Corporate information
Amagi Media Labs Private Limited (formerly Amagi Technologies Private Limited) ('the Holding Company') was incorporated
on 1 February 2008. The Holding Company has its Registered Office in Bengaluru. The Holding Company along with its
subsidiaries (together referred to as ‘the Group’) is engaged in the business of television advertisement related services, cloud
enabled television broadcasting, targeted content delivery and trading of certain integrated receiver and decoder devices.
2. Future Operations
The Group has accumulated losses amounting to Rs. 2,713,160,963 as on 31 March 2021 (31 March 2020: Rs. 2,920,327,131). As
at 31 March 2021, the Group has surplus liquid funds in the form of current investments of Rs. 172,561,812 (31 March 2020: Rs.
118,000,000), cash and bank balances of Rs. 269,840,200 (31 March 2020: Rs. 66,915,540) and positive net worth of Rs.
512,940,804 (31 March 2020: Rs. 304,477,010). Further, due to certain strategic changes in the advertisement business
operations, the management is expected to be profitable in the near future and is also confident of raising further funds from
certain investors and meeting its operating and capital requirements. Hence, the consolidated financial statements have been
brpared under the going concern assumption and no adjustments have been made to the carrying values or classification of
assets and liabilities.
3. Basis of brparation
The consolidated financial statements of the Group have been brpared in accordance with the generally accepted accounting
principles in India ('Indian GAAP'). The consolidated financial statements have been brpared to comply in all material
respects with the Companies (Accounting Standards) Rules, 2006 (as amended) specified under section 133 of the Act, read
with the Companies (Accounts) Rules, 2014. The consolidated financial statements have been brpared on an accrual basis
and under the historical cost convention.
The accounting policies adopted in the brparation of consolidated financial statements are consistent with those of brvious
year.
In the brparation of the consolidated financial statements, the subsidiary has been consolidated in accordance with the
Accounting Standard 21, ‘Consolidated Financial Statements’, (‘AS 21’), as specified under the Companies (Accounting
Standards) Rules, 2006 (as amended) specified under section 133 of the Act, read with the Companies (Accounts) Rules, 2014.
The consolidated financial statements have been brpared on the following basis:
(i) Subsidiary companies are consolidated on a line-by-line basis by adding together the book values of the like items of
assets, liabilities, income and expenses after eliminating all significant intra-group balances and intra-group transactions
and also unrealized profits or losses, except where cost cannot be recovered. The results of operations of subsidiaries are
included in the consolidated financial statements from the date on which the parent subsidiary relationship comes into
existence. Subsidiaries are fully consolidated from the date on which the Group obtains controls and continue to
consolidate until the date that such control ceases.
(ii) Minorities’ interest in net profits of consolidated subsidiaries for the period is identified and adjusted against the income
in order to arrive at the net income attributable to the shareholders of the Group. Their share of net assets is identified
and brsented in the consolidated balance sheet separately. Where accumulated losses attributable to the minorities are
in excess of their equity, in the absence of the contractual obligation on the minorities, the same is accounted for by the
Holding Company.
(iii) The consolidated financial statements are brpared using uniform accounting policies for like transactions and other
events in similar circumstances are brsented, to the extent possible, in the same manner as the Holding Company's
standalone financial statements.
(iv) The financial statements of the entities used for the purpose of consolidation are drawn up to same reporting date as that
of the Holding Company.
The consolidated financial statements relate to the Group. The Group, in addition to the Holding Company, comprises of the
following subsidiary:
Name of the Company Country of
incorporation
% of Ownership interest
As at March 31, 2021 As at March 31, 2020
Amagi Corporation United States 100% 100%
Amagi Media Labs Pte
Limited
Singapore 100% 100%
Amagi Media Pvt Ltd United Kingdom 100% 100%
Summary of significant accounting policies
(a) Use of estimates
The brparation of consolidated financial statements in conformity with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management’s
best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
(b) Property, plant and equipment
Property, plant and equipment, capital work in progress are stated at cost, net of accumulated debrciation and accumulated
impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met, directly
attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning,
restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost
includes the cost of replacing part of the property, plant and equipment. When significant parts of property, plant and equipment
are required to be replaced at intervals, the Group debrciates them separately based on their specific useful lives. Likewise,
when a major inspection is performed, its cost is recognised in the carrying amount of the property, plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as
incurred. Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost and
debrciated over their useful life. Otherwise, such items are classified as inventories.
