Notes to Accounts of TV Today Network Ltd.

Mar 31, 2025

Fair value measurement

The Company obtains valuation report from independent valuer for its radio business at least once in a year.
Independent valuation is done by the registered valuer as defined under rule 2 of Companies (Registered Valuers
and Valuation) Rules, 2017. The intangible assets of radio business have been classified as “Assets-held-for sale”
as at March 31,2025. Refer note 25.1 for details.

(ii) Revaluation of intangible assets

The Company has not revalued its intangible assets during the years ended March 31, 2025 and March 31,2024
except as mentioned in note 25.

(iii) All the intangible assets are the separately acquired assets.

Note 5.2: Intangible assets under development
©Accounting Policy

Intangible assets under development includes cost of intangible assets under development as at the reporting date.
Intangible assets under development is stated at cost, net of accumulated impairment loss, if any. Intangible assets
under development largely comprises of production software not yet ready to use.

NOTE 6: LEASES

Company’s leasing activities as a lessee:
©Accounting Policy

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets (which are
recognised on a straight-line basis as an expense in
profit or loss). The Company recognises lease liabilities
to make lease payments and right-of-use assets
representing the right to use the underlying assets.

The Right-of-use assets is depreciated using the
straight-line method from the commencement date to
the earlier of:

• the end of the useful life of the Right-of-use assets;
or

• the end of the lease term.

The estimated useful lives of Right-of-use assets are
determined on the same basis as those of property
and equipment. In addition, the Right-of-use assets
are periodically reduced by impairment losses, if any,
and adjusted for certain re-measurements of the lease
liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be
readily determined, the Company uses an incremental
borrowing rate specific to the Company, term, and
currency of the contract. Generally, the Company uses
its incremental borrowing rate as the discount rate.

After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of

interest and reduced for the lease payments made and
remeasured (with a corresponding adjustment to the
related Right-of-use assets) when there is a change in
future lease payments in case of renegotiation, changes
of an index or rate or in case of reassessment of options.

Critical judgements in determining the lease term

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

For leases of property and equipment, the following
factors are normally the most relevant:

•If there are significant penalties to terminate (or not
extend), the Company is typically reasonably certain
to extend (or not terminate).

• If any leasehold improvements are expected to have
a significant remaining value, the Company is typically
reasonably certain to extend (or not terminate).

• Otherwise, the Company considers other factors
including historical lease durations and the costs
and business disruption required to replace the
leased asset. Most extension options in offices,
equipment and vehicles leases have not been
included in the lease liability, because the Company
could replace the assets without significant cost or
business disruption.

Company’s leasing activities as a lessor:

©Accounting Policy

Lease income from operating lease is recognised as income on a straight-line basis over the lease term unless
the receipts are structured to increase in line with expected general inflation to compensate for the expected
inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

Note 6.4: Operating lease as a lessor

The Company has one on-going and three new operating leases on part of its office building during the current
year. This lease has term of 10 years. Lease include a clause to enable upward revision of the rental charge on
periodic basis.

The total rent recognised as income during the year is ''1.40 crores (March 31, 2024: ''0.89 crores). Future
minimum rentals receivable under operating leases as at year end are as follows:

Financial Assets
©Accounting Policy
Classification

The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for
managing them.

Financial assets are classified as:

• Subsequently measured at amortised cost,

• Fair value through other comprehensive income
(FVTOCI), and

• Fair value through profit or loss (FVTPL).

Debt instruments

(i) at Amortised Cost

A debt instrument is measured at the amortised 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.

(ii) at FVTOCI

A debt instrument is classified as at the FVTOCI if
both of the following criteria are met:

• The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

• The asset’s contractual cash flows represent SPPI
on the principal amount outstanding.

(iii) at FVTPL

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the criteria
for categorisation as at amortised cost or as FVTOCI,
is classified as at FVTPL.

Equity Instruments

Investment in Subsidiaries, Associates and Joint
ventures are out of scope of Ind AS 109 "Financial
instruments” and hence, the Company accounts for
its investment in Subsidiaries, Associates and Joint
venture at cost less impairment losses, if any.

All other equity investments are measured at fair
value. Equity instruments which are held for trading are
classified as at FVTPL. For equity instruments other
than held for trading, the Company has irrevocable
option to present in Other Comprehensive Income
subsequent changes in the fair value. The Company
makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition
and is irrevocable.

Initial recognition and measurement

With the exception of trade receivables that do not
contain a significant financing component or for which
the Company has applied the practical expedient,
the Company measures a financial asset at its fair
value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are
directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried
at fair value through profit or loss are expensed in
statement of profit and loss.

Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient are measured at
the transaction price determined under Ind AS 115
"Revenue from contracts with customers”.

Subsequent recognition

Subsequent measurement of financial assets depends
on the Company’s business model for managing the
asset and the cash flow characteristics of the asset.
There are three measurement categories into which
the Company classifies its debt instruments:

(i) Amortised cost: After initial measurement, such
financial assets are subsequently measured at
amortised cost using the effective interest rate (EIR)

method. Amortised 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 amortisation is included in finance income in the
profit or loss. The losses arising from impairment are
recognised in the profit or loss.

(ii) Fair value through other comprehensive
income (FVTOCI): Financial assets included within
the FVTOCI category are measured initially as well
as at each reporting date at fair value. Fair value
movements are recognised in the other comprehensive
income (OCI). However, the Company recognises
interest income, impairment losses & reversals
and foreign exchange gain or loss in the Statement
of Profit and Loss. On de-recognition of the asset,
cumulative gain or loss previously recognised in OCI
is re-classified from the equity to Statement of Profit
and Loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the
EIR method.

(iii) Fair value through profit or loss (FVTPL): A

gain or loss on a financial assets that is subsequently
measured at fair value through profit or loss and is not
part of a hedging relationship is recognised in profit
or loss and presented net in the statement of profit
and loss within other gains/(losses) in the period in
which it arises. Interest earned whilst holding FVTPL
debt instrument is reported as interest income using
the EIR method.

Derecognition of financial assets

A financial asset is derecognised only when:

• The Company has transferred the rights to receive
cash flows from the financial asset or

• retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one
or more recipients.

Where the Company has transferred an asset,
the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the
financial asset. In such cases, the financial asset is
derecognised. Where the entity has not transferred
substantially all risks and rewards of ownership

of the financial asset, the financial asset is not
derecognised.

Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognised if the Company has not retained control
of the financial asset. Where the Company retains
control of the financial asset, the asset is continued to
be recognised to the extent of continuing involvement
in the financial asset.

Impairment of financial assets other than
investment in Subsidiaries, Associates and Joint
ventures

The company assesses on a forward looking basis
the expected credit losses associated with its
assets carried at amortised cost. The impairment
methodology applied depends on whether there has
been a significant increase in credit risk. Note 7.11
details how the Company determines whether there
has been a significant increase in credit risk.

For trade receivables, the Company applies
the simplified approach permitted by Ind AS 109
"Financial Instruments”. The Company calculates the
expected credit losses on trade receivables using a
provision matrix on the basis of its historical credit loss
experience.

Impairment of investment in Subsidiaries,
Associates and Joint ventures

An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs of disposal
and value in use.

The impairment testing is conducted at the end of
every year. If indicators are identified, the valuation is
recalculated based on revised indicators. Conversely, if
no indicators are found, no impairment is recognised.

(ii) No trade or other receivable are due from directors or other officers of the company either severally or jointly with
any other person, nor any trade or other receivable are due from firms or private companies respectively in which
any director is a partner, a director or a member other than ''0.00 crores (March 31,2024: ''0.00 crores).

(iii) Trade receivables are non-interest bearing and are generally on terms of 0 to 90 days. For terms and conditions
relating to related party receivables, refer note 21.

Financial Liabilities
©Accounting Policy
Classification

Financial liabilities of the Company are classified, at initial recognition, as trade and other payables, loans and
borrowings (including bank overdraft), as appropriate.

Initial recognition and measurement

All financial liabilities of the Company are recognised initially at fair value, net of directly attributable transaction
costs.

Subsequent measurement

Financial liabilities of the Company are subsequently carried at amortized cost using the effective interest method.
For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

Derecognition

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

(ii) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments
that are recognised and measured at fair value to provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three levels prescribed under
the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices (for example listed equity
instruments, traded bonds and mutual funds that have quoted price).

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unquoted equity securities shown in the financial statements.

(iii) Valuation technique used to determine fair value

Value of unquoted equity investments (other than investment in subsidiaries) included in Level 3 above has been
determined using discounted cash flow analysis.

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

The following table presents the changes in level 3 items:

(v) Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the
Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are
held between the CFO, AC and the finance team at least once in every three months, in line with the Company’s
quarterly reporting periods.

The senior management of the Company oversees the management of these risks. The Company’s senior
management is supported by a financial risk team that advises on financial risks and the appropriate financial
risk governance framework for the Company. The financial risk team provides assurance to the Company’s senior
management that the Company’s financial risk activities are governed by appropriate policies and procedures
and that the financial risks are identified, measured and managed in accordance with the Company’s policies and
risk objectives.

(A) Credit risk

Credit risk arises from cash and cash equivalents, bank balances other than cash and cash equivalents, loans and
other financial assets, as well as credit exposures to customers including outstanding receivables. The carrying
value of such financial assets represents the maximum credit risk. The maximum exposure to credit risk was
''770.17 crores as at March 31,2025 (March 31,2024: ''755.08 crores).

Credit risk management

(1) Cash and cash equivalents, bank balances other than cash and cash equivalents and deposits with
bank

The Company maintains current accounts and deposits, only with nationalised banks or private sector banks
listed on stock exchange in India with decent credit ratings. Accordingly, there is no credit risk involved in cash and
cash equivalents, bank balances other than cash and cash equivalents and deposits with bank..

(2) Trade receivables

The Company evaluates credit worthiness of each customer and basis which credit limit for each customer is
defined.

The Company applies the simplified approach permitted by Ind AS 109 Financial Instruments. The Company
tracks changes in credit risk of trade receivable using simplified approach as per Ind AS 109. The Company
calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical
credit loss experience.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or failing to engage in a repayment plan with the Company.

Where trade receivables have been written off, the Company continues to engage in enforcement activity to
attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

(3) Financial assets other than (1) and (2) above

For other financial assets, the Company assesses and manages credit risk based on internal credit rating system.
The finance function consists of a separate team who assess and maintain an internal credit rating system. Internal
credit rating is performed for each class of financial instruments with different characteristics. The Company
assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors
specific to the class of financial assets.

VL 1: High-quality assets, negligible credit risk

VL 2: Quality assets, low credit risk

VL 3: Standard assets, moderate credit risk

VL 4: Substandard assets, relatively high credit risk

VL 5: Low quality assets, very high credit risk

VL 6: Doubtful assets, credit-impaired

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there
is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at
the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and
supportive forwarding-looking information. Especially the following indicators are incorporated:

• Internal credit rating

• external credit rating (as far as available)

• actual or expected significant adverse changes in business, financial or economic conditions that are expected
to cause a significant change to the party’s ability to meet its obligations.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the
dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining
availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing
facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out in
accordance with practice and limits set by the Company. In addition, the Company’s liquidity management policy
involves projecting cash flows and considering the level of liquid assets necessary to meet cash requirements,
monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining
debt financing plans.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting years:

(i) Foreign currency risk

The Company operates internationally also, along with operations in India, and is exposed to foreign exchange
risk arising from foreign currency transactions, primarily with respect to the GBP and USD. Foreign exchange risk
arises from future commercial transactions and recognised assets and liabilities denominated in a currency that
is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign
currency (FC) cash flows.

(a) Foreign currency risk exposure:

The Company exposure to foreign currency risk at the end of the reporting year, is as follows:

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates
primarily to the Company’s short-term borrowings with variable interest rates. Since there are no borrowings
outstanding as at the end of both the years, sensitivity analysis for interest rate risk is not presented here.

(iii) Other price risk

The Company’s unquoted equity investments are insignificant values, those are managed by monitoring the
financial performance and discounted cash flow analysis of investees. Accordingly, no sensitivity for such
investments has been presented here.

Note 7.12: Offsetting financial assets and financial liabilities
Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.

The following table presents the recognised financial instruments that are offset.

©Accounting Policy

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on
the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.

Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of reporting period in India where the Company operates and generates taxable income.

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end
of the reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.

As required by Ind AS 12 "Income taxes”, deferred tax assets are recognised for all deductible temporary
differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases
of investments in subsidiaries, where the Company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in subsidiaries, where it is not probable that the differences will reverse in the foreseeable future and
taxable profit will not be available against which the temporary difference can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.

Current tax expense and deferred tax charge/credit is recognised in profit or loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.

©Accounting Policy
Unbilled revenue

Contract assets (i.e. unbilled revenue) are recognised when there is excess of revenue earned over billings on
contracts with customers. Unbilled revenue is classified as contract assets (only act of invoicing is pending) when
there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Contract assets are considered as non-financial assets as the contractual right to consideration is dependant
on the completion of contractual milestone.

Other assets considered Doubtful

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances
indicate that carrying amount may not be recoverable.

Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of ''5 per share. Each shareholder is eligible
for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of
the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution
of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reserves and surplus
Securities premium

Securities Premium represents the amount received
in excess of par value of equity shares. Section 52
of Companies Act, 2013 specify restrictions and
utilisation of security premium.

Capital reserve

Capital reserve has arisen on account of acquisition
of digital business from Living Media India Limited
(Parent Company) w.e.f. January 1, 2018 through
Common Control Business Combination. It further
includes adjustments on account of amalgamation
of newspaper business of Mail Today Newspapers
Private Limited and India Today Online Private Limited
made in earlier years w.e.f. January 1, 2017 through
Common Control Business Combination as well.

General reserve

General reserve represents the statutory reserve, in
accordance with The Companies Act, 1956, wherein a
portion of profit is apportioned to it. Under Companies
Act, 1956 it was mandatory to transfer amount before
a company can declare dividend, however under
Companies Act, 2013 transfer of any amount to
General reserve is at the discretion of the Company.

Retained earnings

Retained earnings represent the undistributed profits
of the Company.

NOTE 11: EMPLOYEE BENEFITS

©Accounting Policy

Short-term obligation

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

The Company operates the following post-employment
schemes:

(a) defined benefit plan, i.e., gratuity

(b) defined contribution plans such as provident fund.

Gratuity plan

The liability or asset recognised in the balance sheet in
respect of defined benefit gratuity plans is the present
value of the defined benefit obligation at the end of
the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually
by actuaries using the projected unit credit method.

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

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

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They
are included in retained earnings in the statement of
changes in equity and in the balance sheet.

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

Defined contribution plans

The Company pays provident fund and employee
state insurance contributions to government adminis¬
tered Employee Provident Fund Organisation and
Employee State Insurance Corporation respectively.
The Company has no further payment obligations once
the contributions have been paid. The contributions

are accounted for as defined contribution plans and the contributions are recognised as employee benefit
expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or
a reduction in the future payments is available.

Bonus plans

The Company recognises a liability and an expense for bonuses. The Company recognises a provision where
contractually or statutorily obliged or where there is a past practice that has created a constructive obligation.

Other employee benefits

Compensated absences

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. They are therefore measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period using
the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting
period on government bonds that have terms approximating to the terms of the related obligation. Remeasurements
as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the reporting period, regardless of when the actual
settlement is expected to occur.

The Company participates in defined contribution and benefit plans, the assets of which are held (where funded)
in separately administered funds.

For defined contribution plans the amount charged to the statement of profit and loss is the total amount of
contributions payable in the year.

For defined benefit plans, the cost of providing benefits under the plans is determined by actuarial valuation
separately each year for each plan using the projected unit credit method by independent qualified actuaries as at
the year end. Remeasurement gains and losses arising in the year are recognised in full in other comprehensive
income for the year.

(i) Defined benefit plans
Gratuity plan

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/
termination is the employee''s last drawn basic salary per month computed proportionately for 15 day''s salary multiplied
with the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to
recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be
maintained over a period of time based on estimations of expected gratuity payments. As the estimated payout in next
12 months, from the balance sheet date, for the defined benefit obligation is less that the fair value of plan assets,
hence, the net liability has been considered as non-current.

Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected
salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible
changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions
constant.

Sensitivities due to mortality rate and attrition rate are not material & hence impact of change due to these not
calculated.

The Company ensures that investment positions are managed within an asset/liability matching (ALM) framework
that has been developed to achieve long term investments that are in line with the obligations under employee
benefit plans. Within this framework, the Company’s ALM objective is to match assets to the gratuity obligations
by investing in plan assets with recognised gratuity trust which has taken a gratuity policy with the Life Insurance
Corporation of India (LIC) with maturities that match the benefit payments as they fall due.

The Company actively monitors how the duration and the expected yield of the investments are matching
the expected cash outflows arising from the employee benefit obligations. The Company has not changed the
processes to manage its risk from previous periods.

The Company believes the LIC policy offers reasonable returns over the long-term with an acceptable level of risk.

