Notes to Accounts of Crest Animation Studios Ltd.

Mar 31, 2012

1. Nature of Operations

Crest Animation Studios Ltd. Is a full service studio specialised in development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry.

2 On 23 November 2010, the Company's US step down subsidiary, Crest Animation Holdings Inc. (CAH, now merged with the Company), entered into a Film Financing transaction with Bayrakkale LTD STI (Bayrakkale) for the purposes of co-financing the Company's animated feature film. Pursuant to the agreement, CAH had deposited US$ 320,000 (Rs. 14,153, 600/-) into an escrow account and also entered into a loan, security and pledge agreement and related promissory note with Newbridge Film Capital LLC (Newbridge) for a deposit of US$ 5,930,000 (Rs. 300,710, 300/-) [Previous Year: US$ 5,930,000 (Rs.262, 283, 900) into the escrow account for onward payment to Bayrakkale under the terms of the agreement. The agreement with Newbridge is secured by a letter of credit favoring Newbridge from Deutsche Bank issued on behalf of Bayrakkale as well as CAH's interest in the film. However, Bayrakkale has failed to fund the film in accordance with the co-financing agreement and is in material breach of the same. Further Deutsche Bank has refused to honor the letter of credit. Newbridge and the Company had elected to move forward against Deutsche Bank to pursue causes of action against the bank relating to the letter of credit, and intend to toll any potential causes of action against each other pending resolution of the matter with Deutsche Bank. The Company is pursuing all available legal options and is confident of recovering the outstanding dues. Till date, Bayrakkale has reimbursed US$ 300,000 for interests and costs associated with their late payments. Pending final outcome of the matter, company has not provided the interest on the loan from Newbridge and has considered the same as contingent liability which amounts to Rs. 75,177,575/- [Previous Year Rs. Nil] for year ended 31 March 2012. Interest claim on Bayrakkale has also not been recognized. The recoverability of the advance of US$ 6,250,000 (Rs 316,937,500) [Previous year US$ 6,250,000, (Rs.276,437,500)] from Bayrakkale is dependent upon the successful completion of the legal proceedings against this party.

3 As on 31 March 2012, the company has Rs. 74,464,890 [Previous Year: 74,464,890] invested in Norm LLC, a special purpose vehicle which is formed for the purpose of feature film Norm of the North. For Norm LLC the company also has outstanding receivables of Rs. 72,337,992 [Previous Year: Rs. 71,940,250], unbilled revenue of Rs. 156,286,385 [Previous Year: 156,705,289] & Work in process of Rs. 40,838,620 [Previous Year: Nil].

In addition, the Company has an investment of Rs 140,016,071 in Crest Animation Inc which has a significant receivable from Norm LLC and various development projects.

During the year, the company continued to work on feature film, "Norm of North" on which work in progress of Rs. 40,838,620 [Previous Year: Nil] has been booked during the year. Work on the above mentioned projects was deferred due to the uncertainty prevailing on the financing arrangements. However, based on expectations of getting financiers, the company is confident of resumption of the projects in Norm LLC and CAI. In view of the intended recourse of the legal proceedings against the defaulted financier and positive developments for the financiers, the management is of the view that there is no diminution in the value of these investments, receivables and work in progress. These are considered to be recoverable and therefore no provision is considered necessary.

4 The Company has long-term investments of Rs 7,140,500 in a joint venture company Magic Pebble LLC which is having film properties under development for more than 3 years. Pending the final outcome of the decision to be taken by the joint venture partner on the development of the film properties held by the investee, Management is of the view there is no diminution in the value of this long term-investment. The ultimate outcome of the above mentioned matter cannot presently be determined, and no provision has been made in the financial statements for diminution in this investment.

5 The Company has incurred losses amounting to Rs 205, 592,257 during the year ended 31 March 2012 and the accumulated losses aggregate to Rs 306,507,020. The Company's operations are primarily funded from debtor realization, borrowings from private parties and promoters and delay in payment of creditors. Management has renewed/rescheduled its credit facilities with the banks which are now falling due from April 2012 to July 2014.

