Notes to Accounts of Silly Monks Entertainment Ltd.

Mar 31, 2025

(c) Rights, preferences and restrictions attached to equity shares:

The Company has only one class of issued, subscribed and paid-up equity shares having a par value of ?10 each per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

32	Contingent liabilities and commitments
		31 March	31 March 2024
		2025
	Contingent liabilities and commitments	NA	NA

33 Leases

Leases as lessee

The Company has lease contracts for building. The lease have lease terms of 5 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets. There lease contracts that include extension and termination options, which are further discussed below.

35 Defined benefit plans

The Company operates defined benefit plan i.e., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The fund has the form of a trust and it is governed by the Board of Trustees who is responsible for the administration of the plan assets and for the definition of the investment strategy.

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

36 Segment information

The company has identified "Entertainment" as the only primary reportable business segment. Accordingly, disclosure of segment information as prescribed in the Indian accounting standard 108 “Operating segments” is not applicable.

The fair value of the financial assets and financial liabilities are included at an amount at which the instruments

could be exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale. - Level 3

38 Financial risk management objectives and policies Financial Risk Management Framework

The Company is exposed to financial risks arising from its operations and the use of financial instruments.

The key financial risks include credit risk, market risk and liquidity risk. The Company’s risk management policies are established to identify and analyse the risks faced by the Company and seek to, where appropriate, minimize potential impact of the risk and to control and monitor such risks. There has been no change to the Company’s exposure to these financial risks or the manner in which it manages and measures the risks.

The following sections provide details regarding the Company’s exposure to the financial risks associated with financial instruments held in the ordinary course of business and the objectives, policies and processes for management of these risks.

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk arises primarily from financial assets such as trade receivables, balances with banks and loan and other receivables.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, cash and bank balances and loans. None of the financial instruments of the Company result in material concentration of credit risk.

Exposure to credit risk

At the end of the reporting period, the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to credit risk.

Financial assets that are neither past due nor impaired

None of the Company’s cash equivalents, loans and other financial assets were either past due or impaired as at the respective reporting period. The Company has diversified its portfolio of investment in cash and cash equivalents and term deposits with various banks which have secure credit ratings, hence the risk is reduced. Loans given to related parties and others are tested for impairment where there is an indicator and the assessed credit risk associated with such loans is relatively low. Other financial assets represent security deposits given to lessors and other assets. Credit risk associated with such deposits and other assets is relatively low.

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each balance sheet date whether a financial asset or a group of financial assets are impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix if they past due. The provision matrix takes into account historical credit loss experience and is adjusted for forward-looking information.

39.Financial risk management objectives and policies (cont’d)

A.Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining cash and cash equivalents and the cash flows generated from operations.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted paym ents:

B. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i. Foreign currency risk:

Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The majority of Company''s revenue is generated in foreign currencies (primarily in United States Dollars), while a significant portion of its costs are in Indian rupees. As a result, as the rupee appreciates or depreciates against foreign currencies, the results of the entity''s operations are impacted. The Company does not use financial derivatives such as foreign currency forward contracts.

ii Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company’s financial instruments will fluctuate because of changes in market interest rates. The Company’s exposure to interest rate risk relates primarily to the floating interest rate borrowings. The Company''s investment in deposits with banks and loans are fixed interest rates and therefore do not expose the Company to significant interest rate risk.

Interest rate sensitivity

The Company noted that any reasonably possible change in interest rates on the variable rate instruments will not have any material impact on the Company’s profit after tax and its equity.

40 Capital risk management

Capital includes equity capital and all reserves attributable to the equity holders of the Company. The primary objective of the capital management is to ensure that it maintain an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder’s value. The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders return capital to shareholders or issue new shares.

The Company monitors capital using a debt to capital employed ratio which is debt divided by total capital plus debt. The Company’s policy is to keep this ratio at an optimal level.

42 Additional disclosures

(i) 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) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) No transactions are carried out with companies struck off under Section 248 of the Act or Section 560 of Companies Act, 1956.

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

(v) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financi al year.

(vi) 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.

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

(viii) 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:

(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.

(ix) 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:

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

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

(x) There are no charges or satisfaction which are yet to be registered with the registrar of companies beyond the statutory period.

