(d) Provisions
The timing of recognition and quantification of the
liability require the application of judgement to
existing facts and circumstances, which can be subject
to change. The carrying amounts of provisions and
liabilities are reviewed regularly and adjusted to take
account of changing facts and circumstances.
(e) Impairment of non-financial assets
The Company assesses at each reporting date whether
there is an indication that an asset may be impaired.
Goodwill is allocated to cash generating units ('CGU')
for the purposes of impairment testing. A CGU to
which goodwill has been allocated is tested for
impairment annually, or more frequently when there
is an indication that the unit 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 CGU's fair value
less costs of disposal and its value in use; considering
recent transaction or independent valuer's report,
quoted market price, net asset value and EBITDA/
Revenue multiples of comparable companies.
It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely
independent of those from other assets or a 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.
(f) Impairment of financial assets
The impairment provisions for financial assets
depending on their classification are based on
assumptions about risk of default, expected cash loss
rates, discounting rates applied to these forecasted
future cash flows, revenue multiples and EBITDA
multiples. The Company uses judgement in making
these assumptions and selecting the inputs to the
impairment calculation, based on Company's past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
(g) Defined benefit plans
The employment benefit obligations depends on a
number of factors that are determined on an actuarial
basis using a number of assumptions. The assumptions
used in determining the net cost/ income include
the discount rate, salary escalation and mortality
assumptions. Any changes in these assumptions will
impact upon the carrying amount of employment
benefit obligations.
(h) Deferred tax
Deferred income tax assets are reassessed at each
reporting period and are recognised to the extent
that it is probable that taxable profits will be available
against which the deductible temporary differences
and the carry forward of unused tax credits and
unused tax losses can be utilised. The Company uses
judgement to determine the amount of deferred tax
assets that can be recognised, based upon the likely
timing and the level of future taxable profits and
business developments.
(i) Fair value measurement
For estimates relating to fair value of financial
instruments (Refer Note 41)
16.1 The Company has only one class of equity share having par value of ' 5 per share. Each holder of equity share is entitled
to one vote per share held. All the equity shares rank pari passu in all respects including but not limited to entitlement
for dividend, bonus issue and rights issue. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all liabilities, in proportion to their shareholding.
16.3 There are no bonus shares issued and shares bought back during the period of five years immediately preceding the
reporting date.
16.4 An aggregate of 49,50,51,499 equity shares of ' 5 each were issued pursuant to amalgamation, without payment being
received in cash during the period of five years immediately preceding the reporting date.
20.2 The above bank loans carry an interest rate referenced to the respective bank's marginal cost of lending rate ('MCLR') and
mutually agreed spread. Interest rates are in the range of 5.71% to 8.95% per annum.
20.3 Maximum outstanding balance of Commercial Paper during the year was ' 2,728.94 crore (Previous year ' 2,714.53 crore).
20.4 The company has satisfied all the covenants prescribed in the terms of borrowings.
IALM - Indian Assured Lives Mortality
The discount rate is based on the prevailing market yields of the Government of India Bonds as at the Balance Sheet date
for the estimated term of the obligations.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition
of Plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan
assets management.
viii) The expected contributions for Defined Benefit Plan for the next financial year will be in line with financial year 2025-26.
ix) Sensitivity Analysis
Significant Actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary
increase and employee attrition rate. The sensitivity analysis below, have been determined based on reasonable possible
change of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The result of Sensitivity Analysis is given below:
xi) These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary Risk.
Investment Risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds; if the return on plan asset is below this rate, it will
create a plan deficit.
Interest Risk
A decrease in the discount rate will increase the plan liability.
Longevity Risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary Risk
The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an
increase in the salary of the plan participants will increase the plan's liability.
39 SEGMENT REPORTING
a) The Company operates in a single reportable operating segment 'Media Operations'. Hence there are no separate reportable
segments as per Ind AS 108 'Operating Segments. Since the Company's operations are primarily in India, it has determined
single geographical segment.
b) One customer (Previous year nil) represents more than 10% of the Company's total revenue during current year.
40 CAPITAL AND FINANCIAL RISK MANAGEMENT40.1 CAPITAL MANAGEMENT
The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders
through the optimisation of the debt and equity balance. The Company monitors capital using a gearing ratio.
The Capital Structure of the Company consists of Debt, Cash and Cash equivalent and Equity.
