(u) Provisions, contingent liabilities &
contigent assets
Provisions are recognised when the
Company has a present obligation as a result
of a past events; it is probable that an outflow
of resources embodying economic benefits
will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.
If the effect of the time value of money is
material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a financial cost.
Contingent liabilities are disclosed unless
the possibility of outflow of resources is
remote. Provisions and contingent liabilities
are reviewed at the end of each reporting
period and adjusted to reflect the current
best estimate. Contingent assets are neither
recognised nor disclosed in the financial
statements.
(v) Investment property
Investment in buildings that is not intended
to be occupied substantially for use by, or in
the operations of the Company, are classified
as investment property. Investment
properties are measured initially at cost,
including transaction costs. Subsequent to
initial recognition, investment properties are
stated at cost less accumulated depreciation
and accumulated impairment loss, if any.
All repairs and maintenance costs incurred
for the investment properties are charged
to standalone statement of profit and loss
account when incurred.
Investment properties are depreciated
using the straight-line basis over its
estimated useful lives. Useful life of the same
is estimated as 58 years after considering
estimated residual value as 5%.
Though the Company measures investment
property using cost based measurement, the
fair value of investment property is disclosed
in the notes (Refer Note 3(b)). Fair values are
determined based on ready reckoner rate
as specified by State Government. If at the
balance sheet date there is an indication
that a previously assessed impairment loss
no longer exists, the recoverable amount is
reassessed and the asset is reflected at the
recoverable amount subject to a maximum
of depreciated historical carrying value.
Investment properties are derecognised
either when they have been disposed of
or when they are permanently withdrawn
from use and no future economic benefit is
expected from their disposal. The difference
between the net disposal proceeds and the
carrying amount of the asset is recognised
in standalone statement of profit and loss in
the period of derecognition.
Notes :
i) The entire book value (carrying amount) of inventory is hypothecated as security for Cash Credit Facilities taken from banks.
ii) Quarterly statements of current assets are filed by the Company with State Bank of India, Bank of India and NKGSB Cooperative Bank
Limited from whom the company has borrowings on the basis of security of current assets.
There are differences in value of current assets between the books of account and the statements submitted to banks.
The reconciliation of the differences has been disclosed under Note. 16(a.ii).
OTHER DISCLOSURES
The Company has only one class of shares referred to as equity shares having a par value of ' 10 per share. Each shareholder
of equity shares is entitled to one vote per share. In the event of liquidation, the share holders are eligible to receive the
remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.
On March 27, 2026, the Company allotted 14,10,000 equity shares of face value ' 10 each, fully paid up at an issue price of ' 110
per share (including Securities Premium of ' 100/-), aggregating to ' 15.51 crore, on a preferential basis to the Promoters/
Promoter Group, towards the appropriation of existing unsecured debt owed to the allottees.
26 Employee Benefits
The Disclosures as defined in the Indian Accounting Standard 19 “Employee benefits”, are given below :
a) Defined Contribution Plans
Contribution to provident and other funds is recognised as an expense in Note 22 “Employee benefit
expense” of the Statement of Profit and Loss.
b) Defined Benefit Plan
The present value of gratuity obligation is determined based on actuarial valuation using the Projected
Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the final obligation. The obligation for
leave benefits (non funded) is also recognised using the Projected Unit Credit Method.
VIII) The defined benefit plans expose the Company to actuarial risks such as interest rate risk, longevity
risk and salary risk:
Interest risk: A decrease in the bond interest 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 mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.
Salary risk: The present value of defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of plan participants will increase the plan’s liability.
IX) Sensitivity Analysis
The key actuarial assumptions to which the benefit obligation results are particularly sensitive to discount
rate and future salary escalation rate. The following table summarizes the impact in percentage terms on
the reported defined benefit obligation at the end of the reporting period arising on account of an increase
or decrease in the reported assumption by 100 basis points:
Notes:
The current service cost recognised as an expense is included in Note 22 'Employee benefits expense’ as gratuity. The remeasurement of the
net defined benefit liability is included in other comprehensive income.
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.
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The
sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of
the reporting period,while holding all other assumptions constant.
c) Other long term benefits :
The obligation for leave benefits (non funded) is also recognised using the Projected Unit Credit Method
and accordingly the long term paid absences have been valued. The leave encashment expense is included
in Note 22 ‘Employee benefits expense’.
