o) Provisions, contingent assets and
contingent liabilities

Provisions are recognised only when there is
a present obligation, as a result of past events
and when a reliable estimate of the amount of
obligation can be made at the reporting date.
These estimates are reviewed at each reporting
date and adjusted to reflect the current
best estimates.

Provisions are discounted to their present values,
where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed
only by future events not wholly within the
control of the Company or

• Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the amount
of the obligation cannot be made.

Contingent assets are neither recognised nor
disclosed except when realisation of income is
virtually certain, related asset is disclosed.

p) Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable
to equity shareholders (after deducting
attributable taxes) by the weighted average
number of equity shares outstanding during
the period. The weighted average number of
equity shares outstanding during the period is
adjusted for events including a bonus issue.

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.

Potential ordinary shares shall be treated as
dilutive when, and only when, their conversion
to ordinary shares would decrease earnings
per share or increase loss per share from
continuing operations.

q) Taxes

Current income tax

Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date
in the countries where the Company operates
and generates taxable income.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised
in correlation to the underlying transaction
either in OCI or directly in equity. Management
periodically evaluates positions taken in
the tax returns with respect to situations in
which applicable tax regulations are subject
to interpretation and establishes provisions
where appropriate.

Deferred tax

Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities are recognised for
all taxable temporary differences. Deferred
tax assets are recognised for all deductible
temporary differences and any unused tax
losses. Deferred tax assets are recognised to
the extent that it is probable that taxable profit
will be available against which the deductible
temporary differences, and the carry forward
of unused tax credits and unused tax losses
can be utilised. Deferred tax is measured based
on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet
date. The carrying amount of deferred tax
assets are reviewed at each balance sheet date
and derecognised to the extent it is no longer
probable that sufficient future taxable profits
will be available against which such deferred
tax assets can be realised.

Deferred tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income or
in equity). Deferred tax items are recognised in
correlation to the underlying transaction either
in OCI or directly in equity.

Minimum Alternate Tax (‘MAT’) credit is
recognised as an asset only when and to the
extent it is probable that the Company will pay
normal income tax during the specified period.
In the year in which MAT credit becomes eligible
to be recognised as an asset, the said asset is
created by way of a credit to the Statement
of Profit and Loss and shown as MAT credit
entitlement. The Company reviews the same at
each balance sheet date and writes down the
carrying amount of MAT credit entitlement to
the extent it is not probable that the Company
will pay normal income tax during the
specified period.

r) Government grants and subsidies

Government grants are recognised where there
is reasonable assurance that the grant will be
received and all attached conditions will be
complied with.

When the grant or subsidy relates to revenue, it
is recognised as income on a systematic basis in
the Statement of Profit and Loss over the periods
necessary to match them with the related costs,
which they are intended to compensate. Where
the grant relates to an asset, it is recognised as
deferred income and released to income in
equal amounts over the expected useful life of
the related asset.

s) Employee share based payments

The Company has granted stock options/
restricted stock units under Cosmo Films
Employees Stock Option Plan 2015/ Share
Based Employee Benefit Scheme, 2021 to the
employees of the Company and its subsidiaries.
The fair value of options granted under Employee
Stock Option Plan is recognised as an employee
benefits expense with a corresponding increase
in share options outstanding account. The
total amount to be expensed is determined by
reference to the fair value of the options. The
total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied.
At the end of each period, the entity revises its
estimates of the number of options that are
expected to vest based on the non-market
vesting and service conditions. It recognises
the impact of the revision to original estimates,
if any, in profit or loss, with a corresponding
adjustment to share options outstanding
account. Upon exercise of share options, the
proceeds received are allocated to share capital
up to the par value of the shares issued with any
excess being recorded as share premium.

t) Business combination

Business combinations are accounted for
using the acquisition accounting method
as at the date of the acquisition, which is the
date at which control is transferred to the
Company. The consideration transferred in the
acquisition and the identifiable assets acquired
and liabilities assumed are recognised at fair
values on their acquisition date. Goodwill is
initially measured at cost, being the excess of
the aggregate of the consideration transferred
and the amount recognized for non-controlling
interests, and any previous interest held,
over the net identifiable assets acquired and
liabilities assumed. Consideration transferred
does not include amounts related to settlement
of pre-existing relationships. Such amounts
are recognised in the standalone statement of
profit and loss. Transaction costs are expensed
in the standalone statement of profit and loss
as incurred.

u) Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less.

