(u) Provisions and contingencies
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 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.
A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation that arises from past events where it is either not probable that
an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of the amount cannot
be made.
(v) Dividend Distribution
Dividends paid are recognised in the period in which the interim dividends are approved by the Board of Directors, or in
respect of the final dividend when approved by shareholders.
(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 excluding treasury
shares
(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 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 standalone financial statements and notes have been rounded off to the nearest Lakhs (with
two places of decimal) as per the requirement of Schedule III, unless otherwise stated.
(y) Recent pronouncements
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. For the year ended 31st March, 2026, MCA has notified
Ind AS - 21 Lack of Exchangeability, Ind AS - 7 & 107 New disclosure requirements for Supplier Finance Arrangements, Ind
AS 1 & 10 Classification of Liabilities as Current / Non-Current - Covenants, Ind AS - 12 OECD Pillar Two Global Minimum
Tax - Exception & Disclosure, Ind As - 116 Sale and Leaseback - Variable lease payments and amendments to Ind AS 101,
108, 109, 115, 28 & 32 - Consequential / technical amendments - cross-reference updates & IFRS alignment, relating to
sale and leaseback transactions, applicable to the Company w.e.f. 1st April, 2024. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial
statements
2 CRITICAL ESTIMATES AND JUDGEMENTS
The preparation of standalone financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities,
income, expenses and disclosures of contingent assets and liabilities at the date of these standalone financial statements and the
reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates
and underlying assumptions are reviewed at each Balance Sheet date. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and future periods affected.
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 standalone financial statements.
The areas involving critical estimates or judgements are:
(i) Judgements
Information about judgements made in applying accounting policies that have the most significant effects on the amounts
recognised in the financial statements is included in the following notes:
Note 1(c) and 21: revenue recognition: whether the performance obligation is satisfied at a point in time or over a period of
time.;
Note 17.2: acquisition of associate: deferred consideration
(ii) Assumptions and estimation uncertainties
Employee benefits (estimation of defined benefit obligations) - Notes 1(r) and 29
Post-employment benefits represent obligations that will be settled in future and require assumptions to estimate
benefit obligations. Post-employment benefit accounting is intended to reflect the recognition of benefit costs over the
employees' approximate service period, based on the terms of the plans and the investment and funding decisions made.
The accounting requires the Company to make assumptions regarding variables such as discount rate and salary growth
rate. Changes in these key assumptions can have a significant impact on the defined benefit obligations.
The cost of the employment benefit plans and their present value are determined using actuarial valuations which involves
making various assumptions that may differ from actual developments in the future. For further details refer note 30
Impairment of trade receivables - Notes 1 (j)(iii) and 32
For impairment of trade receivable, Company applies the simplified approach permitted by Ind AS 109,'Financial
Instruments', which requires expected lifetime losses to be recognised from initial recognition of the receivables.
Estimation of expected useful lives of property, plant and equipment and intangible assets - Notes 1(c) and 3;
Notes 1 (e) and 6
The carrying value of property, plant and equipment and intangible assets is arrived at by depreciating the assets over
the useful life of assets. Management reviews its estimate of useful lives of property, plant and equipment and intangible
assets at each reporting date.
Recognition and measurement of Provisions and Contingencies - Notes 1(u) and 37
Legal proceedings covering a range of matters are pending against the Company. Due to the uncertainty inherent in such
matters, it is often difficult to predict the final outcome. The cases and claims against the Company often raise factual and
legal issues that are subject to uncertainties and complexities, including the facts and circumstances of each particular
case/claim, the jurisdiction and the differences in applicable law. The Company consults with legal counsel and other
experts on matters related to specific litigations where considered necessary. The Company accrues a liability when it is
determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated. In the event an
adverse outcome is possible or an estimate is not determinable, the matter is disclosed.
Valuation of deferred tax assets - Notes 1(t) and 16
Deferred income tax expense is calculated based on the differences between the carrying value of assets and liabilities
for financial reporting purposes and their respective tax bases that are considered temporary in nature. Valuation of
deferred tax assets is dependent on management's assessment of future recoverability of the deferred tax benefit.
Expected recoverability may result from expected taxable income in the future, planned transactions or planned optimising
measures. Economic conditions may change and lead to a different conclusion regarding recoverability.
Fair value measurements - Notes 1(j)(viii) and 31
When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based
on quoted prices in active markets, their fair values are measured using valuation techniques, including the discounted
cash flow model, which involve various judgements and assumptions.
Impairment of Intangible assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is
the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based
on available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The
recoverable amount is sensitive to the discount rate used for the discounted cash flow model as well as the expected future
cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to the goodwill and
brand.
