2.14 PROVISIONS AND CONTINGENT LIABILITIES
PROVISIONS

A provision is recognized when the Company has
a present obligation (legal or constructive) 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.
These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.
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 recognized
as a finance cost.

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 Company or a present 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 Company
does not recognize a contingent liability but discloses
its existence in the financial statements unless the
probability of outflow of resources is remote.

Contingent assets

Contingent assets are not recognized in the financial
statements. Contingent assets are disclosed in the
financial statements to the extent it is probable that
economic benefits will flow to the Company from
such assets.

Provisions, contingent liabilities, contingent assets
and commitments are reviewed at each balance
sheet date.

2.15 FAIR VALUE MEASUREMENT

The company measures financial instruments at fair
value at each balance sheet date. Fair value is the
price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair
value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability
takes place either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or liability is measured using
the assumptions that market participants would
use when pricing the asset or liability, assuming
that market participants act in their economic best
interest.

A fair value measurement of a non- financial asset
considers a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,

maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

Level 1- Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2- Valuation techniques for which the lowest
level input that is significant to the fair value

measurement is directly or indirectly observable

Level 3- Valuation techniques for which the lowest
level input that is significant to the fair value

measurement is unobservable

For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to
fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value
hierarchy as explained above.

2.16 EXCEPTIONAL ITEMS

Items which are material by virtue of their size and
nature are disclosed separately as exceptional
items to ensure that financial statements allow an
understanding of the underlying performance of the
business in the year and to facilitate comparison with
prior year.

2.17 STATEMENT OF CASH FLOWS

Statements of cash flows is made using the indirect

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

2.18 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of the Company''s financial statements
requires management to make judgments, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of the asset or liability affected in future
periods.

Judgements

In the process of applying the Company''s accounting
policies, management has made the following
judgments, which have the most significant effect on
the amounts recognized in the financial statements.

a) Recognition of deferred taxes

The extent to which deferred tax assets can be
recognized is based on an assessment of the
probability of the future taxable income against
which the deferred tax assets can be utilized

b) Impairment of Financial assets

The impairment provisions of financial assets
are based on assumptions about the risk of
default and expected loss rates. The Company
uses judgment in making these assumptions
and selecting the inputs to the impairment
calculation, based on the Company''s past
history, existing market conditions as well as

forward looking estimates at the end of each
reporting period

c) Recognition of revenue

The price charged from the customer is treated
as selling price of the goods transferred to the
customer. At each balance sheet date, basis
the past trends and management judgment,
the Company assesses the requirement of
recognizing provision against the sales returns
for its products and in case, such provision is
considered necessary, the management make
adjustment in the revenue. However, the actual
future outcome may be different from this
judgement

d) Impairment of non-financial assets

The Company assesses at each reporting date
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset''s
recoverable amount. An assets recoverable
amount is the higher of an asset''s CGU''S fair
value less cost of disposal and its value in use.
It is determined for an individual asset, unless
the asset does not generate cash inflows that
are largely independent of those from other
assets or Company''s of assets. Where the
carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount.

In assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are taken into account. If no such

transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, or other fair
value indicators.

e) Leases

Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes an
assessment on the expected lease term on a

lease-by-lease basis and there by assesses
whether it is reasonably certain that any
options to extend or terminate the contract will
be exercised. In evaluating the lease term, the
Company considers factors such as significant
leasehold improvements undertaken over the
lease term, costs relating to the termination of
the lease etc. The lease term in future periods
is reassessed to ensure that the lease term
reflects the current economic circumstances.

(C) Qualified Institutional Placement (QIP)

During the year ended 31 March 2026, the Company allotted 20,25,000 equity shares of ''10/- each fully paid-up at a
price of ''419.72/- per share (including a securities premium of ''409.72/- per share) to Qualified Institutional Buyers
aggregating to ''849.9 Mn, pursuant to Chapter VI of the Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"). The Board of Directors approved the
Qualified Institutions Placement (QIP) and the allotment of securities at its meeting held on 11th September 2025.
The securities premium of ''791.14 Mn received on the said allotment is credited to the Securities Premium Reserve.

(D) Terms and rights attached to equity shares

The Company has only one class of equity shares having par value of ''10 per share. Each shareholder is entitled
to one vote per share. The dividend except interim dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company,
the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.