(iv) Other accounting policies

a) Impairment of non-financial assets

For impairment assessment purposes, assets
are grouped at the lowest levels for which there
are largely independent cash inflows (cash
generating units). As a result, some assets are
tested individually for impairment and some are
tested at cash-generating unit level.

The Company assesses at each balance sheet
date whether there is any indication that an
asset may be impaired. If any such indication
exists, the Company estimates the recoverable
amount of the asset. 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 recognised in the Statement of Profit
and Loss. If at the balance sheet date, there
is an indication that a previously assessed
impairment loss no longer exists then the
recoverable amount is reassessed and the asset
is reflected at the recoverable amount subject
to a maximum of depreciated historical cost.
Impairment losses previously recognised are
accordingly reversed in the Statement of Profit
and Loss.

To determine value-in-use, management
estimates expected future cash flows from
each cash-generating unit and determines a
suitable discount rate in order to calculate the
present value of those cash flows. The data
used for impairment testing procedures are
directly linked to the Company’s latest approved
budget, adjusted as necessary to exclude the
effects of future re-organisations and asset
enhancements. Discount factors are determined
individually for each cash-generating unit and
reflect current market assessment of the time
value of money and asset-specific risk factors.

b) Non-current assets held for sale

An entity shall classify a non-current asset
as held for sale if its carrying amount will be
recovered principally through a sale transaction
rather than through continuing use. This
condition is regarded as met only when the
asset is available for immediate sale in its
present condition subject only to terms that are
usual and customary for sale of such asset and
its sale is highly probable. Management must
be committed to sale which should be expected
to qualify for recognition as a completed sale
within one year from the date of classification.

Non-current assets classified as held for sale are
presented separately and measured at the lower
of their carrying amounts immediately prior to
their classification as held for sale and their fair
value less costs to sell. However, some held
for sale assets such as financial assets, assets
arising from employee benefits and deferred tax
assets, continue to be measured in accordance
with the Company’s relevant accounting policy
for those assets. Once classified as held for

sale, the assets are not subject to depreciation
or amortisation.

c) Treasury shares

Treasury shares are presented as a deduction
from equity. The original cost of treasury shares
and the proceeds of any subsequent sale are
presented as movements in equity.

d) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker.

Identification of segments

I n accordance with Ind AS 108 - Operating
Segment, the operating segments used to
present segment information are identified
on the basis of information reviewed by the
Company’s management to allocate resources
to the segments and assess their performance.
An operating segment is a component of the
Company that engages in business activities
from which it earns revenues and incurs
expenses, including revenues and expenses
that relate to transactions with any of the
Company’s other components. Results of the
operating segments are reviewed regularly
by the management team which has been
identified as the chief operating decision maker
(CODM), to make decisions about resources
to be allocated to the segment and assess its
performance and for which discrete financial
information is available.

Allocation of common costs

Common allocable costs are allocated to each
segment accordingly to the relative contribution
of each segment to the total common costs.

Unallocated items

Unallocated items include general corporate
income and expense items which are not
allocated to any business segment.

Segment accounting policies

The Company prepares its segment information
in conformity with the accounting policies
adopted for preparing and presenting the
financial results of the Company as a whole.

(v) Significant management judgement
in applying accounting policies and
estimation uncertainty

The following are the critical judgments and the key
estimates concerning the future that management
has made in the process of applying the Company’s
accounting policies and that may have the most
significant effect on the amounts recognised in the
financial statements or that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year.

