Music Broadcast Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(c) Provisions

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future
operating losses.

Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement

is determined by considering the class of obligations as a
whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the
same class of obligations may be small.

Provisions are measured at the present value of
management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provision due
to the passage of time is recognised as interest expense.

(d) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the
reporting period but not distributed at the end of the
reporting period.

(e) Foreign Currency Translation

i) Functional and presentation currency

Items included in the financial statements of the
Company are measured using the currency of the
primary economic environment in which the entity
operates (''the functional currency''). The financial
statements are presented in Indian Rupees (''),
which is the Company''s functional and presentation
currency.

ii) Transactions and balances

Foreign currency transactions are translated into the
functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such
transactions and from the translation of monetary
assets and liabilities denominated in foreign
currencies at year end exchange rates are generally
recognised in profit or loss.

Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
statement of profit and loss, within finance costs.
All other foreign exchange gains and losses are
presented in the statement of profit and loss on a net
basis within other gains/ (losses).

(f) Property, plant and equipment

Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate

asset is derecognised when replaced. All other repairs
and maintenance are charged to profit or loss during the
reporting period in which they are incurred.

The assets'' residual values and useful lives are reviewed,
and adjusted, if appropriate, at the end of each reporting
period.

An asset''s carrying amount is written down immediately
to its recoverable amount if the asset''s carrying amount is
greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing
the proceeds with the carrying amount and are recognised
within ''Other gains/ (losses) - net in the statement of profit
and loss.

Advances paid towards the acquisition of property, plant
and equipment outstanding at each balance sheet date
are classified as capital advances under non-current assets.

Transition to Ind AS

On transition to Ind AS, the company has elected to
continue with the carrying value of all its property, plant
and equipment, investment properties and intangible
assets measured as per the previous GAAP and use that
carrying value as deemed cost of the property, plant and
equipment, Investment properties and intangible assets.

(g) Leases

As a lessee:

The Company assesses, whether the contract is, or contains,
a lease. A contract is, or contains, a lease if the contract
involves:

• The use of an identified asset,

• The right to obtain substantially all the economic
benefits from use of the identified asset, and

• The right to direct the use of the identified asset.

The right of use assets are measured at cost comrising the
amount of the initial measurement of the lease liability, any
lease payments made at or before the commencement
date of the lease less any lease incentives received, any
initial direct costs and restoration costs.

(h) Intangible assets

Intangible assets are stated at historical cost less
accumulated amortisation and impairment losses. Historical
cost includes any directly attributable expenditure on
making the asset ready for its intended use.

Transition to Ind AS

On transition to Ind AS, the Company elected to continue
with the carrying value of all its intangible assets measured
as per the previous GAAP and use that carrying value as the
deemed cost of the intangible assets.

(i) Investment and other financial assets

i. Classification

The Company classifies its financial assets in the
following measurement categories:

• those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

• those measured at amortised cost.

The classification depends on the entity''s
business model for managing the financial
assets and the contractual terms of cash flows.
For assets measured at fair value, gains and losses
will either be recorded in profit or loss or other
comprehensive income. For investments in equity
instruments, this will depend on whether the Company
has made an irrevocable election at the time of initial
recognition to account for the equity investment at
fair value through other comprehensive income.
The Company reclassifies debt investments when and
only when its business model for managing those
assets changes.

ii. Recognition

Regular way purchases and sales of financial assets
are recognised on trade-date, the date on which the
Company commits to purchase or sell the financial
asset.

iii. Measurement

At initial recognition, the Company measures a financial
asset (excluding trade receivables which do not contain
significant financing component) at its fair value plus, in
the case of a financial asset not at fair value through profit
or loss, transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs
of financial assets carried at fair value through profit or
loss are expensed in profit or loss.

For debt instruments, subsequent measurement
depends on the Company''s business model for
managing the asset and the cash flow characteristics
of the asset. There are three measurement categories
into which the Company classifies its debt instruments:

• Amortised cost: Assets that are held for collection
of contractual cash flows where those cash flows
represent solely payments of principal and
interest are measured at amortised cost. A gain
or loss on a debt investment that is subsequently
measured at amortised cost and is not part of a
hedging relationship is recognised in profit or
loss when the asset is derecognised or impaired.
Interest income from these financial assets is
included in finance income using the effective
interest rate method.

• Fair value through other comprehensive income
(FVOCI): Assets that are held for collection
of contractual cash flows and for selling the
financial assets, where the assets'' cash flows
represent solely payments of principal and
interest, are measured at fair value through
other comprehensive income (FVOCI).
Movements in the carrying amount are taken
through OCI, except for the recognition of
impairment gains or losses, interest revenue and
foreign exchange gains and losses which are
recognised in profit or loss. When the financial
asset is derecognised, the cumulative gain or
loss previously recognised in OCI is reclassified
from equity to profit or loss and recognised in
other gains/ (losses). Interest income from these
financial assets is included in other income using
the effective interest rate method.

• Fair value through profit or loss: Assets that
do not meet the criteria for amortised cost or
FVOCI are measured at fair value through profit
or loss. A gain or loss on a debt investment that
is subsequently measured at fair value through
profit or loss and is not part of a hedging
relationship is recognised in profit or loss and
presented net in the statement of profit and loss
within other gains/(losses) in the period in which
it arises. Interest income from these financial
assets is included in other income.

For equity instruments, the Company measures
all equity investments at fair value. Where the
Company''s management has elected to present
fair value gains and losses on equity investments in
other comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
profit or loss. Dividends from such investments are
recognised in profit or loss as other income when the
Company''s right to receive payments is established.

Changes in the fair value of financial assets at fair value
through profit or loss are recognised in other gains/
(losses) in the statement of profit and loss. Impairment
losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported
separately from other changes in fair value.

iv. Impairment of financial assets

The Company assesses on a forward-looking basis
the expected credit losses associated with its
assets carried at amortised cost and FVOCI debt
instruments. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk. Note 22 details how the
Company determines whether there has been a
significant increase in credit risk.

v. Derecognition of financial assets

A financial asset is derecognised only when:

• the Company has transferred the rights to
receive cash flows from the financial asset or

• retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to
one or more recipients.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership of
the financial asset. In such cases, the financial asset is
derecognised. Where the entity has not transferred
substantially all risks and rewards of ownership of the
financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards
of ownership of the financial asset, the financial
asset is derecognised if the Company has not
retained control of the financial asset. Where the
Company retains control of the financial asset, the
asset is continued to be recognised to the extent of
continuing involvement in the financial asset.

Offsetting financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a
net basis or realise the asset and settle the liability
simultaneously. The legally enforceable right must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
Company or the counterparty.

(j) Cash and cash equivalents and other bank balances

For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
deposits held at call with banks, other short-term, highly
liquid investments with original maturities of three months
or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of
changes in value.

Other Bank Balances consist of term deposits with banks,
which have original maturities of more than three months.
Such assets are recognised and measured at amortised
cost (including directly attributable transaction costs)
using effective interest rate method, less impairment
losses, if any.

(k) Equity

Equity shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the
proceeds.

(l) Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the
borrowings using the effective interest rate method. Fees
paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised
as a prepayment for liquidity services and amortised over
the period of the facility to which it relates.

Borrowings are removed from the balance sheet when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss as other gains/
(losses).

Where the terms of a financial liability are renegotiated
and the entity issues equity instruments to a creditor
to extinguish all or part of the liability, a gain or loss is
recognised in profit or loss, which is measured as the
difference between the carrying amount of the financial
liability and the fair value of the equity instruments issued.

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period. Where there is a breach of a material provision of
a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes
payable on demand on the reporting date, the entity does
not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of the
financial statements for issue, not to demand payment as
a consequence of the breach.

(m) Trade and Other Payables

These amounts represent liabilities for goods and services
provided to the Company prior to the end of financial
year which are unpaid. The amounts are unsecured and

are usually paid within due dates. Trade and other payables
are presented as current liabilities unless payment is not
due within 12 months after the reporting period. They are
recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest
method.