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) ofthe 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.

43.The Company, in respect of financial year commencing on 1 April 2023 has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log). Audit trail (edit log) is enabled at the application level, and the Company’s users have access to perform transactions only from the application level.

44 Employee stock incentive plans

Silly Monks employee stock option scheme 2023

The Company instituted the Silly Monks ESOP 2023 Plan for eligible employees pursuant to the special resolution approved by the shareholders in

the Meeting held on July 29, 2023. The Silly Monks ESOP 2023 Plan covers eligible employees.

The Nomination, Governance and Compensation Committee of the Board of the company (the “Committee”) administers the Silly Monks ESOP 2023 Plan and grants stock options to eligible employees. The Committee determines which eligible employees will receive options, the number of options to be granted, the exercise price, the vesting period and the exercise period. The vesting period is determined for all options issued on the date of grant. The options issued under the Silly Monks ESOP 2023 Plan vest in periods ranging between one and four years subject to a maximum period of four years from the date of grant of such options.

The company has established Silly Monks Employee Stock Option Scheme, 2023 (Silly Monks ESOP 2023 Plan) with 4,00,000 equity shares.

The exercise price of the options is INR 10 per share. The fair value of the share options is estimated at the grant date using a Black-Scholes Method, taking into account the terms and conditions upon which the share options were granted. However, the above performance condition is only considered in determining the number of instruments that will ultimately vest.

Reason for change more than 25%: The decrease in ratio is mainly attributable to decrease in current liabilities and cash and cash equivalents during the current year.

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Mar 31, 2024

2.11 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 outflow of economic
benefits will be required to settle the obligation. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense
relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement. If
the effect of the time value of money is material, provisions are discounted using a current pre-tax that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.

The disclosure of contingent liability is made when, as a result of obligating events, there is a possible
obligation or a present obligation that may, but probably will not, require an outflow of resources.

When there is a possible or a present obligations where the likelihood of outflow of resources is
remote, no provision or disclosure is made.

A contingent liability also arises in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not recognize a contingent
liability but discloses its existence in the financial statements.

Provisions and contingent liability are reviewed at each balance sheet date.

Onerous contracts

A contract is considered to be onerous when the expected economic benefits to be derived by the
Company from the contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision for an onerous contract is measured at the present value of the lower of the
expected cost of terminating the contract and the expected net cost of continuing with the contract.
Before such a provision is made, the Company recognises any impairment loss on the assets
associated with that contract.

2.12 Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to owner''s of the
Company for the year by the weighted average number of equity shares outstanding during reporting
period.

The number of shares used in computing diluted earnings/ (loss) per share comprises the weighted
average shares considered for deriving basic earnings/ (loss) per share and also the weighted average
number of equity shares which could have been issued on the conversion of all dilutive potential
equity shares.

Dilutive potential equity shares are deemed converted as of the beginning of the reporting date, unless
they have been issued at a later date. In computing diluted earnings per share, only potential equity
shares that are dilutive and which either reduces earnings per share or increase loss per share are
included.

2.13 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprises of cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of the Company’s cash management.

2.14 Financial instruments

i. Recognition and initial measurement

Trade receivables are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Company becomes a party to the contractual
provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair
value through profit and loss (FVTPL), transaction costs that are directly attributable to its
acquisition or issue.

ii. Classification and subsequent measurement
A. Financial assets

On initial recognition, a financial asset is classified as measured at:

- Amortised cost;

- FVTPL

- FVTOCI

Financial assets are not reclassified subsequent to their initial recognition, except if and in the
period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is
not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold assets 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.

All financial assets not classified as measured at amortised cost as described above are measured at
FVTPL. This includes all derivative financial assets. On initial recognition, the Company may
irrevocably designate a financial asset that otherwise meets the requirements to be measured at
amortised cost as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.

a. Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset
is held at an individual asset level because this best reflects the way the business is managed and
information is provided to management. The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice.
These include whether management’s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of any related liabilities or expected cash outflows or realising cash flows through the
sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company’s management;

- the risks that affect the performance of the business model (and the financial assets held within
that business model) and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair
value of the assets managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for
such sales and expectations about future sales activity.

