities on certain customs duty exemptions availed by the Company in the previous years, the Company has deposited a sum of Rs. 610.8 million under protest in the current year, pending final resolution of the matter. The Management is advised by Senior Counsels that appropriate legal remedies are available and accordingly is confident of recovering the same. 3. Dues to Micro and Small Enterprises There is no overdue amount payable to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Further, the Company has not paid any interest to any Micro and Small Enterprises during the current and previous year. 4. Un-hedged foreign currency balances The Company does not use any derivative instruments to hedge its foreign currency exposure. The details of foreign currency balances which are not hedged as at the balance sheet date are as below: 5. Leases Operating leases (As a Lessee) The Company has taken a KU band satellite transponder and office premises on operating lease. There are no escalation clauses in the lease agreements. Further, there are no restrictions imposed by the lease arrangements and there are no subleases. Operating leases (As a lessor) The Company has leased out its office buildings. These non cancellable leases have remaining terms of between 1 and 3 years. 6. Employees'' benefit plan - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled.The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.The Company does not currently have any estimates of the contribution to be paid to the plan during the next year. Accordingly, the same has not been disclosed. 7. Related party disclosures (to the extent not disclosed elsewhere in these financial statements) 1. Controlling Party Mr. Kalanithi Maran 2. Enterprises in which Key Management personnel or their relatives have significant influence Kal Publications Private Limited Sun Foundation Spicejet Limited Murasoli Maran Family Trust Udaya FM Private Limited S & S Textiles Sun Direct TV Private Limited D.K. Enterprises Private Limited Kungumam Publications Private Limited Kungumam Nithyagam Private Limited Sun Distribution Services Private Limited Kal Comm Private Limited (Formerly Sun 18 Media Services South Private Limited) Kal Media Services Private Limited Kal Investments (Madras) Private Limited Kal Cables Private Limited Kal Airways Private Limited Sun Business Solutions Private Limited Kal Holdings Private Limited 3. Subsidiary Companies South Asia FM Limited Kal Radio Limited Sun TV Network Europe Limited (upto May 07, 2012) 4. Associates AV Digital Networks (Hyderabad) Private Limited Asia Radio Broadcast Private Limited Digital Radio (Kolkata) Broadcasting Limited Metro Digital Networks (Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 5 Key Management personnel Mr. Kalanithi Maran - Executive Chairman Mrs. Kavery Kalanithi - Executive Director Mr. K Vijaykumar - Managing Director and Chief Executive Officer 6. Relatives of Key Management personnel Mrs. Mallika Maran 8. Franchise License Fee On October 25, 2012 the Company acquired the right to operate a franchise in the Indian Premier League (''IPL'') for a consideration of Rs. 850.5 million, payable annually for a period of 5 years as per the terms of the franchise agreement entered into by the Company with the Board of Control for Cricket in India (''BCCI''). The annual franchise fee payable to the BCCI as above would be recognized as an expense on an accrual basis in accordance with terms of the Company''s agreement with the BCCI. 9. Prior year comparatives Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification. Mar 31, 2012 1. Corporate Information Sun TV Network Limited ('Sun TV' or 'the Company') was incorporated on December 18,1985 as Sumangali Publications Private Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange ('BSE') and the National Stock Exchange ('NSE') in India.The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom,Europe, Middle East.United States.Australia, South Africa and Canada. The Company's flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company's film production / distribution division 'Sun Pictures' undertakes production / distribution of movies in the Tamil language. 2. Share capital a. Rights attached to equity shares The company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 9.50/share (March 31,2011: Rs. 8.75/share). In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders. 3. Capital and other commitments a) Export Obligations The Company has obtained licenses under the Export Promotion Capital Goods (EPCG) Scheme for importing capital goods at a concessional rate of customs duty. Under the terms of the scheme, the Company has an export obligation equivalent to eight times the duty saved to be fulfilled within a period of eight years from date of import of the capital goods. Accordingly, the Company currently has an export obligation aggregating to Rs.2,251.2 million (March 31, 2011 Rs.2,028.8 million). b) License Fee to Ministry of Information and Broadcasting ('MIB') The Company has obtained licenses to carry on FM radio operations in Chennai, Coimbatore and Tirunelveli. The Company is required to pay license fee at 4% on the Gross revenues earned during the financial year from these FM operations or 10% of the Reserve OTEF ('One Time Entry Fee') for the respective city, whichever is higher as required by terms of requirements of the Grant of Permission Agreement between Sun TV Network Limited ("the Permission Holder") and Ministry of Information and Broadcasting ('MIB') dated September 2006 ("GOPA"). 