4 RIGHT OF USE ASSETS AND LEASE LIABILITIES
Company as a Lessee
The Company leases vehicles used for business purposes. The leases typically run for a period of 3 years, with an option to renew
the lease after that date. Lease payments are renegotiated every three years to reflect market rentals.
Information about leases for which the Company is a lessee is presented below
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to lease liabilities as and when they fall due.
The Company has incurred expenses relating to short term leases and leases of low value assets for certain accommodation.
Terms of such lease include option for renewal on mutually agreed terms. There are no restrictions imposed by lease arrangements
and there are no purchase options or sub leases or contingent rents. Operating lease rentals for the year recognised in Statement
of Profit and Loss amounts to '463.45 Lakhs (FY 2024-25 - '416.02 Lakhs).
The total cash outflow for leases is '463.45 Lakhs (FY 2024-25 - '430.35 Lakhs) for the year, including cash outflow for short
term leases and leases of low value assets.
Company as a Lessor
The Company leases out its investment property consisting of its owned commercial properties. All leases are classified as
operating leases from a lessor perspective.
Rent income includes payments of '26.81 Lakhs (FY 2024-25 - '26.94 Lakhs) for the year relating to agreements entered into
by the Company. There are no restrictions imposed by lease arrangements and there are no contingent rents recognised as
income for the period. These lease arrangements inter alia include escalation clause/option for renewal.
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received
after the reporting date
5 INVESTMENT PROPERTY
I nvestment property comprises a number of residential properties that are leased to third parties. Each of the leases contains
an initial non-cancellable period of 12 months. Subsequent renewals are negotiated with the lessee and historically the average
renewal period ranges from 24 to 36 months.
Estimation of fair value
The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value
is current prices in an active market for similar properties. Where such information is not available, the Company consider
information from a variety of sources including current prices in an active market for properties of different nature or recent
prices of similar properties in less active markets, adjusted to reflect those differences.
The fair values of investment property have been determined by external, independent property valuers, having appropriate
recognised professional qualifications and recent experience in the location and category of the property being valued.
The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs
to the valuation technique used.
The Company follows market approach technique. The valuation model considers the demand and supply of properties,
prevailing flat rates in vicinity, marketability and utility of properties.
Note 1. During the previous year ended 31st March, 2025, the Company had acquired 25,975 equity shares in PAPPL by way of
Rights issue for '1,500.06 Lakhs. Further, the Company had acquired 2,70,427 shares in PAPPL for '12,747 Lakhs. This
had resulted in increase in shareholding in PAPPL from 51.82% to 90.37%. During the current year, the Company has
further acquired 4,111 shares in PAPPL resulting into increase in shareholding in PAPPL from 90.37% to 90.93%.
2. As part of acquisition of PAPPL mentioned in note 1 above including the acquisitions made in the current year, the
Company has commitment to buy balance interest in PAPPL from the remaining shareholders on specified dates in a
manner stipulated under the Investment agreement. As at 31st March, 2026, the Company has received intimation to
purchase 12,122 shares from the respective shareholders and the actual liability of '571.43 Lakhs, determined as per
the manner specified in the agreement, has been recognised under current financial liability. Further, the fair value
of balance consideration payable of '359.04 Lakhs and '598.48 Lakhs to remaining shareholders of PAPPL has been
recognised as "deferred consideration" under non-current and current financial liability respectively.
3. During the current year, the Company has entered into an agreement on 16th December, 2025 to acquire 9,960
Compulsory Convertible Preference Shares (CCPS) in Bhansali Productions Private Limited ("BPPL"), a company
engaged in the business of film and content production for a consideration of '32,500 Lakhs. The Company has
completed its acquisition of aforesaid securities on 30th January, 2026.
As part of the aforesaid acquisition arrangement with BPPL, the Company has also committed to acquire additional
equity securities in the Company in case the stake of the Company falls below 28% on a fully diluted basis. Accordingly,
the fair value of the consideration payable for such option has been recognized as "deferred consideration" under
non-current financial liability on the date of acquisition.
Further, the aforesaid consideration paid as per agreement also includes an embedded Right to the Company to
acquire additional shares so as to increase its shareholding up to 51% as per the terms as stipulated in the agreement.
Accordingly, the fair value of such embedded right to acquire such additional equity shares has been recognized on
the date of acquisition.
Note: (a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Rights issue
Out of 53,38,628 equity shares of face value '10/- each issued for cash at a premium of '35/- (issue price- '45/-) pursuant to
the Rights Issue in 2005, allotment of 5,290 equity shares of face value '10/- each (31st March, 2025 - 5,290 equity shares of face
value '10/- each) (relating to cases under litigation/ pending clearance from the concerned authorities) are kept in abeyance as
on 31st March, 2026.