There is a possible material uncertainty resulting from the delay in the raising of capital and possible renewal of loans on their due date that casts significant doubt on the entity's ability to continue as a going concern and, therefore that it may be unable to realize its assets and discharge its liabilities in the normal course of business.

Management is confident of renewing the loans from banks and private parties on their due date. Further, management is in discussions with prospective investors to raise funds from the liquidation of shares held by the CAS Benefit Trust ("treasury stock") to meet its working capital requirements. Considering the above, management has prepared a detailed plan for meeting its cash flow requirements which has been approved by the Board of Directors, based on which the Company believes that it will meet its liabilities and obligations as and when they fall due. Hence, these financial statements have been prepared on a going concern assumption.

6 Contingent liabilities not provided for:

- Disputed income-tax demands Rs. 4,325,161 (Previous Year: Rs. 4,325,161)

Future cash outflows in respect of contingent liability are determinable only on receipt of judgements pending at various forums

- Interest on loan from Newbridge LLC amounting to Rs 75,177,575/- [Previous Year Rs. Nil]

7 Segment reporting:

The Company is engaged in providing 3D Animation i.e. full-service studio specializing in the development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry. Management believes that the risks and returns from these services are not predominantly different from one another and hence considers the Company to operate in a single business segment. As per Accounting standard AS (17) on segment reporting, segment information has been provided under the notes to consolidated financial statements.

8 Leases

Finance lease:

Computers include Computer hardware and Computer software obtained on finance lease. The lease term is up to 48 months after which the legal title would be transferred to the lessee. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

Operating Lease:

Office premises and car are obtained on operating lease. The lease term for office premises is 36 months and for car is 48 months and renewable for further 24 months at the option of the Company in case of office premises. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

9 Related party disclosures:

A. Related parties and relationships

List of Related parties where control exists and Related parties with whom transactions have occurred or not Subsidiaries Crest Animation Inc

Step-down subsidiaries Crest Animation Production Inc.

Roop BDR Productions Inc. Associate Crest Alpha LLC

Joint venture Magic Pebble LLC

Key Management Personnel Mrs. Seemha Ramanna – Managing Director

Relatives of Key Managerial Personnel Mr. Varun Ramanna- Son of Managing Director

Entity significantly influenced/ Controlled Z Axis Communications Limited by KMP or their relatives.

10 Scheme of amalgamtion

a) During the previous year, the Company had given effect to the Scheme of Amalgamation under Sections 391 to 394 of the Companies Act, 1956 (or 'the Scheme'), of two overseas subsidiaries of the Company i.e. Crest Animation Holdings Inc., USA (CAH), Crest Communication Holdings Limited, Mauritius (CCHL) and one Indian Wholly Owned Subsidiary Company viz., Crest Interractive Limited (CIL) (Transferor Companies), with the Company. The Scheme became effective on 26 July 2011. The appointed date as per the scheme was 1 April 2010.

In accordance with the Scheme and as per the approval of the Hon'ble High Court of Bombay, the Company accounted for the amalgamation as per the Scheme which is in accordance with the 'Purchase Method' as described in Accounting Standard – 14 "Accounting for Amalgamations" notified by the Companies (Accounting Standards) Rule, 2006. The excess of the amount of consideration net of cost/s and expense/s incurred in relation to implementation of scheme, over the value of net assets of transferor companies (CAH, CCHL & CIL) acquired by the company has been recognized in the company' financial statements as goodwill determined as follows, which has been written off in previous as an exceptional item on the appointed date based on management' assessment of impairment.

Further during the previous year, as per the scheme, the Company has utilized a sum of Rs. 177,29,03,152/ - from the Securities Premium Account for adjusting debit balance in Profit and Loss Account after giving effect to the Scheme of Amalgamation which includes effect for impairment in the value of goodwill of Rs. 1,610,608,338/- arising pursuant to the Scheme of Amalgamation.