Allowance for expected credit losses - The

allowance for doubtful debts reflects management’s
estimate of losses inherent in its credit portfolio.
This allowance is based on Company’s estimate
of the losses to be incurred, which derives from
past experience with similar receivables, current
and historical past due amounts, write-offs and
collections, the careful monitoring of portfolio credit
quality and current and projected economic and
market conditions. The Company has also taken
into account estimates of possible effect from the
pandemic relating to COVID-19. Should the present
economic and financial situation persist or even
worsen, there could be a further deterioration in
the financial situation of the Company’s debtors
compared to that already taken into consideration
in calculating the allowances recognised in the
financial statements.

Allowance for obsolete and slow-moving inventory

- The allowance for obsolete and slow-moving
inventory reflects management’s estimate of the
expected loss in value, and has been determined
on the basis of past experience and historical and
expected future trends in the market. A worsening
of the economic and financial situation could cause
a further deterioration in conditions compared to
that taken into consideration in calculating the
allowances recognised in the financial statements.

Recognition of deferred tax assets - The extent
to which deferred tax assets can be recognised is
based on an assessment of the probability of the
future taxable income against which the deferred
tax assets can be utilised.

Evaluation of indicators for impairment of assets

- The evaluation of applicability of indicators of
impairment of assets requires assessment of several
external and internal factors which could result in
deterioration of recoverable amount of the assets.

Provisions - At each balance sheet date basis the
management judgment, changes in facts and legal
aspects, the Company assesses the requirement
of provisions against the outstanding contingent
liabilities. However, the actual future outcome may
be different from this judgement.

Useful lives of depreciable/ amortisable assets -

Management reviews its estimate of the useful lives
of depreciable/amortisable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technical
and economic obsolescence that may change the
utility of assets.

Defined benefit obligation (DBO) - Management’s
estimate of the DBO is based on a number of
underlying assumptions such as standard rates of
inflation, mortality, discount rate and anticipation
of future salary increases. Variation in these
assumptions may significantly impact the DBO
amount and the annual defined benefit expenses.

Fair value measurements - Management applies
valuation techniques to determine the fair value of
financial instruments (where active market quotes
are not available). This involves developing estimates
and assumptions consistent with how market
participants would price the instrument.

Contingent liabilities - The Company is the subject
of legal proceedings and tax issues covering a range
of matters, which are pending in various jurisdictions.
Due to the uncertainty inherent in such matters, it is
difficult to predict the final outcome of such matters.
The cases and claims against the Company often
raise difficult and complex factual and legal issues,
which are subject to many uncertainties, including
but not limited to the facts and circumstances of
each particular case and claim, the jurisdiction and
the differences in applicable law. In the normal
course of business management consults with
legal counsel and certain other experts on matters
related to litigation and taxes. The Company accrues
a liability when it is determined that an adverse
outcome is probable and the amount of the loss can
be reasonably estimated.

Notes:

(i) Of the above 242,051 shares have been allotted to erstwhile shareholders of Gujarat Propack Limited on
amalgamation in the financial year 2002-03. No shares has been issued for consideration other than cash
in the current reporting year and in last five years immediately preceding the current reporting year.

(ii) a) The Company allotted 9,086,357 bonus equity shares of T 10/- each in ratio of 1 (one) equity share for 2

(two) equity share held to the equity shareholder(s) whose name appeared in the register of members
on 17 June 2022 i.e. the “Record Date” by capitalisation of capital reserve, security premium account
and capital redemption reserves.

b) The Board of Directors of the Company at their meeting held on 01 December 2022 had approved
Buyback of 1,009,345 equity shares (3.70% of equity capital) of the Company, through the “"Tender
Offer”” route for an aggregate amount of upto 7 108.00 crores at a price of 7 1070 per equity share. The
said equity shares bought back were extinguished on 22 February 2022. An amount of 7 138.55 crores
(including income tax and direct buyback costs) had been utilized from the other equity for the aforesaid
buyback including creation of capital redemption reserve account of 7 1.01 crores (representing the
nominal value of the equity shares bought back).