33 EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the
weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted
average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that
would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

34 FIRST TIME ADOPTION OF IND AS

Upto the Financial year ended March 31, 2025, the Company prepared its financial statements in accordance with
accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the Companies
(Accounts) Rules, 2014 ("Indian GAAP" or "Previous GAAP").

The financial statement for the period ended 31 December 2025 is the first set of Financial Statements prepared in
accordance with the requirements of IND AS 101 - First time adoption of Indian Accounting Standards. Accordingly, the
transition date to IND AS is 01 April 2024.

The impact of above to the equity as at 31 December 2025 and 1 April 2024 (Opening balance sheet date for Special
purpose financial statements) and on total comprehensive income for the years ended 31 March 2025 has been
explained as under.

(A) Exemptions availed on first time adoption of Ind AS

Ind AS 101, First-time Adoption of Indian Accounting Standards, allows first-time adopters certain exemptions from
the retrospective application of certain requirements under Ind AS. The Company has accordingly applied the
following exemptions.

i) Deemed Cost

Since there is no change in the functional currency, the Company has elected to continue with carrying value
for all of its property, plant and equipment as recognized in its Indian GAAP financial statements as its deemed
cost at the date of transition after making adjustments for decommissioning liabilities. This exemption can also
be used for investment properties. Accordingly the management has elected to measure all of its property,
plant and equipment and investment properties at their Indian GAAP carrying value.

(B) Mandatory Exemption on first-time adoption of Ind ASi) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with
estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference
in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates are consistent with the estimates as at the same date made in conformity with Indian GAAP.
The Company made estimates for following items in accordance with Ind AS at the date of transition as these
were not required under Indian GAAP:

(i) Impairment of financial assets based on expected credit loss model.

(ii) Fair valuation of non-current Investments.

(iii) Effective interest rate used in calculation of security deposit and retention money.

ii) Derecognition of financial assets and financial liabilities

A first-time adopter should apply the derecognition requirements in Ind AS 109, Financial Instruments,
prospectively to transactions occurring on or after the date of transition. Therefore, if a first-time adopter
derecognized non-derivative financial assets or non-derivative financial liabilities under its Indian GAAP as a
result of a transaction that occurred before the date of transition, it should not recognize those financial assets
and liabilities under Ind AS (unless they qualify for recognition as a result of a later transaction or event). A
first-time adopter that wants to apply the derecognition requirements in Ind AS 109,Financial Instruments,
retrospectively from a date of the entity''s choosing may only do so, provided that the information needed to
apply Ind AS 109,Financial Instruments, to financial assets and financial liabilities derecognized as a result of
past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognize provisions of Ind AS 109 prospectively from the date of
transition to Ind AS.

iii) Classification and measurement of financial assets

Ind AS 101, First-time Adoption of Indian Accounting Standards, requires an entity to assess classification and
measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances
that exist at the date of transition to Ind AS.

(C) Reconciliations

The following reconciliations provides the effect of transition to Ind AS from Indian GAAP in accordance with Ind
AS 101, First-time Adoption of Indian Accounting Standards:

37 SEGMENT INFORMATION

The Company specializes in post-production services, specializing in high-end visual effects (VFX) and 2D-to-3D
conversion services for the media and entertainment industry.

The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence
no separate segment information has been furnished herewith.

38 AUDIT TRAIL

Ministry of Corporate Affairs (MCA) vide its notification number G.S.R 206(E ) dated March 24, 2021 (amended from
time to time) in reference to the proviso to rule 3 (1) of the companies (Accounts) Amendment Rules, 2021, introduced
the requirement, where a company used an accounting software, of only using such accounting software w.e.f April 01,
2023 which has a feature of recording audit trail of each and every transaction.

The company has used accounting software for maintaining its books of account which has a feature of recording audit
trail (edit log) facility.

39 OTHER STATUTORY INFORMATION

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereunder.

ii) The Company did not have any material transaction with companies struck off under Section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the respective reported financial year.

iii) There has been no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory
period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of
the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries

(vii) The Company does not have any unrecorded transactions which have been surrendered or disclosed as Income
during the year in the tax assessment under the Income Tax Act, 1961

(viii) The Company is not declared willful defaulter by any bank, financial institution or lender.

