We have audited the Standalone Ind AS Financial Statements of Sun TV Network Limited (“the Company”),
which comprise the Balance Sheet as at March 31,2026, the Statement of Profit and Loss, including the Statement of
Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then
ended, and notes to the Standalone Ind AS Financial Statements, including a summary of material accounting policies
and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us , the aforesaid
Standalone Ind AS Financial Statements give the information required by the Companies Act, 2013, as amended (“the
Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31,2026, its profit including other comprehensive
income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on
Auditing (Sas), as 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 Ind AS 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 together with the ethical requirements that are relevant to our audit of the 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 audit opinion on the Standalone Ind AS Financial
Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Standalone Ind AS Financial Statements for the financial year ended March 31,2026. These matters were addressed
in the context of our audit of the Standalone Ind AS Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our
audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the ‘Auditor’s responsibilities for the audit of the Standalone Ind AS
Financial Statements’ section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of the
Standalone Ind AS Financial Statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying Standalone Ind AS Financial
Statements.
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Key audit matters
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How our audit addressed the key audit matter
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Allowance for credit losses (as described in Note 2 (s) & Note 10 of the Standalone Ind AS Financial
Statements)
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The Company assesses allowances for credit
losses, based on Expected Credit Loss (ECL)
model, using ‘simplified approach’ in accordance
with Ind AS 109, Financial Instruments for
measurement and recognition of impairment losses
on trade receivables.
Management evaluates and calculates the expected
credit losses using a provision matrix based on
historical credit loss experience, performance of
ageing analysis, profiling of receivables,
assessment of credit risk, expected cash flows
including timing of such cash flows, consideration of
reasonable and necessary information to assess
the ability and intention to pay.
The appropriateness of the provision for expected
credit loss is subjective due to the high degree of
judgment applied by management in determining the
amount of expected credit loss allowances. Due to
the significance of trade receivables and the related
estimation uncertainty this is considered a key audit
matter.
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Our audit procedures included, the following:
• We obtained understanding of management’s
process over estimation of allowance for credit
loss and evaluated the Company’s impairment
policy and methodology;
• We evaluated the design and tested the
operating effectiveness of key financial controls
over the management’s process of estimation
and accrual of ECL.
• Evaluated the assumptions used in the ECL
model and impairment provision matrix. These
considerations include whether there are regular
receipts from the customers, commitment plan
received from the customers if any, the
Company’s past collection history, assessment
of customer’s credit ability, as well as an
assessment of the subsequent realization of
receivables from customers, as applicable.
• We have obtained the ageing analysis of trade
receivables. We have 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.
• We also evaluated management’s assumptions
used in determining the allowance for expected
credit loss, through detailed analysis of ageing
of receivables, testing of subsequent collections,
assessment of material overdue individual
trade receivables and past trends of bad debts
charged to the statement of profit and loss.
• We assessed the mathematical accuracy of
provision computation based on model
considered by the management.
• We have assessed the disclosures made by the
management in Standalone Ind AS Financial
Statements.
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Key audit matters
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How our audit addressed the key audit matter
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Impairment Assessment of Investments in Joint Venture (as described in Note 2(s), Note 7 & Note 45 of
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the Standalone Ind AS Financial Statements)
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During the current year, impairment assessment
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Our audit procedures in relation to the management’s
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was performed by the management on the
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assessment included the following:
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Company’s investments in South Asia FM Limited
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We evaluated the design and tested the
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(“SAFM”) as SAFM had incurred losses / is operating
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operating effectiveness of relevant key financial
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near breakeven in last few years. The impairment
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controls in relation to management assessment
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assessment was performed by comparing the
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of the impairment including the indicators and
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carrying value of these investments to their
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valuation methodology applied in determining
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recoverable amount to determine whether an
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the recoverable amount.
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impairment was required to be recognised.
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•
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Evaluated the objectivity, competence and
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For the purpose of the above impairment testing,
value in use has been determined by forecasting
and discounting future cash flows. The
determination of the recoverable amount of the
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independence of the specialist engaged by the
Company for impairment analysis of select cash
generating units and reviewed the valuation
report issued by such specialist.
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investments involved judgment due to inherent
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•
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With the assistance of our valuation experts, we
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uncertainty in the assumptions supporting the
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evaluated key assumptions and methodologies
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recoverable amount of these investments.
