Notes to Accounts of Bluegod Entertainment Ltd.

Mar 31, 2025

B.5 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is virtually certain that reimbursements will be received
and the amount of the receivable can be measured reliably.

Contingent liability is disclosed for possible obligations which will be confirmed only by future events not 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 not recognized since this may result in the recognition of income that may never be
realized.

B.6 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised
immediately in profit or loss.

Financial assets:

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the marketplace.

Classification of financial assets

The financial assets are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition of financial assets are added to the fair value of the financial assets on initial recognition.

After initial recognition:

(i) Financial assets (other than investments) are subsequently measured at amortised cost using the effective
interest method.

Effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Investments in debt instruments that meet the following conditions are subsequently measured at amortised
cost:

• The asset is held within a business model whose objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely
payments on principal and interest on the principal amount outstanding.

Income on such debt instruments is recognised in profit or loss and is included in the "Other Income".

The Company has not designated any debt instruments as fair value through other comprehensive income.

(ii) Financial assets (i.e. investments in instruments other than equity of subsidiaries) are subsequently measured
at fair value.

Such financial assets are measured at fair value at the end of each reporting period, with any gains (e.g. any
dividend or interest earned on the financial asset) or losses arising on re-measurement recognised in profit or
loss and included in the "Other Income".

Investments in equity instruments of subsidiaries

The Company measures its investments in equity instruments of subsidiaries at cost in accordance with Ind AS
27. At transition date, the Company has elected to continue with the carrying value of such investments
measured as per the previous GAAP and use such carrying value as its deemed cost.

Impairment of financial assets:

A financial asset is regarded as credit impaired when one or more events that may have a detrimental effect on
estimated future cash flows of the asset have occurred. The Company applies the expected credit loss model for
recognising impairment loss on financial assets (i.e. the shortfall between the contractual cash flows that are
due and all the cash flows (discounted) that the Company expects to receive).

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. On de-recognition of a financial asset in its entirety, the
difference between the asset''s carrying amount and the sum of the consideration received and receivable is
recognised in the Statement of profit and loss.

Financial liabilities and equity instruments

Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with the substance and the
definitions of an equity instrument. An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method. The
carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based
on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included
in the "Finance Costs".

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

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or have expired. An exchange between with a lender of debt instruments with substantially different
terms is accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or
not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. The difference between the carrying amount of
the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

B. 7 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive
potential equity shares.

C. Critical Accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires the Company''s Management to make
judgments, estimates and assumptions about the carrying amounts of assets and liabilities recognised in the
financial statements that are not readily apparent from other sources. The judgements, estimates and
associated assumptions are based on historical experience and other factors including estimation of effects of
uncertain future events that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
(accounted on a prospective basis) and recognised in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods of the revision affects both current
and future periods.

The following are the key estimates that have been made by the Management in the process of applying the
accounting policies:

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value are measured using valuation techniques.
The inputs to these models are taken from observable markets where possible, but where this is not feasible, a
degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as

liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported
fair value of financial instruments.

Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account various
factors such as customer specific risks, geographical region, product type, currency fluctuation risk, repatriation
policy of the country, country specific economic risks, customer rating, and type of customer, etc.

Individual trade receivables are written off when the management deems them not to be collectable.

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Mar 31, 2024

(g ) Provisions and Contingent Liabilities:

A provision is recognised if, as a result of a past event, the Company has a present legal
or constructive obligation that can be estimated reliably, and it is probable that an out
flow of economic benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows at a Pre-tax rate that reflects
current market assumptions of the time value of money and the risks specific to the
liability. The unwinding of discount is recognized as finance cost.

The amount recognized as a provision is the best estimate of the consideration required
to settle the present obligation at reporting date, taking into account the risks and
uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected
to be recovered from a third party, the receivable is recognized as an asset if it is
virtually certain that reimbursement will be received and the amount of the receivable
can be measured reliably.

A provision for onerous contract is measured expected at the present value of the lower
of the expected cost of terminating the contract and at the present value of the lower of
the expected net cost of continuing with the contract.

Contingent liabilities are possible obligations that arise from past events and whose
existence will only be confirmed by the occurrence or non-occurrence of one or more
future events not wholly within the control of the Company. Where it is not probable
that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote.

(h) Leases: Not Applicable . . -

(i) Borrowing Costs :

Borrowing costs directly attributable to the acquisition or construction of those
property, plant and equipment which necessarily takes a substantial period of time
to get ready for their intended use are capitalised. All other borrowing costs are
capitalised in the period in which they are incurred in the statement of profit and

loss.