The Board of Directors at their meeting held on 28 July 2011 had allotted 21,626,958 equity shares of Rs. 10/- each at a premium of Rs. 71.27 per share under the Scheme of Amalgamation. The face value of such shares was shown as share capital pending allotment. These shares were allotted as at 28 July 2011. These include 1,20,00,000 equity shares allotted to the CAS Benefit Trust. From the effective date i.e 26 July 2011 the authorized share capital stood increased to Rs. 500,000,000 consisting of 50, 000,000 Equity Shares of Re.10/- each without any further act or deed on the part of the Company and the Memorandum of Association and Articles of Association of the Company stand amended accordingly without any further act or deed on the part of the Company.

b) CAH had outstanding ESOP as on appointed date which got exercised during the year. During the year, amount of Rs.41,226,915 (US$ 919,359.36) received by CAH on exercise of ESOPs during the year before effective date, which has been credited to the securities premium account in accordance with accounting treatment of the scheme given in previous financial year.

11 The amount of borrowing cost capitalised under Inventories during the period is Rs. 3,611,689/- (previous year Rs.18,702,900/-).

12 Additional information pursuant to the provisions of para 3, 4, 4C and 4D of Part II of schedule VI of the Companies Act, 1956, has been provided to the extent applicable to the company.

13 Previous Year Comparatives :

Previous year's figures have been regrouped where necessary to conform to this year's classification.

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Mar 31, 2011

1. Nature of Operations

Crest Animation Studios Limited is a full-service studio specializing in the development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry.

2. Commitments:

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. Nil (Previous Year: Rs. 3,037,560).

3. Scheme of Amalgamation:

The Hon'ble High Court of Bombay pronounced an Order on April 1, 2011, sanctioning the Scheme of Amalgamation under Sections 391 to 394 of the Companies Act, 1956, of two overseas subsidiaries of the Company i.e. Crest Animation Holdings Inc., USA (CAH), Crest Communication Holdings Limited, Mauritius (CCHL) and one Indian Wholly Owned Subsidiary Company viz., Crest Interractive Limited (CIL) (Transferor Companies) (CIL), with the Company with effect from the appointed date 1st April, 2010. CAH, CCHL and CIL was in the business of development & production of digital animated properties primarily feature films, investment holding company& creation of interactive platform for gaming respectively.

The Scheme became effective on July 26, 2011 upon filing of the order of the Hon'ble Bombay High Court dated 1st April, 2011 sanctioning the aforesaid scheme with the Registrar of Companies, Maharashtra, Mumbai as required under Section 394 (3) of the Companies Act, 1956 and other statutory approvals, compliances in overseas jurisdictions. In accordance with the Scheme and as per the approval of the Hon'ble High Court of Bombay:

i. All the assets & liabilities, rights, obligations of transferor companies have been transferred to and vested with effect from 1st April, 2010. ii. The amalgamation has been accounted as per the Scheme which is in accordance with the 'Purchase Method' as described in Accounting Standard – 14 "Accounting for Amalgamations" notified by the Companies (Accounting Standards) Rule, 2006 with effect from the appointed date of the Scheme being1st April, 2010. iii. The investment of CAH in Crest Alpha LLC, Norm Financing LLC and Magic Pebble LLC have been taken over by the Company with effect from 1st April, 2010 and have been recorded at the fair values as per the fair valuation report given by the Salter Group. The fair value of Crest Alpha LLC as at April 1, 2010 considers the events during the year ended March 31, 2011 which primarily includes the Company's performance from theatrical release of the film in September 2010. The

investment of CAH in Crest Animation Inc. has been recorded at book value as at 1st April, 2010, which in the opinion of management represents the fair value of CAH at that date.

iv. The assets and liabilities above of the Transferor Companies other than mentioned in Point no. (iii) above have been recorded at their respective book values as per the Audited Financial Statement of the Transferor Companies for the year ended 31st March, 2010 which in the opinion of management is represents the fair value of respective assets and liabilities at that date.

v. The Company's interest in the CAS Benefit Trust is recorded at the carrying value of the investment by the Company in the Ordinary Shares of CCHL as of the Appointed Date being 1st April, 2010.

vi. Inter-company loans, deposits or balances as between or amongst Transferor Companies and Transferee Company, the obligations in respect thereof have been cancelled and no liability in that behalf have been recorded and corresponding effect have been given in the books of account and records of the Company for the reduction of assets or liabilities as the case may be.

vii. The entire preference share capital (redeemable preference shares) of CCHL stands cancelled. The entire equity paid up capital of CIL stand fully cancelled. The holdings of CCHL in CAH stand cancelled.

