2. Summary of Material Accounting Policies

a) Statement of compliance and basis of preparation of financial statements

The Standalone Financial Statements of the Company have been prepared in accordance with the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, (as
amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act,
2013 (as amended from time to time), (Ind AS compliant Schedule III), as applicable to the Standalone
Financial Statements.

Accounting policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.

The Standalone Financial Statements are presented in INR, which is its functional currency, and all values
are rounded to the nearest crore, except when otherwise indicated. The Company has prepared the
Standalone Financial Statements on the basis that it will continue to operate as a going concern.

The Standalone Financial Statements have been prepared on a historical cost basis except for certain
financial assets and liabilities, which have been measured at fair value (refer accounting policy regarding
financial instruments).

b) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset is treated as current when it is:

? Expected to be realized or intended to be sold or consumed in normal operating cycle

? Held primarily for the purpose of trading

? Expected to be realized within twelve months after the reporting period, or

? Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

? It is expected to be settled in normal operating cycle

? It is held primarily for the purpose of trading

? It is due to be settled within twelve months after the reporting period, or

? There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash
and cash equivalents. The Company has identified twelve months as its operating cycle.

c) Property, plant and equipment and Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses, if any. Cost comprises the purchase price (including all duties and taxes after deducting trade discounts
and rebates if any) and any attributable cost of bringing the asset to its working condition for its intended use.
Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term
construction projects if the recognition criteria are met. Likewise, when a major expenditure is incurred, its cost
is recognised in the carrying amount of the plant and equipment, if it increases the future benefits from the
existing asset. All other expenses on existing property, plant and equipment, including day-to-day repair and
maintenance expenditure, are charged to the statement of profit and loss for the period during which
such expenses are incurred.

For depreciation, the Company identifies and determines cost of assets significant to the total cost of the
assets having useful life that is materially different from that of the life of the principal asset.

Property, plant and equipment under construction and Property, plant and equipment acquired but not put to
use at the balance sheet date are classified as capital work in progress. Capital work in progress is stated at
cost, net of accumulated impairment loss, if any.

Freehold land is measured at cost and not depreciated.

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. Gains or
losses arising from de-recognition of Property, plant and equipment are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit
and loss when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

Depreciation

Depreciation on property, plant and equipment other than aircraft and leasehold improvements is provided on
written down value method, using the rates arrived at based on the useful lives estimated by the management.
The Company has used the following useful life to provide depreciation on its property, plant and equipment.

The Management has estimated, the useful life of the above class of assets taking into consideration,
technical assessment and review of past usage history of such class of asset. Basis the said
evaluation, the useful life of the above class of assets are different than those indicated in Schedule II to the
Companies Act 2013. The management believes that these estimated useful lives are realistic and
reflect fair approximation of the period over which the assets are likely to be used.

Leasehold improvements are depreciated over the lower of estimated useful lives of the assets and the
remaining primary period of the lease. The average useful life of Leasehold improvements is 3 to 8 years.

Costs incurred towards purchase of aircraft are depreciated using the straight-line method based technical
assessment and a review of past history of asset usage. Management's estimate of useful life of such aircraft
is 10 years.

d) Investment Properties

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any.

Depreciation on Investment properties is provided on written down value method, using the useful lives
estimated by the management. The Company, based on technical assessment made by technical expert and
management estimate, depreciates the building over estimated useful life of 20 to 58 years which is different
from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these
estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to
be used.

Though the Company measures investment properties using cost based measurement, the fair value of
investment properties is disclosed in the notes. Fair values are determined based on an annual evaluation
performed by a Registered Valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation)
Rules, 2017 applying an appropriate valuation model (refer Note 4 and Note 37 to the Standalone Financial
Statements).

Investment properties are derecognised either when they have been disposed of or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal. The
difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or
loss in the period of derecognition.

e) Intangible assets and amortization

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition,
Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses,
if any.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible
assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of
carrying value of another asset.

? Computer software

Costs incurred towards purchase of computer software are depreciated using the straight-line method over a
period based on management's estimate of useful lives of such software being 3 years, or over the license
period of the software, whichever is shorter.