(n) Employee benefit obligations

(i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service are
recognised in respect of employees'' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be
settled wholly within 12 months after the end of the
period in which the employees render the related
service and they are calculated annually by the
actuaries. They are therefore measured as the present
value of expected future payments to be made in
respect of services provided by employees up to the
end of the reporting period using the projected unit
credit method. The benefits are discounted using the
appropriate market yields at the end of the reporting
period that have terms approximating to the terms of
the related obligation. Remeasurements as a result
of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.

(iii) Post-employment obligations

The Company operates the following post¬
employment schemes:

(a) Defined benefit plan such as gratuity

(b) Defined contribution plans such as provident
fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in
respect of defined benefit gratuity plan is the present
value of the defined benefit obligation at the end of
the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually
by actuaries using the projected unit credit method.

The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefits expense
in the statement of profit and loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which
they occur, directly in other comprehensive income.
They are included in retained earnings in the
statement of changes in equity and in the balance
sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or
loss as past service cost.

Defined contribution plans

The Company''s contributions to employee
provident fund, employee state insurance fund and
employees'' pension scheme, are accounted for as
defined contribution plans and the contributions are
recognised as employee benefits expense when
they are due. The Company deposits these amounts
with the fund administered and managed by the
provident fund/employee state insurance authorities.
The Company has no further payment obligations
once the contributions have been paid.

(iv) Termination benefits

Termination benefits are payable when employment
is terminated by the Company before the normal
retirement date, or when an employee accepts
voluntary redundancy in exchange for these benefits.
The Company recognises termination benefits
at the earlier of the following dates: (a) when the
Company can no longer withdraw the offer of those
benefits; and (b) when the entity recognises costs for
a restructuring that is within the scope of Ind AS 37
and involves the payment of termination benefits.
In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured
based on the number of employees expected to
accept the offer. Benefits falling due more than 12
months after the end of the reporting period are
discounted to present value.

(o) Income tax

The income tax expense or credit for the period is the tax
payable on the current period''s taxable income based
on the applicable income tax rate adjusted by changes in
deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.

The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at the

balance sheet date. Management periodically evaluates
positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The
Company measures its tax balances either based on the
most likely amount or the expected value, depending
on which method provides a better prediction of the
resolution of the uncertainty.

Deferred income tax is provided in full, using the liability
method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred income
tax is not accounted for if it arises from initial recognition
of an asset or liability in a transaction that affects neither
accounting profit nor taxable profit (tax loss). Deferred
income tax is determined using tax rates (and laws) that
have been enacted or substantively enacted by the end
of the reporting period and are expected to apply when
the related deferred income tax asset is realised or the
deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right
to offset and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.

Tax expense comprises current and deferred tax. Current
and deferred tax is recognised in profit or loss, except
to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case,
the tax is also recognised in other comprehensive income
or directly in equity, respectively.

(p) Revenue from operations

Revenue is measured based on the consideration
specified in a contract with a customer and excludes
amount collected on behalf of third parties. The Company
recognises revenue in the accounting period in which the
services are rendered.

(q) Other Income

The effective interest rate is the rate that exactly discounts
estimated future cash receipts through the expected
life of the financial asset to the gross carrying amount of
a financial asset. When calculating the effective interest
rate, the Company estimates the expected cash flows

by considering all the contractual terms of the financial
instrument (for example, prepayment and extension) but
does not consider the expected credit losses.

Dividends: Dividends are recognised in profit or loss only
when the right to receive payment is established, it is
probable that the economic benefits associated with the
dividend will flow to the Company, and the amount of the
dividend can be measured reliably.

(r) Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready
for their intended use or sale. Other borrowing costs are
expensed in the period in which they are incurred.

(s) Impairment of financial asset

Assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised
for the amount by which the asset''s carrying amount
exceeds its recoverable amount. The recoverable amount
is the higher of an asset''s fair value less costs of disposal
and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial
assets other than goodwill that suffered an impairment
are reviewed for possible reversal of the impairment at the
end of each reporting period.

(t) Earning per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to owners of the Company
by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares, if any, issued during
the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account the after income tax effect of interest
and other financing costs associated with dilutive
potential equity shares and the weighted average
number of additional equity shares that would have
been outstanding assuming the conversion of all
dilutive potential equity shares.

(u) Segment information

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker viz. the Board of Directors, who are
responsible for making strategic decisions and assessing
the financial performance and position of the Company.

Note 34 Segment information

The Company is primarily engaged in the business of operating
private FM radio stations in India, which constitutes single
reportable segment.

There is no single external customer from whom the Company
derives 10% or more revenue.

Note 35 Legal Matter

A petition under sections 241, 242 and 244 of the Companies
Act, 2013 was filed with the National Company Law Tribunal
(''NCLT''), Allahabad on July 10, 2023, by Mr. Mahendra Mohan
Gupta (Non-Executive Chairman and Promoter of Jagran
Prakashan Limited, the Holding Company) and Mr. Shailesh
Gupta (Whole-Time Director and member of the Promoter
Group of the Holding Company and Non-Executive Director
of the Company) in their individual capacities, against the
other Promoters and members of the Promoter Group of the
Holding Company. The litigation is currently pending at NCLT
and several submissions have been made by all parties to the
NCLT. As of this date, the Company does not expect any impact
of this matter on its financial position as at March 31, 2025 and
its future operations.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number: 012754N/N500016

Amit Peswani Madhukar Kamath Shailesh Gupta

Partner Chairman Director

Membership Number: 501213 DIN: 00230316 DIN: 00192466

Place: Mumbai
Date: May 20, 2025

Ashit Kukian Prashant Domadia Arpita Kapoor

Chief Executive Officer Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai

Date: May 20, 2025 Date: May 20, 2025

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Mar 31, 2024

Note 1 : Background and basis of preparation Background

"Music Broadcast Limited ("the Company") was incorporated on November 4, 1999 and is domiciled in India. The Company is engaged in the business of operating Private FM radio stations through the brand ''Radio City''. The Company started its operations in India in July 2001 in Bengaluru and operates radio stations in 39 cities across India. During the year ended March 31, 2017, the Company raised money from public by issue of equity shares, which were listed on the Bombay Stock Exchange (''BSE'') and the National Stock Exchange (''NSE'') on March 17, 2017. During the previous year, the Company issued Nonconvertible non-cumulative redeemable preference shares (NCRPS) by way of bonus to the non-promoter shareholders of the company, which were listed on the BSE and the NSE on April 20, 2023. The financial statements for the year ended March 31, 2024 were approved by the Board of Directors and authorised for issue on May 22, 2024.

Basis of preparation

(i) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ("the Act") [Companies (Indian Accounting Standards) Rules, 2015], other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

certain financial assets and liabilities which have been measured at fair value;

defined benefit plans — plan assets measured at fair value

(iii) New and amended standards adopted by the Company

The Ministry of Corporate Affairs had vide notification dated March 31, 2023, notified Companies (Indian Accounting Standards) Amendment Rules, 2023 which amended certain accounting standards, and are effective April 01, 2023:

Disclosure of accounting policies - amendments to Ind AS 1

Definition of accounting estimates - amendments to Ind AS 8

Deferred tax related to assets and liabilities arising from a single transaction - amendments to Ind AS 12

The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications.

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. Specifically, no changes would be necessary as a consequence of amendments made to Ind AS 12 as the Company''s accounting policy already complies with the now mandatory treatment.

Note 2: Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements. In addition, this note also explains where there have been actual adjustments this year as a result of changes to previous estimates.

