Notes to Accounts of Vashu Bhagnani Industries Ltd.

Mar 31, 2025

2.16 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it
is probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions are not discounted to their present value and are
determined based on the best estimate required to settle the obligation at the Balance Sheet date.
These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events but
their existence is confirmed by the occurrence or non- occurrence of one or more uncertain future
events not wholly within the control of the company.

2.17 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
lakhs (upto 2 decimal) as per the requirement of Schedule III, unless otherwise stated.

2.18 Recent pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year
ended March 31, 2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and lease back transactions, applicable from April 1, 2024. The
Company has assessed that there is no significant impact on its financial statements.
On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign
Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning on or after April 1, 2025. The Company is
currently assessing the probable impact of these amendments on its financial statements.

B. Measurement of fair values

Ind AS 107, ‘Financial Instrument - Disclosure’ requires classification of the valuation method of financial
instruments measured at fair value in the Balance Sheet, using a three-level fair-value-hierarchy (which reflects
the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to un¬
observable inputs (Level 3 measurements). Fair value of derivative financial assets and liabilities are estimated by
discounting expected future contractual cash flows using prevailing market interest rate curves. The three levels of
the fair-value-hierarchy under Ind AS 107 are described below:

Level 1: Level 1 Hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market are 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 are not based on observable market data, the instrument is
included in level 3. e.g. unlisted equity and debt securities.

Transfers between Levels

There have been no transfers between Levels during the reporting periods

C. Financial risk management

The Company is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest
rate risks, which may adversely impact the fair value of its financial instruments. The Company has exposure to
the following risk arising from the financial instruments:

¦ Credit risk;

¦ Liquidity risk; and

¦ Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company
risk management framework. The board of directors is responsible for developing and monitoring the Company
risk management policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced
by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes
both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to
the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company''s receivables from customers and
investments in debt securities, cash and cash equivalents, mutual funds, bonds etc.

Financial instruments that are subject to credit risk consist of trade receivables, loans, investments, cash and
cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the
Company result in material concentration of credit risk.

The carrying amount of financial assets represents the maximum credit exposure.

Trade and other receivables

Based on prior experience and an assessment of the current economic environment, management believes that no
provision is required for credit risk wherever credit is extended to customers.

Cash and cash equivalents

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the
company''s policy. Investment of surplus funds are made in mainly in mutual funds with good returns and within
approved credit ratings.

Other than trade and other receivables, the Company has no other financial assets that are past due but not
impaired.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses
or risk to the Company’s reputation. The Company has obtained fund and non-fund based working capital lines
from one bank. The Company also constantly monitors funding options available in the debt and capital markets
with a view to maintaining financial flexibility.

As at 31st March, 2025, the Company had working capital of C5631.67 Lakhs, including cash and cash
equivalents of C43.66 Lakhs.

As at 31st March, 2024, the Company had working capital of C4234.65 Lakhs, including cash and cash
equivalents of C13.15 Lakhs.

Exposure to liquidity risk

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their
contractual maturities:

iv. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse
changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of
market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is
attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all
short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate
risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a
function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in interest rates.

For details of the Company’s short-term loans and borrowings, including interest rate profiles, refer to Note of
these financial statements.

NOTE NO.37

OTHER STATUTORY INFORMATION:

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

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

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

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

(v) 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.

(vi) 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.

(vii) The Company does not have any such 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.

(viii) The Company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and
the related parties.

(ix) The title deeds of all the immovable properties, (other than immovable properties where the Company is the
lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial
statements included in property, plant and equipment and capital work-in progress are held in the name of
the Company as at the balance sheet date.

^(x) The Company does not have any transactions with companies which are struck off except the following:

NOTE NO.39

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s
classification /disclo sure.