The plan asset mix is in compliance with the requirements of the local regulations.

Defined benefit liability and employer contributions

The Company has agreed that it will aim to eliminate the deficit in defined benefit gratuity plan over the coming
years. Funding levels are monitored on an annual basis and the current agreed contribution rate as advised by the
LIC. The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the
deficit over the coming years and that regular contributions, which are based on service costs, will not increase
significantly.

Expected contribution to post-employment benefit plan for the year ending March 31,2026 is ''4.56 crores.

The weighted average duration of the defined benefit obligation as at March 31,2025 is 7.77 years (March 31,
2024: 7.92 years). The expected maturity analysis of gratuity is as follows:

(ii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund, employee
pension scheme and employee''s state insurance scheme for employees as per regulations. The contributions are
made to registered funds administered by the government. The obligation of the Company is limited to the amount
contributed and it has no further contractual or any constructive obligation. The expense recognised during the
period towards defined contribution plan is ''14.03 crores and ''0.28 crores (March 31,2024 ''13.82 crores and
''0.29 crores) for continuing operations and discontinued operations respectively.

©Accounting Policy
Contract balances

A contract liability includes advance from customer and deferred revenue. Advance from customers is recognised
if a payment is received from a customer before the Company renders the related services. Billing in excess of
revenues is classified as deferred revenue. Contract liabilities are subsequently recognised as revenue when the
Company renders the services under the contract (i.e. transfers control of the related services to the customer).

NOTE 13: REVENUE FROM OPERATIONS

©Accounting Policy
Revenue from operations

The Company’s revenue from operations is mainly from advertisement services. It further includes subscription
income, advertisement income from exchange of services, income from production support services and fees
from training etc.

NOTES FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025

Revenue is recognised as per Ind AS 115 "Revenue from contracts with customers”, upon transfer of control of
promised services ("performance obligations”) to customers at transaction price. When there is uncertainty as to
collectability, revenue recognition is postponed till the resolution of such uncertainty.

The Company assesses the services promised in a contract and identifies distinct performance obligations in the
contract. The Company also enters into certain multiple element revenue arrangements for performance of multiple
services including free/ bonus spots along with paid spots. In all cases, the total transaction price for a contract is
allocated amongst the various performance obligations based on their relative stand-alone selling prices.

The transaction price could be either a fixed amount of customer consideration or variable consideration with
elements such as agency incentive, discount etc. Any consideration payable to the customer is adjusted to the
transaction price, unless it is a payment for a distinct service from the customer. The estimated amount of variable
consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant
reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each
reporting period. Revenue is stated exclusive of Goods and Service tax and other taxes and amount collected on
behalf of other parties.

Revenue is recognised:

• when the performance obligation in the contract has been performed (‘point in time’ recognition) or

• as the performance obligation in the contract is performed (‘over time’ recognition).

Following are the streams of business and their revenue recognition principles:

(i) Income from advertisement and other related operations

The Company provides advertisement space on its television news channels Aaj Tak, India Today, Good News
Today and Aaj Tak HD (India and overseas), various websites, mobile apps and social media platforms. Revenue
from such services is recognised at a point in time when the advertisements are displayed/ aired.

(ii) Subscription income

The Company earns subscription income from news channels’ broadcast through various distribution mediums in
India and overseas. This income is recognised over the period of subscription.

(iii) Advertisement income from exchange of services

The Company enters in arrangements for sale of advertisement space on various platforms as mentioned in point
above in exchange of non-cash consideration. Revenue from such services is recognised at a point in time on
actual performance of the contract to the extent of performance completed by the Company against its part of
contract and is measured at standalone selling price of the services of the Company.

(iv) Income from production support services

The Company has formed a content hub which provides support services for producing original series and
features in the non-fiction and fiction space for streaming & audio platforms. Revenue from such production
support services is recognised on completion of each service milestone as per agreement with the customer.

(v) Other miscellaneous revenues

Other miscellaneous revenues include sale of tickets, food & beverages and sponsorships etc. for events and
other miscellaneous activities. Income from all such activities are recognised at a point in time on performance
of obligation.

13(d) The remaining performance obligation disclosure provides the aggregate amount of the transaction price
yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to
recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has
not disclosed the remaining performance obligation related disclosures for contracts where:

(i) The contract has an original expected duration of not more than 1 year; or

(ii) t he revenue recognized corresponds directly with the value to the customer of the entity’s performance
completed to date, typically those contracts where invoicing is on time and unit of work-based contracts

There are no contracts with the customers where the above mentioned practical expedients are not applicable.
Hence, no additional disclosure have been made in this regard.

©Accounting Policy

Income recognition on financial assets

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest
rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial
asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company
estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) but does not consider the expected credit losses.

(v) Reasons for shortfall - Most projects were of long-term in nature and hence funds were utilized based on the need and progress of each project
activities.

(vi) The corporate social responsibility projects undertaken during the year were focussed on the following:

(1) Plantation of trees

(2) Promoting and providing education support

(3) Livelihood enhancing projects

(4) Promoting nationally recognised sports projects

(5) Disaster management

(6) Setting up of public library

(7) Environment sustainability

(vii) The Company has made no provision with respect to a liability incurred by entering into a contractual obligation. Hence, movement in the
provision is not applicable.

* It refers contribution made to Care Today Fund (i.e. the entity over which key managerial personnel exercise significant influence). (note 21)

** The unspent amount as on March 31,2025 out of the amount required to be spent during the year, has been transferred to unspent CSR
account within 30 days from the end of the financial year, in accordance with the Companies Act, 2013 read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014.

NOTE 19: CONTINGENT LIABILITIES

©Accounting Policy

Contingent liability of the Company is a possible obligation arising from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity or a present obligation that arises from past events but is not recognized because it is not

(I) The Company’s pending litigations comprise of claims pertaining to proceedings pending with various direct tax
and other authorities. The Company has adequately provided for where provisions are required or disclosed
as contingent liabilities where applicable, in its standalone financial statements. The Company does not expect
the outcome of these proceedings to have a materially adverse effect on its standalone financial statements.

(II) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings as it is determinable only on receipt of decisions pending
with various authorities.

(g) Terms and conditions of transactions with related parties

(i) Transactions with related parties are made in the normal course of business and on terms equivalent to those
that prevail in arm’s length transactions.

(ii) Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.

(iii) Contribution to gratuity trust and expenses towards Corporate Social Responsibility activities were in
accordance with the applicable laws and regulations.

(iv) All outstanding balances are unsecured and settled in cash, except those against exchange of services, as
mentioned above, which are settled on receipt or provision of service by the parties.

NOTE 22: CAPITAL MANAGEMENT

(a) Risk management

The Company’s objectives when managing capital are to:

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

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Net debt (total borrowings amounts net of cash and cash equivalents) divided by total ‘equity’ (as shown in the
balance sheet).

The Company’s strategy is to maintain a gearing ratio within 0% to 10%. The gearing ratios were as follows:

NOTE 25: RADIO BROADCASTING OPERATIONS

The Board of Directors, at its meeting held on January 9, 2025, approved the closure of 104.8 FM Radio Broadcasting
operations comprising three FM radio stations located in Mumbai, Delhi, and Kolkata ("Radio Business”) of the
Company, subject to applicable regulatory approvals and compliance requirements. Subsequently, the Company
received a Letter of Intent from M/s Creative Channel Advertising and Marketing Private Limited ("Creative
Channel”) for purchase of the Radio Business.

On February 25, 2025, the Company entered into a Memorandum of Understanding (MoU) with Creative Channel
for the proposed sale of its Radio Business for a total consideration of ''20 crores, on a going concern basis. The
transaction may be executed either directly or through a wholly owned subsidiary of the Company (i.e., Vibgyor
Broadcasting Private Limited or any other wholly owned entity), subject to the fulfilment of agreed contractual
obligations and receipt of requisite regulatory approvals, including those from the Ministry of Information and
Broadcasting, Government of India (MIB). Subsequent to year end, Company has filed application with MIB for
transfer of radio business to Vibgyor Broadcasting Private Limited.

Management has assessed that sale of Radio business is ‘highly probable’ as the regulatory approvals involved
are largely administrative in nature. Hence, in accordance with Ind AS 105 - Non-current Assets Held for Sale and
Discontinued Operations, the operations of the Radio Business have been reclassified and reported as "Profit/
(Loss) from Discontinued Operations” in the Statement of Profit and Loss. Tangible and Intangible Assets of the
Radio Business, which are part of proposed sale to Creative Channel, have been presented as "Assets held
for sale” in the Balance Sheet. The liabilities and other assets pertaining to the Radio Business continue to be
recognized by the Company and have not been transferred as part of the proposed transaction.

Note 25.1: Assets-held-for sale
©Accounting Policy

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a
sale transaction rather than through continuing use and a sale is considered highly probable. They are measured
at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets,
assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which
are specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to
sell.

Note 25.2: Discontinued operations
©Accounting Policy

A discontinued operation is a component of the Company that either has been disposed of, or is classified as held
for sale and that represents a separate major line of business.

Discontinued operations are excluded from the results of continuing operations and are presented separately as
‘profit or loss before tax from discontinued operations'', ‘tax expense/(income) of discontinued operations'', and
‘profit or loss after tax from discontinued operations'', in the statement of profit and loss.

NOTE 27: OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made thereunder.

(ii) The Company does not have any transactions with struck off companies under section 248 of Companies Act,
2013 or section 560 of Companies Act, 1956.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vii) The Company d

---

Mar 31, 2024

^ (c) Provision for liabilities General

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Provisions for legal claims and returns are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Under Ind AS, where the original provision was charged as an expense, any subsequent reversal should be credited to the same line in the statement of profit and loss in accordance with the principle of consistency. Accordingly, the aforesaid provisions / liabilities written back to the extent no longer required have been credited to the respective expense line in the statement of profit and loss.

^ (d) Fair value measurement

As per Ind AS 113 "Fair value measurement”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to

generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are held between the CFO, AC and the finance team at least once in every three months, in line with the Company’s quarterly reporting periods and includes determination of the policies and procedures for both recurring fair value measurement, such as unquoted financial assets measured at fair value.

External valuers are involved for valuation of significant assets, such as valuation of investment properties and radio business. Involvement of external

valuers is decided upon annually by the finance team and CFO. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

The finance team, CFO and the Company’s external valuers present the valuation results to the Audit Committee. This includes a discussion of the major assumptions used in the valuations.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.3 Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different that those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Critical estimates

The areas involving critical estimates are:

i) Estimation of provision for gratuity and compensated absences - note 11.1 and 11.3

ii) Impairment of trade receivables - note 7.2 and 7.11

iii) Impairment of radio licence fees- note 5

iv) Estimation of deferred tax - note 8.1 and 8.2

v) Right-of-use assets - note 6.1 and 6.3

vi) Lease liabilities - note 6.2 and 6.3

vii) Investment properties - note 4

Critical judgements

The areas involving critical judgements are:

i) Estimated useful life of property, plant and equipment, investment properties and intangible assets - notes 3.1,4 and 5.1

ii) Estimation of provision for legal claim and contingent liabilities - notes 7.9 and 19

iii) Revenue allocation for multiple element arrangements - note 13

iv) Critical judgements in determining the lease term - note 6

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

2.4 Recent pronouncements

MCA notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. MCA has not notified any new standards or amendments to the existing standards applicable to the Company with effect from April 1,2024.

NOTE 3: PROPERTY, PLANT AND EQUIPMENT AND CAPITAL WORK-IN-PROGRESS [CWIP]

Note 3.1: Property, plant and equipment ©Accounting Policy

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life as prescribed in Schedule II of the Companies Act, 2013, or as per technical assessment. Depreciation is provided on a straight-line basis.

In case of certain class of assets, the Company uses different useful life than those prescribed in Schedule II of the Companies Act, 2013. The useful life has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset on the basis of the management''s best estimation of getting economic benefits from those classes of assets.

The Company has used the following useful lives of the property, plant and equipment to provide depreciation:

Impairment of property, plant and equipment

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU’). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

(i) Contractual obligations

Refer to note 20 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

(ii) Revaluation of property, plant and equipment

The Company has not revalued its property, plant and equipment during the reporting years.

Note 3.2: Capital work-in-progress ©Accounting Policy

Capital work-in-progress includes cost of property, plant and equipment under installation as at the reporting date. Capital work-in-progress is stated at cost, net of accumulated impairment loss, if any.

Capital work-in-progress consist of the followings:

©Accounting Policy Initial Recognition

Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment properties are measured initially at cost, including related transaction costs as required by Ind AS 40 “Investment property”.

Subsequent Recognition

Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The Company depreciates investment property on a pro-rata basis on the straight-line method over the estimated useful lives of the assets as prescribed under Schedule II to the Companies Act, 2013, i.e. 60 years.

Derecognition

The Company derecognises an investment property, on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal.

Impairment of investment property

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU’). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

Impairment of intangible assets

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU’). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted by the management at the end of every quarter or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

Fair value measurement

The Company obtains valuation report from independent valuer for its radio business at least once in a year. Independent valuation is done by the registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Refer note 2.2(d) in accounting policies for fair value measurement.

NOTE 6: LEASES

Company’s leasing activities as a lessee: ©Accounting Policy

The Company applies a single recognition and measurement approach for all leases, except for shortterm leases and leases of low-value assets (which are recognised on a straight-line basis as an expense in profit or loss). The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

The Right-of-use assets is depreciated using the straight-line method from the commencement date to the earlier of:

• the end of the useful life of the Right-of-use assets; or

•the end of the lease term.

The estimated useful lives of Right-of-use assets are determined on the same basis as those of property and equipment. In addition, the Right-of-use assets are periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company uses an incremental borrowing rate specific to the Company, term, and currency of the contract. Generally, the Company uses its incremental borrowing rate as the discount rate.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of

interest and reduced for the lease payments made and remeasured (with a corresponding adjustment to the related Right-of-use assets) when there is a change in future lease payments in case of renegotiation, changes of an index or rate or in case of reassessment of options.

Critical judgements in determining the lease term

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

For leases of property and equipment, the following factors are normally the most relevant:

• If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

• If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to extend (or not terminate).

• Otherwise, the Company considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset. Most extension options in offices, equipment and vehicles leases have not been included in the lease liability, because the Company could replace the assets without significant cost or business disruption.

Company’s leasing activities as a lessor:

©Accounting Policy

Lease income from operating lease is recognised as income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

Note 6.4: Operating lease as a lessor

The Company has renewed the on-going operating lease on part of its office building during the current year. This lease has term of 10 years. Lease include a clause to enable upward revision of the rental charge on periodic basis.

The total rent recognised as income during the year is ''0.89 crores (March 31, 2023: ''0.77 crores). Future minimum rentals receivable under operating leases as at year end are as follows:

Financial Assets ©Accounting Policy Classification

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them.

Financial assets are classified as:

• Subsequently measured at amortised cost,

• Fair value through other comprehensive income (FVTOCI), and

• Fair value through profit or loss (FVTPL).

Debt instruments

(i) at Amortised Cost

A debt instrument is measured at the amortised 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.

(ii) at FVTOCI

A debt instrument is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

• The asset’s contractual cash flows represent SPPI on the principal amount outstanding.

(iii) at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL.

Equity Instruments

Investment in Subsidiaries, Associates and Joint ventures are out of scope of Ind AS 109 "Financial instruments” and hence, the Company accounts for its investment in Subsidiaries, Associates and Joint venture at cost less impairment losses, if any.

All other equity investments are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For equity instruments other than held for trading, the Company has irrevocable option to present in Other Comprehensive Income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Initial recognition and measurement

With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit and loss.

Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115 "Revenue from contracts with customers”.

Subsequent recognition

Subsequent measurement of financial assets depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

(i) Amortised cost: After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)

method. Amortised 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 amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

(ii) Fair value through other comprehensive income

(FVTOCI): s included within the FVTOCI

category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On de-recognition of the asset, cumulative gain or loss previously recognised in OCI is re-classified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

(iii) Fair value through profit or loss (FVTPL): A

gain or loss on a financial assets that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Interest earned whilst holding FVTPL debt instrument is reported as interest income using the EIR method.

Derecognition of financial assets

A financial asset is derecognised only when:

• The Company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Impairment of financial assets other than investment in Subsidiaries, Associates and Joint ventures

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 7.11 details how the Company determines whether there has been a significant increase in credit risk.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 "Financial Instruments”. The application of simplified approach does not require the Company to track changes in credit risk of trade receivable. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

Impairment of investment in Subsidiaries, Associates and Joint ventures

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use.

The impairment testing is conducted at the end of every year. If indicators are identified, the valuation is recalculated based on revised indicators. Conversely, if no indicators are found, no impairment is recognised.

Financial Liabilities ©Accounting Policy Classification

Financial liabilities of the Company are classified, at initial recognition, as trade and other payables, loans and borrowings (including bank overdraft), as appropriate.

Initial recognition and measurement

All financial liabilities of the Company are recognised initially at fair value, net of directly attributable transaction costs.