(ix) During the year, no scheme of arrangements in relation to the company has been approved by the competent
authority in terms of Section 232 to 237 of the Companies Act,2013. Accordingly, this clause is not applicable to the

40 LEASES

(a) Company as a lessee

i) The Company has lease contracts for office facilities.

The lease term of the office facilities is generally 1 - 5 years .The Company''s obligations under its leases are
secured by the lessor''s title to the leased assets.

ii) Set-out below are the carrying amounts of right-of-use assets recognised and the movements during the year.

42 CAPITAL MANAGEMENT

The Company''s capital management is intended to maximize the return to shareholders for meeting the long-term and
short-term goals of the Company through the optimization of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and
strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings.
The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves
attributable to the equity shareholders of the Company.

(b) Fair value disclosures for financial assets and financial liabilities

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified
its financial instruments into the three levels prescribed under the accounting standard. An explanation of each
level follows underneath the table.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices 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 prices) or indirectly (i.e. derived from prices).

Level 3 — Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
There are no transfer between L-I, II, III during the year.

The carrying amount of financial assets and financial liabilities measured at amortized cost in financial statements
are reasonable approximation of their fair value. Since the company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

44 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise Borrowings, lease liabilities and trade and other payables. The
main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The
Company''s principal financial assets include investments, trade and other receivables, and cash and cash equivalents
that derive directly from its operations.

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity
risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and
short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative
financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2026, 31 December 2025, 31 March
2025 and 01 April 2024.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of floating to fixed interest
rates of the debt and the proportion of financial instruments in foreign currencies are all constant in place as at 31 March
2026, 31 December 2025, 31 March 2025 and 01 April 2024.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post¬
retirement obligations and provisions.

The following assumption have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held as at 31 March 2026, 31 December 2025, 31 March 2025 and
01 April 2024.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s long-term debt obligations with floating interest rates.

Credit risk on cash and cash equivalent and bank balances is not significant as it majorly includes deposits with
bank.

Liquidity risk

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.

45 GRATUITY AND OTHER POST-EMPLOYMENT BENEFITS PLANS
A. Defined Contribution plan

The Company contribution to provident fund, other funds are considered as defined contribution plans. The
contributions are charged to the Statement to profit and loss as they accrue. Contributions to provident fund
included in employee benefits expense (refer note 27 ) are as under:

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. Financial instruments that are subject to credit risk and concentration thereof
principally consist of trade receivables.

Customer credit risk is managed by Company''s established policy, procedures and control relating to customer
credit risk management. An impairment analysis is performed at each reporting date on an individual basis for
major customers. The Company does not hold collateral as security.

With respect to Trade receivables, the Company has constituted the terms to review the receivables on periodic
basis and to take necessary mitigations, wherever required. The Company creates allowance for all unsecured
receivables based on lifetime expected credit loss based on a provision matrix. The provision matrix takes into
account historical credit loss experience and is adjusted for forward looking information. The expected credit loss
allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

B. Defined benefit plans - general description

The Group has a defined gratuity benefit plan. Every employee who completes service of five years or more gets a
gratuity of 15 days salary (last drawn salary) for each completed year of service. The obligation towards gratuity is
being measured using projected credit line method. The gratuity is unfunded.

The following tables summaries the components of net benefit expense recognised in the Restated consolidated
Statement of Profit and Loss and the funded status and amounts recognised in the Restated consolidated statement
of Asset & Liability for the gratuity benefit (based on actuarial valuation) :

10 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be
estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation.
Provisions are determined by the best estimate of outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A
disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. Where there is possible obligation or present obligation
in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

11 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit
after tax by the weighted average number of shares considered for deriving basic earnings per share and also the
weighted average number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity
shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each period presented.

12 Cash and Cash Equivalents:

Cash and cash equivalents comprise cash on hand and Cheque in hand, balance with bank, demand deposits
with banks and other short term highly liquid investments that are readily convertible to known amounts of cash
& which are subject to an insignificant risk of changes in value where it has a short maturity of three months or
less from the date of acquisition.

13 Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profit/loss 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.

The Company’s cash and cash equivalents consist of cash on hand and in banks and demand deposits with
banks, which can be withdrawn at any time, without prior notice or penalty on the principal. For the purposes of
the statement of cash flows, cash and cash equivalents include cash on hand, in banks and demand deposits
with banks, net of outstanding bank overdrafts that are repayable on demand and are considered part of the
Company’s cash management system. In the balance sheet, bank overdrafts are presented under borrowings
within current liabilities.

