1. All above investments are in India itself.
** In accordance with the terms of issue of 1,34,336 (PY:38,500) Unsecured Zero Coupon Compulsorily Convertible Debentures (CCDs) of R 1000/- each including any amendments thereof from time to time the issuer Company has converted 1,34,336 (PY:38,500) each on March 31,2024 into1,34,33,600 (PY: 38,50,000) equity shares of face value of R 10/- each at the expiry of its tenure in the ratio of 1:100 i.e. 100 Equity shares of R 10/- each for each CCD of R 1000/- each.
*** In accordance with the terms of issue of 1,51,900 Unsecured Zero Coupon Compulsorily Convertible Debentures (CCDs) of R 1000/- each including any amendments thereof from time to time the issuer Company has converted 1,51,900 each on March 31,2024 into 1,51,90,000 equity shares of face value of R 10/- each at the expiry of its tenure in the ratio of 1:100 i.e. 100 Equity shares of R 10/- each for each CCD of R 1000/- each.
(a) The Company incurred R Nil for the year ended March 31, 2024 (March 31, 2023: R 1.05 lakhs) towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for leases is R 17.84 lakhs for the year ended March 31,2024 (March 31,2023: R 12.90 lakhs), including cash outflow of short-term leases and leases of low-value assets. Interest on lease liabilities for the year ended March 31, 2024 is R 4.67 lakhs (March 31,2023: R 2.93 lakhs).
(b) Lease contracts entered by the Company majorly pertains for buildings taken on lease to conduct its business in the ordinary course.
(c) The weighted average incremental borrowing rate applied to lease liabilities is 7.10%
(d) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
The Description of the nature and purpose of each reserve within equity is as follows:
a) Securities Premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013
b) Reserve Fund U/s 45-IC RBI Act, 1934
Statutory reserve is the reserve created by transferring the sum not less than 20% of its net profit after tax in terms of Section 45-IC of The Reserve Bank of India Act, 1934
c) Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to dividends or other distributions paid to shareholders.
26. Critical accounting estimates and judgments
The estimates and judgements used in the preparation of the said standalone financial statements are continuously evaluated by the Company, and are based on historical experience and various other assumptions and factors (including expectations of future events), that the Company believes to be reasonable under the existing circumstances. The said estimates and judgements are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates - even if the assumptions under-lying such estimates were reasonable when made, if these results differ from historical experience or other assumptions do not turn out to be substantially accurate. The changes in estimates are recognised in the standalone financial statements in the period in which they become known.
I The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax Authorities / Statutory Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position.
II The Company periodically reviews all its long term contracts to assess for any material foreseeable losses. Based on such review wherever applicable, the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/accounting standards.
1. During the year the Parent Company has given Financial Guarantee of R 9000 Lakhs (PY: 9000 Lakhs) on behalf of nexG Devices Pvt. Ltd. to HDFC Bank and the same has been fair valued and recognized as deferred financial guarantee obligation.
2. During the year the Parent Company has given Financial Guarantee of R 2200 Lakhs (PY: 2200 Lakhs) on behalf of nexG Devices Pvt. Ltd. to Indusind Bank and the same has been fair valued and recognized as deferred financial guarantee obligation.
3. During the year the Parent Company has given Financial Guarantee of R 4000 Lakhs (PY: Nil) on behalf of nexG Devices Pvt. Ltd. to Yes Bank and the same has been fair valued and recognized as deferred financial guarantee obligation.
4. During the year the Parent Company has given Financial Guarantee of R 5000 Lakhs (PY: Nil) on behalf of nexG Devices Pvt. Ltd. to Kotak Mahindra Bank and the same has been fair valued and recognized as deferred financial guarantee obligation.
30. In the opinion of the Board and of the best of their knowledge and belief, the value of realization in respect of the Current Assets, Loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities is adequate and not in excess of amount reasonably required.
31. Segmental Reporting
(a) Primary Segment Information
The Board of Directors are the Company's Chief Operating Decision Maker (CODM) i.e. Board of Directors within the meaning of Ind AS 108 'Operating Segments'. The Company is mainly engaged in the business of digital media content and dealing in related activities in media and entertainment industry, etc. which is reviewed by the CODM as single primary segment. CODM examines the Company's performance, reviews internal management reports, allocates resources based on analysis of various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirements of Ind AS 108 "Operating Segment".
(b) Secondary segment information
Secondary segment reporting is on the basis of geographical location of the customers. Considering that the Company caters mainly to the needs of Indian market and the export turnover is NIL (PY: NIL) for the year ended March 31, 2024, there are no reportable geographical segments.