28.2Foreign exchange exposure
The Company does not use foreign currency forward contracts to hedge its risks associated with foreign
currency fluctuations relating to firm commitments and forecasted transactions.
The Company’s foreign currency exposure not hedged by a derivative instrument or otherwise as at the
end of reporting year is as follows :
29 Financial Instruments
(i) Financial risk management objective and policies
The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal
financial assets include investments, loans, trade and other receivables, and cash and cash equivalents that
derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The
Company’s senior management oversees the management of these risks.
a) 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, foreign
currency risk and other price risk such as equity price risk. Financial instruments affected by market
risk include loans and borrowings, deposits, other financial instruments.
b) Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations
in the interest rates. Cash flow interest rate risk is the risk that future cash flows of floating interest
bearing investments will vary because of fluctuations in interest rates. The Company’s exposure to the
risk of changes in market interest rates primarily to the Company’s long-term debt obligations.
Interest rate sensitivity
The sensitivity analysis below has been determined based on the exposure to interest rates at the end
of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the
liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis
point increase or decrease is used when reporting interest rate risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in interest
raffle:
c) Foreign Currency risk
The Company enters into transactions in currency other than its functional currency and is therefore
exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding
in currency other than the functional currency of that company. The management has taken a position
not to hedge this currency risk. The Company undertakes transactions denominated in foreign currencies;
consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are not hedged
considering the insignificant impact and period involved on such exposure.
d) Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the company’s receivables from
customers, deposits and loans given, investments and balances at bank.
The Company measures the expected credit loss of trade receivables based on historical trend, industry
practices and the business environment in which the entity operates. Expected credit loss is based on
actual credit loss experienced and past trends based on the historical data.
e) Liquidity risk
Liquidity risk refers to the risk that the company cannot meet its financial obligations. The company’s
principal source of liquidity are cash and cash equivalents and the cash flow i.e. generated from operations.
The company consistently generated strong cash flows from operations which together with the available
cash and cash equivalents and current investment provided adequate liquidity in short terms as well in the
long term.
The table below provides details regarding the contractual maturities of financial liabilities including
estimated interest payments.
(ii) Capital Management
For the purpose of the Company’s capital management, capital includes issued capital and all other equity
reserves. The Company manages its capital structure to ensure that it will be able to continue as a going
concern while maximising the return to the stakeholders.
d) The Company does not face a significant liquidity risk with regard to its lease liability as the current assets
are sufficient to meet the obligations related to lease liability as and when they fall due.
e) Rental expense charged to the Statement of profit and loss account applying paragraph 6 of Ind AS 116, on
account of low-value asset is ' Nil and short-term leases is ' Nil.
31 Details of Corporate social responsibility expenses:
(i) The gross amount required to be spent by the Company on Corporate Social Responsibility (CSR) related
activities during the year is NIL (previous year NIL).
(ii) Amount approved by the board to be spent towards CSR activities during the year NIL (previous year NIL).
(iii) The details of amount recognized as expense in the Statement of Profit or Loss under Note 24 above on
CSR related activities is given below:
32 Share Based Payments
Shemaroo Entertainment Limited Employees Stock Option Scheme - 2021
The Company implemented the Employee Stock Option Scheme to grant equity based incentives to
eligible employees of Company and its subsidiaries. Shemaroo Entertainment Limited Employees Stock
Option Scheme - 2021 (“Scheme”) has been approved by the Board of Directors of the Company at their
meeting held on December 7, 2021 and by the shareholders of the Company by way of special resolution
passed on January 16, 2022 for grant aggregating 15,00,000 options of the Company. The Scheme covers
grant of options to the designated employees of the Company and its Group companies, any Director,
whether a whole-time director or not, including a Non-Executive Director, but excluding the Independent
Directors, Promoters or members of Promoter Group, and a director holding, directly or indirectly, more
than ten percent of the outstanding equity shares of the Company.
The vesting period of the options granted under the Scheme shall commence from the grant date, subject
to minimum of 1 (One) year from the grant date and a maximum of 5 (Five) years from the grant date. The
settlement of options exercised under the Scheme is by way of alloting equity shares of the Company.
