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 2024-25.
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.
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(' in crore)
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As at
31st March, 2025
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As at
31st March, 2024
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38. CONTINGENT LIABILITIES AND COMMITMENTS
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i CONTINGENT LIABILITIES
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(A) Claims against the Company/ disputed liabilities not acknowledged as debts*
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In respect of others
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47.93
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46.69
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(B) Other money for which the Company is contingently liable
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Liabilities under export obligation in "Export Promotion Capital Goods Scheme"
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6.77
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6.77
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ii COMMITMENTS
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In respect of others
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41.06
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30.99
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* Future Cash Flows in respect of above matters are determinable only on receipt of judgements/ decisions pending at various forums/ authorities. The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
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40. 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) No customer represents more than 10% of the Company's total revenue during the current year as well as previous year.
41. CAPITAL AND FINANCIAL RISK MANAGEMENT41.1 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.
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 RISKa 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.
41.2 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.
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 ' 0.06 crore for the year ended 31st March, 2025 and increase/ decrease in Company's loss before tax by ' 0.08 crore for the year ended 31st March, 2024.
b INTEREST RATE RISK
The Company's exposure to the risk of changes in market interest rate relates to floating rate debt obligations.
SENSITIVITY ANALYSIS:
1% appreciation/ depreciation in the interest rate on floating rate borrowing included above would result in and decrease/ increase in the Company's Profit Before Tax by ' 5.12 crore for the year ended 31st March, 2025 and increase/ decrease in the Company's Loss Before Tax by ' 8.20 crore for the year ended 31st March, 2024.
42.2 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.
42.3 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.
43. 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.
45. The Composite Scheme of Arrangement amongst Studio 18 Media Private Limited [formerly Viacom 18 Media Private Limited] ("Viacom18") and its shareholders and creditors & Digital18 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. The Scheme provided for: (i) transfer and vesting of Media Operations Undertaking from Viacom18 to Digital18 on Slump Sale basis; (ii) transfer and vesting of Jio Cinema Undertaking from Viacom18 to Digital18 on Slump Sale basis; and (iii) demerger, transfer and vesting of Viacom18 Undertaking from Digital18 to Star India on a going concern basis. Also, as part of this 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 post approval of the Company's shareholders at the AGM held on 19th December 2024. 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 has been disclosed as Exceptional items.
46. 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, 2025 is ' 1,168.34 crore (Previous year ' 1,168.34 crore).
The Company performed its annual impairment test for year ended 31st March, 2025. 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 and based on fair value using market approach considering recent transaction, revenue and EBITDA 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 12.30% to 16.21% 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.
47. The National Company Law Tribunal, Mumbai Bench, has approved the Composite Scheme of Arrangement ("the Scheme") for the amalgamation of the Company's subsidiaries, namely, TV18 Broadcast Limited ("TV18") and e-Eighteen.Com Limited ("E18") (together referred to as "amalgamating Companies") into the Company with appointed date being 1st April, 2023. The Scheme has become effective on 3rd October, 2024. The stipulations contained in the Scheme have been given effect to in the financial statements for the year ended 31st March, 2024.
48. 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, 2025 (Refer Note No 6 and 14)
(b) Investment made by the Company as at 31st March, 2025 and as at 31st March, 2024 (Refer Note No 5)
(c) No Guarantee has been given by the Company as at 31st March, 2025 and 31st March, 2024.
49. OTHER STATUTORY INFORMATION
(a) There are no balances outstanding as on 31st March, 2025 and 31st March, 2024 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.
50. Previous year's figures have been regrouped wherever necessary to make them comparable to current year's figures.
51. The financial statements were approved for issue by the Board of Directors on 18th April, 2025.
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