Rights, preferences and restrictions attached to shares
The Company has only one class of equity shares having a par value of Re.1/- per share (previous year '10/- per share). Each
shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of
shareholders in the ensuing Annual General Meeting except in case of interim dividend.
In the event of liquidation of the Company, the holder of equity shares are eligible to receive remaining assets of the Company
in proportion to their shareholding.
29 ASSETS AND LIABILITIES RELATING TO EMPLOYEE BENEFITS
(I) Post-employment defined benefit plans:
(A) Gratuity (funded)
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the plan, the Saregama
India Limited Employees Group Gratuity Fund (Gratuity Fund), administered and managed by the Trustees and funded primarily
with Life Insurance Corporation of India (LICI) and ICICI Prudential Life Insurance Company Limited, make payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's
salary and the tenure of employment. The Trustees are responsible for the overall governance of the plan and to act in
accordance with the provisions of the trust deed and rules in the best interests of the plan participants. Each year an Asset-
Liability matching study is performed in which the consequences of the strategic investment policies are analysed in terms
of risk and return profiles. Investment and contribution policies are integrated within this study. Liabilities with regard to the
Gratuity Plan are determined by actuarial valuation as set out in Note 1(r)(iii) in material accounting policies, based upon which,
the Company makes contributions to the Employees' Gratuity Funds.
The above sensitivity analysis 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 when calculating the
defined benefit obligation 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.
(k) The Company expects to contribute '677.11 Lakhs (previous year - '119 Lakhs) to the funded gratuity plans during the
next financial year.
(l) The weighted average duration of the defined benefit obligation as at 31st March, 2025 is 7 years (31st March, 2025 - 7
years).
(II) Post-employment defined contribution plans(A) Provident fund
All categories of employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the
employee and employer make monthly contributions to a government administered fund at specified percentage of the covered
employee's qualifying salary. The Company has no further obligations under the plan beyond its monthly contributions.
During the year, an amount of '250.23 Lakhs (previous year- '249.75 Lakhs) has been recognised as expenditure towards
above defined contribution plan of the Company.
(III) Leave obligations
The Company provides for accumulation of leave by certain categories of its employees. These employees can carry forward a
portion of the unutilised leave balances and utilise it in future periods or receive cash (only in case of earned leave) in lieu thereof
as per the Company's policy. The Company records a provision for leave obligations in the period in which the employee renders
the services that increases this entitlement.
The total closing provision towards this obligation was '814.40 Lakhs and '498.28 Lakhs as at 31st March, 2026 and 31st March,
2025 respectively. The amount of the provision 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. The following amounts reflect leave that
is not expected to be taken or paid within the next 12 months.
(IV) Risk exposure
Through its defined benefit plans, the Company is exposed to some risks, the most significant of which are detailed below:
Discount rate risk
The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of
providing the above benefit thereby increasing the value of the liability.
Salary growth risks
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An
increase in the salary of the plan participants will increase the plan liability.
Demographic risk
I n the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is
exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an
increase in the benefit cost.
30 SHARE BASED PAYMENTS
(a) Employee stock option scheme
The establishment of the Employee Stock Option Scheme 2013 (Scheme) was approved by the shareholders at the Annual
General Meeting held on 26th July, 2013. The Scheme is designed to provide incentives to eligible employees to deliver long
term returns. Under the Scheme each Option entitles the holder thereof to apply for and be allotted one equity shares of
the Company of Re.1 each upon payment of the exercise price during the exercise period as defined in the Scheme.
The exercise period commences from the date of vesting of the Options and expires at the end of 10 years from the date of
vesting. The Options have been granted at the 'market price' as defined under the Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014, as amended.
Information in respect of Options granted under the Scheme:
Pursuant to approved Scheme, the Nomination and Remuneration Committee of the Board of Directors has granted performance
based vesting Options during FY 2020-21, FY 2021-22, FY 2022-23 and FY 2025-26 to certain eligible employees and outstanding
as on 31st March, 2026 at the following exercise price, being prevailing market price as on date of grant to respective employee:
31 FAIR VALUE MEASUREMENTS
(i) Fair value hierarchy
A number of the accounting policies and disclosures require the measurement of fair values of assets and liabilities.
The Company has an established control framework with respect to the measurement of fair values. The Management regularly
reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing
services, is used to measure fair values, then the Management assesses the evidence obtained from the third parties to support
the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the
valuations should be classified
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as
follows.
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: I nputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the
change has occurred.