The areas involving critical estimates or judgements are:

Estimation of defined and other long-term employee benefit obligations - Note 11

Impairment of trade receivables - Note 22

Estimated useful lives and impairment of tangible and intangible assets - Notes 3, 4 and 29

Contingent liabilities - Note 25 - Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Estimation of deferred tax - Notes 12 and 20

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Note 3 (a) : Property, plant and equipment Accounting Policy

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation methods, estimated useful lives and residual value

Leasehold improvements included in furniture and fixtures, are depreciated on a straight-line basis over the lease term, or useful life, whichever is shorter.

The property, plant and equipment are depreciated on a prorata basis using the straight-line method over the estimated useful lives of the assets prescribed in Schedule II to the Companies Act, 2013, which are as follows:

Nature of asset	Usefullife (in years)
Buildings	60 *
Towers, antenna and transmitters	13
Furniture and fixtures	5-10
Studio equipment	3-15
Vehicles	8
Office equipment	3-15
Computers	3-6

* further adjusted for life already expired at the time of acquisition

The useful lives represents actual usage of the assets. The residual values are not more than 5% of the original cost of the asset.

See note 33(f) for other accounting policies related to property, plant and equipment.

Note 3 (b) : Right-of-use assets Accounting Policy

Leases

The Company leases various offices and rental contracts are typically made for fixed periods of two to ten years, but may have extension options as described in (iv) below.

The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less). For short-term leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.

Lease liabilities include the net present value of the following lease payments:

¦ Fixed payments (including in-substance fixed payments), less any lease incentives receivable, and

¦ Payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lease payments are discounted using the lessee''s incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the Company uses that rate as a starting point to determine the incremental borrowing rate. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life.

(i) The aggregate depreciation expense on right-of-use assets is included under depreciation and amortisation expense in the Statement of Profit and Loss.

(ii) The total cash outflow for leases for the year ended March 31, 2024 is '' 755.58 lakhs (March 31, 2023''741.38 lakhs).

(iii) Rental contracts are typically made for fixed term of two to ten years, but may have extension options as described in (iv) below.

(iv) Extension and termination options are included in a number of property leases across the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.

(v) In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercising a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated) For leases of buildings, the following factors are normally the most relevant:

¦ If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

¦ If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to extend (or not terminate).

¦ Otherwise, the Company considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset.

Most extension options in office building leases have been included in the lease liability, because the Company can not replace the assets without significant cost or business disruption.

The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.

Note 4 (a) : Intangible assets Accounting Policy

Intangible assets, other than one-time entry fees and migration fees, are amortised on a straight-line basis over their estimated useful life of five years.

One-time entry fees capitalised is being amortised on a straight-line basis over a period of fifteen years, being the period of license, from the date of operationalisation of the respective stations.

The migration fee capitalised is being amortised with effect from April 1, 2015 on a straight-line basis over a period of fifteen years, being the period of license.

See note 33(h) for other accounting policies related to intangible assets.

(ii) There were no intangible assets under development whose completion was overdue or had exceeded its cost compared to its original plan in the current year or previous year.

Note 5: Investment and other financial assets Accounting Policy

(i) Classification of financial assets at amortised cost

The company classifies its financial assets at amortised cost only if both of the following criteria are met:

¦ the asset is held within a business model whose objective is to collect contractual cash flows, and

¦ the contractual terms give rise to cash flows that are solely payments of principal and interest.

Financial assets classified at amortised cost comprise trade receivables and investment in bonds.

(ii) Classification of financial assets at fair value through profit and loss

The company classifies the following financial assets at fair value through profit and loss (FVPL)

¦ Investment in mutual funds and alternative investment fund that do not qualify for measurement at amortised cost or FVOCI

See note 33(i) for other accounting policies related to intangible assets.

5 (b) Trade receivables Accounting Policy

Trade receivables are amounts due from customers for services performed in the ordinary course of business and reflect the company''s unconditional right to consideration (that is, payment is due only on the passage of time). Trade receivables are recognised initially at the transaction price as they do not contain significant financing components. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less loss allowance.

Terms and rights attached to equity shares

The Company has only one class of equity shares having a face value of '' 2 per share (March 31, 2023: '' 2 per share). Each shareholder is eligible for one vote per share held. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(v) Issue of bonus shares

The Board of Directors at its meeting held on January 27, 2020 recommended issue of one bonus share for every four equity shares held by the equity shareholders. The shareholders approved such issue of bonus shares on March 03, 2020. Accordingly on March 16, 2020, 6,91,37,125 equity shares of '' 2 each fully paid-up were allotted to the shareholders. Further, the Company utilised a sum equal to the nominal value of the shares so issued, i.e., '' 1,382.74, from the securities premium and capital redemption reserve amounting to '' 1,208.23 and '' 174.51 respectively for the purpose.

(vi) Preference share capital

The Company has two classes of preference shares comprising of 50,000 convertible redeemable preference shares having par value of '' 10 per share, which have not been issued and 89,69,600 non-convertible non-cumulative redeemable preference shares having par value of '' 10 per share, which have been issued (refer note 10 (a)).

Nature and purpose of reserves

Capital reserve

The profits earned by the Company through a special transaction, which is not available for distribution as dividend to shareholders. The reserve is utilised in accordance with the provisions of the Act.

Capital redemption reserve

Pursuant to section 55 of the Companies Act, 2013, a sum equal to the nominal amount of the shares to be redeemed has been transferred to capital redemption reserve from general reserve.

Securities premium

Securities premium is used to record the premium received on issue of shares. The same is utilised in accordance with the provisions of the Act.

General reserve

General reserve was created out of the profits of the Company and is available for distribution as dividend to shareholders.

(i) Terms of issue of non-convertible non-cumulative redeemable preference shares

The Board of Directors at its meeting held on October 22, 2020, approved a Scheme of Arrangement ("the Scheme") under Section 230 of the Companies Act, 2013, for issuance of Non-Convertible Non-Cumulative Redeemable Preference Shares to the non-promoter shareholders of the Company by way of bonus (""Bonus NCRPS"") out of its reserves.

The Scheme was approved by the National Company Law Tribunal ("NCLT") vide its order dated December 23, 2022 and became effective from the date of filing of the order with the Registrar of Companies, i.e., December 29, 2022. The Bonus Committee of the Board of Directors at its meeting held on January 19, 2023, approved the allotment of 89,69,597 Bonus NCRPS, i.e., 1 (One) Bonus NCRPS having a face value of '' 10 at a premium of '' 90 for every 10 (ten) fully paid-up equity shares of face value of '' 2 each held, in accordance with the Scheme, to the members holding equity shares as on January 13, 2023 ("Record Date"). The Bonus NCRPS shall be redeemed after a period of 36 months from the date of allotment at a premium of '' 20 per share on issue price of '' 100 per share. These have been listed on the BSE and NSE on April 20, 2023.

The Bonus NCRPS have been accounted for in the books of the Company in accordance with the accounting treatment prescribed in the Scheme and, accordingly, the present value of the redemption amount of Bonus NCRPS has been recognised as a financial liability in the Balance Sheet on the date of Scheme becoming effective with a corresponding adjustment to equity, net of transaction costs, as per Ind AS 32. Subsequently, the Bonus NCRPS have been measured at amortised cost as per Ind AS 109 using the effective interest rate method and the interest expense on the financial liability has been charged to the Statement of Profit and Loss.

(ii) 0.1% non-convertible non-cumulative redeemable preference shares, confer on the holders thereof the following rights and privileges:

The right to a preferential dividend of 0.1% on the nominal value of the NCRPS every year, subject to the availability of the distributable profits, free of Company''s Income-tax, but subject to deduction of taxes at source at the rate or rates prescribed from time to time. The dividend will be calculated on a day count of 365 days a year basis and are non-cumulative in nature. The dividend shall be paid to such preference shareholders whose names appear on the register of preference shareholders on the record date, as may be declared by the Company.

(i) Leave obligations

The leave obligations cover the Company''s liability for earned leave which are classified as other long term benefits.