As the liabilities for the gratuity and compensated absences are provided on an actuarial basis, and calculated for the Company as a whole rather than each of the individual employees, the said liabilities pertaining specifically to KMP are not known and hence, not included in the above table.
33. The Company has carried out Impairment Test on its Property, Plant and Equipment as on March 31, 2024 and the Management is of the opinion that there is no asset for which impairment is required to be made as per Ind AS-36 on "Impairment of Assets" (Previous year R Nil).
34. Foreign Currency Exposure
The Company did not have any oustanding foreign currency exposure as on March 31, 2024 (as on March 31, 2023 Nil)
36 The Company is registered with Reserve Bank of India (RBI) vide registration no. 13.01287 dated August 13, 1999 as a NBFC Company. The Company had applied for deregistration as NBFC, however, as per the extant guidelines of RBI, the Company shall continue as NBFC till the time it reduces its investment below 50% of total assets to qualify for deregistration and would continue to do compliances of NBFC as applicable. Interest Income for the year considered as other income being not from the operation of the Company.
37 Financial Risk Management Objectives and Policies
The Company's principal financial liabilities comprise trade and other payables, lease liabilities and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its subsidiaries operations. The Company's principal financial assets include cash and cash equivalents that derive directly from its operations.
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.
The Company's business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company's senior management has the overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.
Management of Liquidity Risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments.
Trade Receivables
Customer credit risk is managed by each business unit subject to the Company established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. As at March 31, 2024, the Company does not have any outstanding customers.
Financial Instruments and Cash Deposits
"Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company's policy. Counterparty credit limits are reviewed by the management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
The Company's maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31, 2023 is the carrying amounts as illustrated in Note 5.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2024 and March 31, 2023.
38. Disaggregation of Revenue
The Company's primary business of digital media content and dealing in related activities in media and entertainment industry, etc. Sale of services is recognized when respective service is rendered and accepted by the customer. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established. There is no significant financing component as the credit period provided by the Company is not significant.
* The above Investments does not include equity investments in subsidiaries, associates and joint ventures which are carried at costs and hence are not required to be disclosed as per Ind AS 107 “Financial Instruments Disclosures.
Management has assessed that Cash and cash equivalents, Other balances with banks, Loans, Trade receivables, Other financial assets, Lease liabilities, Trade payables and Other financial liabilities carried at amortized cost (Level 3) approximate their carrying amounts largely due to the short-term maturities of these instruments.
B Fair value hierarchy :
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Valuation Methodology
All financial instruments are initially recognized and subsequently re-measured at fair value as described below :
(a) Trade receivables, cash and cash equivalents, trade payables and other financial assets and liabilities approximate the carrying value due to their short term maturities. Fair value is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale.
(b) The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.
(c) Fair value of the remaining financial instruments is determined using discounted cash flow analysis, unless the carrying value is considered to approximate to fair value.
(i) The disclosures as above shall be based on the sector-wise and industry-wise bank credit (SIBC) return submitted by scheduled commercial banks to the Reserve Bank and published by the Reserve Bank as 'Sectoral Deployment of Bank Credit'.
(ii) In the disclosures as above, if within a sector, exposure to a specific sub- sector/industry is more than 10 percent of Tier 1 capital of an NBFC, the same shall be disclosed separately within that sector. Further, within a sector, if exposure to specific sub-sector/industry is less than 10 percent of Tier 1 capital, such exposures shall be clubbed and disclosed as “Others” within that sector.
1.4. Intra-group exposures
The company does not have any intra-group loan exposure as on March 31, 2024 (as on March 31, 2023 Nil)
1.5. Unhedged foreign currency exposure
The company does not have any foreign currency exposureas on March 31, 2024 (as on March 31, 2023 Nil)
46. Other Statutory Information
i) The Company do not have any immovable property. In respect of land and building taken on lease disclosed in the standalone financial statements as Right of Use Assets, the lease agreements are duly executed in favour of the Company.
ii) The Company doesn't have any intangible assets. The Company has not revalued its property, plant and equipment (including right-of-use assets) during the current or previous year.
iii) The Company does not have any investment in properties.
iv) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
v) The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does not specify any terms or period of repayment.
vi) The Company has not raised any borrowings from Banks during the year.
vii) The Company don't have borrowings from banks or financial institutions on the basis of security of current assets.
viii) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as
a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when
standalone financial statements are approved.
ix) The Company does not have any transactions with struck-off companies.
x) The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
xii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
xiii) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.
xiv) The Company has not filed any scheme of arrangements in terms of section 230 to 237 of the Companies act, 2013 during the year
xv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
xvi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
47. (i) Previous year's figures have been regrouped and reclassified wherever necessary to confirm current year
classification/presentation.
(ii) Figures represnting 0.00 lakhs are below R 500
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