32 FINANCIAL RISK MANAGEMENT
The Company has a system-based approach to risk management, anchored to policies and procedures aimed at ensuring early
identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise
as a consequence of its business operations as well as its investing and financing activities.
Accordingly, the Company's risk management framework has the objective of ensuring that such risks are managed within
acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.
It also seeks to drive accountability in this regard.
This Note explains the sources of risk which the entity is exposed to and how the entity manages the risk. The Board of Directors
reviews and agrees policies for managing each of these risks, which are summarised below:
(A) Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed
to credit risk from its operating activities (primarily Trade Receivables) and from its investing activities (primarily Deposits with
Banks).
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group's receivables from customers, loans and investments in securities.
The carrying amount of financial assets represents the maximum credit risk exposure and arises principally from the Group's
receivable from customers and loans. The maximum exposure to credit risks is represented by the total carrying amount of
these financial assets in the Balance Sheet.
Trade receivables
The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally
uniform across markets; consequently, trade receivables are considered to be a single class of financial assets
Trade receivables are typically unsecured and are derived from revenue earned from customers. Customer credit risk is managed
by respective segment subject to the Company's policy and procedures which involve credit approvals, establishing credit limits
and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course
of business. The Company's customer base is large and diverse limiting the risk arising out of credit concentration. Further,
credit is extended in business interest in accordance with business-specific credit policies. The Company's exposure to trade
receivables on the reporting date, net of expected loss provisions, stood at '13,960.29 Lakhs as on 31st March, 2026 (31st March,
2025 - '12,557.30 Lakhs).
All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track
record of the counterparty etc. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the
impairment loss.
Other financial assets
Credit risk from balances with banks, term deposits and investments is managed by Company's finance department. Investments
in fixed deposits are held with highly rated banks. Investments of surplus are made within assigned credit limits with approved
counterparties who meet the threshold requirements with respect to ratings, financial strength, credit spreads etc. Counterparty
credit limits are set to minimize concentration risk and are reviewed periodically by the Board of Directors.
The Company's maximum exposure to credit risk for the components of the Balance Sheet as of 31st March, 2026 and 31st March,
2025 is the carrying amounts as disclosed in Note 8.1, 8.2, 11.1, 11.2, 11.3, 11.4, 11.5 and 11.6.
(B) Liquidity risk
Liquidity risk refers to the risk that the Company fails to honour its financial obligations in accordance with terms of contract.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Management monitors rolling forecasts of the Company's liquidity position (including the undrawn credit facilities extended by
banks and financial institutions) and cash and cash equivalents on the basis of expected cash flows. In addition, the Company's
liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these,
monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing
plans.
The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company's
non-derivative financial liabilities on an undiscounted basis, which therefore does not differ significantly from their carrying
value as the impact of discounting is not significant.
The Company is having cash credit facility and the same carries interest of 8.60% to 8.75% p.a. (FY 2024-25: 9.05% to 9.60%
p.a.). The facility is unutilised as on 31st March, 2026 and 31st March, 2025. Cash Credit facility was secured by first pari passu
charge (ranking pari passu with all consortium bankers) over the whole of the current assets of the Company including its
inventories, bills receivable and book debts and all other movables, both present and future whether now lying loose or in cases
wherever they may be situated and also by the second charge on the Company's movable fixed assets, both present and future
ranking pari passu without any preference or priority of one over the others.
(C) Market risk
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Company transacts business in local currency and in foreign currencies (primarily US
Dollars and GBP). The Company has foreign currency trade receivables, trade payables and advances and is therefore exposed
to foreign currency risk. The risk is measured through a forecast of highly probable foreign currency cash flows.
The Company's risk management policy is hedging of net foreign currency exposure at all points in time through foreign
exchange forward contracts. The objective of the hedging is to eliminate the currency risk due to volatility in exchange rates.
(a) Foreign currency risk exposure:
The Company's exposure to foreign currency risk at the end of the reporting period expressed in '(in Lakhs), are as follows:
(b) Sensitivity
The sensitivity of profit or loss due to changes in the foreign exchange rates arises mainly from foreign currency
denominated financial instruments. 10% appreciation / depreciation of the respective foreign currencies with respect
to functional currency (holding all other variables constant) of the Company would result in increase / decrease in the
Company's profit before tax as computed below:
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to risk of changes in market interest rates relates primarily to the Company's
debt interest obligation. Further the Company engages in financing activities at market linked rates, any changes in the interest
rate environment may impact future rates of borrowings.
