4. Material accounting policy information
a) Overall consideration
These standalone financial statements have been prepared using the significant accounting policies and measurement
bases summarised below.
These accounting policies have been used throughout all periods presented in these standalone financial statements.
b) Basis of preparation of financial statements
The standalone financial statements have been prepared on going concern basis in accordance with accounting principles
generally accepted in India. Further, the standalone financial statements have been prepared on historical cost basis
except for certain financial assets, financial liabilities, plan assets related to defined benefit obligation and share based
payments which are measured at fair values as explained in relevant accounting policies.
As on 31 March 2025, the accumulated losses from the business exceeded its equity share capital (negative net worth) on
account of the matter stated in note 51 and any unfavourable outcome of the such matter may cast significant doubt on
the ability to continue as a going concern assumptions. However, the Company continues to be legally advised that the
Company's stand has merits. Further management believes that it is appropriate to prepare the standalone financial
statements on a going concern basis considering sufficient operational cash flow, no debt in books, positive business
outlook, cash generation capability.
These standalone financial statements are presented in Indian Rupees (INR), which is the Company's functional and
presentation currency. All amounts have been denominated in lacs, except as stated otherwise. The amounts disclosed
as '0' represent amounts below rounding off norms adopted by the Company.
cj current versus non-current classification
All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle
of the Company and other criteria set out in the Act. Deferred tax assets and liabilities are classified as non-current
assets and non-current liabilities, as the case may be.
dj Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The consideration transferred by the Company
to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities
incurred, the equity interests issued and fair value of contingent consideration issued. Acquisition-related costs are
expensed as and when incurred.
Assets acquired and liabilities assumed are measured at their acquisition-date fair values.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently re-measured to fair value with changes in fair value recognised in profit or loss.
Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Contingent
consideration classified as an asset or liability that is a financial instrument and within the scope of Ind AS 109 Financial
Instruments, is measured at fair value with changes in fair value recognised either in profit or loss or as a change to
Other Comprehensive Income (OCI).
If the contingent consideration is not within the scope of Ind AS 109, it is measured in accordance with the appropriate Ind
AS. Contingent consideration that is classified as equity is not re-measured and subsequent settlement is accounted for
within equity.
Goodwill is measured as excess of the aggregate of the consideration transferred and the amount recognised for non¬
controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If
the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the resulting gain on
bargain purchase is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence
of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through
other comprehensive income.
e) Property, plant and equipment and capital work in progress
Property, plant and equipment
Recognition and initial measurement
Property, plant and equipment are recorded at the cost of acquisition. The cost comprises purchase price, borrowing cost
if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended
use upto the date when the assets are ready for use. Any trade discount, recoverable taxes and rebates are deducted in
arriving at the purchase price. All other repairs and maintenance are recognized in statement of profit and loss as incurred.
Consumer premises equipment (CPE) are treated as part of capital work in progress till the time of activation thereof,
post which the same gets depreciated. Capital work in progress is valued at cost.
Property, plant and equipment are subsequently measured at cost less depreciation and impairment loss. Depreciation
on property, plant and equipment is provided on straight line method, computed on the basis of useful lives (as set out
below) prescribed in Schedule II of the Act. However, Schedule II allows companies to use higher/ lower useful lives and
residual values if such useful lives and residual values can be technically supported. The useful life used based on
schedule II or technical evaluation are as under.
De-recognition
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition
(calculated as the difference between the net disposal proceeds and its carrying amount) is included in the statement of
profit and loss when the respective asset is derecognised.
f) Other intangible assets
Recognition and initial measurement
Intangible assets are recognised if it is probable that the future economic benefits that are attributable to the asset will
flow to the Company and the cost of the asset can be measured reliably. These assets are valued at cost which comprises
the purchase price and any directly attributable expenditure on making the asset ready for its intended use.
Fee paid for acquiring license to operate DTH services, is capitalized as intangible asset.
Customer and distributor relationships are recorded at the fair market value assessed by independent valuer based on
projected economic income attributable to the Company taking into account various factors in the business combination.
