Notes to Accounts of Eros International Media Ltd.

Mar 31, 2025

h. Provisions, Contingent Liabilities and Contingent
Assets

Provisions are recognized when the Company has a
present legal or constructive obligation as a result of a
past event, it is more likely than not that an outflow of
resources will be required to settle the obligations and
can be reliably measured. Provisions are measured at
Managementâs best estimate of the expenditure required
to settle the obligations at the balance sheet date. If the
effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.

Contingent liabilities are not recognized in the financial
statements but are disclosed by way of notes to
accounts unless the possibility of an outflow of
economic resources is considered remote.

Contingent assets are not recognized in financial
statements. However, the same is disclosed, where an
inflow of economic benefit is virtual.

i. Employee Benefits

Short term employee benefits obligations

Short-term employee benefits are recognized as an
expense in the Statement of Profit and Loss for the year
in which related services are rendered.

Post-employment benefits and other long-term
employee benefits

Defined contribution plan

Provident fund & National Pension scheme: The
Companyâs contributions paid or payable during the
year to the provident fund, employeeâs state insurance
corporation and National pension scheme are
recognized in the Statement of Profit and Loss. This
fund is administered by the respective Government
authorities, and the Company has no further obligation
beyond making its contribution, which is expensed in
the year to which it pertains.

Defined benefit plan

Gratuity: The Companyâs liability towards gratuity is
determined using the projected unit credit method
which considers each period of service as giving
rise to an additional unit of benefit entitlement and
measures each unit separately to build up the final
obligation. The cost for past services is recognized on
a straight-line basis over the average period until the
amended benefits become vested. Re-measurement
gains and losses are recognized immediately in the
Other Comprehensive Income as income or expense
and are not reclassified to profit or loss in subsequent
periods. Obligation is measured at the present value
of estimated future cash flows using a discounted rate
that is determined by reference to market yields at
the Balance Sheet date on Government bonds where
the currency and terms of the Government bonds are
consistent with the currency and estimated terms of the
defined benefit obligation.

Compensated absences: Accumulated compensated
absences are expected to be availed or encashed
within 12 months from the end of the year and are
treated as short-term employee benefits. The obligation
towards the same is measured at the expected cost of
accumulating compensated absences as the additional
amount expected to be paid as a result of the unused
entitlement as at the year end.

Employee stock option plan

In accordance with Ind AS 102 Share Based Payments,
the fair value of shares or options granted is recognized
as personnel costs with a corresponding increase
in equity. The fair value is measured at the grant date
and spread over the period during which the recipient
becomes unconditionally entitled to payment unless
forfeited or surrendered.

The fair value of share options granted is measured
using the Black Scholes model, each taking into
account the terms and conditions upon which the
grants are made. At each Balance Sheet date, the
Company revises its estimate of the number of equity
instruments expected to vest as a result of non-market
based vesting conditions. The amount recognized as an
expense is adjusted to reflect the revised estimate of
the number of equity instruments that are expected to
become exercisable, with a corresponding adjustment
to equity. The Company''s share option plan does not
feature any cash settlement option.

Upon exercise of share options, the proceeds received
net of any directly attributable transaction costs up to
the nominal value of the shares are allocated to equity
share capital with any excess being recorded as
securities premium.

j. Leases

The Company as a lessee:

The Company assesses, whether the contract is, or
contains, a lease at the inception of the contract or
upon the modification of a contract. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration.

The Company at the commencement of the lease
contract recognizes a Right-of-Use (RoU) asset at cost
and corresponding lease liability, except for leases with
a term of twelve months or less (short-term leases) and
leases for which the underlying asset is of low value
(low-value leases). For these short-term and low-value
leases, the Company recognizes the lease payments as
an operating expense on a straight-line basis over the
term of the lease.

The cost of the right-of-use assets comprises the
amount of the initial measurement of the lease liability,
adjusted for any lease payments made at or prior to the
commencement date of the lease, any initial direct costs
incurred by the Company, any lease incentives received
and expected costs for obligations to dismantle and
remove right-of-use assets when they are no longer
used.

Subsequently, the right-of-use assets is measured
at cost less any accumulated amortization and
accumulated impairment losses, if any. The right-of-use
assets are amortized on a straight-line basis from the
commencement date of the lease over the shorter of the
end of the lease term or useful life of the right-of-use
asset.

Right-of-use assets are assessed for impairment
whenever there is an indication that the balance sheet
carrying amount may not be recoverable using cash
flow projections for the useful life.

For lease liabilities at commencement date, the Company
measures the lease liability at the present value of the
future lease payments as from the commencement date
of the lease to end of the lease term. The lease payments
are discounted using the interest rate implicit in the lease
or, if not readily determinable, the Company''s incremental
borrowing rate for the asset subject to the lease in the
respective markets.

Subsequently, the Company measures the lease liability
by adjusting carrying amount to reflect interest on the
lease liability and lease payments made.

The Company remeasures the lease liability (and makes
a corresponding adjustment to the related right-of-use
asset) whenever there is a change to the lease terms or
expected payments under the lease, or a modification
that is not accounted for as a separate lease

The portion of the lease payments attributable to the
repayment of lease liabilities is recognized in cash flows
used in financing activities. Also, the portion attributable
to the payment of interest is included in cash flows from
financing activities. Further, Short-term lease payments,
payments for leases for which the underlying asset is of
low-value and variable lease payments not included in
the measurement of the lease liability is also included in
cash flows from operating activities.

The Company as a lessor:

In arrangements where the Company is the lessor, it
determines at lease inception whether the lease is a
finance lease or an operating lease. Leases that transfer
substantially all of the risk and rewards incidental to
ownership of the underlying asset to the counterparty
(the lessee) are accounted for as finance leases. Leases
that do not transfer substantially all of the risks and
rewards of ownership are accounted for as operating
leases. Lease payments received under operating
leases are recognized as income in the statement of
profit and loss on a straight-line basis over the lease
term or another systematic basis. The Company
applies another systematic basis if that basis is more
representative of the pattern in which benefit from the
use of the underlying asset is diminished.

k. Foreign Currency Transactions

Transactions in foreign currencies are translated at
the rates of exchange prevailing on the dates of the
transactions. Monetary assets and liabilities in foreign
currencies are translated at the prevailing rates of
exchange at the balance sheet date. Non-monetary
items that are measured at historical cost in a foreign
currency are translated at the exchange rate at the
date of the transaction. Non-monetary items that
are measured at fair value in a foreign currency are
translated using the exchange rates at the date when
the fair value was determined.

Any exchange differences arising on the settlement of
monetary items or on translating monetary items at rates
different from those at which they were initially recorded
are recognized in the statement of profit and loss in the
period in which they arise. Non-monetary items carried
at fair value that are denominated in foreign currencies
are translated at rates prevailing at the date when the
fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated.

The Companyâs functional currency and the
presentation currency is same i.e. Indian Rupee.

l. Financial instrument
Non-derivative financial instruments

Financial assets and financial liabilities are recognized

when the Company becomes party to the contractual
provisions of the instrument.

Financial assets and liabilities are initially measured at
fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets or liabilities
(other than financial assets and liabilities at fair value
through profit and loss) are added to or deducted from
the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit and loss
are recognized immediately in the statement of profit
or loss. Financial assets and financial liabilities are
offset against each other and the net amount reported
in the balance sheet if, and only if, there is a currently
enforceable legal right to offset the recognized amounts
and there is an intention to settle on a net basis, or to
realize the assets and settle the liabilities simultaneously.

Financial Assets

Financial assets are divided into the following
categories:

â¢ financial assets carried at amortized cost

â¢ financial assets at fair value through other
comprehensive income

â¢ financial assets at fair value through profit and
loss;

Financial assets are assigned to the different categories
by Management on initial recognition, depending on
the nature and purpose of the financial assets. The
designation of financial assets is re-evaluated at every
reporting date at which a choice of classification or
accounting treatment is available. Financial Assets like
Investments in Subsidiaries are measured at Cost as
allowed by Ind-AS 27 - Separate Financial Statements
and hence are not fair valued.

Financial assets carried at amortized cost

The Financial asset is measures at amortized cost if
both the following conditions are met:

1. The asset is held within a business model whose
objective is to hold the assets for collecting
contractual cash flows; and

2. Contractual terms of the financial asset give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding

After initial measurement, such financial assets are
subsequently measured at amortized cost using the
effective interest rate (the "EIR") method. The effective
interest rate is the rate that exactly discounts future cash
receipts or payments through the expected life of the
financial instrument, or where appropriate, a shorter
period.

Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization
is included in finance income/other income in the
Statement of Profit & Loss.

In accordance with Ind AS 109: Financial Instruments,
the Company recognizes impairment loss allowance

on trade receivables and content advances based on
historically observed default rates. Impairment loss
allowance recognized during the year is charged to
Statement of Profit and Loss.

Financial assets at fair value through other

comprehensive income

Financial assets at fair value through other

comprehensive income are non-derivative financial
assets held within a business model whose objective is
achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss. It includes non-derivative financial assets
that are either designated as such or do not qualify
for inclusion in any of the other categories of financial
assets. Gains and losses arising from investments
classified under this category is recognized in the
statement of profit and loss when they are sold or when
the investment is impaired.

In the case of impairment, any loss previously
recognized in other comprehensive income is
transferred to the statement of profit and loss.
Impairment losses recognized in the statement of
profit and loss on equity instruments are not reversed
through the statement of profit and loss. Impairment
losses recognized previously on debt securities are
reversed through the statement of profit and loss when
the increase can be related objectively to an event
occurring after the impairment loss was recognized in
the statement of profit and loss.

When the Company considers that fair value of financial
assets can be reliably measured, the fair values of
financial instruments that are not traded in an active
market are determined by using valuation techniques.
The Company applies its judgment to select a variety
of methods and make assumptions that are mainly
based on market conditions existing at each balance
sheet date. Equity instruments measured at fair value
through profit or loss that do not have a quoted price in
an active market and whose fair value cannot be reliably
measured are measured at cost less impairment at the
end of each reporting period.

An assessment for impairment is undertaken at least at
each balance sheet date.