viii. Excess of the amount of consideration net of cost/s and expense/s incurred in relation to implementation of scheme, over the value of net assets of transferor companies (CAH, CCHL & CIL) acquired by the company has been recognized in the company's financial statements as goodwill determined as follows, which has been written off as an exceptional item on the appointed date based on management's assessment of impairment.

ix. The Board of Directors at their meeting held on 28th July 2011 has allotted 21,626,958 equity shares of Rs. 10/- each at a premium of Rs. 71.27 per share under the Scheme of Amalgamation. The face value of such shares are shown as share capital pending allotment. These includes 1, 20, 00, 000 equity shares allotted to the CAS Benefit Trust.

x. In pursuance of the Scheme, the Company has utilized a sum of Rs. 177, 29, 03,152/- from the Securities Premium Account for adjusting debit balance in Profit and Loss Account after giving effect to the Scheme of Amalgamation which includes effect for impairment in the value of goodwill of Rs. 161,06,08,338/- arising pursuant to the Scheme of Amalgamation.

xi. From the effective date i.e 26th July, 2011 the authorized share capital stood increased to Rs. 500,000,000 consisting of 50,000,000 Equity Shares of Re.10/- each without any further act or deed on the part of the Company and the Memorandum of Association and

Articles of Association of the Company stand amended accordingly without any further act or deed on the part of the Company.

xii. Crest Interractive Limited stands dissolved without being wound up from the Effective Date.

xiii. Crest Communication Holdings Limited, Mauritius and Crest Animation Holdings Inc., USA made necessary applications for dissolution without winding up or otherwise cease to exist subject to and in accordance with Applicable Laws of Relevant Jurisdictions.

4. Crest Animation Holdings Inc., USA (CAH) has implemented Stock Option Plan in December, 2007 which provides for the issuance of non-qualified and/or incentive stock options to employees, officers, consultants to the Company and/ or its affiliates and non-employee directors of CAH and/ or its affiliates. Pursuant to the Scheme of Amalgamation as sanctioned by the Hon'ble Bombay High Court vide its order dated 1st April, 2011, the said subsidiary company has been merged with Crest Animation Studios Limited with effect from appointed date i.e. 1st April, 2010. All the options granted under the above plan have been exercised by the option holders before the effective date of the Scheme i.e. 26th July, 2011. In terms of the Scheme of Amalgamation, on July 28, 2011, the Company allotted equity shares to the eligible common stock holders of CAH which includes equity shares allotted against the common stock issued to option holders on exercise of stock options. Accordingly, the Company has not assumed any liability under the Stock Option Plan. The financial and operating results of Crest Animation Holdings Inc., USA with effect from the Appointed Date of the Scheme have been included with the financial results of the Company for the financial year ended on March 31, 2011 which includes the Stock Option Compensation of Rs.53,16,666 (USD 116,568).

5. On November 19, 2010, the Company's US step down subsidiary, Crest Animation Holdings Inc. (CAH, now merged with the Company), entered into a Film Financing transaction with Bayrakkale LTD STI (Bayrakkale) for the purposes of co- financing the Company's animated feature film. Pursuant to the agreement, CAH had deposited US$ 320,000 (Rs. 14,153, 600) into an escrow account & also entered into a loan, security and pledge agreement and related promissory note with Newbridge Film Capital LLC (Newbridge) for a deposit of US$ 5,930,000 (Rs. 262, 283, 900) into the escrow account for onward payment to Bayrakkale under the terms of the agreement. The agreement with Newbridge is secured by a letter of credit favoring Newbridge from Deutsche Bank issued on behalf of Bayrakkale as well as CAH's interest in the film. However, Bayrakkale has failed to fund the film in accordance with the co-financing agreement & is in material breach of the same. Further Deutsche Bank has refused to honor the letter of credit. Newbridge and the Company have elected to move forward together against Deutsche Bank to pursue causes of action against the bank relating to the letter of credit, and to toll any potential causes of action against each other pending resolution of the matter with Deutsche Bank. The Company is pursuing all available legal options & is confident of recovering the outstanding dues and hence no provision has been recorded for the recoverable balance of Rs. 276,437,500 due for Bayrakkale as at March 31, 2011. As of Balance Sheet date, Bayrakkale has reimbursed CAH US$ 150,000 for interests and costs associated with their late payments.

