2 MATERIAL ACCOUNTING POLICIES

2.1 Basis of Preparation and Presentation

The standalone financial statements have been
prepared on the historical cost basis except for
certain financial assets and liabilities which have been
measured at fair value amount.

The standalone financial statements of the Company
have been prepared to comply with the Indian
Accounting Standards ('Ind AS'), including the
rules notified under the relevant provisions of the
Companies Act, 2013, (as amended from time to time)
and Presentation and disclosure requirements of
Division II of Schedule III to the Companies Act,2013,
(Ind AS Compliant Schedule III) as amended from
time to time. The Company follow indirect method
prescribed in Ind AS 7 - Statement of Cash Flows for
presentation of its cash flows.

The Company's standalone financial statements are
presented in Indian Rupees O, which is its functional
currency and all values are rounded to the nearest
crore (? 00,00,000), except when otherwise indicated.

2.2 Summary of Material Accounting Policies

(a) Current and Non-Current Classification

The Company presents assets and liabilities in the
Balance Sheet based on Current/ Non-Current
classification considering an operating cycle
of 12 months being the time elapsed between
deployment of resources and the realisation in
cash and cash equivalents there-against.

(b) Property, Plant and Equipment

Property, Plant and Equipment are stated at
cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation and
impairment losses, if any.

Projects under which assets are not ready
for there intended use are shown as Capital
Work in Progress.

Depreciation on property, plant and equipment
is provided using straight-line method.
Depreciation is provided based on useful life
of the assets as prescribed in Schedule II to the
Companies Act, 2013. Leasehold improvements
are depreciated over the period of lease
agreement or the useful life whichever is shorter.

The residual values, useful lives and methods of
depreciation of property, plant and equipment
are reviewed at each financial year end and
adjusted prospectively, if appropriate.

(c) Leases

The Company, as a lessee, recognizes a right-of-
use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to
control the use of an identified asset. The contract
conveys the right to control the use of an identified
asset, if it involves the use of an identified asset
and the Company has substantially all of the
economic benefits from use of the asset and has
right to direct the use of the identified asset.

The cost of the right-of-use asset shall comprise
of the amount of the initial measurement of the
lease liability adjusted for any lease payments
made at or before the commencement date plus
any initial direct costs incurred. The right-of-use
assets is subsequently measured at cost less
any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any
remeasurement of the lease liability.

The right-of-use assets is depreciated using the
straight-line method from the commencement
date over the shorter of lease term or useful life of
right-of-use asset.

The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease.
The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be
readily determined. If that rate cannot be readily

determined, the Company uses incremental
borrowing rate.

For short-term and low value leases, the
Company recognises the lease payments as an
operating expense on a straight-line basis over
the lease term.

(d) Intangible assets

Intangible Assets are stated at cost of acquisition
net of recoverable taxes, trade discount and
rebate less accumulated amortisation/ depletion
and impairment loss, if any. Such cost includes
purchase price and any cost directly attributable
to bringing the asset to its working condition for
the intended use.

The Company's intangible assets comprises
assets with finite useful life which are amortised
on a straight-line basis over the period of their
expected useful life.

Computer Softwares and Website costs are
being amortised over its estimated useful life
of 3 to 5 years.

Programming costs for all programme /
documentaries are being amortised over 2 years
from the date of purchase or produced.

News archives is being depreciated over a period
of 21 years as the contents of the same are
continuously used in day to day programming
and hence the economic benefits from the same
arise for a period longer than 20 years.

Techincal Know how is being amortised over its
estimated useful life of 5 years.

The amortisation period and the amortisation
method for Intangible Assets with a finite useful
life are reviewed at each reporting date.

(e) Provisions and Contingent Liabilities

The Company exercises significant judgement
in identification of and estimation of the
amounts of provisions and contingent liabilities.
These provisions and contingent liabilities are
reviewed at the end of each reporting period and
are adjusted to reflect the current best estimates.

(f) Employee Benefits

Short Term Employee Benefits

The undiscounted amount of short term
employee benefits expected to be paid in
exchange for the services rendered by employees
are recognised as an expense during the period
when the employees render the services.

Long Term Employee Benefits

Compensated absences which are not expected
to occur within twelve months after the end of
the period in which the employee renders the
related service are recognised as a liability as at
the Balance Sheet date on the basis of actuarial
valuation as per Projected Unit Credit Method.

Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post-employment
benefit plan under which the Company pays
specified contributions towards Provident Fund,
Employee State Insurance and Pension Scheme.
The Company's contribution is recognised as
an expense in the Statement of Profit and Loss
during the period in which the employee renders
the related service.

Defined Benefit Plans

The Company pays gratuity to the employees
who have completed five years of service
with the Company at the time of resignation/
superannuation. The gratuity is paid as prescribed
under the Code on Social Security, 2020.

The liability in respect of gratuity and other
post-employment benefits is calculated using the
Projected Unit Credit Method and spread over the
period during which the benefit is expected to be
derived from employees' services. Past service
cost, both vested and unvested, is recognised
as an expense at the earlier of (a) when the plan
amendment or curtailment occurs; or (b) when
the entity recognises related restructuring costs
or termination benefits.

Re-measurements of defined benefit plans in
respect of post-employment benefits are charged
to the Other Comprehensive Income.

(g) Current Tax and Deferred Tax

The tax expense for the period comprises of
current and deferred tax. The Company exercises
judgment in computation of current tax
considering the relevant rulings and reassesses
the carrying amount of deferred tax assets at the
end of each reporting period.

