Notes to Accounts of Picturepost Studios Ltd.

Mar 31, 2025

During the Financial year 2024-25, The Company has made the initial public offer aggregates to 78,00,000 shares of a face value Rs.1 each comprising of a fresh issue aggregating to 78,00,000 equity shares by the Company.

During the financial year 2023-24, the Company issued 1,14,00,000 equity shares by way of a rights issue.

c) The rights, preferences and restrictions attaching to each class of shares:

The Company has only one class of shares and all shareholder have equal rights and there are no restriction and preferences attached to any shareholders including the right to receive dividend and repayment of Capital.

d) Shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL

f) The Company hasn''t reserved any share for issue under options and contracts or commitments for the sale of shares or disinvestment as on the reporting date.

g) Shares information related to immediately preceding five years from reporting date:

i) Number & class of Share allotted as fully paid up pursuant to contract(s) without payment being received in cash : NIL

ii) Aggregate number and class of shares allotted as fully paid up bonus shares : NIL

iii) Aggregate number and class of shares brought back : NIL

Disclosure relating to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED'') is based on the information available with the Company: This has been relied upon by the auditors.Under the Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED'') which came into force from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises (''MSME''). On the basis or the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small mid Medium Enterprises Development Act, 2006 except as set out in the following disclosures.

23 Employee Benefit Expense

Assets and liabilities relating to Employee Benefits

See accounting policy in Note 2.7

For details about the related employee benefit expenses, see Note 20 Defined Benefit Obligation:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company does not make any contributions to gratuity funds and the plan is unfunded. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

26 Segment Reporting

The Company is primarily engaged in the business of movie editing, computer-generated imagery (CGI), visual effects (VFX), video conversion, grading, and mastering of films and commercials for various broadcast and digital platforms. This forms the core and only reportable segment of the Company''s operations as per the applicable Accounting Standards.

27 Contingent Liabilities and Commitments

i) There are no contingent liabilities as at the close of the year.

ii) There are no capital or other material commitments as at the close of the year

32 Additional Regulatory Information

a. No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

b. The Company does not have any transactions with companies which are struck off

c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

e. "The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding 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"

f. "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."

g. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h. The Company is not declared willful defaulter by any bank or financial institution or lender during the year.

i. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at Balance sheet date.

33 Audit trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled and the audit trail has been preserved by the Company as per the statutory requirements for record retention.

We report that for the financial year commencing on or after April 1, 2024, the Company has used accounting software for maintaining its books of account. However, the audit trail (edit log) feature of the accounting software was not enabled at any time during the financial year for the transactions recorded therein.

Additionally, the audit trail has not been preserved by the company as per the statutory requirements for record retention

34 Previous year figures have been re-grouped /re-classified wherever necessary to confIrm current years'' classification.

35 All amounts disclosed in the financial statements and notes thereon have been rounded off to the nearest lakhs, unless otherwise stated.

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Mar 31, 2024

11. Derivative Transactions.

The Company does not have any derivative transactions in the current year.

12. Other Disclosures as required under Schedule III of the Companies Act, 2013

(i) Details of Benami Property held

oror?^rrt^Ceed!!^19S,l!^,aVD ^b6en i^{i,iated on or are} P^endin9 against the company for holding benami t^Pher?undeT^der ** ^Benam‘ ^Transactl0ns (Prohibition) Act, 1988 (45 of 1988) and Rules made

(ii) Willful Defaulter

Company has not been declared Willful defaulter by any bank or financial institution or government or any government authority. ^a

(iii) Compliance with number of layers of companies

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

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

I,^hr^eron^C!^{mPany haS} ''P* ^ent€^^{ed int0 any scheme of} arrangement which has an accounting impact on current or previous financial year.

(v) Loans to promoters, directors, KMPs and other related parties

During the year the Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013) either severally or jointly with any other person that are either:

a) Repayable on demand or

b) Without specifying any terms or period of repayment.

(vi) Loans and Advances

A. The company has not advanced or loaned or invested funds to any other person(s) or

entity(ies), including foreign entities (Intermediaries) with the understanding tha the Intermediary shall: ^M

a. 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

^b- Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

^B'' ^ha^ 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: ''

a. 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

b. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(vii) 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.

(viii) 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. ^a

(ix) Registration of charges or satisfaction with Registrar of Companies

°^mPf^J^S o^{0t require}i^d *° ^re9''^ster any charge and also not required to file any satisfaction of charges with the Registrar of Companies. Hence, this is not applicable.

(x) Utilization of borrowings availed from banks and financial institutions

Utilization of borrowings availed from banks and financial institutions.

(xi) Valuation of PP&E, intangible asset and investment property

^nn°w ^Pany ^^{aS n}1°^,!^e^^alUed ''^{tS property}- ^{plant and} equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xii) The Company has not declared or paid dividend during the year 2023-2024.

(xiii) Title deeds

applicable*³^ ^d°^{eS 001 haVe a}°^{y freehold land and} accordingly the reporting on title deed is not

(xiv) Fair Valuation of Investment Properties

The Company does not hold any investment property and hence the disclosure on fair valuation of investment property is not applicable to the Company.

(xv) Returns to Banks

The Company does not have any borrowings from banks/ financial institutions on the basis of security of current assets. Further, the Company is not required to file any quarterly returns / statements of current assets with banks / financial institutions.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

16. Figures of Previous year have been regrouped/ rearranged wherever considered necessary.