6. As on 31st March, 2011, the Company's investment includes Rs. 74,464,890 in Norm LLC, a special purpose vehicle with is formed for the purpose of feature film Norm of the North. The company also has a receivable balance and unbilled revenue of Rs. 49,721,139 and Rs. 156,705,289 respectively relating to the film project. The financier for this film has defaulted in making contributions and the Company is in talks with an alternative financier and is confident of resumption of the project. In view of the intended recourse of the legal proceeding against the defaulted financier and positive developments for the alternate financier, the management is of the view that there is no diminution in the value of these investments, receivables and unbilled revenue and are considered to be recoverable and therefore no provision is considered necessary.

7. Contingent liabilities not provided for:

Disputed income-tax demands Rs. 4,325,161 (Previous Year: Rs. 17,064,051)

Future cash outflows in respect of contingent liability are determinable only on receipt of judgements pending at various forums

8. Segment reporting:

Business Segments.

The Company is engaged in providing 3D Animation i.e. full-service studio specializing in the development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry. Management believes that the risks and returns from these services are not predominantly different from one another and hence considers the Company to operate in a single business segment. As per Accounting standard AS (17) on segment reporting, segment information has been provided under the notes to consolidated financial statements.

9. Managerial remuneration:

Note: -

1) As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors are not included above.

2) Government of India, Ministry of Corporate Affairs has vide its letter no. A47350426/2/2009 – CL- VII dated 14th Jan' 10 approved the payment of remuneration of Rs. 6, 25, 000 per month (excluding provident fund and other fund) for a period from 1st Apr' 2008 to 30th Sep' 2010 under the section 310 of Companies Act, 1956. The company has again sought approval from Government of India, Ministry of Corporate Affairs for re-appointment of Managing Director including remuneration payable to her. Government of India, Ministry of Corporate Affairs has vide its letter no. A95476461/4/2010 – CL - VII dated 31st Dec' 10 approved the payment of remuneration of Rs. 75,00,000 per annum (including perquisites and allowances and excluding provident fund and other fund) for the period of three years from 1st Oct' 2010 to 30th Sep' 2013 under the relevant provisions of Companies Act, 1956.

10. Leases

Finance lease:

Computers include Computer hardware and Computer software obtained on finance lease. The lease term is up to 48 months after which the legal title would be transferred to the lessee. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

Operating Lease:

Office premises and car are obtained on operating lease. The lease term for office premises is 36 months and for car is 48 months and renewable for further 24 months at the option of the Company in case of office premises. There is no escalation

11. Related party disclosures:

A. Related parties and relationships

Related parties where control exists irrespective of whether transactions have occurred or not

Subsidiaries

Crest Communication Holdings Ltd., Mauritius *

Crest Interractive Ltd. *

Crest Animation Holdings Inc.*

Crest Animation Inc.

Crest Communication (Singapore) Pte. Ltd.**

Crest Entertainment (Singapore) Pte. Ltd.** Step-down subsidiaries Crest Animation Production Inc.

Roop BDR Productions Inc.

Associates Crest Alpha LLC

Joint venture Magic Pebble LLC

Key Management Personnel Mrs. Seemha Ramanna – Managing Director

Relatives of Key Management Personnel Mr. Varun Ramanna- Son of Managing Director

*These Subsidiary Companies have been merged with the company from appointed date 1-4-2010 as per the scheme of amalgamation approved by the Hon'ble Bombay High Court, (Refer Note 4). **up to October 31, 2009.

B. Related Party Transactions

Note: Figures in brackets are the corresponding figures in respect of the previous year.

Interest in joint venture

The Company has 50% interest in the assets, liabilities, expenses and income of Magic Pebble LLC, incorporated in USA, which is into animation. The Company's share of the assets, liabilities, income and expense of the jointly controlled entity are as follows as at March 31, 2011

12. Dues to Micro, Small and Medium Enterprises

The identification of Micro, Small and Medium enterprises is based on the management's knowledge of their status. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

13. Prior period income of previous year represents tax deducted on marketing expenses of earlier years expensed out in those years.