Brand is recorded at the cost of acquisition. Cost of acquisition has been determined as the fair market value assessed by
independent valuer based on projected economic income attributable to the Company taking into account various factors
in the business combination.
Cost of computer software includes license fees, cost of implementation and directly attributable system integration
expenses. These costs are capitalized as intangible assets in the year in which related software is implemented.
i) Fees paid for acquiring licenses to operate DTH services is amortised over the period of license and other license
fees are amortized over the management estimate of useful life of five years.
ii) The economic life of customer and distributor relationship assets are usually determined by estimating future loyalty
of customers. Management has assessed that the economic useful life of the customer and distributor relationship
to be of ten years.
iii) The brands have been acquired for a perpetual period. Based on various factors the Company has considered brand
to be perpetual in nature. Accordingly, these are tested for impairment.
iv) Software are amortised over an estimated life ranging from one year to five years as the case may be.
g) Impairment of non-financial assets
At each reporting date, the Company assesses whether there is any indication based on internal/external factors, that an
asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an
impairment loss and is recognised in the statement of profit and loss. If, at the reporting date there is an indication that
a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount. Impairment losses previously recognized are accordingly reversed in the statement of profit
and loss.
h) Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss for financial assets. ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company expects to receive. When estimating
the cash flows, the Company is required to consider:
i) All contractual terms of the financial assets (including prepayment and extension) over the expected life of the
assets.
ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade receivables
The Company applies simplified approach permitted by Ind AS 109 Financial Instruments, which requires lifetime expected
credit losses to be recognised from the date of initial recognition of receivables.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there
has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly,
impairment loss is provided.
i) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net
of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.
The Company applies the revenue recognition criteria to each nature of the sales and services transaction as set out
below, pursuant to Indian Accounting Standard -115 "Revenue from contracts with customers" (Ind AS 115) which establishes
a comprehensive framework for determining whether, how much and when revenue is to be recognised.
i) Revenue from rendering of services
- Revenue from subscription services is recognized over the subscription pack validity period. Revenue is recognised
net of taxes collected from the customer, collection charges and any discount given. Consideration received in
advance for subscription services is initially deferred and included in other liabilities.
- Revenue from other services (viz performance incentive, marketing and promotional fee, teleport services,
advertisement income) are recognized as and when the services are rendered in accordance with the terms of
the underlying contract.
ii) Interest income
- Income from deployment of surplus funds is recognised on accrual basis using the effective interest rate (EIR)
method.
j) Foreign currency translation
Functional and presentation currency
The financial statements are presented in Indian Rupees (?) which is also the functional and presentation currency of the
Company.
Transactions and balances
Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional
currency and the foreign currency at the date of the transaction.
Non-monetary items denominated in a foreign currency are converted in functional currency at the rate prevailing on the
date of transactions and the same are carried at historical cost.
Foreign currency monetary items are converted to functional currency using the closing rate.
Exchange differences arising on such conversion and settlement at rates different from those at which they were initially
recorded, are recognized in the statement of profit and loss in the year in which they arise.
k) Borrowing Costs
Borrowing costs include interest and other costs that the Company incurs in connection with the borrowing of funds.
In case of significant long-term loans, other costs incurred in connection with the borrowing of funds are amortised over
the period of respective loan.
l) Employee benefits
Employee benefits include provident fund, pension fund, gratuity and compensated absences
Defined contribution plan
The Company deposits the contributions for provident fund and employees' state insurance to the appropriate government
authorities and these contributions are recognised in the statement of profit and loss in the financial year to which they
relate.
Defined benefit plan
The Company's gratuity scheme is a defined benefit plan. The present value of the obligation under such defined benefit
plan is determined based on actuarial valuation carried out at the end of the year by an independent actuary, using the
projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present
value of the estimated future cash flows. The discount rates used for determining the present value of the obligation
under defined benefit plans is based on the market yields on Government Securities for relevant maturity. Actuarial
gains and losses are recognised immediately in the statement of other comprehensive income. The Company has done
contribution to the Gratuity plan with Life Insurance Corporation of India through Dish TV employees group gratuity trust.