A financial asset is derecognized only where the
contractual rights to the cash flows from the asset
expire or the financial asset is transferred, and that
transfer qualifies for derecognition. A financial asset
is transferred if the contractual rights to receive the
cash flows of the asset have been transferred or the
Company retains the contractual rights to receive the
cash flows of the asset but assumes a contractual
obligation to pay the cash flows to one or more
recipients. A financial asset that is transferred qualifies
for derecognition if the Company transfers substantially
all the risks and rewards of ownership of the asset, or if

the Company neither retains nor transfers substantially
all the risks and rewards of ownership but does transfer
control of that asset.

Financial liabilities

All financial liabilities are recognised initially at its fair
value, adjusted by directly attributable transaction costs.

Financial liabilities at fair value through profit or
loss

Financial liabilities are classified as at fair value
through profit or loss when the financial liability is
held for trading such as a derivative, except for a
designated and effective hedging instrument, or if upon
initial recognition it is thus designated to eliminate
or significantly reduce measurement or recognition
inconsistency or it forms part of a contract containing
one or more embedded derivatives and the contract is
designated as fair value through profit or loss.

Financial liabilities at fair value through profit or loss are
stated at fair value. Any gains or losses arising of held
for trading financial liabilities are recognized in profit or
loss. Such gains or losses incorporate any interest paid
and are included in the "other gains and losses" line
item.

Financial liabilities at amortized cost

After initial recognition, other financial liabilities
(including borrowing and trade and other payables) are
subsequently measured at amortized cost using the
effective interest method.

The effective interest method is a method of calculating
the amortized cost of a financial liability and of
allocating interest expense over the relevant period. The
effective interest rate is the rate that exactly discounts
estimated future cash payments (including all fees and
points paid or received that form an integral part of
the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period,
to the net carrying amount on initial recognition.

A financial liability is derecognized only when the
obligation is extinguished, that is, when the obligation is
discharged or cancelled or expires. Changes in liabilities
fair value that are reported in profit or loss are included
in the statement of profit and loss within finance costs
or finance income.

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet when,
and only when, there is a legally enforceable right to
offset the recognized amount and there is intention
either to settle on net basis or to realize the assets and
to settle the liabilities simultaneously.

Equity Instrument

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which are
held for trading are classified as at fair value through
profit and loss with all changes recognized in the
Statement of Profit and Loss. For all other equity
instruments, the Company may make an irrevocable
election to present in other comprehensive income, the
subsequent changes in the fair value. The Company

makes such election on an instrument-by-instrument
basis. If the Company decides to classify an equity
instrument as at fair value through other comprehensive
income, then all fair value changes on the instrument,
excluding dividends and impairment loss, are
recognized in other comprehensive income. There is no
recycling of the amounts from the other comprehensive
income to the Statement of Profit and Loss, even on
sale of the investment. However, the Company may
transfer the cumulative gain or loss within categories of
equity.

m. Taxes

Taxation on profit and loss comprises current tax and
deferred tax. Tax is recognized in the statement of profit
and loss except to the extent that it relates to items
recognized directly in equity or other comprehensive
income in which case tax impact is also recognized in
equity or other comprehensive income.

Current tax is provided at amounts expected to be paid
(or recovered) using the tax rates and laws that have
been enacted or substantively enacted at the balance
sheet date along with any adjustment relating to tax
payable in previous years.

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 provided at amounts expected to be paid (or
recovered) using the tax rates and laws that have
been enacted or substantively enacted at the balance
sheet date and are expected to apply when the related
deferred income tax asset is realized or the deferred
income tax liability is settled.

Deferred tax is not recognized for all taxable temporary
differences between the carrying amount and tax bases
of investments in subsidiaries, branches and associates
and interest in joint arrangements where it is probable
that the differences will not reverse in the foreseeable
future.

Deferred tax assets and deferred tax liabilities are offset
when there is a legally enforceable right to set off assets
against liabilities representing current tax and where
the deferred tax assets and the deferred tax liabilities
relate to taxes on income levied by the same governing
taxation laws.

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 utilize all or part of the deferred tax asset.
Unrecognized deferred tax assets are re-assessed at
each reporting date and are recognized to the extent
that it has become probable that future taxable profits
will available to utilize the deferred tax asset.

n. Earnings per share

Basic EPS is computed by dividing net profit after taxes
for the year by weighted average number of equity
shares outstanding during the financial year, adjusted
for bonus share elements in equity shares issued during
the year and excluding treasury shares, if any.

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.

o. Cash and cash equivalents

Cash and cash equivalents include cash in hand,
deposits held at call with banks, other short term highly
liquid investments which are readily convertible into
known amounts of cash and are subject to insignificant
risk of changes in value. Bank overdrafts are shown
within borrowings in current liabilities on the balance
sheet.

Deposits held with banks as security for overdraft
facilities are included in restricted deposits held with
bank.

p. Segment reporting

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the companyâs Chief
Operating Decision Maker (âCODMâ) to make decisions
for which discrete financial information is available.
The Companyâs operating businesses are organized
and managed separately according to the nature of
products and services provided, with each segment
representing a strategic business unit that offers
different products and serves different markets. Based
on the management approach as defined in Ind AS 108,
the CODM evaluates the Companyâs performance and
allocates resources based on an analysis of various
performance indicators by business segments and
geographic segments.

The Company has identified three geographic markets:
India, UAE and Rest of the world.

q. Statement of cash flows

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated.

r. Dividends

The Company recognises a liability for dividends to
equity holders of the Company when the dividend
is authorized, and the dividend is no longer at the
discretion of the Company. As per the corporate laws
in India, a dividend is authorised when it is approved
by the shareholders. A corresponding amount is
recognised directly in equity.

s. Event occurring after the reporting date

Adjusting events (that provides evidence of condition
that existed at the balance sheet date) occurring after
the balance sheet date are recognized in the financial
statements. Material non-adjusting events (that are

inductive of conditions that arose subsequent to the
balance sheet date) occurring after the balance sheet
date that represents material change and commitment
affecting the financial position are disclosed by way of
notes in financial statements.

t. Non - current assets held for sale and
discontinued operations

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through a
sale transaction rather than through continuing use and
sale is considered highly probable. They are measured
at the lower of carrying amount or fair value less cost
to sell, except for assets such as deferred tax assets,
assets arising from employee benefits, financial assets
and contractual rights under insurance contracts, which
are specifically exempt from this requirement.

An impairment loss is recognized for any initial or
subsequent write-down of the asset to fair value less
cost to sell. A gain is recognized for any subsequent
increase in the fair value less cost to sell of any asset,
but not in excess of any cumulative impairment loss
previously recognized. A gain or loss not previously
recognized by the date of the sale of the non-current
asset is recognized at the date of de-recognition.

Non-Current assets are not depreciated or amortised
while they are classified as held for sale. Interest
and other expenses attributable to the liabilities of a
disposal group classified as held for sale continue to be
recognised.

Non-current assets classified as held for sale are
presented separately from the other assets in the
balance sheet.

A discontinued operations is a component of the entity
that has been disposed of or is classified as held for
sale and that represents a separate major line of
business or geographical area of operations, is a part
of a single co-ordinated plan to dispose of such line
of business or area of business of operations, or is a
subsidiary acquired exclusively with a view of resale.
The result of discontinued operations are presented
separately in the statement of profit and loss.

2. Significant accounting judgements, estimates and
assumptions

The preparation of the financial statements requires
management to make judgements, estimates and
assumptions, as described below, that affect the
reported amounts and the disclosures. The Company
based its assumptions and estimates on parameters
available when the financial statements were prepared
and reviewed at each balance sheet date. Uncertainty
about these assumptions and estimates could result in
outcomes that may require a material adjustment to the
reported amounts and disclosures.

a. Intangible Assets

The Company is required to identify and assess
the useful life of intangible assets and determine
their income generating life. Judgment is required in
determining this and then providing an amortization
rate to match this life as well as considering the
recoverability or conversion of advances made in

respect of securing film content or the services of talent
associated with film production.

Accounting for the film content requires Managementâs
judgment as it relates to total revenues to be received
and costs to be incurred throughout the life of each film
or its license period, whichever is the shorter. These
judgments are used to determine the amortization of
capitalized film content costs. The Company uses a
stepped method of amortization on first release film
content writing off more in year one which recognizes
initial income flows and then the balance over a period
of up to nine years. In the case of film content that is
acquired by the Company after its initial exploitation,
commonly referred to as Library, amortization is spread
evenly over the lesser of 10 years or the license period.
Managementâs policy is based upon factors such as
historical performance of similar films, the star power of
the lead actors and actresses and others. Management
regularly reviews, and revises when necessary, its
estimates, which may result in a change in the rate of
amortization and/or a write down of the asset to the
recoverable amount.

Intangible assets are tested for impairment in
accordance with the accounting policy. These
calculations require judgments and estimates to be
made, and in the event of an unforeseen event these
judgments and assumptions would need to be revised
and the value of the intangible assets could be affected.
There may be instances where the useful life of an asset
is shortened to reflect the uncertainty of its estimated
income generating life.

b. Employee benefit plans

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 to Note 41.

c. Fair value measurement of ESOP Liability

The fair value of ESOP Liability is determined using
valuation methods which involves making various
assumptions that may differ from actual developments
in the future. For further details refer Note 42.

d. Trade receivable

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

e. Depreciation

Property, plant and equipment are depreciated
over the estimated useful lives of the assets, after
taking into account their estimated residual value.
Management reviews the estimated useful lives and
residual values of the assets annually in order to
determine the amount of depreciation to be recorded
during any reporting period. The useful lives and
residual values are based on the Companyâs historical
experience with similar assets and take into account
anticipated technological changes. The depreciation

for future periods is adjusted if there are significant
changes from previous estimates.

f. Impairment of non-financial assets

In assessing impairment, management estimates the
recoverable amount of each asset or cash-generating
unit based on expected future cash flows and uses an
interest rate to discount them. Estimation uncertainty
relates to assumptions about future operating results
and the determination of a suitable discount rate.

g. Provisions

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability require the application of judgment
to existing facts and circumstances, which can be
subject to change. Since the cash outflows can take
place many years in the future, the carrying amounts
of provisions and liabilities are reviewed regularly
and adjusted to take account of changing facts and
circumstances.

h. Fair value measurement

Management uses valuation techniques to determine the
fair value of financial instruments (where active market
quotes are not available) and non-financial assets.
This involves developing estimates and assumptions
consistent with how market participants would price
the instrument. Management bases its assumptions
on observable data as far as possible, but this is not
always available. In that case management uses the
best information available. Estimated fair values may vary
from the actual prices that would be achieved in an armâs
length transaction at the reporting date.

3. Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCAâ) 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 March
31, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to
the Company. The Company has applied the following
Ind AS pronouncements pursuant to issuance of the
Companies (Indian Accounting Standards) Amendments
rules, 2023, with effect from April 01, 2023. The effect is
described below:

Application of New Accounting Pronouncements

The Company has applied the following INDAS
pronouncements pursuant to issuance of the
Companies (Indian Accounting Standards) Amendment
Rules, 2023 with effect from 1st April, 2023. The effect is

described below:

a. Ind AS 1 - Presentation of Financial Statements
-The amendment requires disclosure of material
accounting policies instead of significant
accounting policies. In the financial statements
the disclosure of accounting policies including
presentation of financial statements has
been accordingly modified. The impact of
such modification to the accounting policies
including presentation of financial statements is
insignificant.

b. Ind AS 8 - Accounting Policies, Changes
in Accounting Estimates and Errors - The
amendment has defined accounting estimate as
well as laid down the treatment of accounting
estimate to achieve the objective set out by
accounting policy. There is no impact of the
amendment on the Financial Statements.

c. Ind AS 12 - The definition of deferred tax asset
and deferred tax liability is amended to apply
initial recognition exception on assets and
liabilities that does not give rise to equal taxable
and deductible temporary differences. There is
no impact of the amendment on the Financial
Statements.

Mar 31, 2018

Corporate Information

Eros International Media Limited (the âCompanyâ) was incorporated in India, under the Companies Act, 1956. The Company is a global player within the Indian media and entertainment industry and is primarily engaged in the business of film production, exploitation and distribution. It operates on a vertically integrated studio model controlling content as well as distribution and exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication. Its shares are listed on leading stock exchanges in India (BSE Scrip Code: 533261; NSE Scrip Code: EROSMEDIA).

These separate financial statements were authorised for issue in accordance with a resolution passed in the Board of Directors meeting held on 23 May 2018.

Basis of preparation

The separate financial statements are prepared in accordance with Indian Accounting Standards (âInd ASâ) notified under Section 133 of the Companies Act, 2013 (âthe Actâ) read with Companies (Indian Accounting Standards) Rules, 2015 and relevant provisions of the Act (as amended from time to time).

The financial statements have been prepared on accrual basis of accounting using historical cost basis, except certain investment and Employee Stock Option Plan (âESOPâ) Compensation measured at fair value.

All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Act. The Company considers 12 months to be its normal operating cycle.

All values are rounded to the nearest rupees in Lakhs, except where otherwise indicated. Amount in zero (0) represents amount below rupees fifty thousand.

1. Significant accounting judgements estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions, as described below, that affect the reported amounts and the disclosures. The Company based its assumptions and estimates on parameters available when the financial statements were prepared and reviewed at each balance sheet date. Uncertainty about these assumptions and estimates could result in outcomes that may require a material adjustment to the reported amounts and disclosures.

a. Intangible Assets

The Company is required to identify and assess the useful life of intangible assets and determine their income generating life. Judgment is required in determining this and then providing an amortization rate to match this life as well as considering the recoverability or conversion of advances made in respect of securing film content or the services of talent associated with film production.

Accounting for the film content requires Managementâs judgment as it relates to total revenues to be received and costs to be incurred throughout the life of each film or its license period, whichever is the shorter. These judgments are used to determine the amortization of capitalized film content costs. The Company uses a stepped method of amortization on first release film content writing off more in year one which recognizes initial income flows and then the balance over a period of up to nine years. In the case of film content that is acquired by the Company after its initial exploitation, commonly referred to as Library, amortization is spread evenly over the lesser of 10 years or the license period. Managementâs policy is based upon factors such as historical performance of similar films, the star power of the lead actors and actresses and others. Management regularly reviews, and revises when necessary, its estimates, which may result in a change in the rate of amortization and/or a write down of the asset to the recoverable amount.

Intangible assets are tested for impairment in accordance with the accounting policy. These calculations require judgments and estimates to be made, and in the event of an unforeseen event these judgments and assumptions would need to be revised and the value of the intangible assets could be affected. There may be instances where the useful life of an asset is shortened to reflect the uncertainty of its estimated income generating life.

b. Employee benefit plans

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 to Note 41.

c. Fair value measurement of ESOP Liability

The fair value of ESOP Liability is determined using valuation methods which involves making various assumptions that may differ from actual developments in the future. For further details refer Note 41.

d. Trade receivable

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

e. Depreciation

Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Companyâs historical experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.

f. Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

g. Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgment to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

h. Fair value measurement

Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible, but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an armâs length transaction at the reporting date.

d) Details of employee stock options issued during the last 5 years

During the period of five years immediately preceding the reporting date, the Company has issued total 2,149,567 equity shares (31 March 2017: 1,220,890) on exercise of options granted under the employees stock option plan (ESOP) wherein part consideration was received in the form of employee services.

e) Details of equity share issued for consideration other than cash during the last 5 years

During the period of five years immediately preceding the reporting date, the Company has issued total 900,970 equity shares (31 March 2017: 900,970) to the shareholders of Universal Power Systems Private Limited at a premium of Rs. 586 per share in exchange for the entire shareholding of Universal Power Systems Private Limited.

f) Rights, preferences, restrictions of equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Every holder is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors and approved by the Shareholders in the Annual General Meeting is paid in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

Secured short term borrowings include:

Cash credit carry an interest rate between 10% - 13% , secured by way of hypothecation of inventories and receivables relating to domestic rights operations on pari passu basis.

Bills discounted carry an interest rate between 10% - 11% for INR bills and LIBOR 3.5% for USD bills, secured by document of title to goods and accepted hundis with first pari passu charge on current assets.

Packing credit carry an interest rate between 10% - 11% for INR and LIBOR 3.5% for USD, secured by hypothecation of films and film rights with first pari passu charge on current assets.

Short term borrowings are further secured by equitable mortgage of companyâs immovable properties situated at Mumbai (India), amount held in margin money, corporate guarantee of Eros International Plc (the ultimate holding company),residual value of equipments and existing rights of hindi films with nil book value.

*Loan from others are secured by security provided by holding company.

Notes:

1) During the year ended 31 March 2015, the Company received a show cause notice from the Commissioner of Service Tax to show cause why an amount aggregating to Rs. 15,675 lakhs for the period 1 April 2009 to 31 March 2014 should not be levied on and paid by the Company for service tax arising on temporary transfer of copyright services and other matters.

In connection with the aforementioned matters, on 19 May 2015, the Company received an Order-in-original issued by the Principal Commissioner, Service Tax, wherein the department confirmed the demand of Rs. 15,675 lakhs along with interest and penalty amounting to Rs. 15,675 lakhs resulting into a total demand of Rs. 31,350 lakhs.

On 3 September 2015, the Company filed an appeal against the said order before the authorities. The Company has paid Rs. 1,000 Lakhs under protest. Considering the facts and nature of levies and the ad-interim protection for the period 1 July 2010 to 30 June 2012 granted by the Honorable High Court of Mumbai, the Company expects that the final outcome of this matter will be favourable. Accordingly, based on the assessment made after taking appropriate legal advise, no additional liability has been recorded in the financial statements.

2) Company has received notice for reversal of CENVAT credit for the period 2013-14 to 2015-16 Rs. 187 lakhs and for the period January 2016 to March 2017 Rs. 204 lakhs. Further Company also received notice for Non levy of Service tax on Import of Services for the period 2013-14 to 2015-16 for Rs. 70 Lakhs.

3) In addition, the Company is liable to pay service tax on use on temporary transfer of copyright in the period 1 July 2010 to 30 June 2012. The Company filed a writ petition in Mumbai High Court challenging the constitutionality and the legality of this entry and received ad-interim protection and accordingly, no amounts were provided for by the Company for the period 1 April 2011 to 30 June 2012.

4) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

5) From time to time, the âCompanyâ is involved in legal proceedings arising in the ordinary course of its business, typically intellectual property litigation and infringement claims related to the Companyâs feature films and other commercial activities, which could cause the Company to incur expenses or prevent the Company from releasing a film. While the resolution of these matters cannot be predicted with certainty, the Company does not believe, based on current knowledge or information available, that any existing legal proceedings or claims are likely to have a material and adverse effect on its financial position, results of operations or cash flows.

2 Employment benefits

a) Gratuity

The following table set out the status of the gratuity plan as required under Indian Accounting Standard (Ind AS) - 19, Employee benefits, and the reconciliation of opening and closing balances of the present value of the defined benefit obligation:

I Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.

II Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the planâs liability.

III Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Company has to manage pay-out based on pay as you go basis from own funds

IV Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

b) Compensated absences

The Company incurred Rs. 29 lakhs (31 March 2017 : Rs. 129 lakhs) towards accrual for compensated absences during the year.

c) Provident fund

The Company contributed Rs. 168 lakhs (31 March 2017 : Rs. 181 lakhs) to the provident fund plan, Rs. 5 lakhs (31 March 2017 : Rs. 4 lakhs) to the Employee state insurance plan and Rs. 11 lakhs (31 March 2017 : Rs. 10 lakhs) to the National Pension Scheme during the year.

d) Share-based payment transactions

The Company has instituted Employeesâ Stock Option Plan âESOP 2009â and "ESOS 2017" under which the stock options have been granted to employees. The scheme was approved by the shareholders at the Extra Ordinary General Meeting held on 4 December 2009 and Annual General Meeting held on 28 September 2017 respectively. The details of activity under the ESOP 2009 scheme are summarized below:

3 Operating Segment

Description of segment and principal activities

The Company acquires, co-produces and distributes Indian films in multiple formats worldwide. Film content is monitored and strategic decisions around the business operations are made based on the film content, whether it is new release or library. Hence, Management identifies only one operating segment in the business, film content. The Company distributes film content to the Indian population in India and worldwide and to non-Indian consumers who view Indian films that are subtitled or dubbed in local languages. As a result of these distribution activities, the management examines the performance of the business from a geographical market perspective.