Subsequent measurement

Financial liabilities of the Company are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Derecognition

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

The senior management of the Company oversees the management of these risks. The Company’s senior management is supported by a financial risk team that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk team provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that the financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

(A) Credit risk

Credit risk arises from cash and cash equivalents, bank balances other than cash and cash equivalents, loans and other financial assets, as well as credit exposures to customers including outstanding receivables. The carrying value of such financial assets represents the maximum credit risk. The maximum exposure to credit risk was ''755.08 crores as at March 31,2024 (March 31,2023: ''688.24 crores).

Credit risk management

(1) Cash and cash equivalents, bank balances other than cash and cash equivalents and deposits with bank

The Company maintains current accounts and deposits, only with nationalised banks or private sector banks listed on stock exchange in India with decent credit ratings. Accordingly, there is no credit risk involved in cash and cash equivalents, bank balances other than cash and cash equivalents and deposits with bank.

(2) Trade receivables

The Company evaluates credit worthiness of each customer and basis which credit limit for each customer is defined.

The Company applies the simplified approach permitted by Ind AS 109 Financial Instruments. The Company tracks changes in credit risk of trade receivable using simplified approach as per Ind AS 109. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company.

Where trade receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

(3) Financial assets other than (1) and (2) above

For other financial assets, the Company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assess and maintain an internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

VL 1 : High-quality assets, negligible credit risk

VL 2 : Quality assets, low credit risk

VL 3 : Standard assets, moderate credit risk

VL 4 : Substandard assets, relatively high credit risk

VL 5 : Low quality assets, very high credit risk

VL 6 : Doubtful assets, credit-impaired

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

• Internal credit rating

• external credit rating (as far as available)

• actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the party’s ability to meet its obligations.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set by the Company. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet cash requirements, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting years:

(i) Foreign currency risk

The Company operates internationally also, along with operations in India, and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the GBP and USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency (FC) cash flows.

(a) Foreign currency risk exposure:

The Company exposure to foreign currency risk at the end of the reporting year, is as follows:

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s short-term borrowings with variable interest rates. Since there are no borrowings outstanding as at the end of both the years, sensitivity analysis for interest rate risk is not presented here.

(iii) Other price risk

The Company’s unquoted equity investments are insignificant values, those are managed by monitoring the financial performance and discounted cash flow analysis of investees. Accordingly, no sensitivity for such investments has been presented here.

Note 7.12: Offsetting financial assets and financial liabilities Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

The following table presents the recognised financial instruments that are offset as at March 31,2024 and March 31,2023.

NOTE 8: TAXES

©Accounting Policy

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of reporting period in India where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

As required by Ind AS 12 "Income taxes”, deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to

be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current tax expense and deferred tax charge/credit is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

NOTE 9: OTHER ASSETS

©Accounting Policy Unbilled revenue

Contract assets (i.e. unbilled revenue) are recognised when there is excess of revenue earned over billings on contracts with customers. Unbilled revenue is classified as contract assets (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Contract assets are considered as non-financial assets as the contractual right to consideration is dependant on the completion of contractual milestone.

Other assets considered Doubtful

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU’). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

Other assets consist of the following:

Nature and purpose of reserves and surplus Securities premium

Securities Premium represents the amount received in excess of par value of equity shares. Section 52 of Companies Act, 2013 specify restrictions and utilisation of security premium.

Capital reserve

Capital reserve has arisen on account of acquisition of digital business from Living Media India Limited (Parent Company) w.e.f January 1,2018 through Common Control Business Combination. It further includes adjustments on account of amalgamation of newspaper business of Mail Today Newspapers Private Limited and India Today Online Private Limited made in earlier years w.e.f January 1, 2017 through Common Control Business Combination as well

General reserve

General reserve represents the statutory reserve, in accordance with The Companies Act, 1956, wherein a portion of profit is apportioned to it. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

Retained earnings

Retained earnings represent the undistributed profits of the Company.

NOTE 11: EMPLOYEE BENEFITS

©Accounting Policy Short-term obligation

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

Post employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plan, i.e., gratuity

(b) defined contribution plans such as provident fund.

Gratuity plan

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

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

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are

recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

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

Defined contribution plans

The Company pays provident fund and employee state insurance contributions to government administered Employee Provident Fund Organisation and Employee State Insurance Corporation respectively. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Bonus plans

The Company recognises a liability and an expense for bonuses. The Company recognises a provision where contractually or statutorily obliged or where there is a past practice that has created a constructive obligation.

Other employee benefits

Compensated absences

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

The Company participates in defined contribution and benefit plans, the assets of which are held (where funded) in separately administered funds.

For defined contribution plans the amount charged to the statement of profit and loss is the total amount of contributions payable in the year.

For defined benefit plans, the cost of providing benefits under the plans is determined by actuarial valuation separately each year for each plan using the projected unit credit method by independent qualified actuaries as at the year end. Remeasurement gains and losses arising in the year are recognised in full in other comprehensive income for the year.

(i) Defined benefit plans Gratuity plan

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employee''s last drawn basic salary per month computed proportionately for 15 day''s salary multiplied with the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments. As the estimated payout in next 12 months, from the balance sheet date, for the defined benefit obligation is less that the fair value of plan assets, hence, the net liability has been considered as non-current.

The Company has agreed that it will aim to eliminate the deficit in defined benefit gratuity plan over the coming years. Funding levels are monitored on an annual basis and the current agreed contribution rate as advised by the LIC. The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the coming years and that regular contributions, which are based on service costs, will not increase significantly.

Expected contribution to post-employment benefit plan for the year ending March 31,2025 is ''4.44 crores.

The weighted average duration of the defined benefit obligation as at March 31,2024 is 7.92 years (March 31, 2023: 7.99 years). The expected maturity analysis of gratuity is as follows:

NOTE 12: OTHER LIABILITIES

©Accounting Policy Contract balances

A contract liability includes advance from customer and deferred revenue. Advance from customers is recognised if a payment is received from a customer before the Company renders the related services. Billing in excess of revenues is classified as deferred revenue. Contract liabilities are subsequently recognised as revenue when the Company renders the services under the contract (i.e. transfers control of the related services to the customer).

NOTE 13: REVENUE FROM OPERATIONS

©Accounting Policy Revenue from operations

The Company’s revenue from operations is mainly from advertisement services. It further includes subscription income, advertisement income from exchange of services, income from production support services and fees from training etc.

Revenue is recognised as per Ind AS 115 "Revenue from contracts with customers”, upon transfer of control of promised services ("performance obligations”) to customers at transaction price. When there is uncertainty as to collectability, revenue recognition is postponed till the resolution of such uncertainty.

The Company assesses the services promised in a contract and identifies distinct performance obligations in the contract. The Company also enters into certain multiple element revenue arrangements for performance of multiple services including free/ bonus spots along with paid spots. In all cases, the total transaction price for a contract is allocated amongst the various performance obligations based on their relative stand-alone selling prices.

The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as agency incentive, discount etc. Any consideration payable to the customer is adjusted to the

transaction price, unless it is a payment for a distinct service from the customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each reporting period. Revenue is stated exclusive of Goods and Service tax and other taxes and amount collected on behalf of other parties.

Revenue is recognised:

• when the performance obligation in the contract has been performed (‘point in time’ recognition) or

• as the performance obligation in the contract is performed (‘over time’ recognition).

Following are the streams of business and their revenue recognition principles:

(i) Income from advertisement and other related operations

The Company provides advertisement space on its television news channels Aaj Tak, India Today, Good News Today and Aaj Tak HD (India and overseas), various websites, mobile apps, social media platforms and radio 104.8 Ishq FM. Revenue from such services is recognised at a point in time when the advertisements are displayed/ aired.

(ii) Subscription income

The Company earns subscription income from news channels’ broadcast through various distribution mediums in India and overseas. This income is recognised over the period of subscription.

(iii) Advertisement income from exchange of services

The Company enters in arrangements for sale of advertisement space on various platforms as mentioned in point (i) above in exchange of non-cash consideration. Revenue from such services is recognised at a point in time on actual performance of the contract to the extent of performance completed by the Company against its part of contract and is measured at standalone selling price of the services of the Company.

(iv) Income from production support services

The Company has formed a content hub which provides support services for producing original series and features in the non-fiction and fiction space for streaming & audio platforms. Revenue from such production support services is recognised on completion of each service milestone as per agreement with the customer.

(v) Fees from training

The Company offers various comprehensive courses in the field of journalism, mass communication, media and entertainment management, visual communication and digital infographics under the brand India Today Media Institute. Fees from these courses is recognized over the duration of the courses.

13(d) The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where:

(i) The contract has an original expected duration of not more than 1 year; or

(ii) t he revenue recognized corresponds directly with the value to the customer of the entity’s performance completed to date, typically those contracts where invoicing is on time and unit of work-based contracts.

There are no contracts with the customers where the above mentioned practical expedients are not applicable. Hence, no additional disclosure have been made in this regard.

NOTE 14: OTHER INCOME

©Accounting Policy

Income recognition on financial assets

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

The Company has carried out a valuation of its radio business and the said valuation shows a decline of ''4.92 crores (during the year ended March 31,2023: ''9.85 crores) in the carrying amount of Radio’s licence fee under intangible assets. The reduction in the value of Radio’s licence fee has been provided for in these financial results during the year ended March 31,2024, along with corresponding year, as an exceptional item. Basic and diluted earnings without such impairment loss would have been ''10.07 for the year ended March 31,2024 (''15.99 per share for the year ended March 31,2023).

NOTE 19: CONTINGENT LIABILITIES

©Accounting Policy

As per Ind AS 37 "Provisions, contingent liabilities and contingent assets”, contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

The Company has contingent liabilities as at March 31,2024 and March 31,2023 in respect of:

NOTE 26: OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with struck off companies under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the co

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Mar 31, 2023

ii(d) Provision for liabilities General

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions for legal claims and returns are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Under Ind AS, where the original provision was charged as an expense, any subsequent reversal should be creditedto the same line in the statement of profit and loss in accordance with the principle of consistency. Accordingly, the aforesaid provisions / liabilities written back to the extent no longer required have been credited to the respective expense line in the statement of profit and loss.

a(e) Fair value measurement

As per Ind AS 113 “Fair value measurement”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• Inthe principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable •Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are held between the CFO, AC and the finance team at least once in every three months, in line with the Company''s quarterly reporting periods and includes determination of the policies and procedures for both recurring fair value measurement, such as unquoted financial assets measured at fair value.

External valuers are involved for valuation of significant assets, such as valuation of investment properties and radio business. Involvement of external valuers is decided upon annually by the finance team and CFO. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

On an interim basis, the finance team, CFO and the Company''s external valuers present the valuation results to the Audit Committee and the Company''s independent auditors. This includes a discussion of the major assumptions used in the valuations.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.3 Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will

seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different that those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Critical estimates

The areas involving critical estimates are:

i) Estimation of provision for gratuity and compensated absences - note 11.1 and 11.3

ii) Impairment of trade receivables - note 7.2 and 7.11

iii) Impairment of radio licence fees- note 5

iv) Estimation of deferred tax - note 8.1 and 8.2

v) Right-of-use assets - note 6.1 and 6.3

vi) Lease liabilities - note 6.2 and 6.3

vii) Investment properties - note 4

Critical judgements

The areas involving critical judgements are:

i) Estimate useful life of property, plant and equipment, investment properties and intangible assets - notes 3, 4 and 5.1

ii) Estimation of provision for legal claim and contingent liabilities - notes 7.9 and 19

iii) Revenue allocation for multiple element arrangements

- note 13

iv) Critical judgements in determining the lease term

- note 6

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

2.4 Recent pronouncements

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31,2023 to amend the following Ind AS which are effective from April 1,2023:

(a) Definition of accounting estimates - amendments to Ind AS 8 “Accounting policies, changes in accounting estimates and errors”

The amendment 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 are effective for annual reporting periods beginning on or after April 1, 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.

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

(b) Disclosure of accounting policies - amendments to Ind AS 1 “Presentation of financial statements”

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 entitles apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments to Ind AS 1 are applicable for annual periods beginning on or after 1 April 2023. Consequential amendments have been made in Ind AS 107.

The Company is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements.

(c) Deferred Tax related to assets and liabilities arising from a single transaction - amendments to Ind AS 12 “Income taxes”

The amendment 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.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendment to Ind AS 12 are applicable for annual periods beginning on or after 1 April 2023.

The Company is currently assessing the impact of the amendments.

NOTE 3: PROPERTY, PLANT AND EQUIPMENT AND CAPITAL WORK-IN-PROGRESS

©Accounting Policy Initial Recognition

As per Ind AS 16 “Property, plant and equipment”, cost of property, plant and equipment comprises its purchase price including import duties and nonrefundable purchase taxes after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use, relevant borrowings costs and any expected costs of de-commissioning. On transition to Ind AS, the Company elected to continue with the carrying value of all its property plant and equipment recognised as at April 1, 2015 measured as per the previous GAAP and used that carrying value as the deemed cost of the property, plant and equipment (PPE).

The cost of an item of PPE is recognised as an asset if, and only if, it is probable that the economic benefits associated with the item will flow to the Company in future periods and the cost of the item can be measured

reliably. Further, if significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

Subsequent Recognition

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life as prescribed in Schedule II of the Companies Act, 2013, or as per technical assessment. Depreciation is provided on a straight-line basis.

In case of certain class of assets, the Company uses different useful life than those prescribed in Schedule II of the Companies Act, 2013. The useful life has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset on the basis of the management''s best estimation of getting economic benefits from those classes of assets.

The Company has used the following useful lives of the property, plant and equipment to provide depreciation:

Assets costing less than ''5,000 are depreciated over a period of 12 months, on a straight line basis.

The asset''s residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

Derecognition

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

Impairment of property, plant and equipment

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU''). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

Capital work-in-progress

Capital work-in-progress includes cost of property, plant and equipment under installation/under development as at the reporting date. Capital work-in-progress is stated at cost, net of accumulated impairment loss, if any.

Initial Recognition

Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment properties are measured initially at cost, including related transaction costs as required by Ind AS 40 “Investment property”. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefit associated with expenditure will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance cost are expensed when incurred. When part of investment property is replaced, the carrying amount of replaced part is derecognised.

Subsequent Recognition

Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The Company depreciates investment property on a pro-rata basis on the straight-line method over the estimated useful lives of the assets as prescribed under Schedule II to the Companies Act, 2013, i.e. 60 years.

Derecognition

The Company derecognises an investment property, on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal.

Impairment of investment property

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU''). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

Fair value measurement

The Company obtains independent valuations for its investment properties at least once a year. The best evidence of fair value is current prices in an active market for similar properties. Independent valuation is done by the registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Refer note 2.2(e) in accounting policies for fair value measurement.

Investment property consist of the following:

Initial Recognition

Intangible assets purchased are initially measured at cost as prescribed under Ind AS 38 “Intangible assets”. The cost of an intangible asset comprises its purchase price including duties and taxes and any costs directly attributable to making the asset ready for their intended use.

On transition to Ind AS, the Company has elected to continue with the carrying value of all its Intangible Assets recognised as at 1st April 2015, measured as per the previous GAAP and use that carrying value as the deemed cost of the Intangible Assets.

Subsequent Recognition

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in statement of profit or loss as incurred.

Intangible assets have a finite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses, if any. Amortisation of intangible assets is provided on a straight-line basis.

The Company has used the following useful lives of the intangible assets for amortisation:

Derecognition

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is de-recognised.

Impairment of intangible assets

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU''). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted by the management at the end of every quarter or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

NOTE 6: LEASES

Company’s leasing activities as a lessee: ©Accounting Policy

The Company assesses at contract inception whether a contract is, or contains, a lease in accordance with Ind AS 116 “Leases”. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company applies a single recognition and measurement approach for all leases, except for shortterm leases and leases of low-value assets (which are recognised on a straight-line basis as an expense in profit or loss). The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liability is calculated as per Ind AS 116 by discounting the lease payments such as fixed payment, variable payments etc., that are not paid at that date at an interest rate implicit in the lease or incremental borrowing rate.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, its incremental borrowing rate is used, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the Company:

• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Company, and

• makes adjustments specific to the lease, e.g. term, country, currency and security.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

•any initial direct costs, and •restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life or the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life. Extension and termination options:

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

Critical judgements in determining the lease term

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

For leases of property and equipment, the following factors are normally the most relevant:

• If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

• If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to extend (or not terminate).

• Otherwise, the Company considers other factors including historical lease durations and the costs and business disruption required to replace the

Company’s leasing activities as a lessor:

©Accounting Policy

The Company assesses at contract inception whether a contract is, or contains, a lease in accordance with Ind-AS 116 “Leases”. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Lease income from operating lease is recognised as income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

Note 6.4: Operating lease as a lessor

The Company has an on-going operating lease on part of its office building. This lease has term of 10 years. Lease include a clause to enable upward revision of the rental charge on periodic basis.