(iii) During the year, the Board of Directors has recommended final dividend of 7 4 per equity share (31 March
2024: 7 3 per equity shares) subject to approval of shareholders in annual general meeting.

During the year ended 31 March 2025 the amount of per share dividend recognised as distributions to
equity shareholders was 7 3 per share (31 March 2024: 7 5 per share).

(iv) Terms and rights attached to equity shares:

The Company has only one class of equity shares having the par value of 710 per share. Each holder of
equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
The dividend proposed by Board of Directors, if any, is subject to approval of shareholders in Annual General
Meeting except in case of interim dividend.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining
assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number
of equity shares held by the shareholders.

Nature and purpose of reserves

(i) Retained Earnings

Retained earnings are profits/(losses) that the Company has earned till date less transfer to General Reserve,
dividend or other distribution or transaction with shareholders.

(ii) General reserve

The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant
to the earlier provision of Companies Act 1956. Mandatory transfer to general reserve is not required under
the Companies Act 2013.

(iii) Securities premium account

Securities premium account represents premium received on issue of shares. The reserve is utilised in
accordance with the provisions of the Companies Act 2013.

(iv) Treasury shares

This reserve represents Company’s own equity shares held by the Cosmo ESOP Trust which is created under
the Employee Stock Option Plan, 2015.

(v) Special Economic Zone (SEZ) Re-investment reserve

The Special Economic Zone (SEZ) Re-investment reserve has been created out of the profit of eligible SEZ
units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilised by
the company for acquiring plant and machinery for the purpose of its business in terms of the Sec 10AA(2)
of the Income Tax Act, 1961.

(vi) Share based payment reserve

The reserve is used to recognize the grant date fair value of the options issued to employees under Company’s
employee stock option plan.

(vii) Effective portion of cash flow hedges

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on
changes in fair value of designated portion of hedging instruments entered into for cash flow hedges.
Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged
transaction occurs.

(viii) Debt instruments through other comprehensive income

The Company has classified investments in perpetual bonds as at fair value through other comprehensive
income (FVOCI) since:

(a) perpetual bonds are held within a business model whose objective is achieved by both collecting
contractual cash flows and selling those bonds; and

(b) the contractual terms of perpetual bonds give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

This reserve represents changes in fair value of perpetual bonds from the date of such classification to the
reporting date. When the perpetual bonds are derecognised, the cumulative gain or loss previously recognised
in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

(ix) Capital redemption reserve

This reserve represents a statutory, non-distributable reserve into which amounts are transferred following
the redemption or purchase of a company’s own shares.

41 EMPLOYEE SHARE BASED PAYMENT PLAN
1. Employee stock option plan

Pursuant to the approval of the shareholders, the Company has introduced Cosmo Films Share Based
Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) which supersedes earlier Cosmo Films Employees
Stock Option Plan 2015 (CF ESOP 2015) to provide share based incentive to the eligible employees of the
Company and its subsidiaries. However, Options already granted under CF ESOP 2015 will continue to be
governed in accordance with the said Plan. The plan is implemented via trust route which will acquire the
equity shares of the Company by secondary market acquisition, however, in case of any shortfall the Company
will issue new shares as required. When exercisable, each option is convertible into one equity share.

42 EMPLOYEE BENEFIT OBLIGATIONS
1) Gratuity

The Company makes contribution towards gratuity to a defined retirement benefits plan for qualifying employees.
The Company has taken policy with Life Insurance Corporation of India to provide for payment of retirement
benefits to vested employees. The present value of obligation is determined based on actuarial valuation. The
expected contribution to the plan for next annual reporting period amounts to ^ 4.86 crores (31 March 2024:
^ 4.26 crores).

The weighted average duration of the defined benefit obligation as at 31 March 2025 is 5 years (31 March 2024:
4 years).