4. Contingent liabilities March 31, 2012 March 31, 2011 Income Tax* 1,488.6 719.4 Customs Duty** 5.0 5.0 Total 1,493.6 724.4 * The Company received demands of income tax in respect of earlier years, disallowing the manner of allowance claimed by the Company for certain expenses. The Company has gone on appeal against the said demands, and based on judicial pronouncements and other arguments, management believes that the Company's claim is likely to be accepted by Appellate authorities. Further, management believes that any disallowance of such expenses would result in deductible timing differences. ** The Company has received demand for differential customs duty on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such Appellate proceedings, management believes that the Company's claim is likely to be accepted by the authorities. 5. Dues to Micro and Small Enterprises There is no overdue amount payable to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Further, the Company has not paid any interest to any Micro and Small Enterprises during the current and previous year. 6. Leases Operating leases (As a Lessee) The Company has taken a KU band satellite transponder and office premises on operating lease. There are no escalation clauses in the lease agreements. Further, there are no restrictions imposed by the lease arrangements and there are no subleases. Operating leases (As a lessor) The Company has leased out its office buildings. These non cancellable leases have remaining terms of between 1 and 3 years. 7. Employee benefit plans-Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The Company does not currently have any estimates of the contribution to be paid to the plan during the next year. Accordingly, the same has not been disclosed. 8. Related party disclosures (to the extent not disclosed elsewhere in these financial statements) 1. Controlling Party Mr. Kalanithi Maran 2. Enterprises in which Key Management personnel or their relatives have significant influence Kal Publications Private Limited Spicejet Limited Udaya FM Private Limited Sun Direct TV Private Limited Kungumam Publications Private Limited Sun 18 Media Services South Private Limited Kal Comm Private Limited Kal Airways Private Limited Kal Holdings Private Limited Sun Foundation Murasoli Maran Family Trust S & S Textiles D.K. Enterprises Private Limited Kungumam Nithyagam Private Limited Kal Investments (Madras) Private Limited Kal Media Services Private Limited Kal Cables Private Limited Sun Business Solutions Private Limited 3. Subsidiary Companies South Asia FM Limited _ Kal Radio Limited_ Sun TV Network Europe Limited _ 4. Associates AV Digital Networks(Hyderabad)Private Limited Asia Radio Broadcast Private Limited Digital Radio(Kolkata) Broadcasting Limited Metro Digital Networks(Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 5 Key Management personnel Mr. Kalanithi Maran - Executive Chairman (Chairman and Managing Director till April 19, 2012) Mrs. Kavery Kalanithi - Executive Director (Joint Managing Director till April 19, 2012) Mr. K Vijaykumar - Managing Director and Chief Executive Officer (Chief Operating Officer till April 19, 2012) 6. Relatives of Key Management personnel Mrs. Mallika Maran 9. Prior year comparatives Till the previous year, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. The current year's financial statements have been prepared and presented in accordance with the requirements of the revised Schedule VI, as notified under the Companies Act, 1956 and applicable to the Company. The Company has also reclassified previous year figures in accordance with these requirements. Mar 31, 2011 1.1 Background Sun TV Network Limited ('Sun TV or 'the Company') was incorporated on December 18,1985 as Sumangali Publications Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange ('BSE') and the National Stock Exchange ('NSE') in India. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Company's flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Company's film production / distribution division 'Sun Pictures' undertakes production / distribution of movies in the Tamil language. During current year, the Company released a blockbuster movie simultaneously in three languages titled 'Enthiran' in Tamil and 'Robot' in Telugu and Hindi'. The Company earned revenues of Rs.179 crores, including Rs. 8 crores expected towards satellite rights which has not been included in the revenues in current year. The Company has spent Rs.132 crores on the production of this blockbuster. 