4 Fair value measurement of financial instruments

Financial assets and financial liabilities measured at fair value in the balance sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based in the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e as price) or indirectly (i.e. derived from price)

Level 3: unobservable inputs for the asset or liability

*Exclude financial instruments of investment in subsidiaries carried at cost.

During the year ended 31 March 2018 there was no transfers between level 2 and level 3 fair value hierarchy.

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities and short term borrowings carried at amortised cost is not materially different from its carrying cost largely due to short term maturities of these financial assets and liabilities

Fair value of the borrowing items fall within level 2 of the fair value hierarchy and is calculated on the basis of discounted future cash flows.

Non-listed shares and other securities fall within level 3 of the fair value hierarchy. Valuation is based on the discounted future cash flow method.

Financial instruments with fixed and variable interest rate fall within level 2 of the fair value hierarchy and are evaluated by Company based on parameters such as interest rate, credit rating or assessed credit worthiness.

*Exclude financial instruments of investment in subsidiaries carried at cost.

During the year ended 31 March 2017 there was no transfers between level 2 and level 3 fair value hierarchy.

5 Financial instruments and Risk management

The Company is exposed to various risks in relation to financial instruments. The Companyâs financial assets and liabilities by category are summarised in note 44 The main types of risks are market risk, credit risk and liquidity risk.

The Companyâs risk management is coordinated in close cooperation with the board of directors and audit committee meetings.

The Company has established objectives concerning the holding and use of financial instruments. The underlying basis of these objectives is to manage the financial risks faced by the Company.

Formal policies and guidelines have been set to achieve these objectives. The Company does not enter into speculative arrangements or trade in financial instruments and it is the Companyâs policy not to enter into complex financial instruments unless there are specific identified risks for which such instruments help mitigate uncertainties.

Management of Capital Risk and Financial Risk

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. For the purpose of the Companyâs capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. Net debt is calculated as borrowing (refer note 19,25,26 and 27) less cash and cash equivalents.

Financial risk management objectives

Based on the operations of the Company, Management considers that key financial risks that it faces are credit risk, currency risk, liquidity risk and interest rate risk. The objectives under each of these risks are as follows:

- credit risk: minimize the risk of default and concentration.

- currency risk: reduce exposure to foreign exchange movements principally between INR and USD.

- liquidity risk: ensure adequate funding to support working capital and future capital expenditure requirements.

- interest rate risk: mitigate risk of significant change in market rates on the cash flow of issued variable rate debt.

Credit Risk

The Companyâs credit risk is principally attributable to its trade receivables, loans and bank balances. As a number of the Companyâs trading activities require third parties to report revenues due to the Company this risk is not limited to the initial agreed sale or advance amounts. The amounts shown within the Balance Sheet in respect of trade receivables and loans are net of allowances for doubtful debts based upon objective evidence that the Company will not be able to collect all amounts due.

Trading credit risk is managed on a customer by customer basis by the use of credit checks on new clients and individual credit limits, where appropriate, together with regular updates on any changes in the trading partnerâs situation. In a number of cases trading partners will be required to make advance payments or minimum guarantee payments before delivery of any goods. The Company reviews reports received from third parties and in certain cases as a matter of course reserve the right within the contracts it enters into to request an independent third party audit of the revenue reporting.

The credit risk on bank balances is limited because the counterparties are banks with high credit ratings as signed by international credit rating agencies.

The Company from time to time will have significant concentration of credit risk in relation to individual theatrical releases, television syndication deals or digital licenses. This risk is mitigated by contractual terms which seek to stagger receipts and/or the release or airing of content. As at 31 March 2018 51% (31 March 2017: 66%) of trade account receivables were represented by the top 5 customer, out of which as at 31 March 2018 15% (31 March 2017: 33%) of trade account receivables were represented by the related parties. The maximum exposure to credit risk is that shown within the statement of financial position.

As at 31 March 2018, the Company did not hold any material collateral or other credit enhancements to cover its credit risks associated with its financial assets, except certain secured debtors as disclosed in note 11.

Currency Risk

The Company is exposed to foreign exchange risk from foreign currency transactions. As a result it faces both translation and transaction currency risks which are principally mitigated by matching foreign currency revenues and costs wherever possible.

The Company has identified that it will need to utilize hedge transactions to mitigate any risks in movements between the US Dollar and the Indian Rupee and has adopted an agreed set of principles that will be used when entering into any such transactions. No such transactions have been entered into to date and the Company has managed foreign currency exposure to date by seeking to match foreign currency inflows and outflows as much as possible such as packing credit repayment in USD is matched with remittances from UAE in USD. Details of the foreign currency borrowings that the Company uses to mitigate risk are shown within Interest Risk disclosures.

The Company adopts a policy of borrowing where appropriate in the foreign currency as a hedge against translation risk. The table below shows the Companyâs net foreign currency monetary assets and liabilities position in the main foreign currencies, translated to Indian Rupees(T) equivalents, as at the year end:

A uniform decrease of 10% in exchange rates against all foreign currencies in position as of 31 March 2018 would have decreased in the Companyâs net profit before tax by approximately Rs. 102 lakhs (31 March 2017: loss of Rs. 801 lakhs). An equal and opposite impact would be experienced in the event of an increase by a similar percentage.

Liquidity risk

The Company manages liquidity risk by maintaining adequate reserves and agreed committed banking facilities. Management of working capital takes account of film release dates and payment terms agreed with customers.

A maturity analysis for financial liabilities is provided below. The amounts disclosed are based on contractual undiscounted cash flows. The table includes both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rates as at 31 March in each year.

Interest rate risk

Fluctuation in fair value or future cash flows of a financial instrument because of changes in market interest rates gives rise to interest rate risk. A uniform increase of 100 basis in interest rates against all borrowings in position as of 31 March 2018 would have decreased in the Companyâs net profit before tax by approximately Rs. 317 Lakhs (31 March 2017: net profit before tax of Rs. 213 Lakhs). An equal and opposite impact would be experienced in the event of a decrease by a similar basis.

6 Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

7 As per the provision of the Act, a Corporate Social Responsibility (CSR) committee has been formed by the Company. CSR objects chosen by the Company primarily consist of promoting education, promoting gender equality, empowering women, setting up homes and hostels for women and orphans etc. As per the provisions of the Act, gross amount required to be spent by the Company is Rs. 448 lakh (31 March 2017 : Rs. 427 lakh), of which Rs. 0 lakhs (31 March 2017 : Rs. 10 lakh) have been spent during the current year.

8 Post reporting date events

No adjusting or significant non-adjusting events have occurred between 31 March 2018 and the date of authorisation of these standalone financial statements.

Mar 31, 2017

21 Significant accounting judgments, estimates and assumptions

The preparation of the financial statements requires management to make judgments, estimates and assumptions, as described below, that affect the reported amounts and the disclosures. The Company based its assumptions and estimates on parameters available when the financial statements were prepared and reviewed at each balance sheet date. Uncertainty about these assumptions and estimates could result in outcomes that may require a material adjustment to the reported amounts and disclosures.

a. Intangible Assets

The Company is required to identify and assess the useful life of intangible assets and determine their income generating life. Judgment is required in determining this and then providing an amortization rate to match this life as well as considering the recoverability or conversion of advances made in respect of securing film content or the services of talent associated with film production.

Accounting for the film content requires managementâs judgment as it relates to total revenues to be received and costs to be incurred throughout the life of each film or its license period, whichever is the shorter. These judgments are used to determine the amortization of capitalized film content costs. The Company uses a stepped method of amortization on first release film content writing off more in year one which recognizes initial income flows and then the balance over a period of up to nine years. In the case of film content that is acquired by the Company after its initial exploitation, commonly referred to as Library, amortization is spread evenly over the lesser of 10 years or the license period. Managementâs policy is based upon factors such as historical performance of similar films, the star power of the lead actors and actresses and others. Management regularly reviews, and revises when necessary, its estimates, which may result in a change in the rate of amortization and/or a write down of the asset to the recoverable amount.

The Company tests annually whether intangible assets have suffered any impairment, in accordance with the accounting policy. These calculations require judgments

and estimates to be made, and in the event of an unforeseen event these judgments and assumptions would need to be revised and the value of the intangible assets could be affected. There may be instances where the useful life of an asset is shortened to reflect the uncertainty of its estimated income generating life.

b. Employee benefit plans

For further details refer to Note 41a

c. Fair value measurement of ESOP Liability

The fair value of ESOP Liability is determined using valuation methods which involves making various assumptions that may differ from actual developments in the future. For further details refer Note 41d

1. The Companyâs immovable property situated in Mumbai, India is pledged against the borrowings as explained in note No. 19 and 25

2. As explained in note 48, the Company has used Indian GAAP carrying value of its Property, plant and equipment on date of transition as deemed cost, accordingly , the net carrying amount as per Indian GAAP as on 1 April 2015 has been considered as gross carrying value under Ind-AS 101.

During the year, the Company has issued total 269,553 shares (2016: 180,920 ; 2015: 534,084) on exercise of options granted under the employees stock option plan (ESOP) wherein part consideration was received in the form of employees services.

On 25 February 2015, the Company entered into a share purchase agreement to acquire a controlling stake in Universal Power Systems Private Limited, trading by the name Techzone (âUPSPLâ or âTechzoneâ). On 20 July 2015, the Company received approval from Foreign Investment Promotion Board (âFIPBâ) to acquire Techzone. On 1 August 2015, the Company allotted 900,970 equity shares to the shareholders of UPSPL at a premium of Rs, 586 per share in exchange for the entire shareholding of UPSPL. Shares so purchased have been classified as non- current investment.

d) Details of employee stock options issued during the last 5 years

During the period of five years immediately preceding the reporting date, the Company has issued total 1,220,890 shares (2016: 1,281,194 ; 2015: 1,100,274) on exercise of options granted under the employees stock option plan (ESOP) wherein part consideration was received in the form of employee services.

e) Rights, preferences, restrictions of equity shares

The Company has only one class of equity shares having par value of Rs, 10 per share. Every holder is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors and approved by the Shareholders in the Annual General Meeting is paid in Indian rupees.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

*Term loans from banks carry an interest rate between 12% - 13% are secured by pari passu first charge on the DVD/ satellite rights acquired for the domestic market, actionable claims, revenue and receivables arising on sales of the rights and negatives of films. Term loans are further secured by

a) Equitable mortgage of Companyâs immovable properties situated at Mumbai, India;

b) Amounts held as margin money;

c) Corporate guarantee of Eros International PLC, the ultimate holding company;

d) Residual value of equipments and vehicles; and

e) Existing rights of Hindi films with nil book value.