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is
derecognized.
The Group identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost
which is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset.
(c) Debrciation on property, plant and equipment
Debrciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the
useful lives estimated by the management, which is reassessed every year by the Group. The Group has used the following
useful life to provide debrciation on its property, plant and equipment:
Particulars Useful lives estimated
by management (Years)
Plant and equipment 3
Computers 3
Furniture and Fixtures 5
Office equipment 5
Considering the usage pattern, the management has estimated above useful lives of Property, plant and equipment which is
supported by internal technical assessment.
Leasehold improvements is amortized on a straight line basis over primary lease period or estimated useful life whichever is
lower.
(d) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized
on a straight line basis over the estimated useful economic life of 1 to 3 years.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is
derecognized.
(e) Impairment of Property, plant and equipment and Intangible assets
The Group assesses at each balance sheet date whether there is any indication that a property, plant and equipment or capital
work in progress or intangible asset may be impaired. If any such indication exists, the Group estimates the recoverable amount
of the asset. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their brsent value using the br-tax discount rate that reflects current market
assessments of the time value of money and risks specific to the assets. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount
is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit
and loss. If at the balance sheet date there is an indication that a brviously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated
historical cost.
(f) Leases
(i) Where the Group is lessee
Finance leases, which effectively transfer to the Group substantially all the risks and benefits incidental to ownership of the
leased item, are capitalized at the inception of the lease term at the lower of the fair value of the leased property and brsent
value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease
liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as
finance costs in the consolidated statement of profit and loss. Lease management fees, legal charges and other initial direct
costs of lease are capitalized.
A leased asset is debrciated on a straight-line basis over the useful life of the asset. However, if there is no reasonable certainty
that the Group will obtain the ownership by the end of the lease term, the capitalized asset is debrciated on a straight-line
basis over the shorter of the estimated useful life of the asset or the lease term.
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified
as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straightline
basis over the lease term.
(ii) Where the Group is lessor
Leases in which the Group transfers substantially all the risks and benefits of ownership of the asset are classified as finance
leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment in the lease.
After initial recognition, the Group apportions lease rentals between the principal repayment and interest income so as to
achieve a constant periodic rate of return on the net investment outstanding in respect of the finance lease. The interest income
is recognized in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized
immediately in the consolidated statement of profit and loss.
Leases in which the Group does not transfer substantially all the risks and benefits of ownership of the asset are classified as
operating leases. Assets subject to operating leases are included in Property, plant and equipment. Lease income on an
operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including
debrciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage
costs, etc. are recognized immediately in the statement of profit and loss.
(g) Borrowing costs
Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowings.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All
other borrowing costs are expensed in the period they occur.
(h) Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. Current investments are carried in the consolidated financial statements
at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to
the consolidated statement of profit and loss.
(i) Inventories
Inventory comprises of traded goods and is measured at lower of cost and net realisable value. Cost includes cost of purchase
and other costs incurred in bringing the inventories to their brsent location and condition. Cost is determined on a weighted
average basis. Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost necessary
to make the sale.
(j) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can
be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been
passed to the buyer. The Group collects Goods and Services Tax (GST) and other taxes on behalf of the government and,
therefore, these are not economic benefits flowing to the Group. Hence, they are excluded from revenue.
Income from services
The Group generates revenue from sale of television advertisement spots, advertisement creative services, infrastructure and
playout services under cloud based television broadcasting. Revenues from sale of television advertisement spots and
advertisement creative services are recognised as and when the services are completed as per the terms of orders received from
customer. Revenue from distribution and playout services are recognised over the specific period in accordance with the terms
of the contracts with customers. The Group collected GST and other taxes on behalf of the government and, therefore, it is
not an economic benefit flowing to the Group. Hence, it is excluded from revenue.
Advances received for services are reported as liabilities until all conditions of revenue recognition are met. Unbilled revenue
included in the current assets rebrsent revenues in excess of amounts billed to clients as at the balance sheet date. Unearned
revenue included in the current liabilities rebrsents billings in excess of revenues recognized.
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head “other income” in the consolidated statement of profit and loss.
Equipment rental income
Equipment rental income is recognised over the specific period in accordance with the terms of the contracts with customers.
Dividends
Dividend income is recognized when the Holding Company’s right to receive dividend is established.