Increase/ decrease of 50 basis points (holding all other variables constant) in interest rates at the balance sheet date would result in
increase/decrease of '14.86 Lakhs
(31st March, 2025 - ' Nil) in interest expense on financial liabilities with floating interest rate and corresponding impact on profit
before tax for the year ended 31st March, 2026.
The Company invests its surplus funds in fixed deposits and mutual funds. Fixed deposits are held with highly rated banks and
have a short tenure and are not subject to interest rate volatility, considered as fixed rate.
(iii) Securities price risk
The Company invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risk
that will fluctuate due to changes in market traded prices, which may impact the return and value of such investments. The
value of investments in such mutual fund schemes as at 31st March, 2026 is '6,569.79 Lakhs (31st March, 2025 - '7,855.17
Lakhs). Accordingly, fair value fluctuations arising from market volatility is recognised in Statement of profit and loss.
33 CAPITAL MANAGEMENT
(a) Risk management
The Company's objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
I n order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Company monitors capital on the basis of net debt to equity ratio and maturity profile
of overall debt portfolio of the Company.
Net debt implies total borrowings of the Company as reduced by Cash and Cash Equivalent and Equity comprises all components
attributable to the owners of the Company.
Terms and conditions of transactions with related parties:
? Transactions with related parties are made in the ordinary course of business and on terms equivalent to those that prevail
in arm's length transactions with other customers. Outstanding balances at the year-end are unsecured and will be settled
in cash and cash equivalents.
35 COMMITMENTS
Estimated amount of contract remaining to be executed on acquisition of music rights and not provided for [net of advances
of '5,408.78 Lakhs (31st March, 2025 - '4,985.73 Lakhs)] as at 31st March, 2026 are estimated at '8,989.08 Lakhs (31st March,
2025- '9,246.79 Lakhs).
The Company has placed its Fixed Deposit of '1,000 Lakhs with HDFC Bank Limited under lien as security for the overdraft
facility sanctioned by HDFC Bank Limited to Pocket Aces Pictures Private Limited, a subsidiary of the Company, for its working
capital requirements. In the event of default by the said subsidiary, HDFC Bank Limited is entitled to appropriate the said Fixed
Deposit towards recovery of its dues, and the Company's maximum exposure is limited to '1,000 Lakhs (previous year ' Nil).
36 CONTINGENT LIABILITIES IN RESPECT OF -
(i) Income Tax Matter
The Company has ongoing disputes with income tax authorities in India. The disputes relate to tax treatment of certain expenses
claimed as deductions, computation or eligibility of allowances. The Company has contingent liability of '2,876.29 Lakhs as at
31st March, 2026 (31st March, 2025 - '2,845.08 Lakhs) in respect of tax demands which are being contested by the Company
based on the management evaluation and advice of tax consultants.
(ii) Indirect Tax Matter
The Company has ongoing disputes with Indian tax authorities mainly relating to treatment of characterisation and classification
of certain items. The Company have demands amounting to '9,922.95 Lakhs as at 31st March, 2026 (31st March, 2025 -
'10,025.28 Lakhs ) relating to Goods and Service Tax, Excise duty, Custom duty, Service tax, Sales tax/VAT and Other indirect
taxes from respective indirect tax authorities which are being contested by the Company based on the management evaluation
and advice of tax consultants.
40 Saregama Regency Optimedia Private Limited (SROPL), a joint venture of the Company had been directed to be wound up vide
Order dated 19th September, 2016 by the Hon'ble High Court at Calcutta and the Official Liquidator attached to this Court has
forthwith taken into his custody all the property, effects, books of accounts, other documents and actionable claims. Accordingly,
the financial statements of SROPL has been prepared up to the date preceding the date of Court Order.
In view of the above, information relating to the Company's interest in the Joint Venture has not been disclosed in the current
year as well as in the previous year.
Explanation for change in the ratios by more than 25% as compared to the preceding year:
1. The decrease is on account of:
a) decrease in Deposits (with remaining maturity greater than 3 months but less than 12 months) &
b) short term borrowings availed during the year.
2. On account of lower cost of goods sold during the current financial year
3. Decrease is due to lower purchases in current financial year
4. Increase is on account of reduction in working capital, which is in line with increase is operations of the Company during
the current year.
5. Increase is on account of higher net profit against the revenue in this financial year
43 In terms of Indian Accounting Standard (Ind AS) 108 on 'Operating Segment' notified in the Act, segment information has
been presented in the Consolidated Financial Statements, prepared pursuant to Indian Accounting Standard (Ind AS) 110
on 'Consolidated Financial Statements' and Indian Accounting Standard (Ind AS) 28 on 'Investments in Associates and Joint
Ventures' notified in the Act, included in the Annual Report for the year.
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