Loans are repayable in monthly/ quarterly installments over a period of 2 - 5 years.

# Car loans are secured by hypothecation of vehicles acquired there against, carrying rate of interest of 10%-10.50% which are repayable in monthly installments over a period of 3 years.

Note : There is no default, continuing or otherwise as at the balance sheet date, in repayment of any of the above loans.

Notes:

1 During the year ended 31 March 2015, the Company received a show cause notice from the Commissioner of Service Tax to show cause why an amount aggregating to Rs, 15,675 lakhs for the period 1 April 2009 to 31 March 2014 should not be levied on and paid by the Company for service tax arising on temporary transfer of copyright services and other matters.

In connection with the aforementioned matters, on 19 May 2015, the Company received an Order-in-original issued by the Principal Commissioner, Service Tax, wherein the department confirmed the demand of Rs, 15,675 lakhs along with interest and penalty amounting to Rs, 15,675 lakhs resulting into a total demand of Rs, 31,350 lakhs.

On 3 September 2015, the Company filed an appeal against the said order before the authorities. The Company has paid Rs, 1,000 Lakhs under protest . Considering the facts and nature of levies and the ad-interim protection for the period 1 July 2010 to 30 June 2012 granted by the Honorable High Court of Mumbai, the Company expects that the final outcome of this matter will be favourable.

Accordingly, based on the assessment made after taking appropriate legal advise, no additional liability has been recorded in the financial statements.

2 Company has received notice for reversal of CENVAT credit for the period 2013-14 to 2015-16 Rs, 187 Lakhs and for the period Jan 16 to March 2017 Rs, 204 Lakhs. Further Company also received notice for Non levy of Service tax on Import of Services for the period 2013-14 to 2015-16 for Rs, 70 Lakhs.

3 I n addition, the Company is liable to pay service tax on use on temporary transfer of copyright in the period 1 July 2010 to 30 June 2012. The Company filed a writ petition in Mumbai High Court challenging the constitutionality and the legality of this entry and received ad-interim protection and accordingly, no amounts were provided for by the Company for the period 1 April 2011 to 30 June 2012.

4 It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

5 From time to time, the âCompanyâ is involved in legal proceedings arising in the ordinary course of its business, typically intellectual property litigation and infringement claims related to the Companyâs feature films and other commercial activities, which could cause the Company to incur expenses or prevent the Company from releasing a film. While the resolution of these matters cannot be predicted with certainty, the Company does not believe, based on current knowledge or information available, that any existing legal proceedings or claims are likely to have a material and adverse effect on its financial position, results of operations or cash flows.

6 The Company does not expect any reimbursements in respect of the above contingent liabilities.

âActuarial loss of Rs, 22 lakhs and actuarial gain of Rs, 13 lakhs (31 March 2016) is included in other comprehensive income.

b) Compensated absences

The Company incurred '' 129 lakhs (31 March 2016 '' 63 lakhs) towards accrual for compensated absences during the year.

c) Provident fund

The Company contributed Rs, 181 lakhs (31 March 2016 Rs, 193 lakhs) to the provident fund plan, Rs, 4 lakhs (31 March 2016 Rs, 3 lakhs) to the Employee state insurance plan and Rs, 10 lakhs (31 March 2016 Rs, 8 lakhs) to the National Pension Scheme during the year.

d) Share-based payment transactions

The Company has instituted Employeesâ Stock Option Plan âESOP 2009â under which the stock options have been granted to employees. The scheme was approved by the shareholders at the Extra Ordinary General Meeting held on 17 December 2009. The details of activity under the ESOP 2009 scheme are summarized below:

There were no cancellations or modifications to the awards in 31 March 2017 or 31 March 2016.

The expected life of options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may differ from the actual.

2 Segment Reporting

Description of segment and principal activities

to the Indian population in India and worldwide and to non-Indian consumers who view Indian films that are subtitled or dubbed in local languages. As a result of these distribution activities, the management examines the performance of the business from a geographical market perspective.

For the year ended 31 March 2017 and 31 March 2016 no third party customers accounted for more than 10% of the entityâs total revenues.

* Sales to UAE includes sales to its related party Eros Worldwide FZ LLC.

âCompany has obtained declarations from nominee shareholders stating that Eros International Media Limited is the beneficial owner of the shares held by them in below companies, thereby making below companies wholly owned subsidiaries of Eros International Media Limited:

> EM Publishing Pvt Ltd

> Eros Animation Pvt Ltd

> Eyeqube Studios Pvt Ltd

> Eros International Films Pvt Ltd

List of Key management personnel (KMP)

Mr. Sunil Lulla - Executive Vice Chairman and Managing Director Mr. Kishore Lulla - Executive Director Ms. Jyoti Deshpande - Executive Director

Mr. Vijay Ahuja - Non Executive, Non Independent Director (retired by rotation as on 29 September 2016) Mr. Dinesh Modi -Group Chief Financial Officer (India) (w.e.f. 11 November 2014)

Mr. Kamal Jain -Group Chief Financial Officer (India) (upto 30 November 2014)

Ms. Dimple Mehta - Vice President - Company Secretary and Compliance Officer

Relatives of KMP with whom transactions exist Mrs. Manjula K Lulla (wife of Mr. Kishore Lulla)

Mrs. Krishika Lulla (wife of Mr. Sunil Lulla) Entities over which KMP exercise significant influence Shivam Enterprises

Eros International Distribution LLP Eros Television India Private Limited Fellow subsidiary company Eros Digital Private Limited

Eros International Limited, United Kingdom Eros Digital FZ LLC

*Exclude financial instruments of investment in subsidiaries carried at cost (refer note 48).

3. Fair value measurement of financial instruments

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

*Exclude financial instruments of investment in subsidiaries carried at cost (refer note 48).

4. Financial instruments and Risk management

The Company is exposed to various risks in relation to financial instruments. The Companyâs financial assets and liabilities by category are summarized in note 44. The main types of risks are market risk, credit risk and liquidity risk.

The Companyâs risk management is coordinated in close cooperation with the board of directors and audit committee meetings.

The Company has established objectives concerning the holding and use of financial instruments. The underlying basis of these objectives is to manage the financial risks faced by the Company.

Management of Capital Risk and Financial Risk

Financial risk management objectives

Based on the operations of the Company , Management considers that key financial risks that it faces are credit risk, currency risk, liquidity risk and interest rate risk. The objectives under each of these risks are as follows:

Â® credit risk: minimize the risk of default and concentration.

Â® currency risk: reduce exposure to foreign exchange movements principally between INR and USD.

Â® liquidity risk: ensure adequate funding to support working capital and future capital expenditure requirements.

Â® interest rate risk: mitigate risk of significant change in market rates on the cash flow of issued variable rate debt.

Credit Risk

The credit risk on bank balances is limited because the counterparties are banks with high credit ratings as signed by international credit rating agencies.

The Company from time to time will have significant concentration of credit risk in relation to individual theatrical releases, television syndication deals or digital licenses. This risk is mitigated by contractual terms which seek to stagger receipts and/or the release or airing of content. As at 31 March 2017 66 % (31 March 2016: 84 %; 1 April 2015: 96% ) of trade account receivables were represented by the top 5 customer, out of which as at 31 March 2017 33 % (31 March 2016: 56 %; 1 April 2015: 67 % ) of trade account receivables were represented by the related parties. The maximum exposure to credit risk is that shown within the statement of financial position.

As at 31 March 2017, the Company did not hold any material collateral or other credit enhancements to cover its credit risks associated with its financial assets, except secured debtors.

Currency Risk

As at the Balance Sheet date there were no outstanding forward foreign exchange contracts. The Company adopts a policy of borrowing where appropriate in the local currency as a hedge against translation risk. The table below shows the Companyâs net foreign currency monetary assets and liabilities position in the main foreign currencies, translated to Indian Rupees(INR) equivalents, as at the yearend:

A uniform decrease of 10% in exchange rates against all foreign currencies in position as of 31 March 2017 would have decreased in the Companyâs net profit before tax by approximately Rs, 801 Lakhs (2016: gain of Rs, 1,585 Lakhs and 2015: gain of Rs, 1,713 Lakhs). An equal and opposite impact would be experienced in the event of an increase by a similar percentage.

Liquidity risk

At 31 March 2017, the Company had facilities available of Rs, 70,990 Lakhs (31 March 2016: Rs, 44,283 Lakhs, 1 April 2015: Rs, 47,323 Lakhs) and had net undrawn amounts of Rs, 1,444 Lakhs ( 31 March 2016: Rs, 2,250 Lakhs , 1 April 2015: Rs, 152 Lakhs) available.

Interest rate risk

The Company is exposed to interest rate risk as the Company has borrowed funds at floating interest rates. The risk is managed as the loans are at floating interest rates which is aligned to the market.

A uniform increase of 100 basis in interest rates against all borrowings in position as of 31 March 2017 would have decreased in the Companyâs net profit before tax by approximately '' 213 (2016: net profit before tax of Rs, 63 and 2015: net profit before tax of Rs, 72). An equal and opposite impact would be experienced in the event of a decrease by a similar basis.

5. Disclosure on Specified Bank Notes (SBNs)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:

6.First time adoption of Indian Accounting Standards (Ind AS)

For all periods, up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under the Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

These financial statements for the year ended 31 March 2017 have been prepared in accordance with Indian Accounting Standards (âInd-ASâ) consequent to the notification of The Companies (Indian Accounting Standards) Rules, 2015 (the Rules) issued by the MCA. These are the first Ind-AS financial statements of the Company, wherein the Company has restated its Balance Sheet as at 1 April 2015 and financial statements for the year ended and as at 31 March 2016 also as per Ind-AS.

Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below.