(k) Foreign currency translation
Foreign currency transactions and balances
(i) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange
rate between the reporting currency and the foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are retranslated using the exchange rate brvailing at the reporting date. Non-monetary items,
which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the
date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a
foreign currency, are translated using the exchange rate at the date when such value was determined.
(iii) Exchange differences
Exchange differences arising on the settlement of monetary items or on reporting Holding Company's monetary items at rates
different from those at which they were initially recorded during the period, are recognised as income or as expenses in the
period or year in which they arise.
(iv) Translation of integral and non-integral foreign operation
The Holding Company classifies all its foreign operations as either “integral foreign operations” or “non-integral foreign
operations”.
The consolidated financial statements of an integral foreign operation are translated as if the transactions of the foreign
operation have been those of the Holding Company itself.
The assets and liabilities of a non-integral foreign operation are translated into the reporting currency at the exchange rate
brvailing at the reporting date. Their consolidated statement of profit and loss is translated at exchange rates brvailing at the
dates of transactions or average rates, where such rates approximate the exchange rate at the date of transaction. The exchange
differences arising on translation are accumulated in the foreign currency translation reserve. On disposal of a non-integral
foreign operation, the accumulated foreign currency translation reserve relating to that foreign operation is recognized in the
consolidated statement of profit and loss.
The Holding Company has classified operations of all its subsidiaries as integral foreign operations for the year ended 31
March 2021 and 31 March 2020.
When there is a change in the classification of a foreign operation, the translation procedures applicable to the revised
classification are applied from the date of the change in the classification.
(l) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Group has no obligation, other than
the contribution payable to the provident fund. The Group recognizes contribution payable to the provident fund scheme as an
expenditure, when an employee renders the related service.
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit
credit method, made at the end of each financial year. Actuarial gains and losses are recognized in full in the year in which
they occur in the consolidated statement of profit and loss.
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The
Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused
entitlement that has accumulated at the reporting date.
The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for
measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the
projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the consolidated statement of
profit and loss and are not deferred. The Group brsents the entire provision for compensated absences as a current liability in
the consolidated balance sheet since it does not have an unconditional right to defer its settlement for twelve months after the
reporting date.
In respect of overseas employees of subsidiary, contribution made towards retirement and other employee benefits, in
accordance with the relevant applicable laws, is a defined contribution scheme and there is no obligation, other than the
contribution made. The contribution payable to the fund is recognised as an expenditure, when an employee renders the related
service.
(m) Income taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax
authorities in accordance with the tax laws brvailing in the respective tax jurisdictions where the Group operates. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating
during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and
the tax laws enacted or substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible
timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations where the Group has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence
that they can be realized against future taxable profits.
At each reporting date, the Group re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset
to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income
will be available against which such deferred tax assets can be realized. Deferred tax assets and deferred tax liabilities are
offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets
and deferred taxes relate to the same taxable entity and the same taxation authority.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Group writes-down the carrying amount
of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to
the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will
be available.
(n) Employee stock compensation cost
Employees (including senior executives) of the Group receive remuneration in the form of share based payment transactions,
whereby employees render services as consideration for equity instruments (equity-settled transactions).
In accordance with the Guidance Note on Accounting for Employee Share-based Payments, the cost of equity-settled
transactions is measured using the intrinsic value method. The cumulative expense recognized for equity-settled transactions
at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best
estimate of the number of equity instruments that will ultimately vest. The expense or credit recognized in the consolidated
statement of profit and loss for a period rebrsents the movement in cumulative expense recognized as at the beginning and
end of that period and is recognized in employee benefits expense.
Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the
terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any
modification that increases the total intrinsic value of the share-based payment transaction, or is otherwise beneficial to the
employee as measured at the date of modification.
(o) Stock Apbrciation Rights (SARs)
The Group provides SARs to certain employees whereby the employees render services as consideration for SARs options
which are settled in cash post the vesting period.
In accordance with the Guidance Note on Accounting for Employee Share-based Payments, the cost of cash-settled
transactions is measured using the fair value method at each reporting date. The cumulative expense recognized for cashsettled
transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and
the Group’s best estimate of the number of options that will ultimately vest. The expense or credit recognized in the standalone
statement of profit and loss for a period rebrsents the movement in cumulative expense recognized as at the beginning and
end of that period and is recognized in employee benefits expense. The corresponding liability is recorded as a provision for
employee benefit expenses.
(p) Segment reporting
Identification of segments
The Group’s operating businesses are organized and managed separately according to the nature of products and services
provided, with each segment rebrsenting a strategic business unit that offers different products and serves different markets.