As per our report of even date. For and on behalf of the Board of Directors

For D S M R & CO. Sd/- Sd/-

Chartered Accountants Puja Bhagnani Deepshikha Deshmukh

(Firm Reg. No. 128085W) Managing Director Director

DIN: 00044593 DIN: 02146210

SHAILENDRA SINGH RATHORE
Partner

Membership No. 600395 Sd/- Sd/-

Omkar Pathak Shweta Soni

Place: Mumbai Chief Financial officer Company Secretary

Dated: 30th May, 2025 Dated: 30th May, 2025 Dated: 30th May, 2025

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Mar 31, 2024

2.18 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the company.

2.19 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs (upto 2 decimal) as per the requirement of Schedule III, unless otherwise stated.

2.20 Recent pronouncements

Ministry of Corporate Affairs(“MCA”) Notifies new standards or amendments to the existing standards under companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March ,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. The board of directors is responsible for developing and monitoring the Company risk management policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee. ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and cash and cash equivalents etc.

The carrying amount of financial assets represents the maximum credit exposure.

Trade and other receivables

Based on prior experience and an assessment of the current economic environment, management believes that no provision is required for credit risk wherever credit is extended to customers.

Cash and cash equivalents

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the company’s policy.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

As at 31st March, 2024, the Company had working capital of ^ 4,234.65 lakhs, including cash and cash equivalents of ^

13.15 lakhs .

As at 31st March, 2023, the Company had working capital of ^ 3,640.76 lakhs, including cash and cash equivalents of ^ 13.44 lakhs .

Exposure to liquidity risk

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

* all non derivative financial liabilities

iv. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates ) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The

Company is exposed to market risk primarily related to interest rate risk._

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of

changes in interest rates._

For details of the Company’s short-term loans and borrowings, including interest rate profiles, refer to Note 5 & 9 of these financial statements

In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (the CSR Rules 2021”) effective from 22nd January, 2021, if a company fails to spend the prescribed CSR amount during the year and such unspent amount pertains to any ongoing project, the company shall transfer the unspent amount to a special bank account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30 days from the end of the relevant financial year. The Company does not have any unspent CSR amount as on 31st March, 2023.

NOTE NO.40

OTHER STATUTORY INFORMATION:

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

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

(iv) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

(v) 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.

(vi) 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.

(vii) The Company does not have any such 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.

(viii) The Company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties.

(ix) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

(x) The Company does not have any transactions with companies which are struck off except the following:

Note: During the current & previous year, the company has not made any investment in the securities. Accordingly, ratio for Return on investment has not been presented.

NOTE NO.42

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

As per our report of even date.

For Jayantilal Thakkar and Co. For and on behalf of the Board of Directors

Chartered Accountants

(Firm Reg. No. 104133W) Puja Vashu Bhagnani Deepshikha Deshmukh

Managing Director Director

Dilip J. Thakkar DIN: 00044593 DIN: 02146210

Partner

Membership No.005369

Place: Mumbai Omkar Dronacharya Shweta Ramesh Soni

Pathak

Date: 21^st May, 2024 Chief Financial officer Company Secretary

Date: 21^st May, 2024 Date: 21^st May, 2024

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Mar 31, 2014

NOTE - 1 CORPORATE INFORMATION

Pooja Entertainment and Films Limited ("the Company" or "PEFL") is engaged in film production and other related activities.

NOTE - 2 CONTINGENT LIABILITIES

Particulars As at As at 31st March, 2014 31st March, 2013

Guarantee given by bank on - 500,000 behalf of the Company

NOTE - 3

In case of movie production contract, cost of production/expenses are charged to statement of profit & loss in proportion to the revenue recognised for the reporting period considering the total estimated cost/expenses of such contract. Final adjustments, if any are made at the time of completion of the movie. These estimates as made by the management, being of technical nature, have been relied upon by auditors.

NOTE - 4

The management of the company is of the opinion that the decline in the fair value, if any of its investments is temporary in nature and hence, has valued the investment on "cost" basis. No provision has been made for the difference between Cost and fair value of the Investments.

NOTE - 5 EMPLOYEE BENEFITS

The Company has not made any provisions towards gratuity and other retirement benefits as in the view of management ,no provision is required to be made.

NOTE - 6

In the opinion of Board, Current Assets, Loans & Advances unless stated otherwise ,are approximately of value which are stated in the Balance Sheet if realised in the ordinary course of business.

