IALM - Indian Assured Lives Mortality.
The discount rate is based on the prevailing market yields of Government of India bonds as at the Balance Sheet date for the estimated term of the obligations.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
vii) These Plans typically expose the Company to actuarial risks such as: Interest Risk, Longevity Risk and Salary Risk. Interest Risk - A decrease in the discount rate will increase the plan liability.
Longevity Risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary Risk - The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
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(' in lakh)
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As at As at 31s* March, 2023 31st March, 2022
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37 CONTINGENT LIABILITIES AND COMMITMENTS
i CONTINGENT LIABILITIES
Claim against the Company/ disputed liabilities not acknowledged as debt *
Income Tax Stamp Duty
ii COMMITMENTS
Estimated amount of contracts remaining to be executed on capital account and not provided for.
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518 518
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3,077 3,077
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169 -
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* Future Cash Flows in respect of above matters are determinable only on receipt of judgements/ decisions pending at various forums/ authorities. The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
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40 CAPITAL AND FINANCIAL RISK MANAGEMENT40.1 CAPITAL MANAGEMENT
The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company monitors capital using a gearing ratio.
The Capital Structure of the Company consists of Debt, Cash and Cash equivalent and Equity.
40.2 FINANCIAL RISK MANAGEMENT
The Company's activities exposes it mainly to credit risk, liquidity risk and market risk. The treasury team identifies and evaluates financial risk in close coordination with the Company's business teams.
i CREDIT RISK
Credit risk is the risk that customers or counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities which is primarily trade receivables.
Customer credit risk is managed by each business team subject to the Company's established policy, procedures and control relating to customer credit risk management. Outstanding customers receivables are regularly monitored.
An impairment analysis is performed at each reporting date for major customers. Receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company evaluates the concentration of risk with respect to receivables as low.
ii LIQUIDITY RISK
Liquidity risk arises from the Company's inability to meet its cash flow commitments on the due date. The Company maintains sufficient stock of cash, marketable securities and committed credit facilities. The Company accesses local financial markets to meet its liquidity requirements. It uses a range of products to ensure efficient funding from across well-diversified markets and investor pools. Treasury monitors rolling forecasts of the Company's cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.
The Company's liquidity is managed by forecasting the cash and liquidity requirements. Treasury arranges to either fund the net deficit or invest the net surplus in the market.
iii MARKET RISKa FOREIGN EXCHANGE EXPOSURE/ CURRENCY RISK
Foreign Currency Risk is the risk that the Fair Value or Future Cash Flow of an exposure will fluctuate because of changes in foreign currency rates. Exposure can arise on account of various assets and liabilities which are denominated in currencies other than functional currency.
SENSITIVITY ANALYSIS:
1% appreciation/ depreciation of the respective foreign currencies with respect to the functional currency of the Company would result in a decrease/ increase in the Company's loss before tax by ? 2 lakh for the year ended 31st March, 2023 and by ? 7 lakh for the year ended 31st March, 2022.
1% appreciation/ depreciation in the interest rate on floating rate borrowing included above would result in an increase/ decrease in the Company's Loss Before Tax by ? 274 lakh for the year ended 31st March, 2023 and by ? 68 lakh for the year ended 31st March, 2022.
41 IMPAIRMENT TESTING OF GOODWILL
Goodwill acquired through business combinations with indefinite useful lives has been allocated to cash generating units ('CGU") related to ""Media Operations"" which is also an operating and reportable segment for impairment testing. The carrying amount of Goodwill as at 31st March, 2023 is ? 29,100 lakh (Previous year ? 29,100 lakh).
The Company performed its annual impairment test for year ended 31st March, 2023. The recoverable amount of CGU has been determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering a 5-year period and independent valuation report. The pre-tax discount rate applied to cash flow projections for impairment testing during the current year is 15% and cash flows beyond the 5-year period are extrapolated using a 5% terminal growth rate.
The Level of the fair value hierarchy is Level 3. The management believes that any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the CGU.
42.2 The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:
Level 1: Inputs are Quoted prices (unadjusted) in active markets or Net Assets Value (NAV) for identical assets or liabilities.
Level 2: Inputs are other than the quoted prices included within 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 are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
42.3 Valuation Methodology
All financial instruments are initially recognised and subsequently re-measured at fair value as described below:
a. The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or Net Asset Value (NAV), as applicable.
b. The fair value of the remaining financial instruments is determined based on adjusted quoted price of underlying assets, information about market participants, assumptions and other data that are available including using discounted cash flow analysis, as applicable.
45 Details of Loan given, Investment made and Guarantee given covered u/s 186 (4) of the Companies Act, 2013
(a) Loan given by the Company to body corporate as at 31st March, 2023. (Refer Note 6 and 14)
(b) Investment made by the Company as at 31st March, 2023. (Refer Note 5)
(c) No Guarantee has been given by the Company as at 31st March, 2023 and 31st March, 2022
46 The Company operates in a single reportable operating segment 'Media Operations'. Hence there are no separate reportable segments in accordance with Ind AS 108 'Operating Segments'. Since the Company's operations are primarily in India, it has determined single geographical segment. Two customers represents more than 10% of the Company's total revenue during the year and One customer for previous year.
47 There are no balance outstanding as on 31st March, 2023 and 31st March, 2022 on account of any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,1956.
48 OTHER STATUTORY INFORMATION
(a) The Company does not have any Capital Work-In-Progress, whose completion is overdue or has exceeded its cost compared to its original plan.
(b) 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.
(c) 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.
(d) The Company does not have 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.
49 Previous year's figures have been regrouped wherever necessary to make them comparable to current year's figures.
50 The financial statements were approved for issue by the Board of Directors on 17th April, 2023.
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