1. We have audited the accompanying standalone financial statements of Entertainment Network (India) Limited ('the Company'),
which comprise the Standalone Balance Sheet as at 31 March 2026, the Standalone Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Statement of Cash Flow and the Standalone Statement of Changes in Equity for the year
then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory
information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 ('the Act') in the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards ('Ind AS') specified under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company
as at 31 March 2026, and its loss (including other comprehensive income), its cash flows and the changes in equity for the year ended
on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements
section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India ('ICAI') together with the ethical requirements that are relevant to our audit of the standalone financial statements
under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matters
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How our audit addressed the key audit matters
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Impairment Assessment of Property, plant and equipment,
Right-to-use of assets and Intangible assets
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Our audit procedures included, but were not limited to, the following:
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The Company has non-financial assets in the form of Property,
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Ý Obtained an understanding of and evaluated the process and
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controls designed and implemented by the management
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Plant and Equipment, Right-to-use of assets and Intangible
assets ('specified non-financial assets') which are carried at cost
less accumulated depreciation/amortization and impairment
(if any) amounting to ' 4,748.49 lakhs, ' 10,769.15 lakhs and '
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to assess the potential impairment of non-financial assets.
Further, tested the operating effectiveness of such controls
during the year.
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21,514.94 lakhs respectively as at 31 March 2026.
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Ý Evaluated the Company's accounting policy in respect of
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As at 31 March 2026, under the requirements of Ind AS 36,
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impairment assessment, and the methods and models used
to determine the recoverable amounts of property, plant and
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Impairment of Assets ('Ind AS 36'), the Company has performed
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equipment, right-to-use of assets and intangible assets, in
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an impairment assessment of all the specified non-financial
assets using discounted cash flow method to assess the value-
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accordance with the requirements of Ind AS 36.
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in-use of such assets, which requires judgement in respect
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Ý Reviewed the process of determination of the level at which the
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of certain key inputs such as business projection, future cash
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impairment assessment was performed by the Company and
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flows, determining an appropriate discount rate, regulatory/
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assessed that the same is in line with the requirements of Ind
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license framework, advertising market growth, etc.
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AS 36 considering the nature of the Company's operations.
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Based on the aforesaid assessment the Company has not
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Ý Involved our internal valuation experts and reviewed the
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recorded further impairment charge against the non-financial
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appropriateness of the key valuation assumptions including the
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assets during the year ended 31 March 2026 as the recoverable
amount is higher than the carrying value.
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discount rates used within the discounted cash flow model.
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Key audit matters
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How our audit addressed the key audit matters
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We considered impairment assessment of property, plant and
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Ý
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Evaluated the reasonableness of the key inputs and assumptions
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equipment, right-to-use of assets and intangible assets as a key
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such as growth rates, etc. used by the management in cash
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audit matter in the current year audit because of the significant
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flow projections basis our understanding of the business and
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judgement and management estimates involved around
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by comparing it with readily available market information and
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impairment assessment.
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Ý
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underlying macro-economic factors.
Performed sensitivity analysis on the assumptions used in
projections to ensure significant headroom.
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Ý
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Compared the carrying value of the net assets with the estimated
discounted future cash flows determined by the management
and ensured arithmetical accuracy of management impairment
assessment workings as above.
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Ý
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Evaluated the accuracy and adequacy of the disclosures made
in the standalone financial statements, in respect of impairment
assessment of specified non-financial assets as required by
applicable financial reporting framework.
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Recoverability assessment of deferred tax assets
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Our audit procedures included, but were not limited to, the following:
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As detailed in note 10 (A) to the standalone financial statements,
the Company has deferred tax assets ('DTA') (net) amounting to
' 5,187.64 lakhs outstanding as at 31 March 2026 which includes
' 4,860.13 lakhs of DTA recognised on Minimum Alternate Tax
('MAT') credit.
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Ý
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Obtained understanding and evaluation of the process and
controls designed and implemented by the management over
recognition and recoverability assessment of DTA based on the
evaluation of Company's ability to generate sufficient taxable
profits in foreseeable future allowing the use of deferred tax
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Refer Note 2 (xiv) for the related accounting policy adopted by
the Company on deferred tax.