The Net Gearing Ratio at end of the reporting period was as follows:
40.2 FINANCIAL RISK MANAGEMENT
The Company's activities exposes it mainly to credit risk, liquidity risk and market risk. The treasury team identifies and
evaluates financial risk in close coordination with the Company's business teams.
i CREDIT RISK
Credit risk is the risk that customers or 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 operating activities which is primarily
trade receivables.
Customer credit risk is managed by each business team subject to the Company's established policy, procedures and control
relating to customer credit risk management. Outstanding customers receivables are regularly monitored.
An impairment analysis is performed at each reporting date for major customers. Receivables are grouped into homogenous
groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets. The Company evaluates the concentration of risk with respect to receivables as low.
ii LIQUIDITY RISK
Liquidity risk arises from the Company's inability to meet its cash flow commitments on the due date. The Company maintains
sufficient stock of cash, marketable securities and committed credit facilities. The Company accesses local financial markets
to meet its liquidity requirements. It uses a range of products to ensure efficient funding from across well-diversified markets
and investor pools. Treasury monitors rolling forecasts of the Company's cash flow position and ensures that the Company is
able to meet its financial obligation at all times including contingencies.
The Company's liquidity is managed by forecasting the cash and liquidity requirements. Treasury arranges to either fund the
net deficit or invest the net surplus in the market.
iii MARKET RISK
a FOREIGN EXCHANGE EXPOSURE/ CURRENCY RISK
Foreign Currency Risk is the risk that the Fair Value or Future Cash Flow of an exposure will fluctuate because of changes
in foreign currency rates. Exposure can arise on account of various assets and liabilities which are denominated in
currencies other than functional currency.
SENSITIVITY ANALYSIS:
1% appreciation/ depreciation of the respective foreign currencies with respect to the functional currency of the Company
would result in a decrease/ increase in the Company's profit before tax by ' 0.01 crore for the year ended 31st March, 2026 and
decrease/ increase in Company's profit before tax by ' 0.06 crore for the year ended 31st March, 2025.
b INTEREST RATE RISK
The Company's exposure to the risk of changes in market interest rate relates to floating rate debt obligations.
The Company's borrowings at the end of the financial year are as follows:
SENSITIVITY ANALYSIS:
1% appreciation/ depreciation in the interest rate on floating rate borrowing included above would result in an decrease/
increase in the Company's profit before tax by ' 6.14 crore for the year ended 31st March, 2026 and by ' 5.12 crore for the year
ended 31st March, 2025.
41.3 The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value
that are either observable or unobservable and consist of the following three levels:
Level 1: Inputs are Quoted prices (unadjusted) in active markets or Net Assets Value (NAV) for identical assets or liabilities.
Level 2: Inputs are other than the quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in
part using a valuation model based on assumption that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data.
41.4 Valuation Methodology
All financial instruments are initially recognised and subsequently re-measured at fair value as described below:
a. The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or Net Asset Value
(NAV), as applicable.
b. The fair value of the remaining financial instruments is determined based on adjusted quoted price of underlying
assets, information about market participants, assumptions and other data that are available including using
discounted cash flow analysis, as applicable.
42 DERIVATIVE CONTRACTS
Changes in the fair value of forward contracts that economically hedge monetary liabilities in foreign currencies, and for which no
hedge accounting is applied, are recognised in the Statement of Profit and Loss. The changes in fair value of the forward contracts,
as well as the foreign exchange gains and losses relating to the monetary items, are recognised in the Statement of Profit and Loss.
Note
$$ Capital employed includes Equity, Borrowings, Creditor for Capital Expenditure and reduced by Investments, Cash and Cash
Equivalents and Capital Work-in-Progress.
44 i Eenadu Television Private Limited ("ETPL") ceased to be an associate of the Company w.e.f. 7th July, 2025 pursuant to
assignment of the voting rights on the 24.5% equity holding in ETPL to the promoter of ETPL. The Company continues to
hold the economic interest in these 24.5% equity shares. Accordingly, investment in ETPL has been fair valued and income of
' 587.01 crore being excess of fair value of holding in ETPL over carrying value has been disclosed as an exceptional item.
ii In the Previous Year, the Composite Scheme of Arrangement amongst Studio18 Media Private Limited [Formerly Viacom18
Media Private Limited] (""Viacom 18"") and its shareholders and creditors & Digital 18 Media Private Limited [Formerly
Digital18 Media Limited] (""Digital18"") and its shareholders and creditors and Star India Private Limited ("Star India") and its
shareholders and creditors ("Scheme") has become effective on 14th November, 2024. As part of the transaction, the Company
sold the shares held in Indiacast Media Distribution Private Limited (""IndiaCast"") to Viacom18 and IndiaCast ceased to be a
subsidiary of the Company.