NOTE - 7 PREVIOUS YEAR''S FIGURES

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

NOTE - 1 CORPORATE INFORMATION

Pooja Entertainment and Films Limited (‘the Company or ‘PEFL'') is engaged in film production and other related activities.

NOTE 2 - SEGMENT REPORTING

The Company is predominantly engaged in the business of film production, which constitute a single business segment and therefore, disclosure under Accounting Standard (AS-17) on "Segment Reporting” issued by the ICAI is not applicable.

NOTE 3 - DISCLOSURES REQUIRED UNDER SECTION 22 OF THE MICRO,SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT 2006

Based on the information available with the company, there are no suppliers who are registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006” as at March 31, 2013.

NOTE 4 - CONTINGENT LIABILITIES (Amount in Rs.)

As at As at Particulars 31st March 2013 31st March 2012

Guarantee given by bank on behalf of the Company 500,000.00

NOTE 5 - LEASES

Operating lease for office premise has been charged as rent to Statement of Profit and Loss account. Operating lease expenses of Rs. 108.00 lacs for premise used for film production activities have been included in the cost of production of films.

NOTE 6

The management of the company is of the opinion that the decline in the fair value, if any of its investments is temporary in nature and hence, has valued the investment on "cost” basis. No provision has been made for the difference between Cost and fair value of the Investments.

NOTE 7 - EMPLOYEE BENEFITS

The Company has not made any provisions towards gratuity and other retirement benefits as in view of the management, no provision is required to be made.

NOTE 8

In the opinion of Board, Current Assets, Loans & Advances are approximately of value which are stated in the Balance Sheet if realised in the ordinary course of business.

NOTE 9 - PREVIOUS YEAR''S FIGURES

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2010

1) Managerial Remuneration:

Details of remuneration of Managing Director is as follows :

Particulars March 31,2010 March 31,2009

Directors Remuneration 211,290.00



2) Capital commitment Rs. NIL. (Previous Year Rs. NIL)

3) Earning in foreign currency Rs. NIL. (Previous Year Rs. NIL)

4) Expenditure in foreigncurrency Rs. NIL. (Previous Year Rs. NIL)

6) As the company is not manufacturing any items, the additional information pursuant to Part II-B of Schedule V of the Companies Act, 1956 has not been furnished.

7) The Provision of Providend Fund & Gratuity Act are not applicable to the company.

8) Remuneration to Auditors as Auditor Rs. 15000/- (Previous Year Rs. 15000/-)

9) In the opinion of Board, Current Assets, Loans & Advances are approximately of value which are stated in the Balance Sheet if realised in the ordinary course of business.

10) The figures of Sundry Debtors, Sundry Creditors and Loans a Advances are subject to confirmation and reconciliation, wherever required.

11) Miscellaneous Expenditures are written off over a period of five years.

12) As per information and explanations from the management there are no micro, small and medium enterprises as defined in Micro, Small and Medium Enterprise Deveploment Act, 2006 to whom company owes any dues.

13) RELATED PARTY DISCLOSURE :

Information on related party transactions as required by Accounting Standard - 18 for the year ended 31st March, 2010 are as follows:

A) List of Related Parties:

Key Management Personnel Designation

1) Mr. Vashudev Bhagnani Managing Director

2) Mrs. Puja Bhagnani Director

3) Ms. Deepshikha Bhagnani Director

Enterprises under the control of key management personnel and their relatives:

1) Puja Entertainment (India) Limited

2) Pooja Devcon Limited

3) Puja Motion Pictures Private Limited

4) Beta Properties Private Limited

5) Pooja Constructions

6) Pooja Leisure & Lifestyle

7) Golden Crest

8) Red Line

9) Rising Sun

10) Kamal Enterprises

11) Platinum

12) Superkey Associates

13) Extrimist

14) Dynamix

15) New Age Associates

16) Catalyst

17) Hexagon Associates

18) Eminence

14) Previous Years figures have been regrouped and reclassified wherever necesslry to confirm with current years classification.