The amounts recognised in the Balance Sheet and the movements in the net defined benefit obligation over
the year are as follows:

3) The Company has granted non-recurring long term incentives to select employees which is linked with valuations
of specified businesses of a future date. In view of the management, projections of future valuations of specified
businesses as at the current reporting date is not feasible. Accordingly, the Company has not recognized any
expense on this account for the year ended 31 March 2025

43 LEASES

A) Leases disclosure as lessee:

a The Company has taken residential/commercial premises on lease. There are no restrictions placed upon the
Company by entering into these leases and there are no subleases. The Company is prohibited from selling
or pledging the underlying leased assets as security. The Company also has certain leases of various assets
with lease terms of 12 months or less. The Company applies the ‘short-term lease’ recognition exemptions
for these leases.

Investment in subsidiaries are measured at cost as per Ind AS 27, ‘Separate financial statements’ and hence, not
presented here.

B) Fair value hierarchy

The different levels of fair value have been defined below:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level
1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined
in whole or in part using a net asset value or valuation model based on assumptions that are neither supported
by prices from observable current market transactions in the same instrument nor are they based on available
market data.

Valuation process and technique used to determine fair values

(i) All financial instruments are initially recognised at cost and subsequently re-measured at fair value as
described below:

a) The fair value of investment in quoted Equity Shares is measured at quoted price as at reporting date.

b) The fair value of investment in quoted Bonds and Debentures is measured based on the last traded
price on stock exchange as at the reporting date.

c) The fair value of investments in Alternative Investment Funds and Mutual Funds is based on the
net asset value (NAV) as stated by the issuers of these funds in the published statements as at the
balance sheet date.

d) The fair value for unquoted instruments where Level 1 inputs are not available, the Company
engages third party valuers, where required, to perform the valuation. Information about the
valuation techniques used in determining the fair value of various assets is as follows:

i. Asset Approach: Net Assets Value Method

ii. Income Approach:Discounted Cash Flows Method

iii. Market Approach: Comparable Companies Multiples Method

(ii) Fair value for derivatives contracts is determined using observable forward and option exchange rates
and yield curves as at the balance sheet date.

B) (ii) Fair value of financial assets and liabilities measured at amortised cost

The fair values of loans are not materially different from the amortised cost thereof. Further, the management
assessed that fair values of trade receivables, cash and cash equivalents, other bank balances, other current
financial assets (excluding derivative assets), current borrowings, trade payables and other current financial
liabilities (excluding derivative liabilities) approximate their respective carrying amounts largely due to the
short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at
the amount at which the instrument could be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale.

All the long term borrowing facilities availed by the Company are variable rate facilities which are subject
to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to
change with changes in Company’s creditworthiness. The management believes that the current rate of
interest on these loans are in close approximation from market rates applicable to the Company. Therefore,
the management estimates that the fair value of these borrowings are approximate to their respective
carrying values.

The fair value measurements disclosed in respect of financial assets and liabilities measured at amortised
cost fall within Level 3 of fair value hierarchy.

As the Company’s trade receivables do not contain a significant financing component, it measures the loss
allowance in respect thereof at an amount equal to lifetime expected credit losses

Based on business environment in which the Company operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting
defaults are based on actual credit loss experience and considering differences between current and historical
economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage
in a repayment plan with the Company or debtor declaring bankruptcy or a litigation decided against the
Company. The Company continues to engage with parties whose balances are written off and attempts to
enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

A. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure
to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured
at amortised cost. The Company continuously monitors defaults of customers and other counterparties and
incorporates this information into its credit risk controls.

Credit risk management
Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date
B: Moderate credit risk
C: High credit risk

The Company provides for expected credit loss based on the following:

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated
banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees/letter of credit, from customers
where credit risk is high. The Company closely monitors the credit-worthiness of the debtors through internal
systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated
amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become
past due and default is considered to have occurred when amounts receivable become one year past due.
Company obtains the credit insurance for export debtors from Export Credit Guarantee Corporation (ECGC) of
India and for domestic debtors from insurance company.

Investments

This risk refers to a situation where a particular bond issuer is unable to make the expected principal payments,
interest rate payments, or both.