(ii) Post-employment obligations

Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972, except that there is no benefit ceiling. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employee''s last drawn basic salary per month computed proportionately for 15 days'' salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company has taken a group gratuity policy for the purpose. The Company generally does not fully fund the liability and maintains a target level of funding over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans

Provident fund

The Company also has a defined contribution plan. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense recognised during the year towards defined contribution plan is '' 282.67 (March 31, 2023: ''250.38).

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated using the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

(vii) Risk exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility:

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. These are subject to interest rate risk.

Changes in bond yields:

A decrease in bond yields will increase plan liabilities.

(viii) Defined benefit liability and employer contributions

Funding levels are monitored on an annual basis.

Expected contribution to post-employment benefit plan for the year ending March 31, 2025 is '' 89.94.

The weighted average duration of the defined benefit obligation is 6.77 years (March 31, 2023: 6.81 years).

The Finance Act, 2019 reduced the Company''s applicable tax rate from 30% to 25% plus applicable surcharge and cess, and further, the Taxation Laws (Amendment) Act, 2019 provided an option to pay taxes at a concessional rate of 22% plus applicable surcharge and cess, subject to complying with certain conditions.

Based on its assessment of future taxable profits, the Company has decided to continue applying the rate of 25% plus applicable surcharge and cess until the Minimum Alternate Tax (MAT) credit balance is utilised and opt for the concessional rate of 22% plus applicable surcharge and cess thereafter. The Company has, accordingly, measured its deferred tax balance as on March 31, 2024.

Note 14: Revenue from operations

Revenue is recognised when the advertisements are aired based on the price specified in the contract, net of the estimated volume discounts and goods and services tax billed to the customers. Accumulated experience is used to estimate and provide for such variable consideration, and the revenue is only recognised to the extent that it is highly probable that a significant reversal in the revenue will not occur. A refund liability (included in other current liabilities) is recognised for the variable consideration payable to the customers in relation to sales made until the end of the reporting period. The validity of assumptions used to estimate variable consideration is reassessed annually.

No significant element of financing is deemed present as the sales are made with a credit term of 30-150 days, which is consistent with market practice. A receivable is recognised when the services are rendered and billing is done as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Note 15 (a): Other income Accounting Policy

Interest income: Interest income on financial assets at fair value through profit and loss is disclosed as interest income within other income. Interest income on financial assets at amortised cost is recognised in the statement of profit and loss as part of other income. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance).

(i) Fair value hierarchy: The following table summarises the financial instruments at fair value by valuation methods. The different levels have been defined as follows:-

Level 1: Includes financial instruments measured using quoted prices. This includes mutual funds and bonds that have quoted price. The mutual funds are valued using the closing NAV and bonds, although quoted, are carried at amortised cost.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. There are no financial instruments measured using level 2 valuation techniques.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This includes investment in alternate investment fund, the fair values for which have been determined based on the net asset value.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

(iii) Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO). Discussions of valuation processes and results are held between the CFO and the valuation team at least once every three months, in line with the Company''s quarterly reporting periods.

The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, other bank balances, other deposits and employee benefits payable are considered to be the same as their fair values, due to their short-term nature.

The fair values for security deposits and investments in bonds were calculated based on cash flows discounted using a current lending rate. Security deposits are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk. Investment in bonds are classified as level 1 fair values in the fair value hierarchy.

The fair value of non-current borrowings is based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 22: Financial risk management

The Company''s activities expose it to a variety of financial risks: market risk (including foreign exchange risk), credit risk and liquidity risk. The Company''s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company''s financial performance.

Risk management is carried out under policies approved by the board of directors which provide principles for overall risk management.

(A) Credit risk

The credit risk arises from cash and cash equivalents, contractual cash flows of mutual fund investments carried at fair value through profit or loss, bonds, fixed deposits and security deposits carried at amortised cost and deposits with banks, as well as credit exposures to customers including outstanding receivables.

(i) Risk Management

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances are maintained. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations.

The Company extends credit to customers in the normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers.

The Company''s investments in mutual funds and bonds are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

(ii) Impairment of financial assets

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonably available current and forwardinglooking information.

A default on a financial asset is when the counterparty fails to make contractual payments when they fall due or when the extended credit period expires. This definition of default is determined by considering the business environment in which the Company operates and other macro-economic factors.

The expected loss rates are based on the payment profiles of sales before the reporting date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forwardlooking information on macroeconomic factors affecting the ability of the customers to settle the receivables.

Trade receivables are written off or impaired where there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. Where receivables have been written off or impaired, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised against the same line item.

All of the entity''s debt investments at amortised cost are considered to have low credit risk, and the loss allowance recognised during the period was therefore limited to 12 months'' expected losses, which is Nil (March 31, 2023: Nil). Management considers instruments to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term.

(c) Financial assets at fair value through profit and loss

The Company is also exposed to credit risk in relation to mutual fund investments that are measured at fair value through profit or loss. The maximum exposure at the end of the reporting period is the carrying amount of these investments '' 2,331.35 lakhs (March 31, 2023: '' 1,571.62 lakhs).

Significant estimates and judgements

Impairment of financial assets Accounting Policy

The loss allowance for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of the key assumptions and inputs used are disclosed above.

(B) Liquidity risk

The Company relies on operating cash inflows, investments in marketable securities, borrowings and capital infusion to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term funding needs. The Company monitors rolling forecasts of the liquidity position, cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.

(ii) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The company does not have any derivative financial instruments.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign exchange risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (''). The risk is measured through a forecast of highly probable foreign currency cash flows.

(ii) Price Risk

The Company does not have equity investments that are publicly traded. Further, the Company does not have non-listed equity securities that are susceptible to market price risk arising from uncertainties about future values of the investment securities.

The Company''s exposure to price risk arises from investments held by the Company in mutual funds and alternative investment fund classified in the balance sheet as fair value through profit or loss (see note 5(a)). To manage its price risk arising from aforementioned investments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company. The majority of the Company''s investments are publicly traded.

Note 23: Capital management Risk management

The Company''s objective when managing capital is to safeguard the Company''s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

Consistent with the industry standards, the Company monitors capital on the basis of net debt to equity ratio where net debt comprises total borrowings and lease liabilities, net of cash and cash equivalents and equity comprises equity share capital, reserves and surplus and other reserves.

(i) Terms and conditions

The sales, purchases and other transactions with related parties were made on normal commercial terms and conditions and at market rates. All Outstanding balances are unsecured and the settlement occurs in cash or through exchange of services.

a) Claims against the Company not acknowledged as debts:

(i) The Additional Commissioner, Mumbai, vide his order dated January 17, 2023 directed the District Collector, Mumbai to recover certain dues amounting to '' 6,523 relating to the building owned by the Jagran Group entities (comprising the Company, Midday Infomedia Limited and VRSM Enterprises LLP) in Mumbai from the banks, who had sold the building to the Jagran Group entities under the SARFAESI Act, 2002, on account of breach of terms and conditions of land lease agreement by its erstwhile owner. The Jagran Group entities have filed a revision application before the Revenue Minister, Government of Maharashtra which has been heard and kept for orders. The carrying amount of such building in the books as on March 31, 2024 is '' 3,189 (March 31, 2023 : '' 3,267) . Based on the opinion of external legal counsel and internal assessment, the Company does not expect outflow of any economic resources in this matter."

(ii) During the year, in the matter of the Company vs Phonographic Performance Limited (''PPL'') and other music providers, the Hon''ble Madras High Court partly allowed the appeal of PPL and other appellants by providing a ''minimum floor rate'' of '' 660 per needle hour payable to PPL and other appellants for use of sound recordings by the Company over its radio stations w.r.t. the past decade 2010-2020. The Company has filed a special leave petition before the Hon''ble Supreme Court of India challenging the High Court judgement. Further, a notice of contempt was issued by PPL demanding payment of '' 6,933 and a petition has been filed by PPL in this regard before Madras High Court which is pending for disposal. Based on the opinion of external legal counsel and its internal assessment, the Company has a good case on merits and, therefore, the Company does not expect outflow of any economic resources in this matter.