(h) Foreign currencies transactions and
translation

Transactions in foreign currencies are recorded
at the exchange rate prevailing on the date
of transaction. Monetary assets and liabilities
denominated in foreign currencies are translated
at the functional currency's closing rates of
exchange at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognised in
Statement of Profit and Loss.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are recorded using the exchange rates at the
date of the transaction. Non-monetary items
measured at fair value in a foreign currency are
translated using the exchange rates at the date
when the fair value was measured. The gain or
loss arising on translation of non-monetary items
measured at fair value is treated in line with the
recognition of the gain or loss on the change in
fair value of the item.

(i) Revenue recognition

Revenue from contracts with customers is
recognised when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration entitled in exchange for
those goods or services.

Revenue from contracts with customers includes
sale of goods and services. Revenue from

rendering of services includes advertisement
revenue, subscription revenue, revenue from
sale of contents, facility and equipment rental,
program revenue, revenue from sponsorship
of events and revenue from media related
professional and consultancy services.
Revenue from rendering of services is recognised
over time where the Company satisfies the
performance obligation over time or point in time
where the Company satisfies the performance
obligation at a point in time.

Generally, control is transferred upon shipment
of goods to the customer or when the goods
is made available to the customer, provided
transfer of title to the customer occurs and the
Company has not retained any significant risks of
ownership or future obligations with respect to
the goods shipped.

Revenue is measured at the amount of
consideration which the Company expects to be
entitled to in exchange for transferring distinct
goods or services to a customer as specified in
the contract, net of returns and allowances, trade
discounts and volume rebates and excluding
amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of
the government). Consideration is generally due
upon satisfaction of performance obligations
and the receivable is recognized when it
becomes unconditional.

Contract balances

Trade receivables represents the Company's
right to an amount of consideration that is
unconditional. Revenues in excess of invoicing
are considered as contract assets and disclosed as
accrued revenue.

I nvoicing in excess of revenues are considered
as contract liabilities and disclosed as unearned
revenues. When a customer pays consideration
before the Company transfers goods or services
to the customer, a contract liability is recognised
and disclosed as advances from customers.

Contract liabilities are recognised as revenue
when the Company performs under the contract.

Interest income

Interest Income from Financial Assets is

recognised using effective interest rate method.

Dividend income

Dividend Income is recognised when the
Company's right to receive the amount has
been established.

(I) Financial instruments

A. Initial recognition and measurement

(i) Financial Assets and Financial

Liabilities

All financial assets and liabilities are

initially recognised and measured at

fair value and in case of borrowings,
net of directly attributable cost.
Purchase and Sale of Financial Assets
and Financial Liabilities are recognised
using trade date accounting.

B. Subsequent measurement:

(i) Financial Assets

a) Measured at amortised cost

A financial asset is subsequently
measured at amortised cost
if it is held within a business
model whose objective is
to hold the asset in order to
collect contractual cash flows
and the contractual terms of
the financial asset give rise on
specified dates to cash flows that
are solely payments of principal
and interest on the principal
amount outstanding.

The effective interest rate
amortisation is included in other
income in the Statement of
Profit and Loss.

b) Financial assets measured

at fair value through other
comprehensive income

(FVTOCI)

A financial asset is measured
at fair value through other
comprehensive income if it is
held within a business model
whose objective is achieved by
both collecting contractual cash
flows and selling financial assets
and the contractual terms of
the financial assets give rise on
specified dates to cash flows that
are solely payments of principal
and interest on the principal
amount outstanding.

c) Financial assets measured at
fair value through profit or loss
(FVTPL)

A financial asset which is not
classified in any of the above
categories are measured at fair
value through profit or loss.

C. Investment in subsidiaries, associates
and joint ventures

The Company accounts for its investments
in subsidiaries, associates and joint venture
at cost less impairment loss (if any).

D. Other Equity investments:

All Other equity investments are measured
at fair value, with value changes recognised
in the Statement of Profit and Loss, except
for those equity investments for which
the Company has elected to present the
value changes in 'Other Comprehensive
Income'. However, dividend on such equity
investments are recognised in the Statement
of Profit and loss when the Company's right
to receive the amount is established.

E. Impairment of financial assets

The Company uses 'Expected Credit Loss'
(ECL) model, for evaluating impairment of
financial assets other than those measured
at fair value through profit and loss (FVTPL).

Expected credit losses are measured through
a loss allowance at an amount equal to:

a) The 12-months expected credit losses
(expected credit losses that result from
those default events on the financial
instrument that are possible within 12
months after the reporting date); or

b) Full lifetime expected credit losses
(expected credit losses that result from
all possible default events over the life
of the financial instrument)

For trade receivables, the Company
applies 'simplified approach' which
requires expected lifetime losses to
be recognised from initial recognition
of the receivables. Further, the
Company uses historical default rates
to determine impairment loss on the
portfolio of the trade receivables.
At every reporting date, these
historical default rates are reviewed
and changes in the forward looking
estimates are analysed.

For other assets, the Company uses 12
months ECL to provide for impairment
loss where there is no significant
increase in credit risk. If there is
significant increase in credit risk full
lifetime ECL is used.

(ii) Financial Liabilities

Financial liabilities are subsequently
carried at amotised cost using the
effective interest method other than
those measured at Fair Value through
Profit or Loss (FVTPL). For trade and
other payables maturing within one
year from the Balance Sheet date, the
carrying amounts are determined to

into account anticipated technological changes.
The depreciation/ amortisation for future periods
is adjusted if there are significant changes from
previous estimates.

(b) Determining the lease term

The Company determines the lease term as the
non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. It considers all
relevant factors that create an economic incentive for it
to exercise either the renewal or termination.

(c) Recoverability of trade receivables

Judgements are required in assessing the recoverability
of overdue trade receivables and determining whether
a provision against those receivables is required.
Factors considered include the credit rating of the
counterparty, the amount and timing of anticipated
future payments and any possible actions that can be
taken to mitigate the risk of non-payment.