14 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.

4 In the opinion of the Board, the company has used borrowings from banks and financial institution only for the
specific purpose for which it was taken at the balance sheet date.

5 In the opinion of the Board, all of the assets other than Property, Plant and Equipment and noncurrent investments
have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

6 Details of Benami Property held:

There are no proceedings initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

7 The Company has borrowings from banks or financial institutions on the basis of security of current assets, the
following are the details of statements submitted to bank:

10 Registration of charges or satisfaction with Registrar of Companies:

The Company do not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the
statutory period.

11 Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

12 Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the reporting period.

13 Utilisation of Borrowed funds and share premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B. Where a company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

23 The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total
number of non-resident shareholders, the total number of shares held by them on which the dividends were due and
the year to which the dividends related;-NIL

24 Undisclosed income:

There are no transactions that were not recorded in the books of account, and which has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

There is no previously unrecorded income and related assets that have been recorded in the books of account during
the year.

25 Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

26 Dues to Micro, Small and Medium Enterprises:

The principal amount remaining unpaid to the supplier regsitered under Micro, Small and Medium Enterprises
Development Act, 2006 that are outstanding of Rs. 0.99 cr for more than 45 days as at the end of reporting date.

Notes to be disclosed

1. Terms and conditions of sales and purchases: the sales and purchases transactions among the related
parties are in the ordinary course of business based on normal commercial terms, conditions, market rates
and memorandum of understanding signed with the related parties. For the year ended 31^st March, 2025, the
Company has not recorded any loss allowances for transactions between the related parties.

2. As the future liabilities for gratuity and leave encashment is provided on an actuarial basis and payment
of insurance costs are made for the Company as a whole, the amount pertaining to the key management
personnel is not ascertainable, therefore, not included above.

16 Employee Benefit (Incurred in India):

A. Provident Fund - The Company has contributed Rs.0.77 cr for the year ended 2025 and Rs.1.02 cr for the
year ended 2024 towards the Employees Provident Fund.

B. Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected
Unit Credit Method. This method 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.

Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation
of the actuarial assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan’s benefit formula attributable
to the services rendered by employees during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial
assumptions. It could also occur due to changes made in the actuarial assumptions.

Mortality rate during employment Indian -Indian Assured Lives Mortality (2012-14) Ultimate

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The
above information is certified by the actuary.

The company is only making book provisions for the entire Gratuity Liability on the valuation and follows a ‘pay
as you go’ system to meet the liabilities as and when they fall due. Therefore the scheme is fully unfunded, and
no assets are maintained by the company and asset values are taken as zero.

31 Cashflow Statement:

(1) The Company has no significant amount of cash and cash equivalent balances held that are not readily
available for use.

(2) The Company does not have undrawn borrowing facilities that may be available for future operating
activities.

(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(4) The Company is investing adequately in the maintenance of its operating capacity.

(5) There are no non cash transactions happened in investing and financing activities to be excluded from
Cash Flow Statement.

32 Disclosures on Property, plant and equipment and Intangible Assets:

I. Property, plant and equipment

1) The Company do have any restrictions on title, and property, plant and equipment pledged as security for
liabilities.

2) There is no amount of expenditure recognised in the carrying amount of an item of property, plant and
equipment in the course of its construction.

3) There is no contractual commitments for the acquisition of property, plant and equipment.

4) There is no amount of compensation from third parties for items of property, plant and equipment that
were impaired, lost or given up that is included in the statement of profit and loss.

5) The Company has no assets that are retired from active use and held for disposal

6) There is no temporarily idle property, plant and equipment at the reporting date.

7) The Company has no fully depreciated property, plant and equipment that is still in use.

8) The Company has not revalued any class of property, plant and equipment during the financial year.

9) The Company has no property, plant and equipment retired from active use and not held for disposal.

II. Intangible asset

1) The carrying amount and remaining amortization period of any individual intangible asset that is material
to the financial statements of the enterprise as a whole-Nil

2) The Company do not have any restrictions on title, and intangible assets pledged as security for liabilities.

3) There is no contractual commitments for the acquisition of intangible assets.

4) The Company has no fully amortised intangible asset that is still in use.