Financial assets that are held for trading or are managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.

b. Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on
initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the

credit risk associated with the principal amount outstanding during a particular period of time and
for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit
margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the
Company considers the contractual terms of the instrument. This includes assessing whether the
financial asset contains a contractual term that could change the timing or amount of contractual
cash flows such that it would not meet this condition. In making this assessment, the Company
considers:

- Contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company’s claim to cash flows from specified assets (e.g. non- recourse
features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the
prepayment amount substantially represents unpaid amounts of principal and interest on the
principal amount outstanding, which may include reasonable additional compensation for early
termination of the contract. Additionally, for a financial asset acquired at a significant discount or
premium to its contractual par amount, a feature that permits or requires prepayment at an amount
that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest
(which may also include reasonable additional compensation for early termination) is treated as
consistent with this criterion if the fair value of the prepayment feature is insignificant at initial
recognition.

B. Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held- for- trading, or it is a derivative or it is design ated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are
subsequently measured at amortised cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition
is also recognised in profit or loss.

iii. Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument
and of allocating interest income or expense over the relevant period. The effective interest rate is the
rate that exactly discounts future cash receipts or payments through the expected life of the financial
instrument, or where appropriate, a shorter period.

iv. Derecognition

A. 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 rights to receive the contractual cash flows in a transaction in
which substantially all of the risks and rewards of ownership of the financial asset 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 recognised 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.

B. 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 the new financial liability with modified terms is recognised in
statement of profit or loss.

v. 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 to realise the asset and settle the liability
simultaneously.

vi. Derivative financial instruments

The Company holds derivative financial instruments to hedge its foreign currency and interest rate
risk exposures. Embedded derivatives are separated from the host contract and accounted for
separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are
measured at fair value, and changes therein are generally recognised in profit or loss.

At inception of designated hedging relationships, the Company documents the risk management
objective and strategy for undertaking the hedge. The Company also documents the economic
relationship between the hedged item and the hedging instrument, including whether the changes in
cash flows of the hedged item and hedging instrument are expected to offset each other.

2.15 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. Refer note 37 for details.

2.16 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs
as per the requirement of Schedule III, unless otherwise stated.

2.17 Significant accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgements, estimates and assumptions on historical experience
and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom
equal the related actual results. The judgements, estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the
respective notes) within the next financial year are discussed below.

(i) Leave obligations

The leave obligations covers the liability for earned leaves which are classified as
other short-term obligations.

(ii) Defined contribution plans

The Company also has defined contribution plans. Contributions are made to provident fund in India for
employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered
provident fund administered by the government. The obligation of the group is limited to the amount
contributed and it has no further contracual nor any constructive obligation. The expense recognised
during the period towards defined contribution plan is Rs. 4.87 (in lakhs).

(iii) Post employment obligations
Gratuity

The company provides for gratuity for employees as per the Payment of Gratuity Act, 1972 of India.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of
gratuity payable on retirement/termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service. Liability with regard to
such gratuity is determined by an independent actuarial valuation using the projected unit credit method
and are charged to the statement of profit and loss in the period determined.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of
the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior
years.

Defined benefit liability and employer contribution

Expected contributions to post-employment benefit gratuity plan for the year ending March 31, 2025 is Rs.
0.89 (in lakhs)

34 Contingent liabilities:

There are no Contingent liabilities to report as at the respective year end.

35 Capital commitments

There are no Capital commitments to report as at the respective year end.

36 Non-cancellable leases

There are no non-cancellable lease arrangements outstanding as on the reporting date.

37 Segment information

The Company is engaged in the business of movie production and digital media. The operating segment of
the Company is identified to be "Movie production" as

the chief operating decision maker (CODM) reviews business performance at an overall Company level as
one segment.

The Company is domiciled in India. The amount of its revenue from external customers broken down by
location of the customers is shown in the table below.

(i) Fair value hierarchy

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives
and equity securities) is based on quoted market prices at the end of the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for security deposit received and paid and are included in level 3.

Note:

1. There are no transfers between levels during the year.

2. The Companies policy is to recognise transfers into and transfers out of fair value hierarchy levels
as at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation technique used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

- for other financial instruments - the discounted cash flow technique.

(iii) Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. This team reports to the
Board of Directors. Discount rates are determined using a capital asset pricing model to calculate a pre-tax
rate that reflects current market assessments of the time value of money and the risk specific to the asset.