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assets on MAT credit and Business losses within the time
prescribed by income tax laws. Further, tested the operating
effectiveness of such controls.
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The Company's ability to utilise the deferred tax assets is
assessed by the management at the close of each reporting
period as per Ind AS 12 'Income taxes' (Ind AS 12) and it
depends upon the forecasts of future taxable profits that the
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Ý
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Obtained the financial projections prepared by the management
and verified the cash flow forecasts used in the recoverability
assessment of DTA to the approved business plans.
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Company expects to achieve within the period by which such
MAT credit may be adjusted as governed by the provisions of
the Income Tax Act, 1961 (IT Act) as read with Income Tax Act,
2025 in relation to amendments for availability and utilization of
MAT credit which are effective from 1 April 2026.
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Ý
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Reviewed the historical accuracy of future taxable profit
projections prepared by the management in prior periods.
Obtained understanding from the management about the
predicted business growth and viability of achieving those
projections.
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As per the management's assessment, the financial projections
show a significant increase in profitability over the coming
years, which will result in increase in income tax liability
against which the available MAT credit can be utilised as
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Ý
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Evaluated management's assessment of time period available
for adjustment of such deferred tax assets on MAT credit and
Business losses as per provisions of the Income Tax Act, 1961
and appropriateness of the accounting treatment with respect
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mentioned above.
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to the recognition of deferred tax assets on MAT credit and
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Recognition of deferred tax asset on such MAT credit is based
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business losses as per the requirements of Ind AS 12, Income
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on projected future tax profits which involves significant
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Taxes.
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judgement regarding the likelihood of its realization within
the specified period through estimation of future taxable
profits of and consequently there is a risk that the deferred tax
asset comprising of MAT credit may not be realized within the
specified period, if these future projections are not met.
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Ý
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Assessed the accuracy and adequacy of the disclosures made
in the standalone financial statements in respect of aforesaid
DTA balances in accordance with the requirements of applicable
financial reporting framework.
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Considering the materiality of the amounts and significant
judgment involved in estimation of future taxable profits and
the probability of utilization of MAT credit, we have identified
this matter, as a key audit matter in the current year audit.
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Key audit matters
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How our audit addressed the key audit matters
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Expected credit losses (‘ECL’) on trade receivables
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Our audit procedures included, but were not limited to, the following:
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The Company assesses impairment provision for doubtful
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Ý Obtained understanding of management's process over
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receivables, based on Expected Credit Loss (ECL) model, as
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credit origination, credit monitoring and credit remediation by
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per Ind AS 109, Financial Instruments to state the entity's trade
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evaluating the Company's impairment policy and methodology.
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receivables to their carrying amount, which approximates their
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Ý Evaluated management's continuous assessment of the
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fair value. Management evaluates and calculates the expected
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assumptions used in the impairment provision matrix. These
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credit losses using a provision matrix based on historical
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considerations include whether there are regular receipts
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credit loss experience, specific reviews of customer accounts,
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from the customers, the Company's past collection history as
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experience with such customers, current economic and
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well as an assessment of the customers' credit ability to make
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business conditions and industry assessment. In calculating
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payments.
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expected credit loss, the Company has considered related
credit information for its customers to estimate the probability
of default in future. The Company has trade receivables (net
of provision) of ' 17,435.53 lakhs and provision of ' 5,209.09
lakhs as on balance sheet date.
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Ý Obtained the ageing analysis of trade receivables and tested
on a sample basis, the ageing of trade receivables at year
end and discussed with management the reasons of any long
outstanding amounts where no provisions were recorded and
also evaluated management's assumptions used in determining
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The appropriateness of the provision for expected credit loss
is subjective due to the high degree of judgment applied by
management in determining the provisioning matrix. Due to
the significance of trade receivables and the related estimation
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the impairment provision, through detailed analyses of ageing
of receivables, assessment of material overdue individual
trade receivables and past trends of bad debts charged to the
statement of profit and loss.