The total rent recognised as income during the year is ''0.77 crores (March 31, 2022: ''0.77 crores). Future minimum rentals receivable under operating leases as at year end are as follows:

NOTE 7: FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial Assets ©Accounting Policy Classification

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them.

Financial assets are classified as:

• Subsequently measured at amortised cost,

• Fair value through other comprehensive income (FVTOCI), and

• Fair value through profit or loss (FVTPL).

Debt instruments

(i) at Amortised Cost

A debt instrument is measured at the amortised 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.

(ii) at FVTOCI

A debt instrument is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

• The asset''s contractual cash flows represent SPPI on the principal amount outstanding.

(iii) at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL.

Equity Instruments

Investment in Subsidiaries, Associates and Joint ventures are out of scope of Ind AS 109 “Financial instruments” and hence, the Company accounts for its investment in Subsidiaries, Associates and Joint venture at cost less impairment losses, if any.

All other equity investments are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For equity instruments other than held for trading, the Company has irrevocable option to present in Other Comprehensive Income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Initial recognition and measurement

With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit and loss.

Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115 “Revenue from contracts with customers”.

Subsequent recognition

Subsequent measurement of financial assets depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

(i) Amortised cost: After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised 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 amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

(ii) Fair value through other comprehensive income (FVTOCI): Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On de-recognition of the asset, cumulative gain or loss previously recognised in OCI is re-classified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

(iii) Fair value through profit or loss (FVTPL): A

gain or loss on a financial assets that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Interest earned whilst holding FVTPL debt instrument is reported as interest income using the EIR method.

Derecognition of financial assets

A financial asset is derecognised only when:

• The Company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Impairment of financial assets other than investment in Subsidiaries, Associates and Joint ventures

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 7.11 details how the Company determines whether there has been a significant increase in credit risk.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 “Financial Instruments”. The application of simplified approach does not require the Company to track changes in credit risk of trade receivable. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

Impairment of investment in Subsidiaries, Associates and Joint ventures

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use.

The impairment testing is conducted at the end of every year. If indicators are identified, the valuation is recalculated based on revised indicators. Conversely, if no indicators are found, no impairment is recognised.

Financial Liabilities ©Accounting Policy Classification

Financial liabilities of the Company are classified, at initial recognition, as trade and other payables, loans and borrowings (including bank overdraft), as appropriate.

Initial recognition and measurement

All financial liabilities of the Company are recognised initially at fair value, net of directly attributable transaction costs. Subsequent measurement

Financial liabilities of the Company are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Derecognition

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

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices (for example listed equity instruments, traded bonds and mutual funds that have quoted price).

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity securities shown in the financial statements.

(iii) Valuation technique used to determine fair value

Value of unquoted equity investments (other than investment in subsidiaries) included in Level 3 above has been determined using discounted cashflow analysis.

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

The following table presents the changes in level 3 items for the years ended March 31,2023 and March 31,2022:

Credit risk management

(1) Cash and cash equivalents, bank balances other than cash and cash equivalents and deposits with bank

The Company maintains current accounts and deposits, only with nationalised banks or private sector banks listed on stock exchange in India with decent credit ratings. Accordingly, there is no credit risk involved in cash and cash equivalents, bank balances other than cash and cash equivalents and deposits with bank.

(2) Trade receivables

The Company evaluates credit worthiness of each customer and basis which credit limit for each customer is defined. The Company applies the simplified approach permitted by Ind AS 109 Financial Instruments. The company tracks changes in credit risk of trade receivable using simplified approach as per Ind AS 109. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company.

Where trade receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

(3) Financial assets other than (1) and (2) above

For other financial assets, the Company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assess and maintain an internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

VL 1 : High-quality assets, negligible credit risk

VL 2 : Quality assets, low credit risk

VL 3 : Standard assets, moderate credit risk

VL 4 : Substandard assets, relatively high credit risk

VL 5 : Low quality assets, very high credit risk

VL 6 : Doubtful assets, credit-impaired

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

• Internal credit rating

• external credit rating (as far as available)

• actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the party''s ability to meet its obligations.

Provision for expected credit losses

The Company provides for expected credit loss based on the following:

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set by the Company. In addition, the Company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet cash requirements, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term borrowings with variable interest rates. Since there are no borrowings outstanding as at the end of both the years, sensitivity analysis for interest rate risk is not presented here.

(iii) Other price risk

The Company''s unquoted equity investments are insignificant values, those are managed by monitoring the financial performance and discounted cashflow analysis of investees. Accordingly, no sensitivity for such investments has been presented here.

Note 7.12: Offsetting financial assets and financial liabilities Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

The following table presents the recognised financial instruments that are offset as at March 31,2023 and March 31, 2022.

NOTE 8: TAXES

©Accounting Policy

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of reporting period in India where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. As required by Ind AS 12 “Income taxes”, deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current tax expense and deferred tax charge/credit is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

©Accounting Policy Unbilled revenue

Contract assets (i.e. unbilled revenue) are recognised when there is excess of revenue earned over billings on contracts with customers. Unbilled revenue is classified as contract assets (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Contract assets are considered as non-financial assets as the contractual right to consideration is dependant on the completion of contractual milestone.

Other assets considered Doubtful

An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. The value in use is normally assessed using the discounted cash flow method.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units i.e. ‘CGU''). When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment testing is conducted at the end of every year or whenever the events or changes in circumstances indicate that carrying amount may not be recoverable.

Note 10.2: Other equity ©Accounting Policy

Re-measurement gains on defined benefit plans

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Dividends

The Company recognises a liability to pay dividend to shareholders 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. A corresponding amount is recognised directly in equity.

Nature and purpose of reserves and surplus Securities premium

Securities Premium represents the amount received in excess of par value of equity shares. Section 52 of Companies Act, 2013 specify restrictions and utilisation of security premium.

Capital reserve

Capital reserve has arisen on account of acquisition of digital business from Living Media India Limited (Holding Company) w.e.f January 1, 2018 through Common Control Business Combination. It further includes adjustments on account of amalgamation of newspaper business of Mail Today Newspapers Private Limited and India Today Online Private Limited made in earlier years w.e.f January 1, 2017 through Common Control Business Combination as well.

General reserve

General reserve represents the statutory reserve, in accordance with The Companies Act, 1956, wherein a portion of profit is apportioned to it. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

Retained earnings

Retained earnings represent the undistributed profits of the Company.

NOTE 11: EMPLOYEE BENEFITS

©Accounting Policy Short-term obligation

Liabilities for salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employee''s services upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Other employee benefits

Compensated absences

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Post employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plan, i.e., gratuity

(b) defined contribution plans such as provident fund.

Gratuity plan

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

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

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

Remeasurement gains and losses arising from experience adjustments and changes in actuarial

assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

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

Defined contribution plans

The Company pays provident fund and employee state insurance contributions to government administered Employee Provident Fund Organisation and Employee

State Insurance Corporation respectively. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Bonus plans

The Company recognises a liability and an expense for bonuses. The Company recognises a provision where contractually or statutorily obliged or where there is a past practice that has created a constructive obligation.

Note 11.3: Post-employment obligations

The Company participates in defined contribution and benefit plans, the assets of which are held (where funded) in separately administered funds.

For defined contribution plans the amount charged to the statement of profit and loss is the total amount of contributions payable in the year.

For defined benefit plans, the cost of providing benefits under the plans is determined by actuarial valuation separately each year for each plan using the projected unit credit method by independent qualified actuaries as at the year end. Remeasurement gains and losses arising in the year are recognised in full in other comprehensive income for the year.

(i) Defined benefit plans Gratuity plan

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee''s last drawn basic salary per month computed proportionately for 15 day''s salary multiplied with the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments. As the estimated payout in next 12 months, from the balance sheet date, for the defined benefit obligation is less that the fair value of plan assets, hence, the net liability has been considered as non-current.

Risk exposure

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

Investment risk The present value of the defined benefit plan liability is calculated using a discount rate

determined by reference to yield on government bonds. If plan liability is funded and return on plan assets is lower than yield on the government bonds, it will create a plan deficit.

Interest risk A decrease in the bond interest rate (discount rate) will increase the plan liability,

(discount rate risk)

Mortality risk The present value of the defined benefit plan liability is calculated by reference to the best

estimate of the mortality of plan participants. The mortality table used for the purpose is Indian Assured Lives Mortality (2006-08) ultimate table published by the Institute of Actuaries of India. A change in mortality rate will have a bearing on the plan''s liability.

Salary risk The present value of the defined benefit plan liability is calculated with the assumption

of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

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Mar 31, 2018

Background

“T.V. Today Network Limited (hereinafter referred to as the ‘Company’) is a company limited by shares, incorporated and domiciled in India. The Company’s equity shares are listed on the Bombay Stock Exchange and the National Stock Exchange in India. The registered office of the Company is situated at F-26, First Floor, Connaught Circus, New Delhi - 110001, India. The principal place of the business of the Company is situated at FC-8, Sector 16A, Film City, Noida 201301, Uttar Pradesh.

The Company is primarily engaged in broadcasting television news channels and radio stations in India.”

Note 1: Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different that those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Critical estimates

The areas involving critical estimates are:

i) Estimated fair value of unlisted securities - Note 5(a)

ii) Estimation of defined benefit obligations - Note 13

iii) Impairment of trade receivables - Note 24

iv) Estimation of current tax expense and payable - Note 23

Critical judgements

The areas involving critical judgements are:

i) Estimate useful life of property, plant and equipment and intangible assets - Notes 1(m), 1(n), 3 and 4

ii) Estimation of provision for legal claim and contingent liabilities - Notes 12 and 28

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

Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Shares reserved for issue under options

Information relating to T.V. Today Network Limited Employee Stock Option Plan, including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in note 30.

Nature and purpose of other reserves Securities premium reserve

Securities Premium Reserve represents the amount received in excess of par value of securities (equity shares and preference shares).Section 52 of Companies Act, 2013 specify restriction and utilisation of security premium.

Capital contribution in the form of gifting of shares

During the previous year, the Company received 100% equity shares of India Today Online Private Limited (“ITOPL”), which holds 66.78% of ownership interest in Mail Today Newspaper Private Limited (MTNPL), by way of a gift (involving no monetary consideration) from Living Media India Limited, the holding company. The gift received by the Company has been recognised at fair value with corresponding credit to capital contribution considering the parent-subsidiary relationship and the economic substance of the transaction.

Capital reserve

Capital reserve balance as on April 1, 2016, represents the balance payable to Holding Company equivalent to net assets in the financial statements of ITGD Division which was offset with the adjustments made by the holding Company from ITGD Division before the date of acquisition (i.e. January 1, 2018) and the actual payment made as consideration for acquiring ITGD Division. Refer note 34 for details.

General reserve

General reserve represents the statutory reserve, this is in accordance with Indian Corporate law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

Share options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under TV Today Network Limited Employee Stock Option Plan.

Retained earnings

Retained earnings represent the undistributed profits of the Company.

(i) Information about individual provisions and significant estimates Legal claim

Claim from Prasar Bharti towards uplinking charges: A provision has been recognised on an estimated basis amounting to Rs.700.97 lacs (March 31, 2017: Rs.674.92 lacs). In the opinion of the management, based on its understanding of the case and consideration of the opinion received from its counsel, the provision made in the books is considered to be adequate.

(i) Leave obligations

The leave obligations cover the Company’s liability of earned leave.

The amount of the provision of Rs.786.98 lacs (March 31, 2017 Rs.666.89 lacs) is presented as current since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

(ii) Post-employment obligations a) Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee’s last drawn basic salary per month computed proportionately for 15 day’s salary multiplied with the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments. As the estimated payout in next 12 months, from the balance sheet date, for the defined benefit obligation is less that the fair value of plan assets, hence, the net liability has been considered as non-current.

(iii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund, employee pension scheme and employee’s state insurance scheme for employees as per regulations. The contributions are made to registered funds administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs.715.83 lacs (March 31, 2017 Rs.644.45 lacs).

Balance sheet amounts - Gratuity

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

(iv) Sensitivity analysis

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

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

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period

The Company ensures that investment positions are managed within an asset/liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under employee benefit plans. Within this framework, the Company’s ALM objective is to match assets to the Gratuity obligations by investing in Plan assets with recognised gratuity trust which has taken a gratuity policy with the Life Insurance Corporation of India (LIC) with maturities that match the benefit payments as they fall due.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes to manage its risk from previous periods.

The Company believes the LIC policy offers reasonable returns over the long-term with an acceptable level of risk.

The plan asset mix is in compliance with the requirements of the local regulations.

(vii) Defined benefit liability and employer contributions

The Company has agreed that it will aim to eliminate the deficit in defined benefit gratuity plan over the coming years. Funding levels are monitored on an annual basis and the current agreed contribution rate as advised by the LIC. The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the coming years and that regular contributions, which are based on service costs, will not increase significantly.

Expected contribution to post-employment benefit plan for the year ending March 31, 2019 is Rs.297.93 lacs.

The weighted average duration of the defined benefit obligation as at March 31, 2018 is 10.03 years (March 31, 2017 10.03 years). The expected maturity analysis of gratuity is as follows:

Note 2: Income tax expense

This note provides an analysis of the Company’s income tax expense and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Company’s tax position.

* Represents temporary fair value loss on investment in Mail Today Newspapers Private Limited and amortisation expense pertaining to leasehold land, but no deferred tax asset has been recognised on such temporary differences as the Company does not expect the same to be deductible in determining taxable profit of future periods.

** The unused tax losses represents long term capital losses for which no deferred tax asset has been recognised as it is not probable that future taxable income (capital gains) will be available against which such tax losses can be utilised. These losses can be carried forward for eight assessment years subsequent to the year in which such losses are incurred by the Company i.e. FY - 2019-2020.

As at March 31, 2018, the Dividend distribution tax on dividends recommended by Directors amounting to Rs.275.92 lacs (March 31, 2017 Rs.242.88 lacs) has not been recognised as liability, pending approval of shareholders in the ensuing annual general meeting.

(i) Fair value hierarchy

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

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices (for example listed equity instruments, traded bonds and mutual funds that have quoted price).

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity securities and derivative financial asset - guarantee are included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 3, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

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

The following table presents the changes in level 3 items for the years ended March 31, 2018 and March 31, 2017:

(iv) Valuation inputs and relationships to fair value

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (ii) above for the valuation techniques adopted.

(v) Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are held between the CFO, AC and the finance team at least once in every three months, in line with the Company’s quarterly reporting periods.

The main level 3 inputs for the unquoted equity shares used by the Company are derived and evaluated as follows:

- Discount rates are determined using a capital asset pricing model.

- Risk free rate is computed based on the 10 year Indian Government Bond yield.

- Earnings growth factor for unquoted equity shares are estimated based on market information for similar types of companies.

- Volatility rate is computed based on monthly stock prices sourced from Capital IQ Database.

Changes in level 2 and 3 fair values are analysed at the end of each reporting period during the quarterly valuation discussion between the CFO, AC and the finance team. As part of this discussion, the team presents a report that explains the reason for the fair value movements.

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, advance recoverable, claims recoverable, current borrowings, trade payables, employee benefits payables, interest accrued, book overdraft, unpaid dividends, capital creditors and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for loans to employees, security deposits and long - term deposits with banks with remaining maturity period more than 12 months were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including counterparty credit risk.

The fair values of security deposits received were calculated based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.”

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment to select a variety of methods and makes assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions, see (ii) and (iv) above.

Note 3: Financial risk management

The Company activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the Company is exposed to and how the Company manages such risk.

The senior management of the Company oversees the management of these risks. The Company’s senior management is supported by a financial risk team that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk team provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that the financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

(A) Credit risk

Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

(i) Credit risk management

For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assess and maintain an internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

VL 1 : High-quality assets, negligible credit risk

VL 2 : Quality assets, low credit risk

VL 3 : Standard assets, moderate credit risk

VL 4 : Substandard assets, relatively high credit risk

VL 5 : Low quality assets, very high credit risk

VL 6 : Doubtful assets, credit-impaired

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

- Internal credit rating

- external credit rating (as far as available)

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the party’s ability to meet its obligations.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 180 days past due for non-government customers and 365 days for government customers.

A default on a financial asset is when the counterparty fails to make contractual payments within 1 year of when they fall due for non-government customers and 2 years for government customers. This definition of default is determined by considering the business environment in which the Company operates and other macro-economic factors.

Significant estimates and judgments

Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set by the Company. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet cash requirements, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The cash credit facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facility may be drawn at any time in INR and have an average maturity of 1 year (March 31, 2017: 1 year).

(ii) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities:

(C) Market risk

(i) Foreign currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the GBP and USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

(a) Foreign currency risk exposure:

The Company exposure to foreign currency risk at the end of the reporting period, is as follows

(ii) Price risk

(a) Exposure

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

The Company’s unquoted equity shares are susceptible to market price risk arising from uncertainties about future value of the investment securities. The Company’s investment in unquoted equity shares are of strategic importance to the Company.

(b) Sensitivity

Sensitivity analyses of these investments have been provided in Note 24(iv).

