(n) Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are measured at the present value of Management's best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. Provisions are not
recognized for future operating losses.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be
made.

Where the likelihood of outflow of resources is remote, no provision or disclosure as specified in Ind AS -37 -
"Provision, contingent liabilities and contingent assets" is made.

(o) Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognized in respect of
employee's services up to the end of the reporting period and are measured at the amount expected to be paid
when the liabilities are settled.

(ii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity;

(b) defined contribution plans such as provident fund

Defined benefit plans:

The Company has a scheme for payment of gratuity to all its employees as per provisions of the Payment of
Gratuity Act 1972. The Company provides for period end liability using the projected unit credit method as per the
actuarial valuation carried out by the independent actuary. The cost of providing benefit under gratuity plan are
charged to the statement of profit and loss, except for their measurements, comprising of actuarial gains and
losses which are recognized in full in the statement of other comprehensive income in the reporting period in
which they occur.

Defined contribution plans:

Contributions to Provident Fund and Pension Fund are charged to the Statement of Profit and Loss as incurred.
Provident fund contributions are made to a government administered provident fund towards which the Company
has no further obligations beyond its monthly contributions.

(p) Earnings Per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic
earnings per share to take into account:

- the after-income tax effect of interest and other financing costs associated with dilutive potential equity shares,
and

- the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

(q) Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest two decimal
digits after Lacs as per the requirement of Schedule III of the Act, unless otherwise stated.

C. Critical Estimates and Judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. This note provides an overview of the areas that involve a higher degree of judgement or
complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning
out to be different than those originally assessed. Estimates and judgements are continually evaluated. They are
based on historical experience and other factors, including expectations of future events that may have a financial
impact on the Company and that are believed to be reasonable under the circumstances.

The areas involving critical estimates or judgements are:

Estimated useful life of Tangible Assets:

The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each
reporting period. This reassessment may result in change in depreciation and amortization expense in future
periods.

Estimation of Current Tax Expense and Income Tax Payable / Receivable:

The calculation of Company's tax charge necessarily involves a degree of estimation and judgement in respect of
certain items whose tax treatment cannot be finally determined until resolution has been reached with the
relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these
items may give rise to material adjustment to taxable profits/losses.

Estimation of Defined Benefit Obligation:

The Company's obligation on account of gratuity is determined based on actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These
include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, this liability is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

Estimation of Contingent Liabilities:

The Company exercises judgment in measuring and recognizing provisions and the exposures to contingent
liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing the
likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the
financial settlement. Because of the inherent uncertainty in this evaluation process, actual liability may be different
from the originally estimated as provision or contingent liability.

Recognition of Deferred Tax Assets:

The recognition of deferred tax assets is based upon whether it is probable that sufficient taxable profits will be
available in the future against which the reversal of temporary differences will be offset. In assessing the
realizability of deferred tax assets, the Company considers the extent to which it is probable that the deferred tax
asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future
taxable profits during the periods in which those temporary differences and tax loss carry-forwards become
deductible. The Company considers the expected reversal of deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment.

Impairment of Trade Receivables:

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has
been managed by the Company through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On
account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or
gain. The Company uses a provision matrix and forward-looking information and an assessment of the credit risk
over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables.

As per our Report of Even Date Attached For Padmalaya Telefilms Limited

For P. Murali & Co.

Chartered Accountants,

Firm Registration no: 007257S

G.V Narasimha Rao D.V.N Raju

M.V. Joshi CEO & Executive Director Director

Partner DIN: 01763565 DIN: 01887919

M.No:024784

UDIN: 24024784BKAU E F4362

Place: Hyderabad MVRS Suryanarayana

Date: 30/3E/2024 CFO & Compliance Officer