Separately, Reliance Industries Limited on 30th December, 2024 converted the 24,61,33,682 compulsorily convertible
preference shares held by it in Viacom18. Consequently, Viacom18 ceased to be subsidiary of the Company and has become
an associate of the Company. Accordingly, income of ' 3,498.21 crore being gain on sale of shares held in Indiacast and the
impact of excess of fair value of holding in Viacom18 over the historical carrying cost was disclosed as Exceptional items.
45 The Company acquired equity shares, preference shares and debentures of News18 Marathi Private Limited (formerly IBN Lokmat
News Private Limited) ("News18 Marathi") held by Lokmat Media Private Limited, Joint Venture Partner, for aggregate consideration
of ' 25 crores on 29th October, 2025. Post acquisition, News18 Marathi has become a wholly owned subsidiary of the Company.
The Company has recorded impairment of ' 32.25 crore being excess of carrying value over fair value of the investment in News18
Marathi held by the Company and such loss has been disclosed as an exceptional item.
46 The Board of Directors of the Company at its meeting held on 25th March, 2026, approved a scheme of amalgamation, providing
for amalgamation of News18 Marathi Private Limited (formerly known as IBN Lokmat News Private Limited) ("News18 Marathi"), a
wholly owned subsidiary of the Company, with the Company (""Scheme"") with the appointed date as 1st April, 2026. The Scheme
is subject to necessary statutory and regulatory approvals.
47 The Government of India has implemented four new Labour Codes ("Codes"), including the Code on Wages, 2019, with effect from
21st November, 2025. The Company has carried out actuarial valuation considering uniform definition of "wages" as per the Codes
on Wages and recorded additional obligation of ' 31.30 crore, which has been disclosed as an exceptional item
48 IMPAIRMENT TESTING OF GOODWILL
Goodwill acquired through business combinations with indefinite useful lives has been allocated to cash generating units ('CGU')
related to ""Media Operations"" which is also an operating and reportable segment for impairment testing. The carrying amount of
Goodwill as at 31st March, 2026 is ' 1,168.34 crore (Previous year ' 1,168.34 crore).
The Company performed its annual impairment test for year ended 31st March, 2026. The recoverable amount of the CGU has
been determined based on a value in use calculation using cash flow projections from financial budgets approved by senior
management covering a 5 year period, net asset value, fair valuation using market approach considering Quoted market price and
revenue multiples of comparable companies being key assumption based on published information and management assessment.
The Level of the fair value hierarchy is Level 3.
The pre-tax discount rate applied to cash flow projections for impairment testing during the current year is 14.20% to 15.29% and
cash flows beyond the 5 year period are extrapolated using a 5% terminal growth rate.
Key assumptions used for value in use calculations:-
a. Growth rate estimates:- Rates are based on published industry research and management assessments.
b. Discount rate:- The discount rate calculation representing the current market assessment is based on the specific circumstances
of the CGU and is derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and
equity. The cost of equity is derived from the expected return on investment by the CGU's investors. The cost of debt is based
on the interest-bearing borrowings, the CGU is obliged to service. Industry-specific risk is incorporated by applying individual
beta factors. The beta factors are evaluated annually based on publicly available market data. Adjustments to the discount
rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
The management believes that any reasonably possible change in the key assumptions on which recoverable amount is
based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the CGU.
49 Details of Loan given, Investment made and Guarantee given covered u/s 186 (4) of the Companies
Act, 2013
(a) Loan given by the Company to body corporate as at 31st March, 2026 and 31st March, 2025 (Refer Note No 6 and 13)
(b) Investment made by the Company as at 31st March, 2026 and 31st March, 2025 (Refer Note No 5)
(c) No Guarantee has been given by the Company as at 31st March, 2026 and 31st March, 2025.
50 OTHER STATUTORY INFORMATION
(a) There are no balances outstanding as on 31st March, 2026 and 31st March, 2025 on account of any transaction with companies
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
(b) The Company does not have any Capital Work-In-Progress, whose completion is overdue or has exceeded its cost compared
to its original plan.
(c) 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:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(d) 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:
(i) 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
(ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
51 Previous year's figures have been regrouped wherever necessary to make them comparable to current year's figures.
52 The financial statements were approved for issue by the Board of Directors on 18th April, 2026.
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