Note 26: Capital management

(a) Risk management

The Company’s objectives when managing capital are to:

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

- Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

In addition to the above, the Company received key management personnel services from the parent entity, for which a management fee of Rs.714.33 lacs (March 31, 2017: Rs.648.68 lacs) was charged and paid, being an appropriate allocation of costs incurred by the parent entity.

* Short-term employee benefits for Mr. Aroon Purie is remuneration by way of commission paid @ 5% of net profits of the Company. The remuneration of Key Management Personnel is determined by the Board / Nomination and Remuneration Committee having regard to the performance of individual and market trends.

There is no allowance account for impaired receivables in relation to any outstanding balances, and no expense has been recognised in respect of impaired receivables due from related parties.

(f) Terms and conditions

Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.

Goods and services were sold to the related parties during the year based on the price lists in force / other appropriate basis, as applicable, and terms that would be available to third parties. Management services were bought from the immediate parent entity on cost basis.

Contribution to gratuity trust and expenditure towards Corporate Social Responsibility activities were in accordance with the applicable laws and regulations.

All other transactions were made on normal commercial terms and conditions and at market rates.

All outstanding balances are unsecured and settled in cash, except barter transactions, as mentioned above, which are settled on receipt or provision of service by the parties.

(ii) The 3 radio stations of the Company in Delhi, Mumbai and Kolkata got migrated to Phase III for a period of 15 years w.e.f 1 April 2015. Accordingly, as per Grant of Permission Agreement (GOPA) for the said migration executed on 23 May 2017, the Company is obliged to pay a 4% of Gross Revenue or 2.5% of the Non-refundable one time fee (NOTEF) for the respective city, whichever is higher.

The minimum commitment in form of 2.5% of NOTEF, which are payable over the remaining 12 years of licence as on 31 March 2018 has been presented as follows:

(b) Operating leases As a lessee:

The Company has cancellable and non-cancellable operating leases mainly for office premises and company leased accommodation for employees. The leases range for a period between 11 months and 10 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses. The commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows

As a lessor:

The Company has given a part of Noida office building on cancellable operating lease to two related parties. These lease arrangements have been entered for a period of ten years from March 1, 2014. The lease arrangements are renewable for further period on mutually agreeable terms and also include escalation clauses.

Note 4: Share-based payments

(a) Employee stock option plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 was approved by the board of directors in their meeting held on August 21, 2006 and by shareholders in their meeting held on September 28, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. Participation in the plan is at the board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. The Optionees may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date. Options are granted under the plan for no consideration and carry no dividend or voting rights. The exercise price is based on the market value of the underlying equity shares on the date of grant.

Fair value of options granted

No option was granted during the year ended March 31, 2018 and March 31, 2017.

(b) Expense arising from share-based payment transactions

There was no expense during the current year as well as previous year as all outstanding options have already been vested fully during the previous periods. Accordingly, there was no impact on basic EPS and diluted EPS in current year as well as previous year on account of expense arising from share based payment transactions.

(e) Information concerning the classification of securities

Stock options

Options granted to employees under the Employee Stock Option Plan are considered to be potential equity shares. They have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share.

Note 5: Offsetting financial assets and financial liabilities

The following table presents the recognised financial instruments that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at March 31, 2018 and March 31, 2017. The column ‘net amount’ shows the impact on the Company’s balance sheet of all set-off rights were exercised.

(i) Offsetting arrangements

Trade receivables and trade payables

(a) The Company gives volume based incentives to advertisement agencies. Under the terms of the agreements, the amounts payable by the Company are offset against receivables from the agencies and only the net amounts are settled. The relevant amounts have therefore been presented net in the balance sheet.

(b) The Company enter into various transactions for purchase and sale of goods and services with the related parties which are settled in net. The relevant amounts have therefore been presented net in the balance sheet.

Note 6: Common Control Business Combination

The Board of Directors of the Company at its meeting held on November 9, 2017 approved the proposal to acquire the “Business constituting operations of Digital business” (‘Digital Business’, ‘ITGD Division’) from Living Media India Limited (“Holding Company”, “LMIL”) as a going concern on slump sale basis to the Company by way of execution of Business Transfer Agreement. Accordingly, on January 1, 2018 the Company acquired digital business for Rs.2,000 lacs.

The above acquisition of ITGD Division has been considered as common control business combination as it involves entities (i.e. ITGD Division and T.V. Today Network Limited) which are ultimately controlled by the same party (i.e. Living Media India Limited, the parent entity) both before and after the business combination and such control is not transitory.

Accordingly, this business combination has been recorded applying the pooling of interest method whereby:

(i) The assets and liabilities of ITGD Division are reflected at their carrying amounts.

(ii) No adjustments have been made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies.

(iii) The financial information of ITGD Division in the Standalone financial statements in respect of prior periods have been restated as if the business combination had occurred from the beginning of the preceding period in the financial statements (i.e. April 1, 2016).

(iv) The balance payable to holding Company equivalent to net assets in the financial statements of ITGD Division as on April 1, 2016 has been recorded as Capital Reserve in the standalone financial statements of the Company and offset with the actual payment made as consideration for acquiring ITGD Division during year ended March 31, 2018.

The details of the ITGD Division and the amount of difference between the consideration and the value of net identifiable assets acquired (which has been transferred to Capital Reserve) are as follows:

Note 7: Composite scheme of arrangment and amalgamation of Mail Today and India Today Online India Private Limited

With a view to restructure, amalgamate and consolidate the newspaper business of Mail Today with the television programming and broadcasting business of the Company and for generating editorial and business synergies, the Board of Directors of the Company, at its meeting held on December 15, 2017 approved the proposal of the newspaper undertaking of Mail Today be demerged and vested into and with the Company. It was also proposed to merge India Today Online Private Limited (the wholly owned subsidiary of the Company and holding company of Mail Today) with the Company.

The appointed date for these arrangements under the Composite Scheme is January 1, 2017. This Composite Scheme of Amalgamation and Arrangement is subject to various statutory and regulatory approvals including those from Shareholders and Creditors of the respective entities and the sanction of the jurisdictional National Company Law Tribunal.

Note 8: Non-binding agreement for sale of radio business

The Board of Directors of the Company at its meeting held on March 16, 2018 granted an in principle approval for the sale of radio business of the Company comprising of 3 radio stations in Delhi, Mumbai and Kolkata to Entertainment Network (India) Limited (ENIL) as a going concern, by way of a slump sale in accordance with a non-binding memorandum of understanding between ENIL and the Company. The said transaction is subject to approval of the Board (for inter alia approving the definitive agreements including the business transfer agreements between ENIL and the Company), Shareholders of the Company, MIB and such other approvals, consents, permissions and sanctions as may be deemed necessary to be obtained from appropriate authorities for the said sale of radio business. Considering the transaction is subject to various statuory and regulatory approvals, it has not been deemed as highly probable. Accordingly, it has not been classified as Non-current assets held for sale and discontinued operations as per Ind-AS 105 “Non Current Assets Held for Sale and Discontinued Operations.”

On March 26, 2018, the Company filed an application to MIB for permission in this regard to sell the aforesaid business.

Note 9: Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to micro and small enterprises as at March 31, 2018. No interest has been paid / is payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

Note 10: Interest on migration fee to MIB

The Company received an offer from the MIB in April, 2017 for migration of three FM radio stations located at Delhi, Mumbai and Kolkata, from Phase II policy regime to Phase III policy regime applicable to private radio broadcasters, subject to, inter-alia, the execution of Grant of Permission agreement (GOPA) and payment of migration fee and other charges including interest. The Company paid the said migration fee and interest, amounting to Rs.7,136.80 lacs and Rs.1,378.48 lacs (disclosed as an exceptional item) respectively and executed the GOPA on May 23, 2017. Consequently, the three FM radio stations of the Company stand migrated to Phase III policy regime.

The migration fee has been capitalised as an intangible asset and the management, based on an independent valuation, has considered the carrying amount of net assets of the radio business as appropriate.

Note 11: Liabilities no longer required written back

Under Ind AS, where the original provision was charged as an expense, any subsequent reversal should be credited to the same line in the statement of profit and loss in accordance with the principle of consistency. Accordingly, the aforesaid provisions / liabilities written back to the extent no longer required have been credited to the respective expense line in the statement of profit and loss. There is no impact on the total equity and profit.

Note 12: Previous year figures have been re-grouped/ reclassified, where necessary, to conform to this year’s classification.

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Mar 31, 2017

Note 1: Critical estimates and judgments’

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the Company’s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different that those originally assessed. Detailed information about each of these estimates and judgments’ is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

Critical estimates

The areas involving critical estimates are:

i) Estimated fair value of unlisted securities - Note 5(a)

ii) Estimation of defined benefit obligations - Note 13

iii) Impairment of trade receivables - Note 24

Critical judgments’

The areas involving critical judgments’ are:

i) Estimate useful life of property, plant and equipment and intangible assets - Notes 1(m), 1(n), 3 and 4

ii) Estimation of provision for legal claim and contingent liabilities - Notes 12 and 28

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

(i) Leased assets

The Company has acquired a leasehold land from New Okhla Industrial Development Authority under finance lease. The lease term in respect of land acquired under finance lease is 73 years.

(ii) Contractual obligations

Refer to note 29 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

(iii) Capital work in progress

Capital work in progress mainly comprises of broadcast equipment not yet ready to use.

Nature and purpose of other reserves Securities premium reserve

Securities Premium reserve represents the amount received in excess of par value of securities (equity shares). The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

Capital contribution

During the year, the Company received 100% equity shares of India Today Online Private Limited (“ITOPL''), which holds 66.78% of ownership interest in Mail Today Newspaper Private Limited (MTNPL), by way of a gift (involving no monetary consideration) from Living Media India Limited, the holding company. The gift received by the Company has been recognized at fair value with corresponding credit to capital contribution considering the parent-subsidiary relationship and the economic substance of the transaction. Refer additionally relevant accounting policy, (refer note 10b).

General reserve

General reserve represents the statutory reserve created in accordance with Indian Corporate law, wherein a portion of profit is required to be apportioned to such reserve. Under the Companies Act, 1956, it was mandatory to transfer a required amount to general reserve before a company could declare dividend, however, under the Companies Act, 2013, the transfer of any amount to general reserve is at the discretion of the Company.

Share options outstanding account

The share options outstanding account is used to recognize the grant date fair value of options issued to employees under TV Today Network Limited stock employee option plan.

Retained earnings

Retained earnings represent the undistributed profits of the Company.

Secured borrowings and assets pledged as security

(a) Cash credit facility has been secured by way of first charge against the whole of book debts of the Company.

The carrying amounts of financial and non financial assets pledged as security for current borrowings are disclosed in note 33.

(i) information about individual provisions and significant estimates

Legal claim

Claim from Prasar Bharti towards unlinking charges: A provision has been recognized on an estimated basis amounting to Rs,674.92 lacs (March 31, 2016: Rs,648.88 lacs, April 1, 2015: Rs,622.84 lacs). In the opinion of the management, based on its understanding of the case and consideration of the opinion received from its counsel, the provision made in the books is considered to be adequate

Wealth tax

Represents provision for wealth tax payable under the Wealth Tax Act,1957.

(i) Leave obligations

The lease obligations cover the Company’s liability of earned leave.

The amount of the provision of Rs,606.76 lacs (March 31, 2016 : Rs,554.12 lacs, April 1, 2015 : Rs,476.40 lacs) is presented as current since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

(ii) Post-employment obligations a) Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee''s last drawn basic salary per month computed proportionately for 15 days’ salary multiplied with the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund, employee pension scheme and employee’s state insurance scheme for employees as per regulations. The contributions are made to registered funds administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense recognized during the period towards defined contribution plan is Rs,551.23 lacs (March 31, 2016 Rs,498.14 lacs).

Balance sheet amounts - Gratuity

(iii) Changes in defined benefit obligation due to 1% increase/decrease in mortality rate, is negligible.

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

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

(vii) Risk exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are defined below: investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to yield on government bonds. If plan liability is funded and return on plan assets is lower than yield on the government bonds, it will create a plan deficit. interest risk (discount rate risk) A decrease in the bond interest rate (discount rate) will increase the plan liability.

Mortality risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. The mortality table used for the purpose is Indian Assured Lives Mortality (2006-08) ultimate table published by the Institute of Actuaries of India. A change in mortality rate will have a bearing on the plan''s liability.

Salary risk The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

The Company ensures that investment positions are managed within an asset/liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under employee benefit plans. Within this framework, the Company’s ALM objective is to match assets to the Gratuity obligations by investing in Plan assets with recognized gratuity trust which has taken a gratuity policy with the Life Insurance Corporation of India (LIC) with maturities that match the benefit payments as they fall due.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes to manage its risk from previous periods.

The Company believes the LIC policy offers reasonable returns over the long-term with an acceptable level of risk.

The plan asset mix is in compliance with the requirements of the local regulations.

(viii) Defined benefit liability and employer contributions

The Company has agreed that it will aim to eliminate the deficit in defined benefit gratuity plan over the coming years. Funding levels are monitored on an annual basis and the current agreed contribution rate as advised by the LIC. The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the coming years and that regular contributions, which are based on service costs, will not increase significantly.

Expected contribution to post-employment benefit plan for the year ending March 31, 2018 is Rs,144.96 lacs.

‘Represents fair value loss on investment in Mail Today Newspapers Private Limited and amortization expense pertaining to leasehold land, but no deferred tax asset has been recognized on such temporary differences as the Company does not expect the same to be deductible in determining taxable profit of future periods.

**The unused tax losses represents long term capital losses for which no deferred tax asset has been recognized as it is not probable that future taxable income (capital gains) will be available against which such tax losses can be utilized. These losses can be carried forward for eight assessment years subsequent to the year in which such losses are incurred by the Company, i.e., FY - 2019-2020.

As at March 31, 2017, the dividend distribution tax on dividends recommended by Directors amounting to Rs,242.88 lacs (March 31, 2016 : Rs,212.52 lacs, April 1, 2015 : Rs,178.89 lacs) has not been recognized as liability, pending approval of shareholders in the ensuing annual general meeting.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices (for example listed equity instruments, traded bonds and mutual funds that have quoted price).

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity securities and derivative financial asset - guarantee are included in level 3.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of the derivative financial assets is determined using Binomial Lattice Model.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 3, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

‘There were no significant inter-relationships between unobservable inputs that materially affect fair values.

(v) Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values, except the valuations of derivative financial asset and unquoted equity shares which are performed by an external valuation expert. This team and the valuation expert report directly to the Chief Financial Officer (CFO) and the Audit Committee (AC). Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every three months, in line with the Company’s quarterly reporting periods.

The main level 3 inputs for the unquoted equity shares and derivative financial asset used by the Company are derived and evaluated as follows:

- Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

- Risk free rate is computed based on the 10 year Indian Government Bond yield.

- Earnings growth factor for unquoted equity shares are estimated based on market information for similar types of companies.

- Volatility rate is computed based on monthly stock prices sourced from Capital IQ Database.

Changes in level 2 and 3 fair values are analyzed at the end of each reporting period during the quarterly valuation discussion between the CFO, AC and the valuation team. As part of this discussion, the team presents a report that explains the reason for the fair value movements.

Note 24: Fair value measurements (contd.)

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, advance recoverable, claims recoverable, current borrowings, trade payables, employee benefits payables, interest accrued, book overdraft, unpaid dividends, capital creditors and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for loans to employees, security deposits and long - term deposits with banks with remaining maturity period more than 12 months were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including counterparty credit risk.

The fair values of security deposits received were calculated based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment to select a variety of methods and makes assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions, see (ii) and (iv) above.

The senior management of the Company oversees the management of these risks. The Company’s senior management is supported by a financial risk team that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk team provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that the financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

(A) Credit risk

Credit risk arises from cash and cash equivalents, financial assets carried at Amortized cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

(i) Credit risk management

For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assess and maintain an internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

VL 1 : High-quality assets, negligible credit risk

VL 2 : Quality assets, low credit risk

VL 3 : Standard assets, moderate credit risk

VL 4 : Substandard assets, relatively high credit risk

VL 5 : Low quality assets, very high credit risk

VL 6 : Doubtful assets, credit-impaired

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

- Internal credit rating

- external credit rating (as far as available)

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the party’s ability to meet its obligations.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 180 days past due for non-government customers and 365 days for government customers.

A default on a financial asset is when the counterparty fails to make contractual payments within 1 year of when they fall due for nongovernment customers and 2 years for government customers. This definition of default is determined by considering the business environment in which the Company operates and other macro-economic factors.

Significant estimates and judgments

Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set by the Company. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet cash requirements, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The cash credit facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facility may be drawn at any time in INR and have an average maturity of 1 year (March 31, 2016: 1 year, April 1, 2015: 1 year).

(C) Market risk

(i) Foreign currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the GBP and USD. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

(iii) Price risk

(a) Exposure

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

The Company’s unquoted equity shares are susceptible to market price risk arising from uncertainties about future value of the investment securities. The Company’s investment in unquoted equity shares are of strategic importance to the Company (for details refer note 24).