? Film and program broadcasting rights (‘Satellite Rights’)

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

The Management has estimated the useful life of film broadcasting rights (satellite rights) taken into
consideration of pattern of the expected future economic benefits and prevailing industry practices.

Accordingly cost of such rights are amortised over a period of four years, from the date of first telecast of the
film, in a graded manner.

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

? Film production costs, distribution and related rights

The cost of film production is allocated between distribution and related rights based on management's best
estimate. Distribution rights are amortized upon the theatrical release of the film and other related rights are
amortised either on sale or exploitation of such rights.

? Licenses

Licenses represent one-time entry fees paid to Ministry of Information and Broadcasting ('MIB’) under the
applicable licensing policy for Frequency Modulation ('FM’) Radio broadcasting. Cost of licenses are
amortised over the license period, being 15 years.

f) Intangible assets under development

Expenditure incurred on acquisition/development of intangible assets which are not ready for their intended
use at balance sheet date are disclosed under intangible assets under development.

g) Impairment of non-financial assets

At each reporting date, the Company assesses whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating
Unit’s (‘CGU’) fair value less costs of disposal and its value in use. The recoverable amount is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets.

Where 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.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value cost of disposal, recent market transactions are taken into account, if available.
If no such transactions can be identified, an appropriate valuation model is used.

Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining useful life.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which
are prepared separately for each of the Company’s CGUs to which the individual assets are allocated.

An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists, the
Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized
impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s
recoverable amount since the last impairment loss was recognized. The reversal is limited so that the
carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognized for the asset
in prior years. Such reversal is recognized in the statement of profit and loss.

h) Franchisee fees

The annual franchise fee payable to the Board of Control for Cricket in India (‘BCCI’) and Cricket South Africa
(‘CSA’) is recognized as an expense on an accrual basis in accordance with terms of the Company’s
agreement with BCCI and CSA.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also
includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

j) Revenue from contract with customers

Revenue is recognized when the performance obligations under the contract with customers are satisfied and
to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the transaction price (net of variable considerations, if any) of
the consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the
principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it
has pricing latitude and is also exposed to credit risks.

? Advertising income and income from sales of telecast slots are recognised when the related
commercial or programme is telecast.

? International subscription income represents income from the export of program software content and is
recognised as and when the services are rendered in accordance with the terms of agreements with
customers.

? Subscription income represents subscription fees billed to cable operators / the Company’s authorised
distributor / Direct to Home (‘DTH’) service providers and are recognised in the period during which the service
is provided in accordance with the terms of agreement. Subscription fees billed to cable operators are
determined based on number of subscription points to which the service is provided based on relevant
agreements with such cable operators, at contractually agreed rates. SUNNXT (OTT platform) offers
access to Company’s content which includes broadcasting channels and movie library content for a fee
depending on the subscription plan. These subscriptions are paid at the time of or in advance of delivery of the
services. The revenue from such arrangements is recognized rateably over the subscription period. Revenues
are presented net of the taxes that are collected from customers and remitted to governmental authorities.

? Revenues from sale of distribution rights and other rights relating to the movie produced are recognised in
accordance with the terms of contract with customers and upon satisfaction of performance obligation
under the contract.

? Income from content trading represents revenue earned from mobile service providers and DTH service
providers through exploitation of content owned by the Company. Income is recognised as per the terms of
contract with the respective service providers and based on the services being rendered to the
service provider.

? Income from cricket franchise represents following:

Income from franchisee rights is recognised when the rights to receive the payments is established as per the
terms of the agreement entered with The Board of Control for Cricket in India (“BCCI”) / Cricket South Africa
(“CSA"). Revenue is recognised as per the information provided by BCCI / CSA or as per Management’s

estimate in case the information is not received. The revenue is allocated on a pro-rata basis to number
of matches played during the year as against the total number of matches for the season / tournament.

Income from sponsorship fees is recognised on completion of terms of the sponsorship agreement.

Income from sale of tickets is recognised on conclusion of the matches for which tickets are sold and with the
terms of the relevant agreement. The Company reports revenues net of discounts offered on sale of tickets.