(iv) Fair values of financial assets and liabilities measured at amortised cost

The carrying amount of trade receivables, trade payables, capital creditors and cash and cash equivalent are
considered to be the same as their fair values, due to short term nature.

The fair values for loans, security deposits were calculated based on cash flows discounted using a current
lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of
unobservable inputs including counterparty credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.

40 Financial risk management

The Company’s principal financial liabilities comprise borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance Company’s regular operations. The Company’s principal
financial assets include trade receivables, cash and cash equivalents, loans and refundable deposits that
derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management
oversees the management of these risks. The senior management ensures that the Company’s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s
policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors
reviews and agrees policies for managing each of these risks, which are summarised below:

(a) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities, including refundable security
deposits, loans to employees and other financial instruments.

(i) Credit risk management Trade receivables

The Company assesses the credit quality of the customer, taking into account its financial position, past
experience and other factors. There are no significant concentrations of credit risk, whether through
exposure to individual customer, specific industry sectors and/or regions.

(c) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices, which will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.

41 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company’s capital management is to maintain strong credit rating and healthy capital ratios in order to
support its business and maximise the shareholder value.

The Company, through its Board of Directors manages its capital structure and makes adjustments in light of
changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the
capital structure, the Company may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. The Company monitors capital using debt equity ratio, which is net debt

Terms and conditions

All transactions and outstanding balances with these related parties are priced on an arm’s length basis and

are to be settled within the credit period allowed as per the policy. None of the balances are secured.

43 Other Statutory Information

a) The company does not have any immovable property other than Properties where company is Lessee and
lease agreements are duly executed in the favour of lessee.

b) The Company did not have any Investment Property during the year.

c) The company has not revalued its property, plant and equipment.

d) The Company has not revalued any of its Intangible assets held in the name of the company during the
year.

e) The Company has not made Loans and Advances in the nature of Loans granted to Promoters, Director''s,
KMP''s and related parties.

f) No proceedings have been initiated during the year or are pending against the company at March 31, 2023
and March 31, 2022 for holding any binami property under Binami transactions (Prohibition) Act, 1988
(as amended in 2016) and rules made thereunder

g) There are no charges or satisfaction to be registered with ROC beyond the statutory period.

h) The Company has not declared as wilful defaulter by any bank, financial Institution or other lender.

i) There are no Transactions with struck off companies u/s 248/250 of the Companies Act, 2013.

j) The Company is in compliance with number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of layers) Rules, 2017.

k) The company has not advanced/loaned/invested or received funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign
entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the
Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or
the like to or on behalf of the ultimate Beneficiaries.

l) There are no regulatory account balances during the year.

m) The Company is not required to apply its funds to CSR u/s 135 of The Companies Act, 2013.

n) Company does not have any Undisclosed Income during the Year.

o) Company has not invested in Crypto currency or Virtual currency.

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Mar 31, 2018

1. Other Notes to Accounts and Disclosures:

a) Related party disclosures (AS-18):

Related parties where control exists or where significant influence exists and with whom transactions have taken place during the current and previous

Key Management Personnel represented on the Board

- Tekulapalli Sanjay Reddy

- Anil Kumar Pallala

- Swathi Reddy

- Sreenivasa Reddy Musani

- Katragadda Rajesh

- Prasad Rao Kalluri

Enterprises where principal shareholders/ directors have control or significant influence (“Significant interest entities”)

- Dream Boat Entertainment Pte Ltd

- Events Monks Entertainment LLP

- Monkstar Music LLP

The following is a summary of significant related party transactions:

a) Particulars of Transactions with related parties:

Unutilised amounts of the IPO proceeds as at 31st March, 2018 have been temporarily parked in fixed deposit with bank.

b) Provisions, Contingent Liabilities and Contingent Assets: - (AS-29):

Contingent Liabilities:

i) Guarantees and letters of credit: Nil

ii) Bank Guarantees: Rs. Nil

c) General Notes to the financial statements:

The Previous year’s figures have been regrouped and recast wherever necessary to bring them in line with the current year’s figures. All the amounts presented in financial statements are in rupees except basic and diluted EPS & unless specified.