(j) Revenue:

Revenue from the sale of goods in the course of ordinary activities is measured at
the fair value of the consideration received or receivable, net of returns, trade
discounts and volume rebates. This inter-alia involves discounting of the
consideration due to the present value if payment extends beyond normal credit
terms. Revenue is recognised when the significant risks and rewards of ownership
have been transferred to the buyer, recovery of the consideration is probable, the
associated costs and possible return of goods can be estimated reliably, there is no

continuing effective control over, or managerial involvement with, the goods, and
the amount of revenue can be measured reliably.

Interest: Not Applicable

. . I: .

Dividend : There is dividend income earned by the company during the year.

(k) Government Grants:

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 relates to revenue, it is recognised in the statement of profit and loss on a
Systematic basis over the periods to which they relate. When the Grant relates to
an asset, it is treated as deferred income and recognised in the statement of profit
and loss on a systematic basis over the useful life of the asset.

(l) Income Tax:

Income tax comprises current and deferred tax. It is recognised in profit or loss
except to the extent that it relates to a business combination or to an item
recognised directly in equity or in other comprehensive income.

(m) Current Tax:

Since the company has posted net losses hence there is no provision for payment of
Income Tax in the Books of the Company during the year.

(n) Deferred Tax:

Deferred tax is recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes. Deferred tax is also recognised
in respect of carried forward tax losses and tax credits. ,

Deferred tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which they can be used.

Deferred tax assets recognised or unrecognised are reviewed at each reporting date
and are recognised / reduced to the extent that it is probable/ no longer probable
respectively, that the related tax benefit will be realised.

Deferred tax is measured at the tax rates currently prevailing for the period of
reporting.

The measurement of deferred tax reflects the tax consequences that would follow,
from the manner in which the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities. The Company offsets, the
current tax assets and liabilities (on a year on year basis) and deferred tax assets and
liabilities, where it has a legally enforceable right and where it intends to settle such
assets and liabilities on a net basis

(o) Earnings per share:

The Company presents basic and diluted earnings per share (EPS) data for its
ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to
ordinary shareholders of the Company by the weighted average number of ordinary
shares outstanding during the period. Diluted EPS is determined by adjusting the
profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding after adjusting for the effects of all potential
dilutive ordinary shares.

(p) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit for the period''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 considers all highly liquid investments that are readily convertible to
known amounts of cash to be cash equivalents.

Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which
require the entities to provide disclosures that enable users of financial statements
to evaluate changes in liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes, suggesting inclusion of a
reconciliation between the opening and closing balances in the Balance Sheet for
liabilities arising from financing activities, to meet the disclosure requirement. The
adoption of amendment did not have any material impact on the financial
statements.

(q) Financial Instruments:

a. Recognition and initial measurement:

The Company initially recognises financial assets and financial liabilities when it
becomes a party to the contractual provisions of the instrument. All financial
assets and liabilities are measured at fair value on initial recognition. Transaction
costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities that are not at fair value through profit or loss are added
to the fair value on initial recognition. Regularly purchase and sale of financial
assets are accounted for at trade date.

b. Classification and subsequent measurement:

Financial Assets : Financial assets carried at amortised cost.

A financial asset is subsequently measured at amortised cost if it is held wiithin a
business model whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely Payments of principal and
interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income:

A financial asset is subsequently measured at fair value through other
comprehensive income if it is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the Principal
amount outstanding.

Financial assets at fair value through profit or loss :

A financial asset which is not classified in any of the above categories are
subsequently fair valued through profit or loss.

Financial Liabilities:

Financial liabilities are subsequently carried at amortised cost using the effective
interest method. For trade and other payables maturing within one year from
the balance sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

Financial Assets:

The Company derecognises a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the right to receive the
contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial assets are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards
of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized
on its balance sheet but retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred assets are not derecognised.

Impairment of financial assets

The company assesses impairment based on simplified expected credit losses
(ECL) model for Trade Receivables. Allowance for expected credit loss is provided
for by an amount equal to 15% of the trade receivables outstanding at the end of
the financial year.

Financial Liabilities:

The Company derecognises a financial liability when its contractual obligations
are discharged or cancelled or expire.

The Company also derecognises a financial liability when its terms are modified
and the cash flows under the modified terms are substantially different. In this
case, a new financial liability based on the modified terms is recognised at fair
value. The difference between the carrying amount of the financial liability
extinguished and a new financial liability with modified terms is recognised in
the statement of profit and loss.

d. Offsetting: .