(iii) The Company has received certain other claims towards royalty for use of sound recordings over its radio stations amounting to '' 1,368.17 (March 31, 2023: '' 1,368.17). Out of the above, the Company has paid '' 200 (March 31, 2023: '' 200) under protest (refer note 8) and issued bank guarantee for '' 229. Based on the opinion of external legal counsel and its internal assessment, the Company believes that more likely than not, no outflow of economic resources will be required in this matter.

iv) In respect of defamation cases, these are either not quantifiable or cannot be reliably estimated. Hence, the same have not been disclosed.

b) The amount of provident fund payable, if any, in relation to certain allowances cannot be reliably estimated, though not likely

to be significant. Hence, this amount has not been disclosed.

The market capitalisation of the Company fluctuated during the year and was lower than the carrying amount of net assets for a part of the year, although as at March 31, 2024, the market capitalisation exceeded the carrying amount of net assets. Based on the information available and applying its judgement, the Company used a discounted cash flow model, including performing sensitivity analysis on the assumptions used, to assess value in use of its assets, and concluded that the recoverable amount of the assets thus determined is higher than their carrying amount and, accordingly, no impairment loss needs to be recognised. The Company will continue to closely monitor any material change in future periods.

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Mar 31, 2023

q) Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

r) Revenue recognition

Revenue is measured based on the consideration specified in a contract with a customer and excludes amount collected on behalf of third parties. The Company recognises revenue in the accounting period in which the services are rendered.

Revenue is recognised when the advertisements are aired based on the price specified in the contract, net of the estimated volume discounts and goods and services tax billed to the customers. Accumulated experience is used to estimate and provide for such variable consideration, and the revenue is only recognised to the extent that it is highly probable that a significant reversal in the revenue will not occur. A refund liability (included in other current liabilities) is recognised for the variable consideration payable to the customers in relation to sales made until the end of the reporting period. No significant element of financing is deemed present as the sales are made with a credit term ranging between 60 to 90 days, which is consistent with market practice. The validity of assumptions used to estimate variable consideration is reassessed annually.

s) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.

t) Leases

As a lessee:

The Company assesses, whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract involves:

• The use of an identified asset,

• The right to obtain substantially all the economic benefits from use of the identified asset, and

• The right to direct the use of the identified asset.

The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for shortterm leases (defined as leases with a lease term of 12 months or less). For short-term leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

Lease liabilities include the net present value of the following lease payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable, and

• Payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lease payments are discounted using the lessee''s incremental borrowing rate, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the Company uses that rate as a starting point to determine the incremental borrowing rate.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

The right-of-use assets are measured at cost comprising the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date of the lease less any lease incentives received, any initial direct costs and restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s useful life.

Payments associated with short-term leases are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

u) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

v) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

w) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the

weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares, if any, issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

x) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees lakhs and two decimals thereof, as per the requirement of Schedule III, unless otherwise stated.

Note 2: Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and

assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements. In addition, this note also explains where there have been actual adjustments this year as a result of changes to previous estimates.

The areas involving critical estimates or judgements are:

• Estimation of defined and other long-term employee benefit obligations - Note 11

• Impairment of trade receivables - Note 22

• Estimated useful lives and impairment of tangible and intangible assets (including under development)-Notes 3, 4 and 29

• Contingent liabilities - Note 25 - Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

• Estimation of deferred tax - Notes 12 and 20

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Note:

(i) The aggregate depreciation expense on right-of-use assets is included under depreciation and amortisation expense in the Statement of Profit and Loss.

(ii) The total cash outflow for leases for the year ended March 31, 2023 is '' 741.38 lakhs (March 31, 2022''667.95 lakhs).

(iii) Rental contracts are typically made for fixed periods of two years to ten years, but may have extension options as described in (iv) below.

(iv) Extension and termination options are included in a number of property leases across the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.

(v) In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercising a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated) For leases of buildings, the following factors are normally the most relevant:

• If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).

• If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably certain to extend (or not terminate).

• Otherwise, the Company considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset.

Most extension options in building/ office leases have been included in the lease liability, because the Company could not replace the assets without significant cost or business disruption.

The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.

COVID-19-Related Rent Concessions (Amendment to Ind AS 116)

Amendment to Ind AS 116 provides a practical expedient for lessees accounting for rent concessions that arise as a direct consequence of the COVID-19 pandemic and satisfy the following criteria:

(a) The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;

(b) The reduction in lease payments affects only payments originally due on or before June 30, 2022; and

(c) There are no substantive change to other terms and conditions of the lease.

Rent concessions that satisfy these criteria may be accounted for in accordance with the practical expedient, which means the lessee does not assess whether the rent concession meets the definition of a lease modification. Lessee applies other requirements in Ind AS 116 in accounting for the concession.

The Company has elected to apply the practical expedient introduced by the amendment to Ind AS 116 to all rent concessions that satisfy the criteria. Substantially all of the rent concessions entered into during the year satisfy the criteria to apply the practical expedient.

The application of the practical expedient has resulted in the reduction of total lease liabilities by '' NIL (March 31, 2022''37.47 lakhs). The effect of this reduction has been recorded in profit or loss in the period in which the event or condition that triggers those payments occurred (refer note 18).

(i) Terms of issue of Non-convertible non-cumulative redeemable preference shares

The Board of Directors at its meeting held on October 22, 2020, approved a Scheme of Arrangement ("the Scheme") under Section 230 of the Companies Act, 2013, for issuance of Non-Convertible Non-Cumulative Redeemable Preference Shares to the non-promoter shareholders of the Company by way of bonus (""Bonus NCRPS"") out of its reserves.

The Scheme was approved by the National Company Law Tribunal ("NCLT") vide its order dated December 23, 2022 and became effective from the date of filing of the order with the Registrar of Companies, i.e., December 29, 2022. The Bonus Committee of the Board of Directors at its meeting held on January 19, 2023, approved the allotment of 89,69,597 Bonus NCRPS, i.e., 1 (One) Bonus NCRPS having a face value of '' 10 at a premium of '' 90 for every 10 (Ten) fully paid-up equity shares of face value of '' 2 each held, in accordance with the Scheme, to the members holding equity shares as on January 13, 2023 ("Record Date"). The Bonus NCRPS shall be redeemed after a period of 36 months from the date of allotment at a premium of '' 20 per share on issue price of '' 100 per share. Subsequent to the year-end, these have been listed on the BSE and NSE on April 20, 2023.

The Bonus NCRPS have been accounted for in the books of the Company in accordance with the accounting treatment prescribed in the Scheme and, accordingly, the present value of the redemption amount of Bonus NCRPS has been recognised as a financial liability in the Balance Sheet on the date of Scheme becoming effective with a corresponding adjustment to equity, net of transaction costs, as per Ind AS 32. Subsequently, the Bonus NCRPS have been measured at amortised cost as

(A) Credit risk

The credit risk arises from cash and cash equivalents, contractual cash flows of mutual fund investments carried at fair value through profit or loss, bonds, fixed deposits and security deposits carried at amortised cost and deposits with banks, as well as credit exposures to customers including outstanding receivables.

(i) Risk Management

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances are maintained. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations.

The Company extends credit to customers in the normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers.

The Company''s investments in mutual funds, bonds and corporate deposits are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

(ii) Impairment of financial assets

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonably available current and forwardinglooking information.

A default on a financial asset is when the counterparty fails to make contractual payments when they fall due or when the extended credit period expires. This definition of default is determined by considering the business environment in which the Company operates and other macro-economic factors.

Trade receivables are written off or impaired where there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. Where receivables have been written off or impaired, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised against the same line item.

All of the entity''s debt investments at amortised cost are considered to have low credit risk, and the loss allowance recognised during the period was therefore limited to 12 months'' expected losses, which is Nil (March 31, 2022: Nil). Management considers instruments to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term.