5) There is no acquisitions of intangible assets through business combinations.

33 Investments:

I. Profits and losses with regard to investments have been disclosed as under:

a) profits and losses on disposal of current investments -Not Applicable

36 Previous year''s figures have been regrouped / reclassified wherever necessary to conform with current year''s
classification.

As per our report of even date attached For and on behalf of the Board of Directors of

For L.U.KRISHNAN & CO BASILIC FLY STUDIO LIMITED

Chartered Accountants
Firm’s Registration.No: 001527S

P K Manoj Swati Sharma Gaurav Mehra Sundaram Yogalakshmi Balakrishnan

Partner Company Secretary Chief Financial Officer Wholetime Director Managing Director

Membership Number: 207550 Mem No: A54158 DIN: 07323404 DIN: 06590484

UDIN: 25207550BMJDIJ9491

Place: Chennai Place: Chennai

Date: 30^th May, 2025 Date: 30^th May 2025

2 Proposed Dividend Details:

The Company has not declared dividend during the period under review.

3 The Company has issued 62,40,000 equity shares to the public having a face value of Rs.10 per share including share premium of Rs.87 per share aggregating to Rs. 6,052.80 Lakhsby way of Initial Public Offer (IPO) and got listed on Emerge Platform of National Stock Exchange of India Limited on 11th September, 2023.

I. The Company intends to utilise proceeds from IPO as per Object clause of the prospectus dated August 24, 2023

1. Expenditure for setup of Studio/Facility at Hyderabad and Salem

2. Expenditure for adding infrastructure to further strengthen the existing facilities/offices of the company located at Chennai and Pune.

3. Making investment through equity in the subsidiaries for expansion of workspace by acquiring new office space located at London and strengthen the existing facilities/offices located at Vancouver

4. General Corporate Purposes

4 In the opinion of the Board, the company has used borrowings from banks and financial institution only for the specific purpose for which it was taken at the balance sheet date.

5 In the opinion of the Board, all of the assets other than Property, Plant and Equipment and noncurrent investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

6 Details of Benami Property held

There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

7 The company has no borrowing from the banks or financial institutions on the basis of security of current assets, hence no quarterly returns or statements of current assets are required to be filed by the Company with any the banks or financial institutions.

8 Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender during the reporting period.

9 Relationship with Struck off Companies

The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013.

10 Registration of charges or satisfaction with Registrar of Companies:

The Company do not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

11 Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

12 Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the reporting period.

13 Utilisation of Borrowed funds and share premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B. Where a company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

c. shortfall at the end of the year out of the amount required to be spent by the Company during the year - Nil

d. total of previous years shortfall - Section 135 is not applicable for the previous financial years.

e. The reason for above shortfalls by way of a note - Not Applicable

f. The nature of CSR activities undertaken by the Company,

g. Details of related party transactions - Nil

h. The Company has not made any provision with respect to a liability incurred by entering into a contractual obligation.

15 Corporate Social Responsibility:

The Company is covered under section 135, amount of expenditure incurred on corporate social responsibility activities are as follows:

a. amount required to be spent by the company during the year is Rs.24.74 Lakhs

b. amount of expenditure incurred is Rs. 24.75 Lakhs

18 (a) The Company has not set aside or proposed to be set aside any material amount to reserve, but not including

provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made up.

19 (a) The Company has not set aside any material amount to provisions made for meeting specific liabilities,

contingencies or commitments.

24 Undisclosed income:

There are no transactions that were not recorded in the books of account, and which has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

There is no previously unrecorded income and related assets have been recorded in the books of account during the year.

25 Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

26 Dues to Micro, Small and Medium Enterprises:

The principal amount remaining unpaid to the supplier regsitered under Micro, Small and Medium Enterprises Development Act, 2006 are not outstanding for more than 45 days as at the end of reporting date.

27 Disclosure of related parties/related party transactions pursuant to Accounting Standard (AS) - 18 "Related Party Disclosures”:

23 The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related;-NIL

Notes to be disclosed

1. Terms and conditions of sales and purchases: the sales and purchases transactions among the related parties are in the ordinary course of business based on normal commercial terms, conditions, market rates and memorandum of understanding signed with the related parties. For the year ended 31st March, 2024, the Company has not recorded any loss allowances for transactions between the related parties.