The Company’s deployment in debt instruments are primarily in bonds and debentures issued by highly
rated banks, financial institutions and public sector undertakings. With respect to the Company’s investing
activities, counter parties are shortlisted and exposure limits are determined on the basis of their credit rating
(by independent agencies), financial statements and other relevant information. As these counter parties are
Banks/Financial Institutions /public sector undertakings with investment grade credit ratings and taking into
account the experience of the Company over time, the counter party risk attached to such assets is considered
to be insignificant.

Furthermore, with respect to the company’s investments in Equity and Preference instruments, Mutual Funds
and AIF’s, since these investments are not exposed to counterparty risks, therefore they have been considered
under low credit risk instruments.

Derivative instruments

Credit risk related to derivative instruments is managed by the Company by doing transactions with highly rated
banks. Further, management has established limits for use of derivative instruments to minimise the concentration
of risks and therefore mitigate financial loss through counterparties potential failure to make payments.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits
and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

Company provides for expected credit losses on loans and advances other than trade receivables by assessing
individual financial instruments for expectation of any credit losses. Since, the Company deals with only high¬
rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances
and bank deposits is evaluated as very low. In respect of loans, comprising of security deposits, credit risk is
considered low because the Company is in possession of the underlying asset. In respect of other financial
assets, credit risk is evaluated based on Company’s knowledge of the credit worthiness of those parties.

The Company does not have any expected loss based impairment recognised on such assets considering
their low credit risk nature.

b) Expected credit loss for financial assets under simplified approach

The Company recognises lifetime expected credit losses on trade receivables using a simplified approach,
wherein Company has defined percentage of provision by analysing historical trend of default and such
provision percentage determined have been considered to recognise life time expected credit losses on
trade receivables (other than those where default criteria are met in which case the full expected loss against
the amount recoverable is provided for). Customer advances amounting to ^ 132.80 crores (31 March
2024: ^ 142.10 crores) were not considered for the purpose of computation of expected credit losses under
simplified approach. Based on such simplified approach, an allowance of ^ 4.83 crores and ^ 3.95 crores as
at 31 March 2025 and 31 March 2024 has been recognised respectively.

B. Liquidity risk

Liquidity risk is the risk that 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 to
managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due.

Management monitors rolling forecasts of the liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Financing arrangements

The Company has access to the following undrawn borrowing facilities at the end of reporting period:

C. Market risk

(i) Interest rate risk

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. The
Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.

(ii) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with
respect to the US Dollar, GBP, Euro and JPY. Fluctuations in foreign currency exchange rates may have an
impact on profit or loss and the statement of change in equity, where any transaction references more than
one currency or where assets/liabilities are denominated in a currency other than the functional currency of
the Company.

Exposures on foreign currency loans are managed through a hedging policy, which is reviewed periodically to
ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company’s
policy is to hedge material foreign exchange risk associated with borrowings, highly probable forecast sales
and purchases transactions denominated in foreign currencies. The Company strives to achieve asset liability
offset of foreign currency exposures and only the net position is hedged.

The Company uses forward exchange contracts, currency swaps, other derivatives and non-derivative
instruments to hedge the effects of movements in exchange rates on foreign currency denominated assets,
liabilities and highly probable forecast transactions. The sources of foreign exchange risk are outstanding
amounts payable for imported raw materials, capital goods and other supplies and as well as financing
transactions and loans denominated in foreign currencies. The Company is also exposed to foreign exchange
risk on its highly probable forecasted sales and purchases. The policy of the Company is to determine on
a regular basis what portion of the foreign exchange risk on financing transactions and loans are to be
hedged through forward exchange contracts and other instruments. Short-term net exposures are hedged
progressively based on their maturity. The hedge mechanisms are reviewed periodically to ensure that the
risk from fluctuating currency exchange rates is appropriately managed. The following analysis is based on
the gross exposure as at the reporting date which could affect the profit or loss or other comprehensive
income. Instruments designated in hedging relationship and hedge accounting disclosures are include in
section “"Derivative financial instruments and hedge accounting””.