In the year 2024-25, the company granted 319,146 options on July 30, 2024 and 1500 options on October 17,
2024 in accordance with the scheme.
During the year, 138,220 vested stock options are voluntarily surrendered by the employees as per the
Employee Stock Options Scheme - 2021.
During the year, the company granted 599,485 stock options to the employees in accordance with the
Scheme.
The following table provides the number and weighted average exercise prices (WAEP) of, and movements
in, share options during the year ended:
Expected volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during
the period. The volatility is used in the Black Scholes option pricing model is the annualized standard deviation
of the continuously compounded rate of the return of the stock over a period of time. The period considered for
expected volatility is based on historical volatility for a period that approximates the expected life of the options
being valued.
Total expense arising from equity-settled share based payment transaction for the year is ' 206.95 lakhs (March
31, 2025: ' 196.23 lakhs) has been charged to standalone statement of profit and loss.
33 Additional information to financial statements
33.1 Approval of financial statements
Financial statements were approved for issue by Board of Directors on 16th May, 2026.
33.2 Disclosure under IND-AS - 108
The Company has identified “"Entertainment”” as the only primary reportable business segment and
hence business segment disclosure as per IND AS - 108 is not applicable. The Company has no reportable
geographical segment other than India.
Two customers represents more than 10% of the Company’s total revenue during the year (Previous year:
Three customers)
33.3 Details of Loans given, investment made and Guarantee given covered under section 186(4) of the
Companies Act, 2013.
(a) Loan given by company to body corporate as at 31st March 2026. (Refer Note 8(d))
(b) Investment made by the company as at 31st March 2026. (Refer Note 5(a))
(c) No Guarantee has been given by the company as at 31st March 2026.
Note: Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information
collected by the Management. This has been relied upon by the auditors.
33.6 During the earlier year, the GST Department had passed an order for recovery of inadmissible Input Tax
Credit (ITC) allegedly amounting to ' 7,025.61 lakhs, along with the alleged interest and penalty under
Section 74 (1) of CGST Act, 2017. Penalty allegedly amounting to ' 6,334.98 lakhs under Section 122(1)(ii) &
(x) & Section 122 (2) (b) of CGST Act, 2017 read with Section 20 of the IGST Act, 2017 was also imposed. The
company had filed an appeal against the said order with the Commissioner, Central Goods & Service Tax
and Central Excise Appeals II and has also filed writ with the Bombay High Court. Department had also
imposed Penalty allegedly amounting to ' 13,360.61 lakhs each on Joint Managing Director, Chief Executive
Officer and Chief Financial Officer of the Company under Section 122(1A) of the CGST Act, 2017 and MGST
Act, 2017. The above three individuals had filed writ against the order, with the Bombay High Court which
is held in favour of the three individuals.
The appeal filed by the Company before the Commissioner, Central Goods & Service Tax and Central Excise
Appeals II has been disposed of in department’s favour.
The writ petition which was separately filed by the Company before the Hon’ble Bombay High Court has
been stayed with the direction that no further action shall be taken by Department with respect to the
impugned orders. Subsequently Hon’ble Bombay High Court referred the matter to the Larger Bench for
consideration.
The Company shall continue to keep the stakeholders informed of any future developments in this regard.
33.7 Disclosure of ratios
Please find below ratios to be disclosed as per the Schedule III of the Companies Act
33.10 Additional disclosures as to the amendment of Schedule III :
i) During the financial years ended 31 March 2026 and 31 March 2025, the Company has not granted
any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as
defined under the Companies Act, 2013), either severally or jointly with any other person (a) repayable
on demand or (b) without specifying any terms or period of repayment.
ii) There is no Benami Property held by the Company and there is no proceedings have been initiated
or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
iii) There are no charges or satisfaction in relation to any debt / borrowings yet to be registered with ROC
beyond the statutory period.
iv) The company has not recorded any transaction 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.
v) Utilisation of Borrowed funds and share premium:
A) The Company has not advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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;
B) 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.
vi) The company has not traded or invested in crypto currency or virtual currency during the financial
year or previous financial year.
vii) There are no subsidiaries in more than one layer.
33.11 Previous year’s figures are regrouped, rearranged, or recast wherever necessary to conform to this year’s
presentation.
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