2. As the future liabilities for gratuity and leave encashment is provided on an actuarial basis and payment of insurance costs are made for the Company as a whole, the amount pertaining to the key management personnel is not ascertainable, therefore, not included above.

3. No amounts in respect of related parties have been written off/ written back during the year or has not made any provision for doubtful debts/ receivable.

28 Income Taxes:I . Minimum Alternate Tax Credit

The Company has opted the lower tax regime under section 115BAA of the Income Tax Act, 1961. Hence, there

is no Minimum Alternate Tax credit recognised in the reporting year.

30 Employee Benefit (Incurred in India):

A. Provident Fund - The Company has contributed Rs.102.11 Lakhs for the year ended 2024 and Rs.50.78 Lakhs for the year ended 2023 towards the Employees Provident Fund.

B. Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. This method 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.

Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan''s benefit formula attributable to the services rendered by employees during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It could also occur due to changes made in the actuarial assumptions.

Mortality rate during employment Indian -Indian Assured Lives Mortality (2012-14) Ultimate

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The company is only making book provisions for the entire Gratuity Liability on the valuation and follows a ''pay as you go'' system to meet the liabilities as and when they fall due. Therefore the scheme is fully unfunded, and no assets are maintained by the company and asset values are taken as zero.

31 Cashflow Statement

(1) The Company has no significant amount of cash and cash equivalent balances held that are not readily available for use.

(2) The Company does not have undrawn borrowing facilities that may be available for future operating activities.

(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(4) The Company is investing adequately in the maintenance of its operating capacity.

(5) There are no non cash transactions happened in investing and financing activities to be excluded from Cash Flow Statement.

32 Disclosures on Property, plant and equipment and Intangible AssetsI. Property, plant and equipment

1) The Company do have any restrictions on title, and property, plant and equipment pledged as security for liabilities.

2) There is no amount of expenditure recognised in the carrying amount of an item of property, plant and equipment in the course of its construction.

3) There is no contractual commitments for the acquisition of property, plant and equipment.

4) There is no amount of compensation from third parties for items of property, plant and equipment that were impaired, lost or given up that is included in the statement of profit and loss.

5) The Company has no assets that are retired from active use and held for disposal

6) There is no temporarily idle property, plant and equipment at the reporting date.

7) The Company has fully depreciated property, plant and equipment that is still in use.

8) The Company has not revalued any class of property, plant and equipment during the financial year.

9) The Company has no property, plant and equipment retired from active use and not held for disposal.

II. Intangible asset

1) The carrying amount and remaining amortization period of any individual intangible asset that is material to the financial statements of the enterprise as a whole-Nil

2) The Company do have any restrictions on title, and intangible assets pledged as security for liabilities.

3) There is no contractual commitments for the acquisition of intangible assets.

4) The Company has no fully amortised intangible asset that is still in use.

5) There is no acquisitions of intangible assets through business combinations.

33 Investments

I. Profits and losses with regard to investments have been disclosed as under:

a) profits and losses on disposal of current investments -Not Applicable

b) profits and losses on changes in the carrying amount of current investments -Not Applicable

c) profits and losses on disposal of long-term investments -Not Applicable

d) profits and losses on changes in the carrying amount of long- term investments -Not Applicable

II. The Company has no significant restrictions with regard to investments in subsidiaries on the right of ownership, realisability of investments or the remittance of income and proceeds of disposals.

36 Balance shown under head Sundry debtors, creditors and advances are subject to confirmation.

37 Previous year''s figures have been regrouped / reclassified wherever necessary to conform with current year''s classification.

2 Proposed Dividend Details:

The Company has not declared dividend during the period under review

3 No issue of securities were made for any specific purpose by the Company during the reporting year

4 The Company has not made borrowings from banks and financial institution for any specific purposes during the year.

The assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on realization in the ordinary course of business equal to the amount at which they are stated

6 Details of Benami Property held

There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988}.

The company has no borrowing from the banks or financial institutions on the basis of security of current assets, hence no quarterly returns or statements of current assets are required to be filed by the Company with any the banks or financial institutions.

8 Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

9 Relationship with Struck off Companies

The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013.