*Refer statement of profit and loss and statements of change in equity for the change in the fair value of cash flow hedges.

b) The Company uses foreign currency forward contracts, foreign currency options contracts and non¬
derivative financial instruments (i.e. foreign currency borrowings) to mitigate exchange rate exposure
arising from forecast sales and purchase in USD, EUR and GBP. Also, the Company uses foreign currency
options contracts, cross currency swap contracts and interest rate swap contracts to mitigate exchange rate
exposure and interest rate exposure arising from foreign currency borrowings.

Hedge effectiveness is determined at inception of the hedge relationship and at every reporting period end
through the assessment of the hedged items and hedging instrument to determine whether there is still
an economic relationship between the two.

The critical terms of the foreign currency forwards and cross currency swaps entered into exactly
match the terms of the hedged item. As such the economic relationship and hedge effectiveness
are based on the qualitative factors and the use of a hypothetical derivative where appropriate
In hedges of foreign currency borrowings and forecast transaction, ineffectiveness mainly arises because
of Change in timing of hedged item from that of the hedging instrument and cost of hedging. The
ineffectiveness in the hedges have been disclosed.

All derivative financial instruments used for hedge accounting are recognised initially at fair value and
reported subsequently at fair value in the statement of financial position.

To the extent that the hedge is effective, changes in the fair value of derivatives designated as hedging
instruments in cash flow hedges are recognised in other comprehensive income and included within the
cash flow hedge reserve in equity. Any ineffectiveness in the hedge relationship is recognised immediately
in profit or loss.

At the time the hedged item affects profit or loss, any gain or loss previously recognised in other comprehensive
income is reclassified from equity to profit or loss and presented as a reclassification adjustment within other
comprehensive income.

I f a forecast transaction is no longer expected to occur, any related gain or loss recognised in other
comprehensive income is transferred immediately to profit or loss. If the hedging relationship ceases to
meet the effectiveness conditions, hedge accounting is discontinued, and the related gain or loss is held in
the equity reserve until the forecast transaction occurs.

Other derivatives, which have not been designated in hedging relationship, are considered by management
to be part of economic hedge arrangements but have not been formally designated.

Price risk
Exposure

The Company’s exposure to price risk arises from investments held and classified in the balance sheet either
as fair value through other comprehensive income or at fair value through profit or loss. To manage the price
risk arising from investments, the Company diversifies its portfolio of assets.

Sensitivity

The table below summarises the impact of increases/decreases of the index on the Company’s equity and
profit for the period:

47 CAPITAL MANAGEMENT

The Company’s capital management objectives are to ensure the Company’s ability to continue as a going concern
as well as to provide an adequate return to shareholders by pricing products and services commensurately with
the level of risk.

The Company monitors capital on the basis of the carrying amount of equity plus its subordinated loan, less
cash and cash equivalents as presented on the face of the statement of financial position and cash flow hedges
recognised in other comprehensive income.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure,
the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue
new shares. The amounts managed as capital by the Company are summarised as follows:

The Company monitors capital on the basis of its gearing ratio, debt equity ratio and ratio of net debts to its
earnings before interest, tax, depreciation and amortisation (EBITDA)

Notes:

1. Since the change in ratio is less than 25%, no explanation is required to be furnished.

2. Primarily higher due to increase in operating income caused by higher speciality film sale, enchanced volume
and better margin.

51 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES
ACT, 2013

(i) Details of benami properties held

No proceedings have been initiated on or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Valuation of Property, Plant and Equipment and Intangible Assets

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

(iii) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year.

(iv) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

(v) Relationship with struck off companies

The Company does not have any transaction with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the previous year.

(vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.

(viii) Registration of charges or satisfaction with registrar of companies

There are no changes or satisfaction which are yet to be registered with the registrar of companies beyond
the statutory period.

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Fund received / loaned

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, 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 on behalf of the Ultimate Beneficiaries.

