1.11 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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 embodying economic benefits will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognised for future operating losses.
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 current
pre-tax rate. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent Liability
Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity
or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be
measured with sufficient reliability. The Company does not recognize a contingent liability but discloses its existence in the
consolidated financial statements.
Contingent Asset
Contingent asset is not recognised in consolidated financial statements since this may result in the recognition of income
that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset and is recognized.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
1.12 EMPLOYEE BENEFITS
(i) Short-term obligation
Short term employee benefits are recognised as an expense at an undiscounted amount in the Statement of profit and
loss of the year in which the related services are rendered.
(ii) Post-employment obligations
The Company operates the following post-employment schemes:
• defined benefit plans such as gratuity; and
• defined contribution plans such as provident fund
Gratuity obligations
The liability recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period.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 interest cost is calculated by applying the discount rate to the balance of the defined benefit obligation .This cost
is included in employee benefit 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.
Defined contribution plans
The Company contributes to Employees State Insurance Corporation and Provident Fund which are considered as
defined contribution plans. The Company makes specified monthly contributions towards Government administered
provident fund scheme. The Company has no further payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions are recognised as employee
benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.
(iii) Other long-term employee benefit obligations
The liabilities for 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. 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 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 statement of profit and loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement
is expected to occur.
1.13 REVENUE FROM CONTRACTS WITH CUSTOMERS
(i) Revenue from sale of services and sale of products
The Company derives revenue primarily from Cable TV business comprising of Cable TV services and other related
services
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of
variable consideration) allocated to that performance obligation. The transaction price of promised products sold or
services rendered to customers is net of variable consideration that reflects the consideration the Company expects
to receive in exchange for those products or services. Subscription income is recognised on accrual basis, based on
underlying subscription plan or agreements with the subscribers.
Goods and Service Tax (GST) collected on behalf of the government is excluded from Revenue, as it is not an economic
benefit to the Company.
Trade Receivables
A receivable represents the company’s right to an amount of consideration that is unconditional (i.e., only the passage
of time is required before payment of the consideration is due).
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier), which we refer to as Unearned Revenue. Contract liabilities are recognised
as revenue when the Company performs under the contract.
(ii) Other Operating Revenues
Other Operating Income comprises of fees for rendering management, technical and consultancy services. Income
from such services is recognised upon satisfaction of performance obligations as per the terms of underlying
agreements with the concerned parties, when no significant uncertainties exist regarding the amount of consideration
that will be derived.
1.14 RECOGNITION OF INTEREST INCOME
Interest income from debt instruments is recognised using the effective interest rate method.
1.15 TAXES ON INCOME
Current Tax:
Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed in
accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.
Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit
and loss.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax:
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can
be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of
profit and loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity.
The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived
at after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets
against liabilities.
1.16 EARNINGS PER SHARE (EPS)
Basic Earnings Per Share
Basic earnings per share is calculated by dividing the profit (or loss) attributable to the owners of the Company by the
weighted average number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the year is adjusted for bonus issue, bonus element in a rights issue to existing shareholders, share
split and reverse share split (consolidation of shares).
Diluted Earnings Per Share
Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after
considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive
potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share
adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive
potential equity shares.
1.17 LEASES
Short term leases and lease of low value assets
The Company’s lease arrangements are short term in nature. The Company has elected not to recognise right-of-use assets
and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Company recognises
the lease payments associated with these leases as an expense in profit or loss on a straight-line basis over the lease term.
4.01 Contingent Liabilities
The Company has received Show Cause cum Demand notices (“SCNs”) from the Department of Telecommunications
(“DOT”), Government of India for the financial years from 2005-06 to 2007-08 and from 2009-10 to 2014-15 towards
license fees amounting to ' 4130.38 which includes penalty and interest thereon (March 31, 2023 : ' 4130.38 including
penalty and interest for the financial years from 2005-06 to 2007-08 and from 2009-10 to 2014-15). The Company has
made representation to DOT contesting the basis of such demands. Based on the opinion of legal expert, the Company is
confident that it has good grounds on merit to defend itself in the above matter. Accordingly, the Company is of the view
that no provision is necessary in respect of the aforesaid matter.
Other than SCNs stated above there are no claims against the Company, not acknowledged as debt.