Note 25: Contingent liabilities

a) Claims against the Company not acknowledged as debts:

(i) The Additional Commissioner, Mumbai, vide his order dated January 17, 2023 directed the District Collector, Mumbai to recover certain dues amounting to '' 6,523 relating to the building owned by the Jagran Group entities (comprising the Company, Midday Infomedia Limited and VRSM Enterprises LLP) in Mumbai from the banks, who had sold the building to the Jagran Group entities under the SARFAESI Act, 2002, on account of breach of terms and conditions of land lease agreement by its erstwhile owner. The Jagran Group entities have filed a revision application before the Revenue Minister, Government of Maharashtra, which is pending hearing. The carrying amount of such building in the books as on March 31, 2023 is '' 3,267. Based on the opinion of external legal counsel and internal assessment, the Company does not expect outflow of any economic resources in this matter.

(ii) Subsequent to the year ended March 31, 2023, in the matter of the Company vs Phonographic Performance Limited (''PPL'') and other music providers, the Hon''ble Madras High Court partly allowed the appeal of PPL and other appellants by providing a ''minimum floor rate'' of '' 660 per needle hour payable to PPL and other appellants for use of sound recordings by the Company over its radio stations w.r.t. the past decade 2010-2020. The Company has filed a special leave petition before the Hon''ble Supreme Court of India challenging the High Court judgement. Based on the opinion of external legal counsel and its internal assessment, the Company has a good case on merits and, therefore, the Company does not expect outflow of any economic resources in this matter.

(iii) The Company has received certain other claims towards royalty for use of sound recordings over its radio stations amounting to '' 1,368.17 (March 31, 2022: '' 429.17). Out of the above, the Company has paid '' 200 (March 31, 2022: '' 200) under protest (refer note 8) and issued bank guarantee for '' 229. Based on the opinion of external legal counsel and its internal assessment, the Company believes that more likely than not, no outflow of economic resources will be required.

iv) In respect of defamation cases, these are either not quantifiable or cannot be reliably estimated. Hence, the same have not been disclosed.

b) The amount of provident fund payable, if any, in relation to certain allowances cannot be reliably estimated, though not likely

to be significant. Hence, this amount has not been disclosed.

(B) The Company has not received any fund from any person(s)/ 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 to or on behalf of the ultimate beneficiaries.

(iii) Compliance with approved scheme(s) of arrangements: A scheme of arrangement has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 the effect of such Scheme of Arrangement has been accounted for in the books of Accounts by the Company in accordance with the Scheme and in accordance with Accounting Standards. Refer note 10 (a) for details.

(iv) Undisclosed income: There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, that have not been recorded in the books of account.

(v) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vi) Valuation of Property, Plant and Equipment, intangible asset and investment property: As the Company has chosen cost model for its Property, Plant and Equipment (including Right-of-Use assets), (including under development), and Intangible Assets, the question of revaluation does not arise.

(vii) Loans or advances to specified persons: The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs or the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person.

(viii) Borrowings secured against current assets: The Company has sanctioned borrowings of '' 1,434 during the year fully secured against fixed deposits.

(ix) Willful defaulter: The Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority.

(x) Registration of charges or satisfaction with Registrar of Companies: There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

(xi) Compliance with number of layers of companies: The Company does not have any subsidiary, hence, this is not applicable.

(xii) Utilisation of borrowings availed from banks and financial institutions: The Company does not have any borrowings from banks or financial institutions at the balance sheet date, hence, this is not applicable.

Note 33: Segment information

The Company is engaged primarily in the business of operating private FM radio stations in India, which constitutes single reportable

segment.

There is no single external customer from whom the Company derives 10% or more revenue.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number: 012754N/N500016

Amit Peswani Vijay Tandon Ravi Sardana

Partner Chairman Director

Membership Number: 501213 DIN: 00156305 DIN: 06938773

Place: Gurugram Place: New Delhi

Date: May 23, 2023 Date: May 23, 2023

Ashit Kukian Prashant Domadia Arpita Kapoor

Chief Executive Officer Chief Financial Officer Company Secretary

Place: Mumbai

Date: May 23, 2023

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Mar 31, 2018

BACKGROUND

Music Broadcast Limited (“the Company”) was incorporated and domiciled in India on November 4, 1999. The Company is engaged in the business of operating Private FM radio stations through the brand ‘Radio City’. The Company started its operations in India in July, 2001 in Bangalore and operates radio stations in 39 cities across India. During the year ended March 31, 2017, the Company raised money from public by issue of equity shares which were listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on March 17, 2017.

NOTE 1: CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

a) Estimation of defined benefit obligation - Note 11

b) Loss allowance of trade receivables - Note 22

c) Estimated useful life of tangible and intangible assets -Notes 3,4

d) Contingencies - Note 25 - ‘Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

e) Estimation of current tax expense and deferred tax - Note 20

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iv) Aggregate number of shares issued for consideration other than cash 3,125,000 equity shares of Rs.10 each fully paid were allotted as consideration on November 24, 2016 pursuant to the scheme of arrangement with Shri Puran Multimedia Limited.

Nature and purpose of reserves

Capital reserve

The profits earned by the Company through a special transaction, which is not available for distribution as dividend to shareholders. The reserve is utilised in accordance with the provisions of the Act.

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Debenture redemption reserve

The Company is required to create a debenture redemption reserve out of the profits, which are available for payment of dividend for the purpose of redemption of debentures.

(i) Nature of security:

Secured by a first pari passu charge on the entire book assets, including fixed assets, current assets and investments of the Company with aggregate market value of above Rs.5,000 and also by letter of comfort provided by Jagran Prakashan Limited, in favour of the Company and the debenture trustee. The debentures are listed on BSE Limited.

Series A and B of NCDs amounting to Rs.5,000 and Rs.10,000 respectively were redeemed on respetive due dates of redemption.

(i) Leave obligations

The leave obligations cover the Company’s liability for earned leave.

(ii) Post-employment obligations Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972, except that there is no benefit ceiling. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days’ salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company has taken an insurance policy for the purpose. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans Provident fund

The Company also has a defined contribution plan. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense recognised during the year towards defined contribution plan is Rs.261.01 (March 31, 2017: Rs.239.02).

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(vii) Risk exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below: Asset volatility :

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. These are subject to interest rate risk.

(viii) Defined benefit liability and employer contributions

Funding levels are monitored on an annual basis and the current agreed contribution rate is 12% of the basic salaries

Expected contribution to post-employment benefit plan for the year ending 31 March 2019 are Rs.95.

NOTE 2: FAIR VALUE MEASUREMENTS

The financial instruments are classified in the following categories and are summarised in the table below

a) Fair value through profit and loss (FVTPL)

b) Fair value through other comprehensive income (FVOCI)

c) Amortised cost

(i) Fair value hierarchy: The following table summarises the financial instruments at fair value by valuation methods. The different levels have been defined as follows:-

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued using the closing NAV

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. There are no financial instruments measured using level 2 valuation techniques.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. There are no transfers between levels 1, 2 and 3 during the year.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

(iii) Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO). Discussions of valuation processes and results are held between the CFO and the valuation team at least once every three months, in line with the Company’s quarterly reporting periods.

NOTE 3: FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial performance.

Risk management is carried out under policies approved by the board of directors which provide principles for overall risk management.

(A) Credit risk

The credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks/ institutions with which balances are maintained. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations.

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

A default on a financial asset is when the counterparty fails to make contractual payments when they fall due or when the extended credit period expires. This definition of default is determined by considering the business environment in which the Company operates and other macro-economic factors.

The Company provides for expected credit loss when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. The Company categorises a provision when a customer fails to make contractual payments as per agreed terms. Where loans or receivables have been impaired, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

Significant estimates and judgements Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. 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.

(B) Liquidity risk

The Company relies on a mix of excess operating cash flows, investments in marketable securities, borrowings and capital infusion to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of the liquidity position, cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.