Financial assets and financial liabilities are offset and the net amount presented in
the balance- sheet when, and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends either to settle them on a net
basis or realize the asset and settle the liability simultaneously.

(r) Recent Accounting Pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the
existing standards. The applicable provisions pertaining to the current year have
been complied with.

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Mar 31, 2015

1. Term Loan is secured by equitable mortgage of factory land & building, hypothecation of plant & machinery besides personal guarantee of some of the directors and some collateral security.

Car Loan is secured by way of hypothecation of the vehicle funded and personal guarantee of some of the directors.

2. Accounting Standard 2 - Valuation of Inventory Raw Material - At cost Work in Process - At prime cost Finished Goods - At lower of cost of production or net realizable Value Scrap - At realizable value Stores, spares, tools, jigs & packing material - At cost

3. Accounting Standard 4 - Contingencies and Events occurring after Balance Sheet date No such events have occurred.

4. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in accounting policies: Such items have been earmarked separately.

There is no change in accounting policies followed by the company. As regards prior period items, those have been earmarked.

5. Accounting Standard 6 - Depreciation

Fixed Assets are depreciated on Straight line Value Method. Depreciation is provided for as per the useful life specified in Schedule - II to the Companies Act, 2013.

Depreciation is provided on pro-rata basis from the date of addition.

6. Accounting Standard 7 - Accounting for Construction Contracts The company has not entered into any construction contracts.

7. Accounting Standard 9 - Revenue Recognition:

Sale of goods is recognized on accrual basis and it is net of discount.

Dividend income is accounted for on receipt.

Interest income is recognized on a time proportion basis.

8. Accounting Standard 10 - Accounting for Fixed Assets

Fixed Assets are stated at cost of acquisition, less accumulated depreciation. Cost includes all expenses related to acquisition and installation of the concerned assets.

9. Accounting Standard 11 - Accounting for effects of change in Foreign Exchange Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Assets and Liabilities related to foreign currency transactions, remaining unsettled at the year end, are stated at the contracted rates, when covered under forward exchange contracts and at year end rates in other cases. The premium payable on forward foreign exchange contracts is amortized over the period of contract. Exchange gains /losses are recognized in the profit and

loss account except for exchange differences relating to fixed assets, which are adjusted in the cost of assets.

10 Accounting Standard 12 - Accounting for Government Grants

The company has received Government grants during the year. Capital subsidy is forming part of reserve & surplus while interest subsidy has been net off from interest paid.

11 Accounting Standard 13 - Accounting for Investments

Investments are classified into current and long-term investments. Long-term investments are carried at cost. Current investments are stated at lower of cost and net realizable value.

12 Accounting Standard 14— Accounting for Amalgamations The company has not undergone any amalgamation.

13 Accounting Standard 15 - Accounting for Retirement Benefits

As per the Company's policy, provision for gratuity payable on retirement is done at the end of year and the payment is made accordingly.

14 Accounting Standard 16 - Borrowing Cost

Borrowing cost incurred during pre-operation period is capitalized and those incurred in the post operation period is recognized as an expense.

15. Accounting Standard 22 - Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax for timing difference between the book and tax profit for the year is accounted using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred Tax assets arising from the timing difference are recognized to the extent that there is reasonable certainty that sufficient future taxable income will be available.

16. Accounting Standard 26 - Intangible Assets

The company does not have any intangible assets.

(Rs. in lacs)

Contingent Liabilities 2015 2014

Bank guarantee 29.64 26.82

Cases in appeal-VAT 118.58 14.03

Letter of Credit — 19.75

Contingent liabilities are generally not provided for in the books of account and Contingent assets are not recognised.

17. In the opinion of the Board current assets, loans & advances have value of realization m the ordinary course of business at least equal to the amount of which they are stated and that provision for known liabilities is adequate and not in excess of the amount reasonably necessary.

18. The HDPE division of the company is exempted from entry tax vide letter no. 1049 dated 19/03/2012 for the period 24/02/2011 to 23/02/2016. Accordingly entry tax has not been levied/ provided for.

19. Name of Small Scale Industrial undertakings to whom the company owes any sum together with interest outstanding for more than 30 days

* Varsha Printing Inks Mfg. co.

* Asiatic Marketing Company

* Ganesh Polygraph

* Gandhar Oil Refinery India Ltd

* Ani Agencies

* Jaicorp Limited

20. Previous year figures have been regrouped and rearranged wherever considered necessary.