Prize money is recognised when right to receive payment is established.

? Revenues from barter transactions, and the related costs, are recorded at fair values of the services received
or if the same cannot be measured reliably, then the fair value of the services rendered, as estimated by
management.

? For all debt instruments, interest income is recorded using the effective interest rate (EIR). Finance income is
included in other income in the statement of profit and loss.

? Dividend income is recognised when the right to receive payment is established, which is generally when
shareholders of the investee entity approve the dividend.

? Rental income arising from operating leases on investment properties is accounted for based on the terms of
the agreements and is included in other income in the statement of profit or loss.

? Export incentives are recognized when the right to avail the benefits under the respective schemes is
established.

The Company’s receivables are rights to consideration that are unconditional. Unbilled revenues comprising
revenues in excess of billings from various service arrangements are classified as trade receivables when the
right to consideration is unconditional and is due only after a passage of time.

Invoicing to certain customers is based on as ‘acceptance / billing information received from such customer’ as
defined in the respective contracts and therefore revenue recognition is different from the timing of invoicing to
these customers. Therefore, unbilled revenues for these contracts are classified as financial asset because
the right to consideration is dependent on conditions defined in the agreement.

Invoicing in excess of earnings are classified as “Deferred revenue” under other current liabilities.

k) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes the
contribution payable to the provident fund scheme as an expenditure when the employee renders the
related service.

Gratuity liability is a defined benefit obligation. The cost of providing benefits under the plan is determined on
the basis of actuarial valuation at each year-end using the projected unit credit method.

Remeasurement, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance
sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income (‘OCI’)
in the period in which they occur. Remeasurement is not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company
recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit
and loss:

? Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements; and

? Net interest expense or income

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional amount that
it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The
Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based
on the actuarial valuation using the projected unit credit method at the year-end. Re-measurement gains
/losses are accounted through Profit or Loss account and are not deferred.

The Company presents the entire leave as a current liability in the balance sheet, since it does not have an
unconditional right to defer its settlement for 12 months after the reporting date.

l) Taxes

Tax expense comprises current and deferred tax.

a. Current income-tax

Current income-tax asset and liabilities are measured at the amount expected to be paid to the tax
authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to
compute the amount are those that are enacted at the reporting date. Current income tax relating to items
recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income
or in equity). Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

b. Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the
reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

? When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits, book value of assets and any unused tax losses. Deferred tax assets are recognised to the extent that
it is probable that taxable profit will be available against which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses can be utilised, except:

? When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible
temporary differences.

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 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 profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity).

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

c. Goods and Services Tax (GST) / value added taxes paid on acquisition of assets or on incurring
expenses

Expenses and assets are recognised net of the amount of GST/ value added taxes paid, except:

? When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense
item, as applicable;

? When receivables and payables are stated with the amount of tax included

The net amount of tax recoverable from, or payable to, the taxation authority is included as part of other
current/non-current assets/ liabilities in the balance sheet

m) Earnings per share (EPS)

Basic earnings 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 period. The weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split and reverse share split that have changed the number of equity
shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

n) Leases

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: (i) the contract involves the use of an identified asset (ii) the Company
has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) 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 asset ("ROU") and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the
Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the
lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease
term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be
exercised.

The right-of-use 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.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of
the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows
that are largely independent of those from other assets. In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the lease payments to be made
over the lease term. The lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease
liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

o) Cash and Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company's cash management operations.

p) Foreign currency transactions
Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency
amount the exchange rate between the functional currency and the foreign currency at the date of the
transaction.

Conversion

Foreign currency monetary items are translated using the closing rate. Non-monetary items which are carried
in terms of historical cost denominated in a foreign currency are translated using the exchange rate at the date
of the transaction. Non-monetary items which are carried at fair value denominated in a foreign currency are
translated using the exchange rates that existed when the values were determined.

Exchange differences

All exchange differences arising on settlement / conversion of foreign currency monetary items are included in
the statement of profit and loss.

q) 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 best economic 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 is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements
are categorized 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 Standalone Financial Statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

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

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in Notes
34 to 37 of the Standalone Financial Statements.