E. Provisions and Contingent Liabilities

Provisions are recognised when the Company:

(a) has a present obligation (legal or constructive) as a result of a past event,

(b) it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and

(c) a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the best estimate of the expenditure required to settle
the present obligation at the Balance Sheet date. If the effect of the time value of
money is material, provisions are discounted to reflect its present value using a
current pre-tax rate that reflects the current market assessments of the time value
of money and the risks specific to the obligation. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance
cost.

Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

F. Revenue Recognition

Revenue is recognized, net of sales related taxes, when persuasive evidence of
an arrangement exists, the fees are fixed or determinable, the product is delivered
or services have been rendered and collectability is reasonably assured.

The Company considers the terms of each arrangement to determine the
appropriate accounting treatment. Theatrical -Contracted minimum guarantees
are recognized on the theatrical release date. The Company's share of box office
receipts in excess of the minimum guarantee is recognized at the point they are
notified to the Company.

Revenue from operations includes sale of goods and services measured at the
fair value of the consideration received or receivable, net of returns and
allowances, trade discounts and volume rebates and excluding taxes or duties
collected on behalf of the government. In respect of films produced / co-produced
/ acquired, revenue is recognised in accordance with the terms and conditions of
the agreements on or after the first theatrical release of the films.

G. Other Income

Interest income is recognised/ accounted on accrual basis.

Dividend Income on investments is recognised for when the right to receive the
dividend is established.

Interest on Investments is recognised on a time proportion basis taking into
account the amounts invested and the rate of interest.

H. Employee benefits/ Retirement Benefits:

Employee benefits include provident fund, superannuation fund, gratuity fund,
compensated absences, long service awards and post-employment medical
benefits.

Short-term employee benefits like salaries, wages, bonus and welfare expenses
payable wholly within twelve months of rendering the services are accrued in the
year in which the associated services are rendered by the employees and are
measured at the amounts expected to be paid when the liabilities are settled.

LONG-TERM OBLIGATION

Compensated absences which are not expected to occur within twelve months
after the end of the period in which the employee renders the related service are
recognised as a liability at the present value of the defined benefit obligation as at
the Balance Sheet date less the fair value of the plan assets out of which the
obligations are expected to be settled. Long Service Awards are recognised as a
liability at the present value of the defined benefit obligation as at the Balance
Sheet date.

DEFINED CONTRIBUTION PLANS

Contributions to defined contribution schemes such as employee’s state
insurance, labour welfare fund, superannuation scheme, employee pension
scheme etc. are charged as an expense based on the amount of contribution
required to be made as and when services are rendered by the employees.
Company’s provident fund contribution, in respect of certain employees, is made
to a government administered fund and charged as an expense to the Statement
of Profit and Loss. The above benefits are classified as Defined Contribution
Schemes as the Company has no further defined obligations beyond the monthly
contributions.

I. Impairment Of Non-Financial Assets:

Assessment for impairment is done at each Balance Sheet date as to
whether there is any indication that a non-financial asset maybe impaired. If any
indication of impairment exists, an estimate of the recoverable amount of the
individual asset/cash generating unit is made. Asset/cash generating unit whose
carrying value exceeds their recoverable amount are written down to the
recoverable amount by recognising the impairment loss as an expense in the
Statement of Profit and Loss. Recoverable amount is higher of an asset's or cash
generating unit's fair value less cost of disposal and its value in use. Value in use is
the present value of estimated future cash flows expected to arise from the

continuing use of an asset or cash generating unit and from its disposal at the end
of its useful life.

Assessment is also done at each Balance Sheet date as to whether there is any
indication that an impairment loss recognised for an asset in prior accounting
periods may no longer exist or may have decreased. An impairment loss
recognised for goodwill is not reversed in subsequent periods.

J. Taxation:

Income tax expense for the year comprises of current tax and deferred tax. It is
recognised in the Statement of Profit and Loss except to the extent it relates to a
business combination or to an item which is recognised directly in equity or in
other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/ loss for
the year using applicable tax rates at the Balance Sheet date, and any adjustment
to taxes in respect of previous years. Interest income/expenses and penalties, if
any, related to income tax are included in current tax expense.

Deferred tax is recognised in respect of temporary differences between the
carrying amount of assets and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes. Deferred tax is recognized
using the tax rates enacted, or substantively enacted, by the end of the reporting
period.

Deferred tax assets are recognised only to the extent that it is probable that future
taxable profits will be available against which the asset can be utilised. Deferred
tax assets are reviewed at each reporting date and reduced to the extent that it is
no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally
enforceable right to set off the recognised amounts and there is an intention to
settle the asset and the liability on a net basis. Deferred tax assets and
deferred tax liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities; and the deferred tax assets and
the deferred tax liabilities relate to income taxes levied by the same taxation
authority. As on 31 st March 2025, there is no Deferred Tax Asset or Deferred Tax
Liability.

K. Earnings PerShare

Basic earnings per share is computed by dividing the net profit for the period
attributable to the equity shareholders of the Company by the weighted average
number of equity shares outstanding during the period. The weighted average
number of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the conversion
of potential equity 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 for the
period attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all dilutive
potential equity shares.

L. Segment reporting

The Company is primarily engaged in the business of “Production of Movies and
TV Serial”, which, in the context of Ind AS 108 on Operating Segments,
constitutes a single reportable segment.

A sum of Rs. 50 lacs was payable to Jainam Securities P Ltd., which was declared as a Benami Co
and belonged to Pallav Sheth. Pallav Sheth is a judgement debtor of Fairgrowth Financial
Services Ltd. (FFSL). All properties belonging to FFSL and Pallav Sheth stand statutorily and
automatically attached under Special Court (Trial of Offences Relating to Transactions in
Securities) Act, 1992. Huge Amount were outstanding to be paid by FFSL to the Custodian of
Special Court. Pallav Sheth was adjudged an insolvent. On default made by FFSL and Pallav
Sheth, the Custodian applied to recover the dues from Jainam Securities and its debtors. On
receipt of the order to pay the dues of 50 lakhs along with the Interest, Company has deposited Rs.
53,88,866 with the Court during the financial year ended 2020. However, as on the reporting date
of current financial year 2024-25 the matter is still under Litigation and Final Judgement over the
same is pending.