(xi) No funds have been received by the Company from any person or entity, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,
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.

(xii) The Company has been sanctioned working capital limits from banks or financial institutions on the basis
of security of current assets. The quarterly returns or statements filed by the Company with such banks
or financial institutions on aggregate basis, are in agreement with the unaudited books of account of the
Company, for the respective quarters, except for some differences due to reporting of advances received
from customer (subsidiaries), and other differences due to filing of quarterly returns or statements with
banks based on the provisional financial statements and subsequent corrections being carried out in the
financials statements during limited reviews of respective quarters/year end audit.

52 ACQUISITION OF PETSY STORES PRIVATE LIMITED

On 1 July 2023, the Company acquired the business of online sales of Petcare products as a going concern by
way of a slump sale from Petsy Stores Private Limited, an unlisted company incorporated in India and engaged
in the business of Petcare products under the brand name of “Petsy”. The deal comprised of online platform/
website, brand name and logo, social media handles, tangible assets, customer database and other intangible
assets. The acquisition is in line with the Company’s strategy to expand it’s Petcare Business.

(A) Purchase consideration transferred

The amount of consideration transferred on acquisition is ^ 6.33 crores in cash.

* Goodwill of ^ 0.10 crores is recognised as ‘Intangible Assets’ on account of synergies expected from acquisition of Petsy.

The gross contractual value and fair value of trade receivables as at the date of acquisition, is expected to
be fully recoverable.

(C) Acquisition of brand ‘Petsy'

The Company has also acquired the ‘Petsy’ brand, as part of the acquisition deal. The brand has been valued
at ^ 4.43 crores as per the report of independent valuer.

The determination of business valuation as at the acquisition date is based on discounted cash flow method.
While doing purchase price allocation, property, plant and equipment, current assets and liabilities have
been considered on the respective carrying values on the acquisition date and allocation to identifiable
intangible assets has been considered based on the importance of each intangible asset for growth of the
Company’s business.

(D) Contingent liabilities

There are no contingent liabilities as on 1 July 2023 pertaining to Petsy.

Purchase consideration of Petsy amounting to ^ 6.33 crores are included under Cash flow from investing
activities. Acquisition-related expenses of ^ 0.09 crore have been recognised under ‘Other expense’ head
in the statement of profit and loss.

(F) Impact of acquisition on results

During year ended 31 March, 2024 the acquired business Petsy contributed ^ 4.57 crores towards Revenue
from operations and made a loss of ^ 3.16 crores.

If the business combination had taken place at the beginning of the year i.e. on 1 April 2023, Petsy would
have contributed ^ 6.4 crores towards Revenue from operations and would have made a loss of ^ 4 crores.

53 Per transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961, the Company is required
to use certain specific methods in computing arm’s length prices of international transactions with associated
enterprises and maintain adequate documentation in this respect. Since law requires existence of such
information and documentation to be contemporaneous in nature, the Company has appointed independent
consultants for conducting a Transfer Pricing Study (the ‘Study’) to determine whether the transactions with
associate enterprises undertaken during the financial year are on an “arms length basis”. Management is of the
opinion that the Company’s international transactions are at arm’s length and that the results of the on-going
study will not have any impact on the financial statements and the independent consultants appointed have
also preliminarily confirmed that they do not expect any transfer pricing adjustments.

54 There has been no subsequent events which required any adjustment for the financial year ending 31 March 2025.

55 Previous year numbers have been regrouped wherever consider necessary to confirm to current year classifications.

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited

Chartered Accountants

Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena Ashok Jaipuria Anil Kumar Jain

Partner Chairman & Managing Director Director Corporate Affairs

Membership No.: 077974 DIN: 00214707 DIN: 00027911

Place: New Delhi Pankaj Poddar Neeraj Jain Jyoti Dixit

Date: 20 May 2025 Chief Executive Officer Chief Financial Officer Company Secretary

Membership No.: 096861 Membership No.: 097576 Membership No.: F6229