The bank overdraft facilities may be drawn and terminated at any time by the bank without any prior notice. This facility is secured by lien against mutual funds.

(ii) Maturities of financial liabilities

The tables below analyse, the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. There are no derivative financial instruments in respect of reporting periods disclosed under these financial statements.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (‘). The risk is measured through a forecast of highly probable foreign currency cash flows.

(a) Foreign currency risk exposure:

The Company’s exposure to foreign currency risk at the end of the reporting period expressed in ‘, are as follows

(b) Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments:

(ii) Cash flow and fair value interest rate risk

The Company’s borrowings are fixed rate borrowings and are carried at amortised cost. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Interest rate risk exposure

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

NOTE 4: CAPITAL MANAGEMENT Risk management

The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for stakeholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust any dividend payments, return capital to shareholders or issue new shares.

Consistent with the industry standards the Company monitors capital on the basis of debt to equity ratio where debt comprises of total borrowings, net off cash and cash equivalents and equity comprises of equity share capital, reserves and surplus and other reserves.

The Debt to Equity position at each reporting date is summarised below:

(i) Loan covenants

Under the terms of borrowing facility, the Company is required to maintain security cover at a minimum of 1.0x until the NCD holders are repaid.

The Company has complied with this covenent throughout the reporting period.

(h) Terms and conditions

The sales, purchases and other transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash except barter balances, which are settled on receipt/provision of service by the parties. For the year ended March 31, 2018, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2017: ‘ Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

NOTE 5: CONTINGENT LIABILITIES

a) The Company has received certain claims towards royalty for use of sound recordings over its radio stations amounting to Rs.429.17 (March 31, 2017: Rs.517.04). Out of the above, the Company has paid Rs.200 (March 31, 2017: Nil) under protest (refer note 8). Based on the external legal counsel advice, the Company believes that more likely than not no outflow of resources will be required.

b) In respect of defamation case, it is either not quantifiable or cannot be reliably estimated. Hence the same has not be disclosed. NOTE 26: (A) CAPITAL COMMITMENTS

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

Event occuring after the reporing period

The Board of Directors at their meeting held on April 23, 2018 approved the acquisition of Radio Business Undertaking of Ananda Offset Private Limited, engaged in Radio Broadcasting Business under the brand name “Friends 91.9 FM” in Kolkata, through a slump sale, subject to receipt of approval from Ministry of Information and Broadcasting, for a cash consideration of Rs.3,500 lakhs (minus) Net External Debt (plus/minus) adjustment of normalised working capital of Rs.924 lakhs and actual working capital.

(b) Leases

The Company is obligated under non-cancellable leases for offices renewable on a periodic basis at the option of lessor and lessee. The leases have varying terms and on renewal, the terms of escalation clauses of the leases are re-negotiated.

NOTE 6 UTILISATION OF INITIAL PUBLIC OFFERING (‘IPO’) PROCEEDS

A Amount utilised for share issue expenses

Amount utilised for share issue expenses Rs.1,988.63 includes payments made to merchant bankers, attorneys, consultants and registrars towards IPO of shares.

B Utilisation of funds raised through fresh issue of equity shares pursuant to IPO is as follows:

Specified Bank Notes (SBNs) means the bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees and one thousand rupees as defined under the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs no. S.O 3407(E), dated November 8, 2016.

NOTE 7 SEGMENT INFORMATION

The Company is engaged primarily in the business of operating private FM radio stations constitutes a single reportable segment. Revenues of approximately Rs.4,002.09 (March 31, 2017: Rs.3,567.58) are derived from a single external customer.

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Mar 31, 2017

NOTE 1: CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgments in applying the Company''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgments or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are:

a) Estimation of defined benefit obligation - Note 11

b) Loss allowance of trade receivables - Note 22

c) Estimated useful life of tangible and intangible assets -Note 3,4

d) Contingencies - Note 27 - ''Management judgments is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

e) Estimation of current tax expense and deferred tax -Note 21

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Notes :

1) During the financial year ended March 31, 2016, under Phase III auction of licenses, the Company paid Rs, 22,101.06 lakhs for 20 existing FM stations and Rs, 6,257.00 lakhs for acquiring 11 new FM stations. These licenses allow the Company to operate FM radio stations for a period of 15 years commencing from April 1, 2015. Consequently, the non - refundable entry fees paid under phase II has been recapitalized. Amount paid for 11 new stations has been capitalized as and when these stations started their operations and amortized over the remaining license period.

2) The interest cost of Rs, 809.36 lakhs incurred on borrowings, utilized on 11 FM stations acquired in Phase III has been capitalized along with One time entry fee for these FM stations.

3) Intangible assets under development includes interest cost of Nil (March 31, 2016 : Rs, 309.30 lakhs, April 1, 2015 : Nil) incurred on borrowing utilized for acquisition of 11 FM stations in Phase III. Refer note 19

4) Details of assets material to the company''s financial statements

5) Refer note 10(a) for information on property , plant and equipment pledged as security by the Company.

TERMS AND RIGHTS ATTACHED TO EQUITY SHARES

The Company has only one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Notes :

(a) The Company had given loan to the Music Broadcast Employees Welfare Trust for subscribing shares in the Company. The said loan has been received back during the year ended March 31, 2017.

Notes :

(i) Out of the 40,268,517 shares, 38,909,701 shares are acquired by Jagran Prakashan Limited on account of composite scheme of arrangements wherein Spectrum Broadcast Holdings Private Limited and Crystal Sound and Music Private Limited, have been amalgamated with Jagran Prakashan Limited. The remaining number of shares 1,358,816 are purchased by Jagran Prakashan Limited from Music Broadcast Employee Welfare Trust.

(iv) Aggregate number of shares issued for consideration other than cash

3,125,000 equity shares of Rs, 10/- each fully paid were allotted as consideration on November 24, 2016 pursuant to the scheme of arrangement with Shri Puran Multimedia Limited (Refer note 25)

NATURE AND PURPOSE OF OTHER RESERVES

Capital Reserve

Difference between book values transferred to the Company and consideration agreed pursuant to Scheme of arrangement is adjusted by creating Capital reserve on the effective date. The reserve is utilised in accordance with the provisions of the Act.

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Debenture redemption reserve

The Company is required to create a debenture redemption reserve out of the profits which are available for payment of dividend for the purpose of redemption of debentures.

The proceeds from the NCDs were to be utilised for acquiring new radio licenses in proposed Phase III auction including capital expenditure and payment of fees for migration of licenses from Phase II to Phase III.

Until utilisation of funds as aforesaid, the Company placed inter-corporate deposits with Jagran Prakashan Limited, carrying 9.75% p.a. interest rate, payable on the due date.

During the financial year ended March 31, 2016, these NCDs were secured by first pari passu charge on the entire book assets, including fixed assets, current assets and investments of the Company with Aggregate Market value of above Rs, 20,000 and also by letter of comfort provided by Jagran Prakashan Limited, the holding company in favour of the Company and the Debenture Trustee.

The inter-corporate deposits given to Jagran Prakashan Limited were repaid during the year ended March 31, 2016.

During the financial year ended March 31, 2017, Series A of NCDs issued amounting to Rs, 5,000 were redeemed on due date i.e. March 4, 2017.

(ii) The unsecured loan from HDFC Bank was taken during the financial year 2013-14 and carried interest @ 13% p.a. The loan

was repayable in 12 quarterly instalments of Rs, 208.33 each along with monthly interest from the date of loan. The loan was secured by way of comfort letter of India Value Fund Advisors Private Limited. The said loan has been repaid during the financial year ended March 31, 2016.

(iii) Interest free loan from India Value Fund Trustee Company Private Limited- India Value Fund Scheme B was taken during the financial year 2007-08. Subsequently, the Company renegotiated the repayment terms various times. The loan was fully repaid during the financial year ended March 31, 2016.