(b) Sensitivity

Sensitivity analyses of these investments have been provided in Note 24(iv).

Note 26: Capital management

(a) Risk management

The Company’s objectives when managing capital are to

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

- Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

In addition to the above, the Company received key management personnel services from the parent entity, for which a management fee of Rs,741.74 lacs (March 31, 2016: Rs,644.47 lacs) was charged and paid, being an appropriate allocation of costs incurred by the parent entity.

* Short-term employee benefits for Mr Aroon Purie is remuneration by way of commission paid @ 5% of net profits of the Company.

The remuneration of Key Management Personnel is determined by the Board / Nomination and Remuneration Committee having regard to the performance of individual and market trends.

(f) Terms and conditions

Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.

Goods and services were sold to the related parties during the year based on the price lists in force / other appropriate basis, as applicable, and terms that would be available to third parties. Management services were bought from the immediate parent entity on cost basis. Contribution to gratuity trust and expenditure towards Corporate Social Responsibility activities were in accordance with the applicable laws and regulations.

The guarantee was received from the parent entity for indemnifying any loss to the Company arising from the sale of investment in equity shares of Mail Today Newspapers Private Limited (“Mail Today”). Also refer note 5(f).

The Company acquired 8% stake in Mail Today Newspapers Private Limited (Mail Today) at a cost of Rs,4,552.12 lacs in earlier years. Also, a guarantee was obtained from the holding company, Living Media India Limited (LMIL), according to which any loss to the Company arising from the sale of the said investment would be indemnified by LMIL. As at March 31, 2015, the Company did a fair valuation of Mail Today investment and LMIL guarantee, and the fair value loss and gain in respect of investment and guarantee amounting to Rs,3,395.00 lacs and Rs,3,031.00 lacs respectively was adjusted against Retained Earnings.

During the year ended March 31, 2016, the Company contemplated to acquire the balance 92% stake in Mail Today to consolidate its business and achieve business, content and editorial synergies. For this purpose, the Company entered into an arrangement with AN (Mauritius) Limited and LMIL for transferring their stake in Mail Today free of cost in the form of gifts. Consequent to this arrangement, the guarantee from LMIL was no longer required and necessary adjustment was made in the financial statements for the year ended March 31, 2016 in respect of the guarantee. A further fair value loss of Rs,831.30 lacs was also recorded in relation to the investment in the said year.

The shares in Mail Today have been acquired in the current year as per the above arrangement and recognized at fair value. The fair value of shares acquired from LMIL (through acquisition of shares of India Today Online Private Limited, holding company of Mail Today), free of cost, amounting to Rs,2,275.38 lacs has been treated as a capital contribution and credited to equity while the fair value of shares received from AN (Mauritius) Limited, free of cost, amounting to Rs,855.80 lacs has been credited to the statement of profit and loss in the current year.

All other transactions were made on normal commercial terms and conditions and at market rates.

All outstanding balances are unsecured and settled in cash, except barter transactions, as mentioned above, which are settled on receipt or provision of service by the parties.

Note 30: Share-based payments

(a) Employee stock option plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 was approved by the board of directors in their meeting held on August 21, 2006 and by shareholders in their meeting held on September 28, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. Participation in the plan is at the boardRs,s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. The Optionees may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date. Options are granted under the plan for no consideration and carry no dividend or voting rights. The exercise price is based on the market value of the underlying equity shares on the date of grant.

*No options were exercised during the year ended March 31, 2017. The weighted average share price at the date of exercise of options exercised during the year ended March 31, 2016: Rs,83.15 (April 1, 2015: Rs,71.44).

No options were forfeited during the periods covered in the above table.

Fair value of options granted

No option was granted during the year ended March 31, 2017 and March 31, 2016.

(e) information concerning the classification of securities

Options

Options granted to employees under the Employee Stock Option Plan are considered to be potential equity shares. They have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share. Details relating to the options are set out in note 30.

Note 7: Offsetting financial assets and financial liabilities

The following table presents the recognized financial instruments that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at March 31, 2017, March 31, 2016 and April 1, 2015. The column ‘net amount’ shows the impact on the Company’s balance sheet of all set-off rights were exercised.

(i) Master netting arrangement - not currently enforceable

A guarantee was provided by the parent entity to the Company for indemnifying any loss to the Company arising from the sale of investment in equity shares of Mail Today Newspapers Private Limited (‘Mail Today’). Accordingly, the guarantee can be invoked (to claim loss) only in the event of sale of investment by the Company. Hence, the fair value loss recorded by the Company in respect of the said investment has not been offset against the fair value of the guarantee in the balance sheet (as the Company currently does not have a legally enforceable right to set off the recognized amounts) and these amounts have been presented separately in the table above.

(ii) Offsetting arrangements

Trade receivables and trade payables

(a) The Company gives volume based incentives to advertisement agencies. Under the terms of the agreements, the amounts payable by the Company are offset against receivables from the agencies and only the net amounts are settled. The relevant amounts have therefore been presented net in the balance sheet.

(b) The Company enter into various transactions for purchase and sale of goods and services with the related parties which are settled in net. The relevant amounts have therefore been presented net in the balance sheet.

‘Specified Bank Notes (SBNs) mean the bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees as defined under the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs no. S.O. 3407(E), dated the 8th November, 2016.

Note 8: Event occuring after the reporting period

(a) Migration of radio business to Phase III Policy Regime

The Company sold four of its FM radio stations at Amritsar, Patiala, Jodhpur and Shimla on September 18, 2015 to Entertainment Network (India) Limited, as a going concern, on a slump sale basis, after obtaining approval from Ministry of Information and Broadcasting (“MIB”) on July 20, 2015, for a lump sum consideration of Rs,400.00 lacs adjusted for net working capital as per the business transfer agreement. The CompanyRs,s application to the MIB to grant approval for sale of its three FM radio stations at New Delhi, Mumbai and Kolkata was declined by the Ministry. The Company filed a writ petition before the Honourable High Court of Delhi against such decline. The MIB also demanded a payment of Rs,7,136.80 lacs towards additional migration fee for migration of its FM radio stations from Phase II to Phase III Policy Regime, against which the Company obtained an interim relief till the disposal of the aforesaid case.

Meanwhile, the Committee of Senior Officials of the Company in its meeting held on December 19, 2016 approved the initiation of necessary procedural formalities for migration of its FM radio stations from Phase II to Phase III Policy Regime. Accordingly, the Company filed an application with the MIB on January 30, 2017 seeking approval for the migration of its FM radio stations to Phase III Policy Regime.

The Company received an offer letter dated April 20, 2017 from MIB for migration of its three FM radio stations from Phase II to Phase III, subject to, inter-alia, the execution of Grant of Permission Agreement (GOPA) for the said migration and payment of migration fee and other charges and interest. The Company paid the migration fee and other charges and interest totalling Rs,8,515.28 lacs in two instalments, i.e., Rs,2,124.42 lacs on April 25, 2017 and balance Rs,6,390.86 lacs on May 4, 2017 and executed the GOPA on May 23, 2017. Consequently, the three FM radio stations of the Company now stand migrated to Phase III w.e.f. April 1, 2015 (GOPA commencement date) for a period of 15 years.

(b) Other event

Refer to note 26 for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing annual general meeting.

Note 9: Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to micro and small enterprises as at March 31, 2017. No interest has been paid / is payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

Note 10: First-time adoption of Ind AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet as at April 1, 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

A.1.2 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

A.1.3 Share - based payments

Ind AS 101 permits a first-time adopter to not apply Ind AS 102, Share - based payments for the equity instruments that vested before the date of transition to Ind AS and liabilities arising from share - based payment transactions that were settled before the date of transition to Ind AS.

Accordingly, the Company has not applied Ind AS 102, to the equity instruments that vested before the transition date and liabilities arising from share - based payment transactions that were settled before the date of transition to Ind AS. Further, no options have vested after the transition date.

A.1.4 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has not elected to apply this exemption for its investment in equity investments.

A. 1.5 Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts/arrangements.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVPL;

- Impairment of financial assets based on expected credit loss model.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirement in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

The Company has applied the above requirement on transition date.

C: Notes to first-time adoption

Note 1: Fair valuation of investments

Under the previous GAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and readability. Long-term investments were carried at cost less provision for diminution, other than temporary decline, in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value.

Reduction in fair value of the investment in Mail Today Newspapers Private Limited has been recognized in retained earnings as at the date of transition and subsequently in the Statement of profit or loss for the year ended March 31, 2016. This decreased the retained earnings by Rs,3,688.30 lacs as at March 31, 2016 (April 1, 2015 - Rs,3,395.00 lacs).

Note 2: Fair value of guarantee (derivative financial asset)

Under the previous GAAP, the guarantee received from the holding company, Living Media India Limited, for indemnifying any loss to the Company arising from the sale of investment in equity shares of Mail Today Newspapers Private Limited, was considered for the purpose of determining other than temporary decline in the value of such investment. Under Ind AS, the said guarantee is a separate transaction, and hence, is accounted for separately from the investment in equity shares. The guarantee meets the definition of derivative financial instrument given in Ind AS 109. All derivatives in scope of Ind AS 109, including those linked to unquoted equity investments, are measured at fair value and changes in fair value are recognized in profit or loss. Consequent to this change, the Company has recognized the guarantee at its fair value of Rs, Nil as at March 31, 2016 (April 1, 2015 - Rs,3,031.00 lacs). Total equity increased by Rs,3,031.00 lacs as at April 1, 2015. The profit for the year and total equity as at March 31, 2016 decreased by Rs,3,031.00 lacs due to recognition of fair value loss in respect of the guarantee.

Note 3: Deferred tax

Under Ind AS, deferred tax has been recognized on the adjustments made on transition to Ind AS.

Note 4: Cash credit / book overdraft

Under Ind AS, cash credit repayable on demand and book overdraft, which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, cash credit of Rs,672.58 lacs as at April 1, 2015 was considered as part of borrowings and movement in cash credit was shown as part of financing activities. While, book overdraft of Rs,328.62 lacs as at March 31, 2016 was shown as a part of operating activities. Consequently, cash and cash equivalents have reduced by Rs,328.62 lacs as at March 31, 2016 (April 1, 2015: Rs,672.58 lacs) with corresponding increase / decrease in cash flows from financing / operating activities respectively for the year ended March 31, 2016 to the effect of the movements in cash credit and book overdraft.

Note 5: Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs,1,043.94 lacs as at March 31, 2016 (April 1, 2015: Rs,894.73 lacs) and dividend distribution tax thereon of Rs,212.52 lacs as at March 31, 2016 (April 1, 2015: Rs,178.89 lacs) included under provisions have been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount. [Refer Note 26 (b)]

Note 6: Remeasurements of post-employment benefit obligation

Under Ind AS, remeasurements, i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 increased by Rs,9.37 lacs. There is no impact on total equity as at March 31, 2016.

Note 7: Security deposits - assets

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent. Consequent to this change, the amount of security deposits decreased by Rs,28.26 lacs as at March 31, 2016 (April 1, 2015: Rs,41.26 lacs). The prepaid rent increased by Rs,22.19 lacs as at March 31, 2016 (April 1, 2015: Rs,33.36 lacs). Total equity decreased by Rs,7.90 lacs as at April 1, 2015. The profit for the year and total equity as at March 31, 2016 increased by Rs,1.77 lacs due to notional interest income of Rs,16.77 lacs recognized on security deposits which is partially off-set by the amortization of the prepaid rent by Rs,15.00 lacs.

Note 8: Security deposits - liabilities

Under the previous GAAP, interest free security deposits received (that are payable in cash on termination of the contract) are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits received under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as unearned income. Consequent to this change, the amount of security deposits decreased by Rs,7.07 lacs as at March 31, 2016 (April 1, 2015: Rs,10.15 lacs). The unearned income increased by Rs,5.36 lacs as at March 31, 2016 (April 1, 2015: Rs,8.23 lacs). Total equity increased by Rs,1.92 lacs as on April 1, 2015. The profit for the year and total equity as at March 31, 2016 decreased by Rs,0.20 lacs due to notional interest expense of Rs,10.50 lacs recognized on security deposits which is partially off-set by recognition of the unearned income of Rs,10.30 lacs as revenue from operations.

Note 9: Loan to employees - assets

Under the previous GAAP, interest free loan to employees (that are repayable in cash on completion of the agreed term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these loans under Ind AS. Difference between the fair value and transaction value of the loan has been recognized as deferred employee expense. Consequent to this change, the amount of loan decreased by Rs,1.86 lacs as at March 31, 2016 (April 1, 2015: Rs,1.33 lacs). The deferred employee expense increased by Rs,2.63 lacs as at March 31, 2016 (April 1, 2015: Rs,1.86 lacs). Total equity increased by Rs,0.53 lacs as on April 1, 2015. The profit for the year and total equity as at March 31, 2016 increased by Rs,0.24 lacs due to notional interest income of Rs,2.50 lacs recognized on loan which is partially off-set by the amortization of the deferred employee expense by Rs,2.26 lacs.

Note 10: Revenue - barter transactions involving advertising services

Under the previous GAAP, the Company regarded the barter transactions entered into to provide advertising services in exchange for receiving advertising services from its customers, amounting to exchange of services of a similar nature, as a transaction which generates revenue.

Under Ind AS, exchange of services of a similar nature is not regarded as a transaction which generates revenue. Consequent to this change, the amount of trade receivables and trade payables decreased by Rs,60.62 lacs and Rs,24.22 lacs respectively as on March 31, 2016 (April 1, 2015: Rs, Nil and Rs, Nil respectively). The profit for the year and total equity as at March 31, 2016 decreased by Rs,36.40 lacs due to derecognition of advertisement revenue of Rs,60.62 lacs from such transactions which is partially off-set by derecognition of advertisement expense of ''24.22 lacs from such transactions.

Note 11: Lease rent equalization reserve

Under the previous GAAP, the lease payments under an operating lease were recognized as an expense in the statement of profit and loss on a straight line basis over the lease term.

Under Ind AS, the lease payments under an operating lease shall be recognized as an expense on a straight-line basis over the lease term unless the payments are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases. If payments to the less or vary because of factors other than general inflation, then this condition is not met. Since the lease payments under all the operating leases entered into by the Group as a lessee are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases, the lease rent equalization reserve created in respect of such leases amounting to Rs,80.90 lacs under the previous GAAP, has been reversed with corresponding adjustment to retained earnings as at April 1, 2015. Consequently, the total equity increased by an equivalent amount. The profit for the year and total equity as at March 31, 2016 decreased by Rs,12.57 lacs and Rs,68.33 lacs respectively, due to reversal of utilization of lease rent equalization reserve created in respect of the aforesaid leases under the previous GAAP.

Note 12: Discontinued operations

The application for approval of sale of three radio stations of the Company was declined by the Ministry of Information and Broadcasting (“''''MIB''”'') in the previous year. The Company filed a writ petition before the Honorable High Court of Delhi against such decline. The Company was pursuing the case legally and expected a favorable outcome.

Accordingly, under the previous GAAP, the radio business was classified as a discontinuing operation as the Company’s board of directors had both (i) approved a detailed, formal plan for the discontinuance and (ii) made an announcement of the plan.

Under Ind AS, a discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale. An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable. Considering the above decline of approval by the MIB, the disposal group (radio business) is not considered to be available for immediate sale in its present condition. Hence, the radio business has not been considered as a discontinued operation under Ind AS.

Consequently, the loss from discontinuing operations before tax (Rs,1,349.14 lacs), profit from disposal of assets and liabilities of discontinuing operations (Rs,207.01 lacs) and income tax expense thereon (Rs, nil) for the year ended March 31, 2016 under the previous GAAP has been adjusted / included against / in the profit from continuing operations for the year ended March 31, 2016. As a result of this change, the profit from continuing operations for the year ended March 31, 2016 has decreased by Rs,1,142.13 lacs and the loss from discontinued operations for the year ended March 31, 2016 is nil. There is no impact on the total equity and profit.

Note 13: Agency incentive

Under previous GAAP, the incentive paid to the advertisement agencies was recognized as an expense in the statement of profit and loss.

Under Ind AS, if the agencies are acting as a principal, the incentive payable should be adjusted against the advertisement income. Accordingly the advertisement income and agency incentive expenses have decreased by Rs,764.62 lacs for the year ended March 31, 2016. There is no impact on the total equity and profit.

Note 14: Provisions / liabilities written back to the extent no longer required

Under the previous GAAP, the provisions / liabilities written back to the extent no longer required were credited to Other income. Under Ind AS, where the original provision was charged as an expense, any subsequent reversal should be credited to the same line in the statement of profit and loss in accordance with the principle of consistency. Accordingly, the aforesaid provisions / liabilities written back to the extent no longer required have been credited to the respective expense line in the statement of profit and loss. This change has resulted in a decrease in other income, increase in revenue from operations and decrease in other expenses for the year ended March 31, 2016 by Rs,1,334.83 lacs, Rs,415.43 lacs and Rs,919.40 lacs respectively. There is no impact on the total equity and profit.