10 Registration of charges or satisfaction with Registrar of Companies:

The Company do not have any charge to be registered with Registrar of Companies beyond the statutory period

11 Compliance with number of layers of companies:

The Company has subsidiaries with one layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

12 Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

13 Utilisation of Borrowed funds and share premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(les), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. ___ __^

15 Corporate Social Responsibility:

Company shall not be required to comply with Corporate Social Responsibility (CSR) as provisions of section 115 of the Companies Act, 2013 is no’ applicable

16 During the year, the Company has set aside an amount of Rs. 1600 lakhs to reserve to issue Bonus Shares

No amounts have been set aside or uroposed to be set aside to reserve to meet any specific liability, contingency or commitment known to exit at the dare as at which balance sheet

¹⁷ made up.

20 Undisclosed income.

There are no transactions that were not recorded in the books of account, and which has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

There is no previously unrecorded income and related assets have been recorded in the books of account during the year

21 Details of Cry pto Currency or Virtual Currency:

Tne Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

22 Duet to Micro, Small and Me JIurti enterprises:

There are no dues to Micro, Small and Medium Enterprises at the close of the Reporting Period.

23 Disclosure of related parties/related party transactions pursuant to Accounting Standard (AS) -18 "Related Party Disclosures":

Figures within brockets (J represents Previous Year''s amount.

1 Terms and conditions of soles and purchases: the sores and purchases transactions among the related parties are rn the ordinary course of business based on normal commercial terms, conditrons. market rates and memorandum of understanding signed with the related parties. For the year ended 31st March. 2023. the Company has not recorded any loss allowances for transactions between the related parties.

2. As the future nobilities for gratuity and leave encashment is provided on an actuarial basis and payment of insurance costs are mode for the Company as a whole, the omount pertaining to the key management personnel is not ascertainable, therefore, not disclosed seperotely

3. No amounts In respect of related parties have been written off/ written back during the year or has not mode any provision for doubtful debts/ receivable.

26 Employee Benefit (Incurred In India):

Provident Fund ¦ The Company has contributed Rs.44.51 lakhs for the period ended March 31, 2023 and Rs. 30.53 lakhs in the previous year ended 31 March 2022 towards the Employees Provident Fund.

Employees¹ State Insurance - The Company has contributed Rs.2.63 lakhs for the period ended March 31, 2023 and Rs.l 24 lakhs in the previous year ended 31 March 2022 towards the Employees State Insurance Corporation.

Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. This method 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.

Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan''s benefit formula attributable to the services rendered by employees during the accounting period.

Actuarial Gain or Loss'' occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It could also occur due to changes made in the actuarial assumptions

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

27 Cashflow Statement

(1) The amount of significant cash and cash equivalent balances held by the enterprise as at March 31,2023 was Rs 536.13 lakhs that are available for use by Company.

(2) Company does not have undrawn borrowing facilities that may be available for future operating activities.

(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity

(4) Company is investing adequately in the maintenance of its operating capacity.

(5) There are no non cash transactions happened in investing and financing activities to be excluded from Cash Flow Statement.

28 Changes in Accounting Estimates

There are no changes in Accounting Estimates made by the Company during the year.

29 Changes in Accounting Policies

There are no changes in Accounting Polices made by the Company during the year.

30 Disclosures on PPE and Intangible Assets

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment and Property, Plant & Equipment was not pledged against borrowings.

(2) Company has not constructed any item in Property, Plant & equipment.

(3) Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(4) Company has no Impairment loss during the period for Property, Plant & Equipment

(5) No assets has been retired from active use and held for disposal

(6) There are no temporarily idle property, plant and equipment.

(7) There are no fully depreciated property, plant and equipment that is still in use.

(8) There are no amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged^fictjfi^or liabilities.

31 Investments

I. Profits and losses with regard to Investments have been disclosed as under:

a) profits and losses on disposal of current investments

b) profits and losses on changes in the carrying amount of current investments

c) profits and losses on disposal of long-term investments

d) profits and losses on changes in the carrying amount of long- te''m investments

II. Significant restrictions of the foliowing with regard to investments have been disclosed:

a) right of ownership of investments

b) realizability of investments

c) remittance of income on investments

d) remittance of proceeds of disposals

32 Segment Reporting

The Company does no? have reportable segment . The Company has only one segment namely VFX services hence segment reporting has not been presented.

36 Balance shuwn under head Sundry debtors, cred''tors and advanzes are subject to confirmation.

37 Previous year''s figures hive been regrouped / reclassified wherever necessary to correspond with current year''s cla