The analysis of geographical segments is based on the areas in which major operating divisions of the Group operate.
Segment accounting policies
The Group brpares its segment information in conformity with the accounting policies adopted for brparing and brsenting
the consolidated financial statements of the Group as a whole.
(q) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during
the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate
in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares
outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding
change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.
(r) Provisions
A provision is recognized when the Group has a brsent obligation as a result of past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate
required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect
the current best estimates.
(s) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Group or a brsent obligation that is not
recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.
The Group does not recognize a contingent liability but discloses its existence in the consolidated financial statements.
(t) Cash and cash equivalents
Cash and cash equivalents for the purposes of consolidated cash flow statement comprise cash at bank and in hand and shortterm
investments with an original maturity of three months or less.

Employee Benefits - gratuity
The Group has a defined benefit gratuity plan for its employees. Under this plan, every employee who has completed atleast five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The plan is not funded by the Group.
The following tables summarize the components of net benefit expense recognized in the Consolidated statement of profit and loss and the funded status and amounts recognized in the Consolidated Balance Sheet for the respective plans.
Consolidated statement of profit and loss
Net employee benefit expense recognized in the employee cost
				31 March 2021	31 March 2020
Current service cost				52,03,835	31,23,225
Interest cost on benefit obligation				10,39,732	10,23,078
Net actuarial loss recognized in the year				49,23,308	17,23,029
Net benefit expense				1,11,66,875	58,69,332
Consolidated Balance Sheet
Benefit asset/ liability
				31 March 2021	31 March 2020
Present value of defined benefit obligation				2,80,58,443	1,74,12,513
Fair value of plan assets				-	-
Plan liability/ (asset)				2,80,58,443	1,74,12,513
Changes in the brsent value of the defined benefit obligation are as follows:
				31 March 2021	31 March 2020
Opening defined benefit obligation				1,74,12,513	1,51,62,467
Current service cost				52,03,835	31,23,225
Interest cost				10,39,732	10,23,078
Benefits paid				(5,20,945)	(36,19,286)
Actuarial losses on obligation				49,23,308	17,23,029
Closing defined benefit obligation				2,80,58,443	1,74,12,513
The principal assumptions used in determining gratuity obligations for the Group's plans are shown below:
				31 March 2021	31 March 2020
Discount rate				6.25%	6.45%
Employee turnover				15% - 25%	15% - 25%
Salary escalation rate				7.00% p.a for next 2 years & 6.00% p.a thereafter	7.00% p.a for next 3 years & 6.00% p.a thereafter
The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
Amount for the current and brvious year are as follows:
	31 March 2021	31 March 2020	31 March 2019	31 March 2018	31 March 2017
Defined benefit obligation	2,80,58,443	1,74,12,513	1,51,62,467	1,52,81,077	1,20,67,352
(Deficit)/ Surplus	(2,80,58,443)	(1,74,12,513)	(1,51,62,467)	(1,52,81,077)	(1,20,67,352)
Experience adjustment on plan liabilities	46,30,055	10,60,757	(23,39,159)	(9,03,837)	10,32,392
Actuarial gain/(loss) due to change on assumptions	2,93,253	6,62,272	78,131	(86,400)	5,07,674

(ii) Geographical segment
Secondary segmental reporting is done on the basis of the geographical location of clients. Client relationships are driven based on the location of respective clients. The geographical segments include India and rest of the world. The Group brpares its segment information in conformity with the accounting policies adopted for brparing and brsenting the consolidated financial statements of the Group as a whole.
The following table describes the secondary information :
				31 March 2021	31 March 2020
Revenue
India				7,98,93,682	16,04,08,790
United States Of America				1,43,68,42,858	44,04,58,882
United Kingdom				36,06,17,923	20,23,36,649
Rest of the world				31,55,58,888	15,77,62,876
				2,19,29,13,351	96,09,67,197
Assets
India				65,21,07,654	47,99,06,148
United States of America				56,19,13,582	30,32,35,317
Rest of the world				18,38,68,364	8,82,94,503
				1,39,78,89,600	87,14,35,968
Capital Expenditure
India				1,96,50,853	2,80,50,316
United States Of America				20,16,683	44,02,282
Rest of the world				38,24,750	56,95,094
				2,54,92,286	3,81,47,692
The geographical segment information is disclosed based on location of customers and suppliers.