Note 15: Retained earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

Note 16: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Item of income / expense that is not recognized in profit or loss but is shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plan. The concept of other comprehensive income did not exist under the previous GAAP.

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Mar 31, 2016

1. Employee Stock Option Plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 was approved by the board of directors in their meeting held on 21st August, 2006 and by shareholders in their meeting held on 28th September, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. The Optioned may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly, the Company under the intrinsic value method, as permitted by the Guidance Note on Accounting for Employee Share Based Payment issued by the Institute of Chartered Accountants of India, has recognized the excess of the market price over the exercise price of the option amounting to Rs. (-) 25,000 (previous year Rs. (-) 280,531) as expense during the year. Further, the liability as at March 31, 2016 in respect of Employee Stock Options Outstanding is Rs. 375,000 (previous year Rs. 450,000).

2. Discontinuing Operations

On February 6, 2015, the Board of Directors of the Company approved the sale of Radio FM Business (seven radio stations). The decision was intimated to the stock exchanges on the same date. The disposal plan is consistent with the Company''s long-term strategy to focus its activities on Television Broadcasting. The Company signed a non-binding Memorandum of Understanding (MoU) with Entertainment Network (India) Limited on February 13, 2015, in relation to the sale of seven radio stations to Entertainment Network (India) Limited, subject to fulfillment of the contractual obligations and receipt of all necessary regulatory approvals, including permission from the Ministry of Information and Broadcasting, Government of India. The purchase price for the whole of Radio Business, as per the said MoU, is Rs. 485,000,000, to be paid on the closing date.

On receipt of approval from the Ministry of Information and Broadcasting on July 20, 2015, the Company sold four of its radio stations at Amritsar, Patiala, Jodhpur and Shimla on September 18, 2015 to Entertainment Network (India) Limited, as a going concern, on a slump sale basis, for a lump sum consideration of Rs. 40,000,000, adjusted for net working capital, as per the business transfer agreement. Such transaction resulted in a profit of Rs. 20,701,133 included in ‘Other Income’.

The application to the Ministry to grant approval for sale of its three radio stations at New Delhi, Mumbai and Kolkata, was declined by the Ministry. The Company has filed a writ petition before the Honorable High Court of Delhi against such denial, which is pending before the Honourable Court. The Ministry also demanded a payment of Rs. 713,600,000 towards additional migration fee for migration of its radio stations from Phase II to Phase III Policy Regime, against which the Company has obtained an interim relief till the disposal of the aforesaid case and accordingly, the same has been disclosed as a contingent liability (refer note 20). The Company is pursuing the case legally and expects a favorable outcome. Operating results of the Company''s discontinued operations are summarized as follows:

3. Segment Reporting

The Company is primarily engaged in television broadcasting, which is considered the only reportable business segment as per Accounting Standard 17[AS-17], “Segment Reporting”. Therefore, as per the requirements of AS-17 are Company does not have any reportable primary segment and accordingly disclosure requirements of AS-17 in this regard are not applicable, further the company has determined its operations in India as its single reportable geographical segment.

4. Related Party Disclosures

(a) Names of related parties and nature of relationship

(i) Where control exists:

Holding company: Living Media India Limited (Refer Note - e)

Ultimate holding company: World Media Private Limited [till December 18, 2015] (Refer Note - a)

Subsidiary: T.V. Today Network (Business) Limited

(Refer Note - b)

(ii) Other related parties with whom transactions have taken place during the year:

Fellow subsidiaries: Mail Today Newspapers Private Limited

Today Merchandise Private Limited

Thomson Press (India) Limited [till December 18, 2015]

Integrated Databases India Limited

ITAS Media Private Limited

Radio Today Broadcasting Limited [till December 18, 2015]

Today Retail Network Private Limited Key management personnel (KMP): Mr. Aroon Purie (Managing Director)

Mrs. Koel Purie Rinchet (Whole-time Director till June 26, 2015)

Mrs. Kalli Purie Bhandal (Whole-time Director w.e.f. February 8, 2016)

Entity over which Key Management Personnel (KMP) Care Today Fund exercise significant influence Vasant Valley School

5. Operating Leases As a lessee:

The Company has cancellable and non-cancellable lease arrangements mainly for office premises and company leased accommodation for employees. These lease arrangements range for a period between 11 months and 10 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses. The operating lease payments recognized in the Statement of Profit and Loss amount to Rs. 47,532,785 (previous year Rs. 48,620,015). With respect to non-cancellable operating leases, the future minimum lease payments are as follows:-

6. Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to micro and small enterprises as at March 31, 2016. No interest has been paid / is payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

7. The Company, as a strategic decision, considered entering into the print media and, accordingly, acquired in earlier years some stake in Mail Today Newspapers Private Limited (“Mail Today”), a differentiated newspaper published in Delhi market. Based on the valuation of the equity shares of Mail Today, carried out by an independent value, the Company acquired the shares through direct subscription and through purchase from existing shareholders at a cost of Rs. 455,212,482. Mail Today is presently incurring losses, but is close to operating break-even. The Company, in view of such losses and considering the current business / industry conditions, has carried out a valuation of shares of Mail Today through an independent value and the said valuation shows a decline of Rs. 422,500,000 in the carrying amount of the Company''s existing shareholding in Mail Today. Mail Today is of strategic importance to the Company, as it has a network of journalists generating original content, which can be of great value to the Company in future. In view of such strategic value, the Company is in the process of acquiring the remaining stake in Mail Today from the other shareholders, viz., Living Media India Limited, the holding company and AN (Mauritius) Limited, who have confirmed to transfer their existing shares to the Company without any monetary consideration, making Mail Today a wholly-owned subsidiary of the Company. The reduction in the value of the Company''s investments after considering such proposed acquisition from the other shareholders without any monetary consideration amounts to Rs. 53,800,000, which has been provided for in these financial statements as decline, other than temporary. The management of Mail Today is making all possible efforts to improve its performance.

8. Previous Year Figures

Previous year figures have been reclassified to conform to this year’s classification.

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Mar 31, 2015

1. Employee Stock Option Plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 was approved by the board of directors in their meeting held on 21st August, 2006 and by shareholders in their meeting held on 28th September, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. The Optionee may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly, the Company under the intrinsic value method, as permitted by SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share Based Payment issued by the Institute of Chartered Accountants of India, has recognized the excess of the market price over the exercise price of the option amounting to Rs. (-) 280,531 (Previous Year Rs. (-) 674,496) as expense during the year. Further, the liability as at March 31,2015 in respect of Employee Stock Options Outstanding is Rs. 450,000 (Previous Year Rs. 3,037,500). The balance deferred compensation expense of Rs. Nil (Previous Year Rs. 101,969) will be amortized over the remaining vesting period of options.

2. Segment Reporting

The Company has considered the business segment as the primary reporting segment on the basis that the risks and returns of the Company are primarily determined by the nature of services. Consequently, the geographical segment has been considered as a secondary segment.

The business segments have been identified on the basis of :

* the nature of services

* the risks and returns

* internal organization and management structure and

* the internal performance reporting systems

The business segments comprise of the following :

* Television Broadcasting

* Radio Broadcasting

3. Related Party Disclosures

(a) Names of related parties and nature of relationship

(i) Where control exists:

Holding company : Living Media India Limited

Ultimate holding company: World Media Private Limited (Refer Note - a)

Subsidiary : T.V. Today Network (Business) Limited (Refer Note - b)

(ii) Other related parties with whom transactions have taken place during the year:

Fellow subsidiaries : Thomson Press (India) Limited Today Merchandise Private Limited Radio Today Broadcasting Limited Mail Today Newspapers Private Limited World Media Trading Limited ITAS Media Private Limited Today Retail Network Private Limited

Key management personnel: Mr. Aroon Purie (Managing Director) (KMP) Ms. Koel Purie Rinchet (Whole Time Director)

Entity over which Key Care Today Fund Management Personnel (KMP) exercise significant influence

4. Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to micro and small enterprises as at March 31,2015. No interest has been paid / is payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

40. The Company as a strategic decision considered entering into the print media and, accordingly, acquired in earlier years some stake in Mail Today Newspapers Private Limited (Mail Today), a differentiated newspaper with respect to content as well as value to its advertisers. Based on the valuation of the equity shares of Mail Today, carried out by an independent valuer, the Company acquired the shares through direct subscription and also through purchase from existing shareholders at a cost of Rs. 455,212,482. Though, Mail Today is presently incurring losses, the Company is confident of its long-term strategic value and it has also received a guarantee from its holding company, Living Media India Limited, for indemnifying any loss to the Company arising from the sale of the said investment, based on which the carrying value of the said investment is considered appropriate.

5. The Company has decided to enter into digital news space to tap significant growth potential and business opportunity in digital news industry. Consequently, the Company has acquired digital rights of its news channels from its holding company, Living Media India Limited, for a consideration of Rs. 387,500,000. Such consideration has been recognized as an intangible asset, to be amortized over a period of 10 years.

6. Previous Year Figures

Previous year figures have been reclassified to conform to this year''s classification.

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Mar 31, 2014

1. Contingent Liabilities

Particulars As at March 31, 2014 March 31, 2013 Amount (Rs.) Amount (Rs.)

Claims against the Company not acknowledged as debts:

Income Tax Matters : 3,499,211 99,519,245

The Company has received demand notices from the Income Tax department, which the Company has contested. In the opinion of the management, no liability is likely to arise on account of such demand notices.

Other Matters :

(1) Claim from Prasar Bharti towards up linking charges :- 18,989,020 26,486,082 Provision made in the books on an estimated basis is Rs. 59,679,814 (Previous Year Rs. 48,276,437). In the opinion of the management, based on its understanding of the case and as advised by their counsel, the provision made in the books is considered to be adequate.

(2) Claim from Phonographic Performance Limited (PPL) towards royalty 17,733,300 - for use of PPL''s sound recordings over Company''s radio stations :- Provision made in the books on an estimated basis is Rs. 2,531,401 (Previous Year Rs. Nil). In the opinion of the management, based on its understanding of the case and as advised by their counsel, the provision made in the books is considered to be adequate.

(3) The Company has received legal notice of claims / lawsuits filed against it in respect of programmes aired on its television channels. In the opinion of the management, no liability is likely to arise on account of such claims / lawsuits.

Guarantees:

Bank guarantees 23,083,379 25,069,899

(a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. Employee Stock Option Plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 was approved by the board of directors in their meeting held on 21st August, 2006 and by shareholders in their meeting held on 28th September, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. The Optionee may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly, the Company under the intrinsic value method, as permitted by SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share Based Payment issued by the Institute of Chartered Accountants of India, has recognized the excess of the market price over the exercise price of the option amounting to Rs. (-) 674,496 (Previous Year Rs. (-) 649,153) as expense during the year. Further, the liability as at March 31, 2014 in respect of Employee Stock Options Outstanding is Rs. 3,037,500 (Previous Year Rs. 4,440,000). The balance deferred compensation expense of Rs. 101,969 (Previous Year Rs. 357,473) will be amortized over the remaining vesting period of options.

3. Segment Reporting

The Company has considered the business segment as the primary reporting segment on the basis that the risks and returns of the Company are primarily determined by the nature of services. Consequently, the geographical segment has been considered as a secondary segment.

The business segments have been identified on the basis of :

- the nature of services

- the risks and returns

- internal organization and management structure and

- the internal performance reporting systems

The business segments comprise of the following :

- Television Broadcasting

- Radio Broadcasting

4. Related Party Disclosures

(a) Names of related parties and nature of relationship

(i) Where control exists:

Holding company: Living Media India Limited

Ultimate holding company: World Media Private Limited (Refer Note - a)

Subsidiary: T.V. Today Network (Business) Limited (Refer Note - b)

Company under common control: Integrated Databases India Limited (Refer Note - a)

(ii) Other related parties with whom transactions have taken place during the year:

Fellow subsidiaries: Thomson Press (India) Limited

Today Merchandise Private Limited

Radio Today Broadcasting Limited

Mail Today Newspapers Private Limited

World Media Trading Limited

ITAS Media Private Limited

Today Retail Network Private Limited

Key management personnel (KMP): Mr. Aroon Purie (Managing Director)

Ms. Koel Purie Rinchet (Whole Time Director)

5. Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to micro and small enterprises as at March 31, 2014. No interest has been paid / is payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

6. The Company has as a strategic decision considered entering into the print media. In this regard, it has acquired some stake in Mail Today Newspapers Private Limited (Mail Today), a differentiated newspaper with respect to content as well as value to its advertisers. Based on the valuation of the equity shares of Mail Today, carried out by an independent valuer, the Company acquired some stake through direct subscription and also through purchase from existing shareholders amounting to Rs. 455,212,482. Though Mail Today is in the initial stages of operations and is presently incurring losses, the Company, based on projections / independent valuation, is confident of the future Profitability of Mail Today and consequently of the carrying value of the investment.

7. Previous Year Figures

Previous year figures have been reclassified to conform to this year''s classification.

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Mar 31, 2013

1. Contingent Liabilities

Particulars As at

March 31, 2013 March 31, 2012 Amount (Rs.) Amount (Rs.)

Claims against the Company not acknowledged as debts:

(A) Income Tax Matters : 99,519,245 82,707,017 The Company has received demand notices from the Income Tax department, which the Company has contested. In the opinion of the management, no liability is likely to arise on account of such demand notices.

(B) Other Matters: (1) Claim from Prasar Bharti towards uplinking charges 26,486,082 24,532,931

The total claim as at March 31, 2013 amounted to Rs. 74,762,519. Pending final outcome in respect of such dispute, the Company is carrying provision on an estimated basis amounting to Rs. 48,276,437, including Rs. 1,953,160 provided for in the current year. In the opinion of the management, based on its understanding of the case and as advised by their counsel, the provision made in the books is considered adequate and the balance amount is considered as a contingent liability.

(2) The Company has received legal notice of claims / lawsuits filed against it in respect of programmes aired on its television channels. In the opinion of the management, no liability is likely to arise on account of such claims / lawsuits.

Note:- (a) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. Employee Stock Option Plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 had been approved by the board of directors in their meeting held on 21st August, 2006 and by shareholders in their meeting held on 28th September, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. The Optionee may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly, the Company under the intrinsic value method has recognized the excess of the market price over the exercise price of the option amounting to Rs. (-) 649,153 (Previous Year Rs. (-) 819,263) as expense during the year. Further, the liability as at March 31, 2013 in respect of Employee Stock Options Outstanding is Rs. 4,440,000 (Previous Year Rs. 5,662,500). The balance deferred compensation expense of Rs. 357,473 (Previous Year Rs. 930,820) will be amortized over the remaining vesting period of options.

3. Related Party Disclosures

(a) Names of related parties and nature of relationship

(i) Where control exists:

Holding Company: Living Media India Limited

Ultimate Holding Company: World Media Private Limited (Note-1)

Subsidiary: T.V. Today Network (Business) Limited (Note-2)

(ii) Other Related Parties with whom transactions have taken place during the year: Fellow Subsidiaries: Thomson Press (India) Limited

Today Merchandise Private Limited Radio Today Broadcasting Limited Mail Today Newspapers Private Limited

Company under Common Control: Integrated Databases India Limited (Note-1)

Key Management Personnel (KMP): Mr. Aroon Purie (Managing Director)

Ms. Koel Purie Rinchet (Whole Time Director)

4. Operating Leases

The Company has entered into lease transactions mainly for office premises and company leased accommodation for employees. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation. The operating lease payments and lease / sub-lease rentals received recognized in the Statement of Profit and Loss amount to Rs. 95,828,741 (Previous Year Rs. 148,493,097) and Rs. 21,375,991 (Previous Year Rs. 726,024, netted off against rent expense) respectively.

5. Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to Micro and Small enterprises as at March 31, 2013. No interest is paid / payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

6. The Company has as a strategic decision considered entering into the print media. In this regard, it has acquired some stake in Mail Today Newspapers Private Limited (Mail Today), a differentiated newspaper with respect to content as well as value to its advertisers. Based on the valuation of the equity shares of Mail Today, carried out by an independent valuer, the Company acquired some stake through direct subscription and also through purchase from existing shareholders amounting to Rs. 455,212,482. Though, Mail Today is in the initial stages of operations and is presently incurring losses, the Company, based on independent projections, is confident of the future profitability of Mail Today and consequently of the carrying value of the investment.

7. Previous Year Figures

Previous year figures have been reclassified to conform to this year''s classification.

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Mar 31, 2012

(a) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. However, no such preferential amounts exist currently.

(b) Shares reserved for issue under Options

Refer Note 27 for details of shares to be issued under the Employee Stock Option Plan

(a) Cash Credit facilities have been secured by way of first charge against the whole of book-debts.

(b) Working Capital Loan has been secured by (hypothecation deed pending to be executed as at year end)

(i) Charge on book debts of the Company (both present and future) on a first pari passu basis with another bank.

(ii) Exclusive charge on proposed rental income received from all other India Today group companies for NOIDA Property.