A Exemptions and Exceptions availed:

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

(a) Deemed Cost

There is no change in the functional currency of the Company and accordingly, the Company has opted para D7 AA and accordingly considered the carrying value of property, plant and equipments and Intangible assets as deemed cost as at transition date.

(b) Classification and measurement of Financial Assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist on the date of transition to Ind AS.

(c) Business Combinations

I nd AS 103 on Business Combinations has not been applied to acquisitions of businesses that occurred before 1 April 2015. Use of this exemption means that assets and liabilities acquired under a business combination and eligible for recognition under Ind

AS will be the Indian GAAP carrying values on the acquisition date.

(d) Share based options

I nd AS 102 on share-based payment has not been applied to equity instruments in share-based payment transactions that vested before the date of transition to Ind AS.

(e) Leases

Appendix C to Ind AS 17 requires the Company to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all relevant arrangements for classification of leases based on facts and circumstances existing at the date of transition to Ind AS.

(f) Investment in subsidiaries

In accordance with the exemption given in Ind AS 101, the Company has recorded investment in subsidiaries at deemed cost i.e. Indian GAAP carrying amount except investment in Universal Power Systems Private Limited. (Refer note 5)

(g) Estimates

Upon an assessment of th e estimates mad e und er Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS except as a part of transition where following estimates were required by Ind AS and not required by Indian GAAP Impairment of financial assets based on expected credit loss model.

C Notes to first time adoption of Ind AS:

(i) MAT Credit

Under Previous GAAP, MAT credit was disclosed under noncurrent assets. In accordance with Ind AS

12, deferred tax asset shall include any carry forward unused tax credits. Hence, MAT credit entitlement has been included in deferred tax liabilities.

(ii) Expected Credit Loss

Under Indian GAAP allowances of doubtful debt was provided as per management estimate whereas under Ind AS allowances are based on expected credit loss model as per Ind - AS 109 - Financial Instruments.

(iii) ESOP accounting

Under Ind-AS, it is measured using grant date fair value whereas under Indian GAAP, ESOP liability was accounted for at intrinsic value.

(iv) Equity settled business combination

Under Ind-AS, the same has been accounted for at fair value of equity shares on the acquisition date as per Ind-AS 103 - Business Combinations whereas under Indian GAAP, the acquisition of a subsidiary by issuing equity shares to the transferor was accounted for at fair value of those equity shares on the date of agreement.

(v) Other comprehensive income (OCI)

I nd-AS requires preparation of Statement of Other Comprehensive Income in addition to Statement of Profit and Loss. Re-Measurement gain/loss on defined benefit plans earlier accounted for in statement of profit and loss under Indian GAAP has been reclassified to OCI as required by Ind-AS 19 -Employee Benefits.

(vi) Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings were disclosed as prepaid expenses and charged to statement of profit and loss on a systematic basis. Under Ind AS, borrowings are recorded initially at fair value less transaction costs and are subsequently measured at amortized cost as per the Effective Interest Rate (EIR) method.

(vii) Deferred Tax

Deferred tax under Ind AS has been recognized for temporary differences between tax base and the book base of the relevant assets and liabilities. Under IGAAP the deferred tax was accounted based on timing differences impacting the profit or loss for the period. Deferred tax on aforesaid Ind AS adjustments has been created for both periods - as on 31 March

2016 and 1 April 2015.

(viii) Effect of Ind AS adoption on Statement of Cash Flow

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31 March 2016 as compared with the Indian GAAP,

(ix) Retained Earnings

Retained earnings as at 1 April 2015 has been adjusted consequent to the above Ind AS transition adjustments.

7. Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

8. As per the provision of the Act, a Corporate Social Responsibility (CSR) committee has been formed by the Company. CSR objects chosen by the Company primarily consist of promoting education, promoting gender equality, empowering women, setting up homes and hostels for women and orphans etc. As per the provisions of the Act, gross amount required to be spent by the Company is Rs, 427 lakh (31 March 2016: Rs, 374 lakh), of which Rs, 10 lakhs (31 March 2016: Rs, 20 lakh) have been spent during the current year.

9. Post reporting date events

No adjusting or significant non-adjusting events have occurred between 31 March 2017 and the date of authorisation of these standalone financial statements

10. Authorisation of financial statements

The financial statement for the year ended 31 March 2017 (including comparatives) were approved by the board of directors on 26 May 2017

Mar 31, 2016

1. EMPLOYMENT BENEFITS

a) Gratuity

The following table set out the status of the gratuity plan as required under Accounting Standard (AS) - 15 Employee benefits and the reconciliation of opening and closing balances of the present value of the defined benefit obligation:

The estimates of future salary increases, considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Compensated absences

The Company incurred Rs. 63 lakhs (Previous year Rs. 65 lakhs) towards accrual for compensated absences during the year.

c) Provident fund

The Company contributed Rs. 193 lakhs (Previous year Rs. 113 lakhs) to the provident fund plan, Rs. 3 lakhs (Previous year Rs. 4 lakhs) to the Employee state insurance plan and Rs. 8 lakhs (Previous year Rs. Nil) to the National Pension Scheme during the year.

d) Employee stock compensation (ESOP 2009 Scheme):

The Company has instituted Employees'' Stock Option Plan "ESOP 2009" under which the stock options have been granted to employees. The scheme was approved by the shareholders at the Extra Ordinary General Meeting held on 1 7 December 2009.

2. SEGMENT REPORTING

As permitted by Accounting Standard -17, ''Segment Reporting'', if a single financial report contains both consolidated financial statements and separate financial statements of the parent, segment information needs to be presented only on the basis of consolidated financial statements. Accordingly, disclosures mandated by AS-1 7 have been made in the consolidated financial statements.

3. Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

4. The Company is engaged in the production and trading of film rights, which requires various types, qualities and quantities of raw materials and inputs in different denominations. Due to the multiplicity and complexity of items, it is not practicable to maintain quantitative record or continuous stock register, as the process of making films is not amenable to it. Hence, quantitative details are not maintained by the Company. This practice is generally followed by companies in the industry.

5. As per the provision of the Act, a Corporate Social Responsibility (CSR) committee has been formed by the Company. CSR objects chosen by the Company primarily consist of promoting education, promoting gender equality, empowering women, setting up homes and hostels for women and orphans etc. As per the provisions of the Act, gross amount required to be spent by the Company is Rs. 374 lakh (previous year Rs. 358 lakh), of which Rs. 20 lakhs (previous year Rs. 55 lakh) have been spent during the current year.

Mar 31, 2015

1 CORPORATE INFORMATION

Eros International Media Limited (the 'Company') was incorporated in India, under the Companies Act, 1956. The Company is a global player within the Indian media and entertainment industry and is primarily engaged in the business of film production, exploitation and distribution. It operates on a vertically integrated studio model controlling content as well as distribution and exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication. Its shares are listed on leading stock exchanges in India (BSE Scrip Code: 533261; NSE Scrip Code: EROSMEDIA).

2 SHARE CAPITAL

a) Details of employee stock options issued during the last 5 years

During the period of five years immediately preceding the reporting date, the Company has issued total 1,100,274 shares (2014: 566,190) on exercise of options granted under the employees stock option plan (ESOP) wherein part consideration was received in the form of employee services.

b) Rights, preferences, restrictions of Equity Shares

The Company has only one class of equity shares having par value of Rs.10 per share. Every holder is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors and approved by the Shareholders in the Annual General Meeting is paid in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

3 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Rs. in lacs

As at As at March 2015 31 March 2014

a) Contingent liabilities

(i) Claims against the Company not acknowledged as debt

Sales tax claims disputed by 314 72 the Company

Service tax on non-theatrical sales 15,675 -

Income tax liability that may arise 43 53 in respect of matters in appeal

Bills of exchange with recourse, - 5,799 accepted but not due

Maharashtra VAT and Central sales - 1,365 tax on theatrical sales (ii) Guarantees

Guarantee given in favour of various 86 86 government authorities

Guarantees given on behalf of others - 2,500

Total 16,118 9,875

Note:

1) In addition, the Company is liable to pay service tax on use on temporary transfer of copyright in the period 1 July 2010 to 30 June 2012. The Company filed a writ petition in Mumbai High Court challenging the constitutionality and the legality of this entry and received ad-interim protection and accordingly, no amounts were provided for by the Company for the period 1 April 2011 to 30 June 2012.

2) During the year ended March 2015, the Company received a notice from the Commissioner of Service Tax to show cause why an amount aggregating to Rs. 15,675 lacs for the period 1 April 2009 to 31 March 2014 should not be levied on and paid by the Company for service tax arising on temporary transfer of copyright services and other matters.

On 19 March 2015, the Company filed its objections against the said notice before the authorities. Considering the facts and nature of levies and the ad-interim protection for the period 1 July 2010 to 30 June 2012 granted by the Honourable High Court of Mumbai, the Company expects that the final outcome of this matter will be favorable. Accordingly, based on the assessment made after taking appropriate legal advise, no additional liability has been recorded in the financial statements

3) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

4) From time to time, the 'Company' is involved in legal proceedings arising in the ordinary course of its business, typically intellectual property litigation and infringement claims related to the Company's feature films and other commercial activities, which could cause the Company to incur expenses or prevent the Company from releasing a film. While the resolution of these matters cannot be predicted with certainty, the Company does not believe, based on current knowledge or information available, that any existing legal proceedings or claims are likely to have a material and adverse effect on its financial position, results of operations or cash flows.

5) The Company does not expect any reimbursements in respect of the above contingent liabilities.

b) Commitments

Rs. in lacs

As at As at March 2015 31 March 2014

Estimated amount of contracts remaining 126,156 54,928 to be executed on capital account 126,156 54,928

Total 142,274 64,803

4 Compensated absences

The Company incurred Rs. 65 lacs (Previous year Rs. 21.02 lacs) towards accrual for compensated absences during the year.

5 Provident fund

The Company contributed Rs. 113 lacs (Previous year Rs. 86 lacs) to the provident fund plan and Rs. 4 lacs (Previous year Rs. 3 lacs) to the Employee state insurance plan during the year.

6 Employee stock compensation (ESOP 2009 Scheme):

The Company has instituted Employees' Stock Option Plan "ESOP 2009" under which the stock options have been granted to employees. The scheme was approved by the shareholders at the Extra Ordinary General Meeting held on 17 December 2009.