22.3 Quantitative information as per the Act Due to the nature of its business, the requirements relating to the quantitative details of sales and the information under paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 are not applicable to the Company except to the extent disclosed in these financial statements. 1.2 Contingent Liabilities not provided for 31.03.2011 31.03.2010 Income Tax* 719.4 587.7 Customs Duty** 5.0 5.0 724.4 592.7 * The Company received demands of income tax in respect of earlier years, disallowing the manner of allowance claimed by the Company for certain expenses. The Company has gone on appeal against the said demands, and based on judicial pronouncements and other arguments, management believes that the Company's claim is likely to be accepted by appellate authorities. ** The Company has received demand for differential customs duty on account of incorrect classification of certain assets imported during FY 2007-08. The Company has gone on appeal against the said demand, and based on its arguments at such appellate proceedings, management believes that the Company's claim is likely to be accepted by the authorities. 1.3 Dues to Micro, Small and Medium Enterprises There is no overdue amount payable to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Further, the Company has not paid any interest to any Micro, Small and Medium Enterprises during the current and previous year. 1.4 Leases Operating leases (As a Lessee) The Company has taken a KU band satellite transponder and office premises on operating lease. There are no escalation clauses in the lease agreements. Further, there are no restrictions imposed by the lease arrangements and there are no subleases. 22.15 Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the Gratuity plan. The Company does not currently have any estimates of the contribution to be paid to the plan during the next year. Accordingly, the same has not been disclosed. The overall expected rate of return on assets is determined based on market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. 1.5 Related party disclosures (to the extent not disclosed elsewhere in these financial statements) 1. Controlling Party Mr. Kalanithi Maran 2. Enterprises in which Key Management personnel or their relatives have significant influence Kal Comm Private Limited Kal Cables Private Limited Kal Investments (Madras) Private Limited Network Cable Solutions Private Limited Sun Direct TV Private Limited Sun Academy Private Limited Kungumam Publications Private Limited Udaya FM Private Limited Sun 18 Media Services South Private Limited Kal Airways Private Limited Kal Holdings Private Limited Kungumam Nithyagam Private Limited Kal Publications Private Limited D.M.S Entertainment Private Limited HFO Entertainment Private Limited D.K. Enterprises Private Limited Sun Foundation Murasoli Maran Family Trust Kal Media Services Private Limited Spicejet Limited Sun Business Solutions Private Limited 3. Subsidiary Companies South Asia FM Limited Kal Radio Limited Sun TV Network Europe Limited 4. Associates AV Digital Networks (Hyderabad) Private Limited Asia.Radio Broadcast Private Limted Digital Radio (Kolkata) Broadcasting Limited Metro Digital Networks (Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 5. Key Management personnel Mr. Kalanithi Maran - Chairman and Managing Director Mrs. Kavery Kalanithi - Joint Managing Director 6. Relatives of Key Management personnel Mrs. Mallika Maran 1.6 Export Obligation The Company has obtained licenses under the Export Promotion Capital Goods (EPCG) Scheme for importing capital goods at a concessional rate of customs duty. Under the terms of the scheme, the Company has an export obligation equivalent to eight times the duty saved to be fulfilled within a period of eight years from date of import of the capital goods. Accordingly, the Company currently has an export obligation aggregating to Rs. 2,028.8 million (March 31,2010 Rs. 243.9 million). 1.7 Prior year comparatives Prior year figures have been regrouped wherever necessary to conform to the current year's classification. Mar 31, 2010 1 Background Sun TV Network Limited (Sun TV or the Company) was incorporated on December 18,1985 as Sumangali Publications Limited. The Company is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. The Company currently operates television channels in four South Indian languages predominantly to viewers in India, and also to viewers in Sri Lanka, Singapore, Malaysia, United Kingdom, Europe, Middle East, United States, Australia, South Africa and Canada. The Companys flagship channel is Sun TV. The other major satellite channels of the Company are Surya TV, Gemini TV and Udaya TV. The Company is-also into the business of FM Radio broadcasting at Chennai, Coimbatore and Tirunelveli. The Companys film production/ distribution division Sun Pictures undertakes production / distribution of movies in the Tamil language. 