(iii) Negative lien on the NOIDA property.

1. Contingent Liabilities

Particulars As at

March 31, 2012 March 31, 2011 Amount (Rs.) Amount (Rs.)

Claims against the Company not acknowledged as debts:

Income Tax Matters: 82,707,017 87,411,396

The Company has received demand notices from the Income Tax department, which the Company has contested. In the opinion of the management, no liability is likely to arise on account of such demand notices.

Other Matters:

(1) Claims from Prasar Bharti 24,532,931 32,713,529

The Company received claims from Prasar Bharti in earlier years towards unlinking charges and telecast fees, which were dis puted by the Company.

Prasar Bharti also raised claims towards interest for non-payment of dues from time to time, which were also disputed by the Company.

During the year, the telecast fees matter with Prasar Bharti has been settled vide Delhi High Court order dated February 24, 2012. The total amount payable by the Company as per the said order is Rs. 30,184,406 (net of interest earned on amount already deposited with the Court). The Company had paid and expensed Rs. 23,320,971 till previous year and therefore, the charge to the Statement of Profit and Loss in the current year amounts to Rs. 6,864,406, included in "Others" under "Other Current Liabilities" (Note 9).

In relation to the up linking charges matter, the total claim as at March 31, 2012 amounted to Rs. 70,856,205. Pending final outcome in respect of such dispute, the Company is carrying provision on an estimated basis amounting to Rs 46,323,274, including Rs. 10,315,922 provided for in the current year. In the opinion of the management, based on its understanding of the case and as advised by their counsel, the provision made in the books is considered adequate and the balance amount is considered as a contingent liability.

(2) The Company has received legal notice of claim / lawsuit filed against it in respect of programmes aired on the Channels. In the opinion of the management, no liability is likely to arise on account of such claim / lawsuit.

Guarantees:

Bank Guarantees 25,069,899 28,554,699

(a) It is not possible for the Company to estimate the timing of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. Employee Stock Option Plan

The Company instituted the Employee Stock Option Plan (TVTN ESOP 2006) to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 had been approved by the board of directors in their meeting held on 21st August, 2006 and by shareholders in their meeting held on 28th September, 2006, for grant of 2,900,000 options, representing one share for each option upon exercise by the employees of the Company, at an exercise price determined by the Board / Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance criteria. The Optioned may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly, the Company under the intrinsic value method has recognized the excess of the market price over the exercise price of the option amounting to Rs. (-)819,263 (Previous Year Rs. 1,556,816) as expense during the year. Further, the liability as at March 31, 2012 in respect of Employee Stock Options Outstanding is Rs. 5,662,500 (Previous Year Rs. 8,692,500). The balance deferred compensation expense of Rs. 930,820 (Previous Year Rs. 3,141,557) will be amortized over the remaining vesting period of options.

3. Operating Leases

The Company has cancellable lease arrangements mainly for office premises and company leased accommodation for employees. Terms of lease include terms of renewal, increase in rents in future period and terms of cancellation. The operating lease payments recognized in the Statement of Profit and Loss amount to Rs. 148,493,097 (Previous Year Rs. 125,811,031), net of sub-lease rental received Rs. 726,024 (Previous Year Rs. 572,926).

4. Dues to Micro and Small Enterprises

Based on information available with the Company, there are no outstanding dues to Micro and Small enterprises as at March 31, 2012. No interest is paid / payable by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

5. The Company has as a strategic decision considered entering into the print media. In this regard, it has acquired some stake in Mail Today Newspapers Private Limited (Mail Today), a differentiated newspaper with respect to content as well as value to its advertisers. Based on the valuation of the equity shares of Mail Today, carried out by an independent value, the Company acquired some stake through direct subscription and also through purchase from existing shareholders amounting to Rs. 455,212,482. Though, Mail Today is in the initial stages of operations and is presently incurring losses, the Company, based on independent projections, is confident of the future profitability of Mail Today and consequently of the carrying value of the investment.

6. Previous Year Figures

The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.-

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Mar 31, 2011

1. Capital Commitments / Contingent Liabilities:

(a) Estimated amounts of contract remaining to be executed on capital account, net of advances, not provided for Rs. 299,551,612 (Previous year Rs. 235,817,263)

(b) The Company received claims from Prasar Bharti in earlier years towards uplinking charges and telecast fees which were disputed by the Company. Prasar Bharti also raised claims towards interest for non payment of dues from time to time, which also were disputed by the Company. Total ciaims as at 31st March 2011 amounted to Rs. 100,197,555 and the disputes were referred to various legal forums. Pending final outcome in respect of such disputes, the Company made provision on an estimated basis which amounted to Rs.67,484,026 including Rs. 1,953,157 which was made in current year, in the opinion of the management, based on its understanding of the cases and as advised by their counsel, the provision made in the books is considered adequate.

(c) The Company has received legal notice of claim / lawsuit filed against it in respect of programmes aired on the Channels, in the opinion of the management, no liability is likely to arise on account of such claim / lawsuit.

(d) The Company has received demand notices from Income Tax department amounting to Rs. 87,411,396 (Previous Year54,995,989). The Company has contested the same and in the opinion of the management, no liability is likely to arise on account of such demand notices.

(e) Bank Guarantees outstanding Rs. 28,554,699 (Previous Year Rs. 8,714,420)

2. During the year, the Company has recognised the following amounts in the Profit and Loss Account

II. Defined Benefit Plans

The expected return on plan assets is based on actuariai expectation of average long term rate of return expected on investment of the funds during the estimated term of the obligation.

3. EMPLOYEE STOCK OPTION PLAN - ESOP 2006

The Company instituted the Employee Stock Option Plan - (TVTN ESOP 2006), to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 had been approved by the board of directors in their meeting held on 21st August 2006 and by shareholders in their meeting held on 28th September 2006, for grant of 2,900,000 options representing one share for each option upon exercise by the employees of the Company at a exercise price determined by Board/Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance Criteria. The Optionee may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly the Company under the intrinsic value method has recognized the excess of the market price over the exercise price of the option amounting to Rs. 1,556,816 as an expense during the year. Further, the liability Outstanding as at the March 31, 2011 in respect of Employees Stock Options Outstanding is Rs. 8,692,500. The balance deferred compensation expense Rs. 3,141,557 will be amortized over the remaining vesting period of Options.

4. As identified and certified by the Company, Related Party Disclosures as per the requirement of Accounting Standard 18 issued by the Institute of Chartered Accountants of India:

(I). Name of the related party and nature of related party relationship where control exists:

(a) Key Management Personnel (KMP):

- Mr. Aroon Purie (Managing Director)

- Ms. Koel Purie Rinchet (Whole Time Director)

(b) Entities Controlling the Company (Holding Companies):

- World Media Private Limited ^

- Living Media India Limited

(c) Subsidiary Companies :

- T.V. Today Network (Business) Limited

(d) Fellow Subsidiary Companies :

- Thomson Press (India) Ltd,

- Living Media International Ltd.

- Radio Today Broadcasting Limited

- Mail Today News Papers Ltd.

(e) Companies under common control:

- Integrated Databases India Limited

^ There are no transactions during the year

5. Segment Reporting:

The Company has considered business segment as the primary segment for disclosure. The products included in each of the reported domestic business segments are as follows:

- TV Broadcasting

- Radio Business

The above business segments have been identified considering :

- the nature of services

- the differing risks and return

- the organizations structure and

- the internal financial reporting systems

6. Operating Leases

The Company has cancelable lease arrangements mainly for leasing of office premises and Company leased accommodations for its employees. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The operating lease payments recognized in the Profit & Loss account amount to Rs. 125,811,031 (Previous Year Rs. 115 313 260) net of sublease rental received Rs. 6,637,955 (Previous Year Rs. 5,290,142).

7. The Company has as a strategic decision considered entering into the print media. In this regard, it has acquired some stake in Mail Today Newspapers Private Limited (Mail Today), a differentiated newspaper with respect to content as well as value to its advertisers. Based on the valuation of the equity shares of Mail Today, carried out by an independent valuer the Company, the acquired some stake through direct subscription and also through purchase from existing shareholders amounting to Rs. 45.5 crores. Though, Mail Today is in the initial stages of operations and presently is incurring losses, the Company based on independent projections, is confident of the future profitability of Mail Today and consequently of the carrvina value of the Investment.

8. Based on information available with the Company, there are no outstanding dues to Micro and Small enterprises as at March 31,2011, No interest is paid/payable by the Company in terms of-section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.

9. The figures for the previous year have been regrouped/ rearranged wherever considered necessary to conform to the current year's classification..

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Mar 31, 2010

1. Capital Commitments/Contingent Liabilities:

(a) Estimated amounts of contract remaining to be executed on capital account, net of advances, not provided for Rs 235,817,263 (Previous year Rs. 208,699,397)

(b) The Company had received some claims from Prasar Bharti in earlier years towards uplinking charges and telecast fees which were disputed by the Company. Prasar Bharti also raised claims towards interest for non payment of dues from time to time, which also were disputed by the Company. Total claims as at 31st March 2010 amounted to Rs.97,905,479 and the disputes were referred to various legal forums. Pending final outcome in respect of such disputes, the Company made provision on an estimated basis which amounted to Rs.65, 530,869 including Rs. 25,330,260 which was made in current year. In the opinion of the management, based on its understanding of the cases and as advised by their counsel, the provision made in the books is considered adequate.

(c) The Company has received legal notice of claim / lawsuit filed against it in respect of programmes aired on the Channels. In the opinion of the management, no liability is likely to arise on account of such claim / lawsuit.

(d) The Company has received demand notices from Income Tax department amounting to Rs. 54,995,989 (Previous Year 21,011,432). The Company has contested the same and in the opinion of the management, no liability is likely to arise on account of such demand notices.

2. Particulars of Managerial Remuneration

(a) The remuneration paid to the managerial personnel during the year aggregates to:

3. Employee Stock Option Plan - ESOP 2006

The Company instituted the Employee Stock Option Plan - (TVTN ESOP 2006), to grant equity - based incentives to its eligible employees. The TVTN ESOP 2006 had been approved by the board of directors in their meeting held on 21st August 2006 and by shareholders in their meeting held on 28th September 2006, for grant of 2,900,000 options representing one share for each option upon exercise by the employees of the Company at a exercise price determined by Board/Remuneration Committee. The equity shares covered under the scheme shall vest over a period of four years; vesting shall vary based on the meeting of the performance Criteria. The Optionee may exercise their vested options at any moment after the earliest applicable vesting date and prior to the completion of ten years from the grant date.

Accordingly the Company under the intrinsic value method has recognized the excess of the market price over the exercise price of the option amounting to Rs. 1,189,303 as an expense during the year. Further, the liability Outstanding as at the March 31, 2010 in respect of Employees Stock Options Outstanding is Rs. 5,077,500. The balance deferred compensation expense Rs. 948,373 will be amortized over the remaining vesting period of Options.

4. As identified and certified by the Company, Related Party Disclosures as per the requirement of Accounting Standard 18 issued by the Institute of Chartered Accountants of India:

(I). Name of the related party and nature of related party relationship where control exists:

(a) Key Management Personnel (KMP):

- Mr. Aroon Purie (Managing Director)

(b) Entities Controlling the Company (Holding Companies):

- World Media Private Limited ^

- Living Media India Limited

(c) Subsidiary Companies :

- T.V. Today Network (Business) Limited

(d) Fellow Subsidiary Companies :

- Thomson Press (India) Ltd.

- Living Media International Ltd.

- Radio Today Broadcasting Limited

- Mail Today News Papers Ltd.

(e) Companies under common control:

- Integrated Databases India Limited ^

(f) Others:

- Vasant Valley School

^ there are no transactions during the year

The Company has considered business segment as the primary segment for disclosure. The products included in each of the reported domestic business segments are as follows:

- TV Broadcasting

- Radio Business

The above business segments have been identified considering :

- the nature of services

- the differing risks and return

- the organizations structure and

- the internal financial reporting systems

The Company was operating under a single segment in the previous year ended March 31, 2009

5. Operating Leases

The Company has cancelable lease arrangements mainly for leasing of office premises and Company leased accommodations for its employees. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The operating lease payments recognized in the Profit & Loss account amount to Rs. 115,313,260 (Previous Year: Rs. 60,702,890), net of sublease rental received Rs. 5,290,142 (Previous Year Rs. 4,494,528).

6. The Company has as a strategic decision considered entering into the print media. In this regard it has decided to acquire some stake in Mail Today Newspapers Private Limited (Mail Today), a differentiated newspaper with respect to content as well as value to its advertisers. Based on the valuation of the equity shares of Mail Today, carried out by an independent valuer, the Company has decided to acquire some stake through direct subscription and also through purchase from existing shareholders. Total commitment on this count is Rs.45.50 crores out of which as at 31st March 2010, the Company has paid Rs.18.50 crores towards advance payment for purchase of equity shares which is disclosed as Advance towards Share Subscription under Loans & Advances. Though, Mail Today is in the initial stages of operations and presently is incurring losses, the Company, based on projections, is confident of the future profitability of Mail Today and consequently of the carrying value of the advance against equity.

7. Pursuant to the Composite Scheme of Arrangement, under the provisions of the Companies Act, 1956 (The Scheme), approved by the shareholders, sanctioned by the Honble High Court at Delhi and the Ministry of Information and Broadcasting on November 21,2009, February 24,2010 and May 20, 2010 respectively, the undertaking of the radio broadcasting business of Radio Today Broadcasting Limited, a company engaged in the radio broadcasting and trading business (the Transferor Company), was transferred to and vested in the Company (the Transferee Company) with effect from 1 st April 2009 (Appointed Date). The Scheme, a copy of which was filed with the Registrar of Companies subsequent to the year end on 13th April, 2010, is an amalgamation in the nature of merger and has been given effect to in these accounts under pooling of interest method.

In accordance with The Scheme, the Company will issue 1,655,999 equity shares of Rs.5 each as fully paid up to the equity shareholders of Radio Today Broadcasting Limited, in the ratio of 1 equity share of Rs 5 each fully paid up of the Company for every 6 equity shares of the face value of Rs 10 each fully paid up, held in Radio Today Broadcasting Limited towards consideration for the aforesaid transfer and vesting of radio business, which will be credited in its books at face value, pending issuance of the shares as at the year- end, the face value of Rs 8,279,995 has been credited to Share Capital Suspense.

In accordance with The Scheme, all assets and liabilities pertaining to the radio broadcasting business of the Transferor Company, as on the appointed date, have been incorporated in the books of the Company at book value and the excess of the Share Capital Suspense over the book value of net assets acquired, amounting to Rs 423,622,791, has been adjusted against Securities Premium Account of the Company. The unamortized license fees pertaining to the Transferor Company and transferred to the Company pursuant to the Scheme, amounting to Rs, 244,229,509 has also been adjusted against the Securities Premium Account. Further, the Company has determined the deferred tax assets, amounting to Rs 249,529,332, based on the assets and liabilities of the radio broadcasting business which has been adjusted with the General Reserve Account.

The accounting treatment in respect of excess of Share Capital Suspense over the book value of net assets acquired and unamortized license fee are different from that prescribed by the Accounting Standard (AS) 14, Accounting for Amalgamations, notified under Section 211 (3C) of the Companies Act, 1956 with respect to Amalgamation in the nature of Merger. AS 14 requires the difference between the amount recorded as share capital and the amount of share capital of the transferor company to be adjusted against reserve.

The difference in accounting treatment as above, in compliance with the High Court Order, is as permitted by paragraph 42 of the AS - 14. As the said paragraph 42 of AS - 14 requires disclosure of the impact of the amalgamation on all accounts, had the accounting treatment as per AS - 14 been followed, this is given below for information.

Had the accounting treatment prescribed in AS 14 been followed, amortisation of intangible assets would have been higher by Rs 27,990,000 with its consequential impact on the profit of the Company, General Reserve would have lower by Rs 423,622,791, Unamortized License Fees would have been higher by Rs.216,239,509 and Share Premium Account would have been higher by Rs. 667,852,300.

8. The company has bought back and extinguished 203,752 equity shares during the year, under its buy back scheme which commenced on March 16, 2009 ended on July 13, 2009.

9. As per the information available with the Company, during the year, there have been no transactions with the enterprises covered under the Micro, Small & Medium Enterprises Development Act, 2006.

10. The figures for the previous year have been regrouped / rearranged wherever considered necessary to conform to the current years classification. Figures for the current year include those of the radio business of the erstwhile Radio Today Broadcasting Limited (Refer note 13 above). Accordingly, the current year figures are not comparable to those of the previous year.

Note: 2

Figures in brackets indicate cash outflow Note: 3

Note: 3

The above Cash flow statement has been prepared under the indirect method setout in AS- 3 (Cash Flow Statements), notified under section 211(3C) of the Companies Act, 1956 Note : 4

Note: 4

Movement in balances have been adjusted for Net Assets acquired on amalgamation. (Refer Note 13 on Schedule Q)

This is the Cash Flow Statement referred to in our report of even date. The notes referred to above forms an integral part of the Cash Flow statement