For the options exercised during the year, the weighted average share price at the exercise date was Rs. 153 per share (31 March 2014: Rs. 98 per share)

The range of exercise prices for the options outstanding at the end of the year was Rs. 10 to Rs. 175 per share (31 March 2014: Rs. 75 to Rs. 175 per share).

The Company incurred Rs. 469 lacs (Previous year Rs. 235 lacs) towards employees stock compensation plan during the year

The weighted average fair value of stock options granted during the year was Rs. 303 (31 March 2014: Rs. 55). Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

7 SEGMENT REPORTING

As permitted by Accounting Standard -17, 'Segment Reporting', if a single financial report contains both consolidated financial statements and separate financial statements of the parent, segment information needs to be presented only on the basis of consolidated financial statements. Accordingly, disclosures mandated by AS-17 have been made in the consolidated financial statements.

8 RELATED PARTY DISCLOSURES

a) Names of related parties

Ultimate holding company Eros International PLC, Isle of Man

Holding company Eros Worldwide FZ LLC, Dubai

Subsidiary companies Eros International Films Private Limited

Copsale Limited

Big Screen Entertainment Private Limited

EyeQube Studios Private Limited

EM Publishing Private Limited

Eros Animation Private Limited

Digicine PTE Limited

Colour Yellow Productions Private Limited (w.e.f 24 May 2014)

Ayngaran International Limited (Isle of Man) Ayngaran International UK Limited

Ayngaran International Mauritius Limited

Ayngaran International Media Private Limited

Ayngaran Anak Media Private Limited

Fellow subsidiary companies Eros Digital Private Limited with whom transactions exist Eros International Limited, United Kingdom

Key management personnel Mr. Sunil Lulla - Executive Vice Chairman (KMP) and Managing Director

Mr. Kishore Lulla - Executive Director

Mrs. Jyoti Deshpande - Executive Director

Mr. Vijay Ahuja - Non-Executive Director

(w.e.f. 13 February 2015)

Mr. Kamal Jain - Group Chief Financial Officer (India) (upto 30 November 2014)

Mr. Dinesh Modi - Group Chief Financial Officer (India) (w.e.f. 11 November 2014)

Ms. Dimple Mehta - Company Secretary and Compliance Officer

Relatives of KMP with Mrs. Manjula K Lulla (wife of Mr. whom transactions exist Kishore Lulla)

Mrs. Krishika Lulla (wife of Mr. Sunil Lulla)

Entities over which KMP exercise significant influence Shivam Enterprises

9 Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

10 The Company is engaged in the production and trading of film rights, which requires various types, qualities and quantities of raw materials and inputs in different denominations. Due to the multiplicity and complexity of items, it is not practicable to maintain quantitative record or continuous stock register, as the process of making films is not amenable to it. Hence, quantitative details are not maintained by the Company as is the practice generally followed by companies in the industry.

11 As per the provision of the Act, a Corporate Social Responsibility (CSR) committee has been formed by the Company. CSR objects chosen by the Company primarily consist of promoting education, promoting gender equality, empowering women, setting up homes and hostels for women and orphans etc. As per the provisions of the Act, gross amount required to be spent by the Company is Rs. 358 lacs, of which Rs. 55 lacs have been spent by the Company.

Mar 31, 2014

CORPORATE INFORMATION

Eros International Media Limited (the ''Company'') was incorporated in India, under the Companies Act, 1956. The Company is a global player within the Indian media and entertainment industry and is primarily engaged in the business of film production, exploitation and distribution. It operates on a vertically integrated studio model controlling content as well as distribution and exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication. Its shares are listed on leading stock exchanges in India (BSE Scrip Code: 533261; NSE Scrip Code: EROSMEDIA).

Amounts Rs. in lacs

As at As at 31 March 2014 31 March 2013

NOTE 1 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(a) Contingent liabilities

(i) Claims against the Company not acknowledged as debt

Sales tax claims disputed by the Company 72 72

Maharashtra VAT and Central sales tax on theatrical sales 1,365 1,355

Income tax liability that may arise in respect of matters in appeal 53 53

Legal claims against the Company - 3,413

Bills of exchange with recourse, accepted but not due 5,799 5,798

(ii) Guarantees

Guarantee given in favor of various 86 25 government authorities

Guarantees given on behalf of others 2,500 -

9,875 10,716

Notes:

1 In addition, the Company is liable to pay service tax on temporary transfer of copyright in the period 1 July 2010 to 30 June 2012. The Company filed a writ petition in Mumbai High Court challenging the constitutionality and the legality of this entry and received ad-interim protection and accordingly, no amounts were provided for by the Company for the period 1 April 2011 to 30 June 2012.

2 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.

3 Guarantee has been given by the Company to a film producer under co-production agreement for financing the release of an upcoming film.

4 The Company does not expect any reimbursements in respect of the above contingent liabilities.

NOTE 2 : SEGMENT REPORTING

As permitted by paragraph 4 of Accounting Standard -17, ''Segment Reporting'', if a single financial report contains both consolidated financial statements and separate financial statements of the parent, segment information needs to be presented only on the basis of consolidated financial statements. Accordingly, disclosures mandated by AS-17 have been made in the consolidated financial statements.

NOTE 3

Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

NOTE 4

The Company is engaged in the production and trading of film rights, which requires various types, qualities and quantities of raw materials and input in different denominations. Due to the multiplicity and complexity of items, it is not practicable to maintain quantitative record or continuous stock register, as the process of making films is not amenable to it. Hence, quantitative details are not maintained by the Company as is the practice generally followed by companies in the industry.

NOTE 5

Previous year figures have been regrouped/ reclassified, wherever required, to conform to current year classification.

Mar 31, 2013

1 CORPORATE INFORMATION

Eros International Media Limited (BSE Scrip Code: 533261; NSE Scrip Code: EROSMEDIA) is a global player within the Indian media and entertainment arena. It operates on a vertically integrated studio model controlling content as well as distribution and exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication.

I. BASIS OF PREPARATION

Eros International Media Limited (the ''Company'') is engaged in the business of sourcing Indian film content either through acquisition, co-production or production of such films, and subsequently exploiting and distributing such films in India through music release, theatrical distribution, DVD and VCD release, television licensing and new media distribution avenues such as cable or DTH licensing; and trading and exporting the International Rights to its parent Eros Worldwide FZ LLC as per pre-agreed transfer pricing norms. The Company''s financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the applicable Accounting Standards (''AS'') as notified by the Central Government under the Companies Act, 1956 to the extent applicable.

II. USE OF ESTIMATES

The preparation of the financial statements in conformity with generally accepted accounting principles (''GAAP'') requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of financial statements are prudent and reasonable. Actual future period''s results could differ from those estimates. Any revision to accounting estimates is recognized in the period in which revisions are made.

NOTE 2.1 : SEGMENT INFORMATION

a) Primary segment information

The Company is solely engaged in the business of film production and exploitation. The entire operations are governed by the same set of risks and returns and hence, have been considered as representing a single primary segment.

b) Secondary segment information

The Company''s operating divisions are managed from India. The principal geographic areas in which the Company operates based on location of customers are ''Within India'' and ''Outside India''.

NOTE 2.2 : CONTINGENT LIABILITIES

a) The Company has given bank guarantees in favour of various Government authorities to the extent of Rs. 25 lacs (Previous year Rs. 200 lacs).

b) Corporate guarantees given on behalf of subsidiary company are Nil. (Previous year Rs. 500 lacs).

c) Sales tax/cess claims disputed by the Company Rs. 72 lacs (Previous year Rs. 1,671 lacs).

d) Income tax and interest demands raised by authorities and disputed by the Company Rs. 53 lacs (net of Income tax demand adjusted against refund due) (Previous year Rs. 47 lacs).

e) Claims against the Company not acknowledged as debts Rs. 3,413 lacs (Previous year Rs. 1,597 lacs). There are certain legal cases against the company the value for which are unascertainable.

f) Maharashtra Value Added Tax and Central Sales Tax levied on the sale or lease of copyrights under the Maharashtra VAT Act 2002, for the period 1 April 2012 to 31 March 2013 totaling to Rs. Nil (Previous year Rs. 3 lacs) is disputed by the Company. The cumulative total of tax disputed as at 31 March 2013 is Rs. 1,355 lacs (Previous year Rs. 1,409 lacs). In line with film industry consensus the Company is of the opinion that there are no grounds for levying VAT on film distribution activity.

g) The Finance Act 2010 has levied service tax on transferring temporarily of permitting use or enjoyment of movies copyrights with effect from 1 July 2010 to 30 June 2012. For the said period, the Industry has jointly protested through various actions and also few leading film studios and production houses have filed the Writ Petition in Mumbai High Court challenging the constitutionality and the legality of this entry, since it is already a taxing entry with State Governments as sales by way of transfer of the right to use and is already subjected to Sales Tax / Value Added Tax. The company has also filed the writ on the same and has challenged the constitutional validity of the levy.

h) Bill of Exchanges accepted but not due Rs. 5,798 lacs ( Previous year Nil)

NOTE 2.3 DEFERRAL OF EXCHANGE DIFFERENCES

The Company has, consequent to the notification issued by the Ministry of Corporate Affairs on 29 December 2011 giving an option to the companies to amortize the exchange differences pertaining to long term foreign currency monetary items up to 31 March 2020 (from 31 March 2012 earlier), adopted the said option given under paragraph 46 of Accounting Standard 11. Net foreign exchange aggregating to Rs. 49 lacs has been capitalized to the Intangibles during the year out of which the Company has charged an amount of Rs. 29 lacs to the Statement of Profit and Loss as per the amortization policy of the Company.

NOTE 2.4 EARNINGS PER SHARE

The basic earnings per equity share are computed by dividing the net profit attributable to the equity shareholders for the reporting period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive.

The earnings per share is calculated as under:

NOTE 2.5 OPERATING LEASES

The Company has various operating lease agreements for office facilities and residential premises for employees. These agreements are for tenures between 12 months and 3 years and are renewable by mutual consent on mutually agreeable terms.