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used in the impairment analysis including the
revenue growth rates, operating margins,
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Based on the above assessment, the Company
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terminal growth rates and discount rates, by
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has recorded an impairment charge of INR 98.43
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comparison to historical performance as well as
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crores in the current year as the recoverable amount
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externally available industry, economic and
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is lower than the carrying value and disclosed as
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financial data, wherever available.
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‘exceptional items’ in the Standalone Statement of
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We performed sensitivity analysis of key
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Profit and Loss.
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assumptions used in forecasting future cash
flows. Assessed key drivers as compared to
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Accordingly, the impairment assessment of
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previous year / actual performance to evaluate
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investments in joint venture was determined to be
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reasonability of the inputs and assumptions
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a key audit matter in our audit of the Standalone Ind
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used in the cash flow forecasts.
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AS Financial Statements due to the significant
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We compared the carrying value of the
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judgement and management estimates involved
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investment to the estimated discounted future
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around the impairment assessment.
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•
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cash flows determined by the management and
the consequent allowance for impairment.
We tested the arithmetical accuracy of the
model used in the impairment assessment.
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•
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We evaluated the appropriateness of disclosures
related to investments in the financial statements
in respect of impairment of investment in joint
venture.
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We have determined that there are no other key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company’s Board of Directors is responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the Standalone Ind AS Financial Statements and our
auditor’s report thereon. The Annual Report is expected to be made available to us after the date of this auditor's
report.
Our opinion on the Standalone Ind AS 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 Ind AS Financial Statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether such other information
is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
When we read the Annual 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 Ind AS Financial
Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation of these Standalone Ind AS Financial Statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind
AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended. 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 the 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 Standalone Ind AS Financial Statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS Financial Statements, management 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 management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Charged with Governance are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS 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 SAs 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 Ind AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Ind AS 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.
• 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)(I) 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s 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 Ind AS 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.
• Evaluate the overall presentation, structure and content of the Standalone Ind AS Financial Statements,
including the disclosures, and whether the Standalone Ind AS Financial Statements represent the underlying
transactions and events in a manner that achieves fair presentation. 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.
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.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Standalone Ind AS Financial Statements for the financial year ended March 31,2026
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
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure 1” a statement
on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, 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 purposes of our audit;
(b) 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 including daily back-up of books of accounts and other books and papers
maintained in electronic mode except for the matters stated in the paragraph 2(I) (vi) below on reporting under
Rule 11(g);
(c) The Balance Sheet,the Statement of Profit and Loss including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in
agreement with the books of account ;
(d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as
amended;
(e) On the basis of the written representations received from the directors as on March 31,2026 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31,2026 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 (b) above on reporting under Section 143(3)(b) and paragraph 2(i)(vi) below on reporting under
Rule 11(g)
(g) With respect to the adequacy of the internal financial controls with reference to Standalone Ind AS Financial
Statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to
this report;
(h) In our opinion, the managerial remuneration for the year ended March 31,2026 has been paid / provided by the
Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act.
(I) 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 has disclosed the impact of pending litigations on its financial position in its Standalone Ind
AS Financial Statements - Refer Note 31 to the Standalone Ind AS Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
iv. a) The management has represented that, to the best of its knowledge and belief, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other persons or entities, including foreign entities
(“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 (“Ultimate Beneficiaries”) or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds have been
received by the Company from any persons or entities, including foreign entities (“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 that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (a) and (b) contain any material misstatement.
v. The interim dividends declared and paid by the Company during the year and until the date of this audit
report is in accordance with Section 123 of the Act.
vi. Based on our examination which included test checks, the Company has used accounting software
for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the
same has operated throughout the year for all relevant transactions recorded in the software except that,
audit trail feature is not enabled for certain changes made, if any, using privileged/ administrative
access rights, as described in Note 44 to the Standalone Ind AS Financial Statements. Further, during the
course of our audit we did not come across any instance of audit trail feature being tampered with, in
respect of accounting software where the audit trail has been enabled.
Additionally, the audit trail of prior years has been preserved by the Company as per the statutory
requirements for record retention to the extent it was enabled and recorded in the respective years.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Aravind K
Partner
Place of Signature: Chennai Membership Number: 221268
Date : May 21,2026 UDIN: 26221268SSVBTE5035
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