4.02 Capital And Other Commitments
There are no Capital and other commitments as at March 31, 2024 (March 31, 2023 : Nil)
4.03 Employee Benefits
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees, as governed by the
Payment of Gratuity Act, 1972 (Gratuity Act). The gratuity plan provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 to 26 days’ salary for each
completed year of service subject to a maximum of ' 20 (March 31, 2023: ' 20). Vesting occurs upon completion of five
continuous years of service as governed by Gratuity Act.
The Present value of the defined benefit obligations and related current service cost were measured using the Projected
Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date.
Risk exposure:
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on
uncertain long term obligations to make future benefit payments.
Liability Risks:
Investment Risk -
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to
government bond yields. If the return on plan asset is below this rate, it will move net liability unfavourably.
Interest Risk -
A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the
return on the plan’s debt investments
Longevity Risk -
There is no longevity risk to the company in respect of post-retirement mortality. However, the demographic risk of attrition
being different from what has been assumed still remains with the company.
Salary Risk -
The Gratuity benefit, being based on last drawn salary, will be critically effected in case of increase in future salaries being
more than assumed.
Unfunded Plan Risk -
This represents unmanaged risk and a growing liability. There is an inherent risk here that the company may default on
paying the benefits in adverse circumstances.
Credit risk
Credit risk arises from the possibility that counter party will cause financial loss to the company by failing to discharge its
obligation as agreed. The Company’s exposure to credit risk arises mainly from the trade receivables, distributor commission
and balances with banks. Credit risks from balances with banks are managed in accordance with the Company policy. The
Company’s major revenue streams arises from services provided to end use customers in form of monthly subscription
income. The trade receivables on account of subscription income are typically un-secured and derived from sales made
to large number of independent customers. There is no concentration of credit risk. The Company follows a simplified
approach (i.e. based on lifetime ECL) for recognition of impairment loss allowance on Trade receivables. For the purpose
of measuring the lifetime ECL allowance for trade receivables, the Company uses a provision matrix which comprise a very
large number of small balances grouped into homogenous groups and assessed for impairment collectively. In addition,
in case there are events or changes in circumstances indicating individual trade receivable is required to be reviewed on
qualitative aspects, necessary provisions are made.
Liquidity risk
Liquidity risk is defined as the risk that the company will encounter difficulty in meeting obligations associated with
financial liabilities that are settled by delivering cash or another financial asset.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of
expected cash flows.
Maturities of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments.
4.08 Segmental Reporting
As the Company’s business activity falls within a single business segment in terms of Ind AS 108 on “Operating Segments’,
the financial statements are reflective of the information required by Ind AS 108.
4.13 Revenue from contract with customers
Disaggregation of Revenue
As the Company’s business activity falls within a single business segment viz. providing Cable Television services which
is considered as the only reportable segment and the revenue substantially being in the domestic market, the financial
statements are reflective of the information required by Ind AS 108 “Operating Segment”. The nature, amount, timing and
uncertainty of revenue and cash flows are similar across company’s revenue from contracts with customers. Accordingly,
there is no disaggregation of revenue disclosed.
Contract Balances
The Company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled
revenue.
Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.
The following table provides information about receivables and contract liabilities for the contracts with the customers.
4.14 Additional Regulatory Information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ii) The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of the Companies Act, 1956.
(iii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
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 on behalf of the Ultimate Beneficiaries.
(vii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961.
(viii) The Company has no borrowings from banks and financial institutions on the basis of security of current assets.
(ix) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or
government or any government authority.
(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
4.15 The provisions of the Companies Act, 2013 and rules made thereunder requires that the Company uses only such accounting
software for maintaining its books of account which has a feature of recording audit trail for each and every transaction,
creating an edit log of each change made in books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled or tampered with effect from April 1,2023.
The Company has taken all necessary steps to be compliant with the above requirement of audit trail functionality since it’s
effective date.
4.17 Recent Pronouncement
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. As at 31 March 2024, MCA has not notified any new
standards or amendments to the existing standards which are applicable to the company.
As per our report of even date For and on behalf of the Board
For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No. 107023W
Deepali Shrigadi Vatan Pathan Vrinda Mendon Dilip Worah
Partner Director & Chief Executive Officer Non-Executive Director Independent Director
Membership No. 133304 DIN: 07468214 DIN: 08424835 DIN: 00047252
L. K. Kannan Ajay Singh Basant Haritwal
Independent Director Company Secretary and Compliance Chief Financial
DIN: 00110428 Officer Officer
Membership No: F - 5189
Place : Mumbai, Dated: April 15, 2024 Place : Mumbai, Dated: April 15, 2024
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