2. Quantitative information as per the Act Due to the nature of its business, the requirements relating to the quantitative details of sales and the information under paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 are not applicable to the Company except to the extent disclosed in these financial statements. 3. Contingent Liabilities not provided for 31.03.2010 31.03.2009 Income Tax 587.7 190.0 Customs Duty 5.0 -- 592.7 190.0 The Company received demands of income tax in respect of earlier years, disallowing the manner of allowance claimed by the Company for certain expenses. The Company has gone on appeal against the said demands, and based on judicial pronouncements and other arguments, management believes that the Companys claim is likely to be accepted by appellate authorities. 4. Dues to Micro, Small and Medium Enterprises Management has determined that there were no balances outstanding as at the beginning of the year and no transactions entered with Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, during the current year, based on the information available with the Company as at March 31,2010 and March 31,2009. 5. Leases Operating leases (As a Lessee) The Company has taken a KU band satellite transponder and office premises on operating lease. There are no escalation clauses in the lease agreements. Further, there are no restrictions imposed by the lease arrangements and there are no subleases. 6. Employee benefit plans - Gratuity The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The following tables summarize the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the Gratuity plan. 1. Enterprises in which Key Management personnel or their relatives have significant influence Kal Comm Private Limited Kungumam Nithyagam Private Limited Kal Cables Private Limited Kal Publications Private Limited Kal Investments (Madras) Private Limited D.M.S Entertainment Private Limited Network Cable Solutions Private Limited HFO Entertainment Private Limited Sun Direct TV Private Limited D.K. Enterprises Private Limited Sun Academy Private Limited Sun Foundation Kungumam Publications Private Limited Murasoli Maran Family Trust Udaya FM Private Limited Kal Media Services Private Limited 2. Subsidiary Companies South Asia FM Limited Kal Radio Limited Sun TV Network Europe Limited 3. Associates AV Digital Networks (Hyderabad) Private Limited Asia Radio Broadcast Private Limited Digital Radio (Kolkata) Broadcasting Limited Metro Digital Networks (Hyderabad) Private Limited Optimum Media Services Private Limited Digital Radio (Mumbai) Broadcasting Limited Deccan Digital Networks (Hyderabad) Private Limited Pioneer Radio Training Services Private Limited Digital Radio (Delhi) Broadcasting Limited South Asia Multimedia Private Limited 4. Key Management personnel Mr. Kalanithi Maran - Chairman and Managing Director Mrs. Kavery Kalanithi - Joint Managing Director 5. Relatives of Key Management personnel Mrs. Mallika Maran 7. Export Obligation The Company has obtained licenses under the Export Promotion Capital Goods (EPCG) Scheme for importing capital goods at a concessional rate of customs duty. Under the terms of the scheme, the Company has an export obligation equivalent to eight times the duty saved to be fulfilled within a period of eight years from date of import of the capital goods. Accordingly, the Company currently has an export obligation aggregating to Rs. 243.9 million (March 31,2009 Rs. Nil). 8. Prior year comparatives Prior year figures have been regrouped wherever necessary to conform to the current years classification. Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article IFSC Code Currency Select Bank Select State Select City Select Branch From INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc To INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc 1 USD = 89.577 (USD to INR) 1 EUR = 104.886 (EUR to INR) 1 GBP = 119.845 (GBP to INR) More Period 7-14 Days 15-30 Days 31-45 Days 46-90 Days 4-6 Months 7-12 Months 1-2 Years 2-5 Years 5-10 Years >10 Years More Information on Sun TV Network Ltd. Sun TV Network Ltd. Tools Bulk Deals Block Deals Sun TV Network Ltd. Company Details Company Profile Company History Management Team Capital Structure Product Mix Banker/Auditor/Registrar Company History BSE Price History NSE Price History Sun TV Network Ltd. Key Financial Ratios Ratios Sun TV Network Ltd. Results Quarterly Results Half Yearly Results Nine Months Results Annual Results Sun TV Network Ltd. Financial Data Audited Results Cash Flow Balance Sheet Sun TV Network Ltd. Reports Accounting Policies Auditors Report Directors Report Notes To Account Sun TV Network Ltd. Corporate Announcements Book Closure Dividend Board Meetings News Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday About GoodReturns GoodReturns is your trusted source for the latest financial news, investment insights, and expert guidance. Stay updated and make informed decisions with our comprehensive updates. 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