Other long term employee benefits
Benefits under the Company's compensated absences constitute other long-term employee benefits. The liability in
respect of compensated absences is provided on the basis of an actuarial valuation done by an independent actuary
using the projected unit credit method at the year end. Actuarial gains and losses are recognised immediately in the
statement of profit and loss.
Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. Benefits such as salaries, wages, and bonus, etc., are recognised in the statement of profit and loss in the
period in which the employee renders the related service.
m) Employee stock option scheme
The fair value of options granted under Employee Stock Option Plan of the Company is recognised as an employee benefits
expense with a corresponding increase in other equity. The total amount to be expensed is determined by reference to
the fair value of the options. The total expense is recognised over the vesting period, which is the period over which all of
the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the
number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the
impact of the revision to original estimates, if any, in statement of profit and loss, with a corresponding adjustment to
other equity. Upon exercise of share options, the proceeds received are allocated to share capital up to the par value of
the shares issued with any excess being recorded as share premium.
n) Leases
Company as a lessee
The Company's lease asset classes primarily consist of leases for land. The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of
an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Company assesses whether: (1) the contract involves the use of an identified
asset, (2) the Company has substantially all of the economic benefits from the use of the asset through the period of the
lease, and (3) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a Right of use (ROU) asset and a corresponding lease
liability for all lease arrangements under which it is a lessee, except for short-term leases and low value leases. For
short-term leases and low value leases, the Company recognizes the lease payments as an expense on a straight-line
basis over the term of the lease.
Certain lease arrangements include options to extend or terminate the lease before the end of the lease term. ROU
assets and lease liabilities include these options when it is reasonably certain that they will be exercised.
The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
ROU assets are depreciated from the date of commencement of the lease on a straight -line basis over the shorter of the
lease term and the useful life of the underlying asset
The lease liability is initially measured at amortized cost at the present value of the future lease payments. For leases
under which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate
based on the information available at the date of commencement of the lease in determining the present value of lease
payments. Lease liabilities are re measured with a corresponding adjustment to the related ROU asset if the Company
changes its assessment as to whether it will exercise an extension or a termination option.
ROU assets has been disclosed under property plant and equipements and corresponding lease liability has been shown
under financial liability in the Balance sheet.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. The respective leased assets are included in the balance sheet based on their nature.
Rental income is recognized on straight line basis over the lease term.
o) Earnings per share
Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
p) Equity, reserves and dividend payment
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds. Retained earnings include current and prior period retained profits.
All transactions with owners of the Company are recorded separately within equity.
q) Taxation
Tax expense recognized in statement of profit and loss comprises the sum of deferred tax and current tax except those
recognized in other comprehensive income or directly in equity.
Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with
relevant tax regulations.
Deferred tax is recognised in respect of temporary differences between carrying amount of assets and liabilities for
financial reporting purposes and corresponding amount used for taxation purposes. Deferred tax assets on unrealised
tax loss are recognised to the extent that it is probable that the underlying tax loss will be utilised against future taxable
income. This is assessed based on the Company's forecast of future operating results, adjusted for significant non¬
taxable income and expenses and specific limits on the use of any unused tax loss. 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 assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date. Deferred tax relating to items recognised outside statement of profit and loss is recognised outside
statement of profit or loss (either in other comprehensive income or in equity).
Unused tax credit such as (Minimum alternate tax ('MAT') credit entitlement) is recognized as an asset only when and to
the extent there is convincing evidence that the Company will pay normal income-tax during the specified period. In the
year in which such credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the
statement of profit and loss and shown as unused tax credit. The Company reviews the same at each balance sheet date
and writes down the carrying amount of unused tax credit to the extent it is not reasonably certain that the Company will
pay normal income-tax during the specified period.
r) Operating cycle
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and
other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. The Company has ascertained its
normal operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of
assets or inventories for processing and their realisation in cash and cash equivalents.
s) Operating expenses
Operating expenses are recognised in statement of profit or loss upon utilisation of the service or as incurred.
t) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). Basis the review of operations being done by the CODM, the operations of the Company fall
under Direct to Home ('DTH') and teleport services, which is considered to be the only reportable segment.
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