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uncertainty this is considered as a key audit matter in the
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Ý Verified mathematical accuracy of provision computation based
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current year.
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on model considered by the management.
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Ý Assessed the accuracy and adequacy for disclosure made
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by the management in the accompanying standalone
financial statements in respect of ECL in accordance with the
requirements of applicable financial reporting framework.
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Information other than the Standalone Financial Statements and Auditor’s Report thereon
6. The Company's Board of Directors are responsible for the other information. The other information comprises the information included
in the Director's Report but does not include the standalone financial statements and our auditor's report thereon. The Director's Report
is expected to be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Director's Report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The accompanying standalone financial statements have been approved by the Company's Board of Directors. The Company's Board
of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of
these standalone financial statements that give a true and fair view of the financial position, financial performance including other
comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133
of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud
or error.
8. In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
9. The Board of Directors is also responsible for overseeing the Company's financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone
financial statements.
11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
Ý Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
Ý Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)0) of the Act we are also responsible for expressing our opinion on whether the Company
has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such
controls;
Ý Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management;
Ý Conclude on the appropriateness of Board of Directors' use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Company to cease to continue as a going concern; and
Ý Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
15. As required by section 197(16) of the Act, based on our audit, we report that the Company has paid remuneration to its directors during
the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act and approval
obtained from the shareholders.
16. As required by the Companies (Auditor's Report) Order, 2020 ('the Order') issued by the Central Government of India in terms of section
143(11) of the Act we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
17. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable,
that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit of the accompanying standalone financial statements;
b) Except for the of the matter described in paragraph 17(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended), in our opinion, proper books of account as required by law have been kept by the Company
so far as it appears from our examination of those books;
c) The standalone financial statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2026 from being appointed as a director in terms of section 164(2) of the Act;
f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph
17(b) above on reporting under section 143(3)(b) of the Act and paragraph 17(h)(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 (as amended);
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on
31 March 2026 and the operating effectiveness of such controls, refer to our separate report in Annexure II wherein we have
expressed an unmodified opinion; and
h) With respect to the other matters to be included in the Auditor's Report in accordance with rule 11 of the Companies (Audit and
Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
(i) the Company, as detailed in note 43 to the standalone financial statements, has disclosed the impact of pending litigations on
its financial position as at 31 March 2026;
(ii) the Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses as at 31 March 2026;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Company during the year ended 31 March 2026;
(iv) a. The management has represented that, to the best of its knowledge and belief, as disclosed in note 49 to the standalone
financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities
premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign
entities ('the intermediaries'), with the understanding, whether recorded in writing or otherwise, that the intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company ('the Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf the
Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 49 to the standalone
financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign
entities ('the Funding Parties'), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether 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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and
(b) above contain any material misstatement.
(v) The final dividend paid by the Company during the year ended 31 March 2026 in respect of such dividend declared for the
previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend. As stated in note 37
to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for
the year ended 31 March 2026 which is subject to the approval of the members at the ensuing Annual General Meeting. The
dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
(vi) As stated in note 58 to the standalone financial statements and based on our examination which included test checks, the
Company, in respect of financial year commencing on 1 April 2025, has used an accounting software for maintaining its books
of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year
for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any
instance of audit trail feature being tampered with. Furthermore, the audit trail has been preserved by the Company as per
the statutory requirements for record retention. The audit trail has been preserved by the Company as per the statutory
requirements for record retention other than the consequential impact of the exception given below:
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Nature of exception noted
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Details of Exception
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Instances of accounting software for maintaining books of
account for which the feature of recording audit trail (edit
log) facility was not operated throughout the year for all
relevant transactions recorded in the software.
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The audit trail feature was not enabled at the database level
for accounting software to log any direct data changes, used
for maintenance of all accounting records by the Company.
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For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Ashish Gupta
Place: Mumbai Partner
Date: 15 May 2026 Membership Number: 504662
UDIN: 26504662MSKQUZ2214
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