NOTE 2.6 EMPLOYEE BENEFITS

The relevant disclosures in pursuance of Accounting Standard [AS 15 (Revised) 2005] "Employee Benefits" notified by the Companies Act, 1956 are as follows:

i) The Company has recognized, in the Statement of Profit and Loss the following expense under defined contribution plan.

NOTE 2.7 EMPLOYEES STOCK OPTION PLAN (ESOP)

ESOP 2009 scheme:

The Company has instituted Employees'' Stock Option Plan i.e. ESOP 2009 under which the stock options have been granted to the employees. The scheme was approved by our shareholders at the Extra Ordinary General Meeting held on 17 December 2009

NOTE 2.8 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISE

Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

NOTE 2.9

Balances of certain trade receivables, loans and advances and trade payables in respect of certain films are subject to confirmation/reconciliation and subsequent adjustment, if any. In the opinion of the management such adjustments are not likely to be material.

NOTE 2.10

The Company is engaged in the production and trading of film rights, which requires various types, qualities and quantities of raw materials and input in different denominations. Due to the multiplicity and complexity of items, it is not practicable to maintain the quantitative record/continuous stock register, as the process of making films is not amenable to it. Hence, quantitative details are not maintained by the Company as is the practice generally followed by companies in the industry.

NOTE 2.11

The previous year figures have also been reclassified to conform to this year''s classification.

Mar 31, 2012

1 Corporate Information

Eros International Media Limited (BSE Scrip Code: 533261; NSE Scrip Code: EROSMEDIA) is a global player within the Indian media and entertainment arena. It operates on a vertically integrated studio model controlling content as well as distribution and exploitation across multiple formats globally, including cinema, digital, home entertainment and television syndication.

NOTE 1.1 : SEGMENT INFORMATION

a) Primary segment information

The Company is solely engaged in the business of film production and exploitation. The entire operations are governed by the same set of risks and returns and hence, have been considered as representing a single primary segment.

b. Secondary segment information

The Company's operating divisions are managed from India. The principal geographic areas in which the Company operates based on location of customers are 'Within India' and 'Outside India'.

NOTE 1.2 CONTINGENT LIABILITIES:

a) The Company has given bank guarantees in favour of various Government authorities to the extent of Rs. 200 Lakhs (Previous year Rs. 200 Lakhs).

b) Corporate guarantees given on behalf of subsidiary company Rs. 500 Lakhs (Previous year Rs. 500 Lakhs).

c) Sales tax/cess claims disputed by the Company Rs. 1671 Lakhs (Previous year Rs. 1671 Lakhs)

d) Income tax and interest demands raised by authorities and disputed by the Company Rs. 47 Lakhs (net of Income tax demand adjusted against refund due) (Previous year Rs. 236 Lakhs).

e) Claims against the Company not acknowledged as debts Rs. 1,597 Lakhs (Previous year Rs. 1,590 Lakhs). There are certain legal cases against the Company the value for which are unascertainable.

f) Maharashtra Value Added Tax and Central Sales Tax levied on the sale or lease of copyrights under the Maharashtra VAT Act 2002, for the period 1 April 2011 to 31 March 2012 totaling to Rs. 3 Lakhs (Previous year Rs. 852 Lakhs) is disputed by the Company. The cumulative total of tax disputed as at 31 March 2012 is Rs. 1,409 Lakhs (Previous year Rs. 1,456 Lakhs). In line with film industry consensus the Company is of the opinion that there are no grounds for levying VAT on film distribution activity.

g) The Finance Act 2010 has levied service tax on transferring temporarily of permitting use or enjoyment of movies copyrights with effect from 1 July 2010. The Industry has jointly protested through various actions and also few leading film studios and production houses have fled the Writ Petition in Mumbai High Court challenging the constitutionality and the legality of this entry, since it is already a taxing entry with State Governments as sales by way of transfer of the right to use and is already subjected to Sales Tax / Value Added Tax. The Company has also fled the writ on the same and has challenged the constitutional validity of the levy.

NOTE 1.3 DEFERRAL OF EXCHANGE DIFFERENCES

The Company has, consequent to the notification issued by the Ministry of Corporate Affairs on 29 December 2011 giving an option to the companies to amortise the exchange differences pertaining to long term foreign currency monetary items up to 31 March 2020 (from 31 March 2012 earlier), adopted the said option given under paragraph 46 of Accounting Standard 11. Net foreign exchange aggregating to Rs. 124 Lakhs has been capitalised to the Intangibles during the year out of which the Company has charged an amount of Rs.75 Lakhs to the Statement of Profit and Loss as per the amortisation policy of the Company

2.0 EMPLOYEES STOCK OPTION PLAN (ESOP)

ESOP 2009 scheme:

The Company has instituted Employees' Stock Option Plan i.e. ESOP 2009 under which the stock options have been granted to the employees. The scheme was approved by our shareholders at the Extra Ordinary General Meeting held on 17 December 2009

NOTE 2.1 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISE

Based on the information available with the Company, there are no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

NOTE 2.2 Balances of certain trade receivables, loans and advances and trade payables in respect of certain films are subject to confrmation/reconciliation and subsequent adjustment, if any. In the opinion of the management such adjustments are not likely to be material.

NOTE 2.3 The company is engaged in the production and trading of film rights, which requires various types qualities and quantities of raw materials and input in different denominations. Due to the multiplicity and complexity of items, it is not practicable to maintain the quantitative record/continuous stock register, as the process of making films is not amenable to it. Hence, quantitative details are not maintained by the company as is the practice generally followed by companies in the industry.

NOTE 2.4 The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

Mar 31, 2011

I. Nature of Operations

Eros International Media Limited (the Company) and its subsidiaries including step down subsidiaries (hereinafter collectively referred to as the ÃGroupÃ) are engaged in the business of sourcing Indian film content either through acquisition, co-production or production of such films, and subsequently exploiting and distributing such films in India through music release, theatrical distribution, DVD and VCD release, television licensing and new media distribution avenues such as cable or DTH licensing; and trading and exporting the International Rights to its parent Eros Worldwide FZ LLC as per pre-agreed transfer pricing norms. The Group also includes a visual effects studio named EyeQube that provides production planning and visual effects services for films and the Group includes Ayngaran group of companies which is involved in the acquisition, production and distribution of Tamil films worldwide

2. Balances of certain debtors, advance and creditors in respect of certain films are subject to confirmation / reconciliation and subsequent adjustment, if any. In the opinion of the management such adjustments are not likely to be material.

3. Consolidated Statement of Contingent Liabilities

Rs. in thousands Particulars As at 31 March As at 31 March 2011 2010

Bank Guarantees in favour of various Government Authorities 27,044 275

Corporate guarantee to a bank for loans availed by 50,000 50,000 subsidiary company

Sales tax/cess claims disputed by the Company 167,102 159,935

Claims against the Company not acknowledged as debts 159,727 159,752

Income tax and interest demands raised by authorities and 3,394 11,711 disputed by the Company

Maharashtra Value Added Tax and Central Sales Tax Liability 125,928 82,234 on the sale or lease of Copy Rights under the MVAT Act and disputed by the Company and the Industry.

TOTAL 533,195 463,907

The Finance Act 2010 has levied service tax on transferring temporarily of permitting use or enjoyment of movies copyrights with effect from 1 July 2010. The Industry has jointly protested through various actions and also few leading film studios and production houses have filed the Writ Petition in Mumbai High Court challenging the constitutionality and the legality of this entry, since it is already a taxing entry with State Governments as sales by way

of transfer of the right to use and is already subjected to Sales Tax / Value Added Tax. The Company has also filed the writ on the same and has challenged the constitutional validity of the levy.

4. Related party information

In accordance with the requirements of Accounting Standard 18, ÃRelated Party DisclosuresÃ notified under the Companies Act, 1956, the details of related party transactions are given below:

a. List of related parties:

Nature of relationship Name of related parties

Ultimate Holding Company Eros International PLC, Isle of Man

Holding Company Eros Worldwide FZ LLC, Dubai

Entities having common control Eros International Ltd United Kingdom.

Fellow Subsidiary Eros Digital Private Limited

Entities having signifi cant influence Shivam Enterprises

Key Management Personnel Mr. Naresh Chandra Ã Non Executive Chairman and Independent Director

Mr. Sunil Lulla Ã Executive Vice Chairman and Managing Director

Mr. Kishore Lulla Ã Executive Director

Ms. Jyoti Deshpande Ã Executive Director

Mr. Dhirendra Swarup Ã Non Executive Independent Director

Dr. Shankar Nath Acharya Ã Non Executive Independent Director

Mr. Vijay Ahuja Ã Executive Director

Relatives of Key Management Mrs.Meena A. Lulla Personnel Mrs. Meena A. Lulla

Mrs. Manjula K. Lulla

Mrs. Krishika Lulla

Ms. Nitu Lulla

5. Segment information

a. Primary segment information

The Company is solely engaged in the business of film production and exploitation. The entire operations are governed by the same set of risks and returns and hence, have been considered as representing a single primary segment.

b. Secondary segment information

The principal geographic areas in which the Company operates based on location of customers are Within India and Outside India.

7. The Company had exercised the option granted vide notification F. No. 17/33/2008/CL-V dated 31 March 2009 issued by the Ministry of Corporate Affairs and accordingly the exchange differences arising on revaluation of long term foreign currency monetary items for the year ended 31 March 2008 had been recognized over the shorter of the maturity period or 31 March 2011. Due to this the profit for the current year is lower by Rs. 580 thousands (Previous Year Rs. 10,938 thousands).

10. Dues to Micro, Small and Medium enterprise

Based on the information available with the Group, there is no dues payable as at the year end to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

11. The Company has completed the Public issue of 20,000,000 equity shares of Rs. 10 each for cash at a price of Rs. 175 per equity share, aggregating Rs. 35,000 Lakhs. The public issue constituted 21.88% of the fully diluted equity share capital of the Company. The total share premium amounting to Rs. 33,000 Lakhs (@ Rs. 165 per equity share) has been credited to Share Premium Account and expenses related to the Initial Public Offer are charged to the Share Premium account.

Pursuant to the public issue, the equity shares of the Company are listed on Bombay Stock Exchange and National Stock Exchange, effective 6 October 2010.

12. Previous year figures have been reclassified wherever necessary, to conform to current yearÃs classification.

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