(iv) During the financial year ended March 31, 2016, the Company issued 8,274 compulsorily convertible debentures (CCD''s) of Rs, 100,000/- (Rupees One Lakh only) each for cash, carrying 0% interest rate. The CCD holder had an option to convert the CCD''s into the equity shares of the Company at any time after 3 (three) years but within 5 (five) years from the date of allotment of CCD''s. If CCD holder does not exercise the option of conversion within the period of 5 years, then the CCD''s shall be compulsorily converted into the equity shares of the Company on completion of 5 years from the date of allotment of CCD''s. 1 Equity share of Rs, 10 each shall be issued for every one CCD''s of Rs, 100,000 each. Subsequently on November 25, 2016, the CCDs were converted into Non convertible debentures which were fully redeemed on March 17, 2017.

(i) During the year ended March 31, 3016, the Company had taken an Intercorporate Deposit (ICD) Rs, 400.00 from Jagran Prakashan Limited at an interest rate of 9.75%. The loan was for a period of 245 days. Further, on account of composite scheme of arrangement, the Company acquired Rs, 1,550.00 which carried interest rate of 12.5% p.a. and are repayable on demand

(ii) On account of composite scheme of arrangement, the Company acquired loan from other related parties which carried interest rate of 12% p.a. and is repayable on demand

(i) Leave obligations

The leave obligations cover the Company''s liability for earned leave.

The amount of the provision of Rs, 58.70 (31 March 2016 - Rs, 57.96, 1 April 2015 - Rs, 21.20 ) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(ii) Post-employment obligations Gratuity

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognized funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans

(a) Provident Fund

The Company also has a defined contribution plan. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is Rs, 233.93 (31 March 2016 - Rs, 188.04).

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

NOTE 2: FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk), credit risk and liquidity risk. The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company''s financial performance.

Risk management is carried out under policies approved by the board of directors which provides principles for overall risk management.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

Competition Risk

The Company faces competition from peers which challenges the profit earning capacity of the Company. The Company manages the risk from competition on the basis of strength of its content and brand.

Demand Risk

The Company derives majority of its revenue from sale of radio airtime and any shortfall in sale of airtime impacts the profits disproportionately. The Company manages the risk by taking increase in prices.

(A) CREDIT RISK

The credit risk arises from cash and cash equivalents, investments and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks/ institutions with which balances are maintained. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations.

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers. The Company has also accepted security deposits from its agencies, which mitigate the credit risk to an extent. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

A default on a financial asset is when the counterparty fails to make contractual payments when they fall due or when the extended credit period expires. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

The Company provides for expected credit loss when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a repayment plan with the Company. The Company categorizes a provision when a customer fails to make contractual payments as per agreed terms. Where loans or receivables have been impaired, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

Note:- significant estimates and judgments Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment 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.

(B) LIQUIDITY RISK

The Company relies on a mix of excess operating cash flows, investments in marketable securities, borrowings and capital infusion to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of the liquidity position (comprising the undrawn borrowing facilities), cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.

(i) Maturities of financial liabilities

The tables below analyses, the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. There are no derivative financial instruments in respect of reporting periods disclosed under these financial statements.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) MARKET RISK

(i) Foreign currency risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency (Rs,). The risk is measured through a forecast of highly probable foreign currency cash flows.

(b) Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments:

*holding off other variables constant

(ii) Cash flow and fair value interest rate risk

The Company''s borrowings are fixed rate borrowings and are carried at amortized cost. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

NOTE 3: CAPITAL MANAGEMENT (a) Risk management

The Company''s objective when managing capital is to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for stakeholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust any dividend payments, return capital to shareholders or issue new shares.

Consistent with the industry standards the Company monitors capital on the basis of debt to equity ratio where debt (comprise of total borrowings) and Equity comprise the equity shares outstanding at each reporting date.

NOTE 4.

The Composite Scheme of Arrangement (“the Scheme”) involving amalgamation of Spectrum Broadcast Holdings Private Limited (“SBHPL”) and Crystal Sound & Music Private Limited (“CSMPL”) into Jagran Prakashan Limited (JPL), and demerger of FM radio business (“Radio Mantra”) of Shri Puran Multimedia Limited (“SPML”) into the Company, was approved by the Hon''ble High Court of Allahabad on September 22, 2016 and the Hon''ble High Court of Mumbai on October 27, 2016. The Scheme became effective upon filing of the aforesaid orders with the respective Registrars of Companies (RoCs) of Uttar Pradesh on November 18, 2016 and Mumbai on November 17, 2016 w.e.f. January 1, 2016 being the appointed date.

Pursuant to the Scheme :

a) All assets and liabilities relating to the FM radio business (Radio Mantra) were transferred to Company at their respective book values as appearing in the books of SPML on the appointed date i.e. January 1, 2016.

b) The acquisition of radio mantra was settled by issue of 3,125,000 equity shares of '' 10 each fully paid up to the shareholders of SPML with consequential adjustment to the Capital Reserve.

(d) Other related parties

Type Name

Key Management Personnel Rahul Gupta Non Executive Director (w.e.f June 10, 2015)

Sameer Gupta "Non Executive Director (w.e.f June 10, 2015)"

Bharat Gupta Relative of Director

Apurva Purohit "Whole time Director (upto June 30, 2016)"

Non Executive Director (w.e.f July 1, 2016)

Vijay Tandon Chairman, Non-Executive Director (w,e.f. November 24, 2016)

Anuj Puri Non-Executive Director (w.e.f May 30, 2016)

Abraham Thomas Chief Executive Officer

The remuneration of directors and key management personnel is determined by the Nomination and Remuneration Committee having regard to the performance of individual and market trends.

* includes Loan Rs, 20,000 given prior to acquisition of Spectrum Broadcast Holding Private Limited by Jagran Prakashan Limited ** includes acquired pursuant to composite scheme of arrangement (refer note no. 25)

** includes Loan Rs, 20,000 given prior to acquisition of Spectrum Broadcast Holding Private Limited by Jagran Prakashan Limited (j) Terms and conditions

The sales to, purchases and other related party transactions from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the yearend are unsecured and interest free and settlement occurs in cash. For the year ended March 31, 2017, The Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2016: Rs, Nil, 1 April 2015: Rs, Nil). This assessments is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

NOTE 5.: FIRST-TIME ADOPTION OF IND AS

Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS

The accounting policies set out in note 1(b) have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. EXEMPTIONS AND EXCEPTIONS AVAILED

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An Company''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

NOTES TO FIRST TIME ADOPTION

1. Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and readability.

Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value.

Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31^st March 2016.

2. Security deposits

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent.

3. Borrowing Cost

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.

Under previous GAAP, these transaction costs were charged to profit or loss as and when incurred.

4. Lease equalization for rental properties

Under Previous GAAP, the rent paid for leased properties were straight lined over the lease term. No such straight lining is done as per IND AS.

5. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

6. Deferred Tax expense

Under previous GAAP, deferred tax was to be recognized only when there was reasonable certainty that sufficient future taxable income will be available against which the deferred tax assets can be realized.

As per IND AS, deferred tax assets needs to be recognized when there is virtual certainty backed by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized.

7. Equity component of compound financial instrument

Compulsorily convertible debentures have been considered as part of equity as per Ind AS. Under previous GAAP, it was shown as part of borrowings.

8. Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income'' which includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

9. Revenue and Agency Commission

Under previous GAAP, the agency commission was included in other expenses without being netted off from revenue. Under Ind AS, revenue is being measured at fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the entity.

NOTE 6.: UTILISATION OF IPO PROCEEDS

A. Amount utilized for share issue expenses

Amount utilized for share issue expenses Rs, 1,773.41 includes payments made to merchant bankers, attorneys, consultants and registrars towards Initial Public Offering of shares.

NOTE 7: SEGMENT REVENUE

The Company is engaged primarily in the business of operating Private FM Radio Stations which constitutes a single reportable segment. Revenues of approximately Rs, 3,568 (March 31, 2016 - Rs, 3,446) are derived from a single external customer.