14. The amount of borrowing cost capitalised under Inventories during the period is Rs. 18,702,900/- (previous year Rs. 4,144,864).

15. Additional Information pursuant to the provisions of para 3,4, 4C and 4D of part II of schedule VI of the Companies Act, 1956, has been provided to the extent applicable to the Company.

16. Previous Year Comparatives :

Previous year's figures have been regrouped where necessary to conform to this year's classification and are not comparable with current year figures in view of the merger (Refer Note 4 above).

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Mar 31, 2010

1. Nature of Operations

Crest Animation Studios Limited is a full-service studio specializing in the development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry.

2. Commitments:

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Rs. 3,037,560 (Previous Year: Rs.Nil).

3. Contingent liabilities not provided for:

Disputed income-tax demands Rs. 17,064,051 (Previous Year: Rs. 17,231,131)

Future cash outflows in respect of contingent liability are determinable only on receipt of judgements pending at various forums.

4. Investments in subsidiary companies:

Out of the total losses of Rs.36,896,822 of the subsidiaries and the step-down subsidiaries and their joint ventures (as against previous years loss of Rs. 71,974,413), attributable to the Company, is on account of write off of investment in books of accounts of the Companys subsidiary.

In the opinion of the management, these losses do not have any adverse bearing on the companies perception of the business value of the investments made in the subsidiaries particularly considering the outstanding volume of business of the subsidiaries.

Consequently in the opinion of the management there is neither a diminution in the value of the investments in subsidiary companies nor any provision required.

Notes: -

1) As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors are not included above.

2) Government of India, Ministry of Corporate Affairs has vide, its letter no. A47350426/2/2009-CL. VII dated 14.01.2010, approved the payment of increased remuneration of Rs. 625,000/- per month (excluding Provident fund & Other Funds) to Managing Director of the Company for the period from 1st April, 2008 to 30th September 2010 under section 310 of the Companies Act, 1956. Accordingly Company has paid arrears of Rs. 3,400,536 pertaining to financial year 2008-09 in the current year , which is included in figures shown above for Salary and Perquisites & benefits.

5. Segment reporting:

The Company is engaged in providing 3D Animation i.e. full- service studio specializing in the development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry. Management believes that the risks and returns from these services are not predominantly different from one another and hence considers the Company to operate in a single business segment. As per Accounting standard AS (17) on segment reporting segment information has been provided under the notes to consolidated financial statements.

6. Leases

Finance lease:

Computers include Computer hardware and Computer software obtained on finance lease. The lease term is up to 48 months after which the legal title would be transferred to the lessee. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

Operating Lease:

Office premises and car are obtained on operating lease. The lease term for office premises is 36 months and for car is 48 months and renewable for further 24 months at the option of the Company in case of office premises. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

7. Related party disclosures:

A. Related parties and relationships

Related parties where control exists irrespective of whether transactions have occurred or not

Subsidiaries Crest Communication Holdings Ltd., Mauritius

Crest Interractive Ltd. Step-down subsidiaries Crest Animation Holdings Inc.

Crest Intermediate Inc.

Crest Animation Production Inc.

Roop BDR Productions Inc.

Crest Communication (Singapore) Pte. Ltd.

Crest Entertainment (Singapore) Pte. Ltd.

Other related parties with whom transactions have taken place during the year Key Management Personnel Mrs. Seemha Ramanna – Managing Director Relatives of Key Management Personnel Mr. Varun Ramanna – Son of Managing Director.

8. Employee benefits:

(a) Defined Contribution Plan

Contribution to defined contribution plan, recognised in the statement of profit and loss account under Employee cost, Contribution to provident and other funds, in Schedule O for the year are as under:

9. Dues to Micro, Small and Medium Enterprises

The identification of Micro, Small and Medium enterprises is based on the managements knowledge of their status. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been made.

10. Prior period income represents tax deducted on marketing expenses of earlier years expensed out in previous year.

11. The amount of borrowing cost capitalised under Inventories during the period is Rs. 4,144,864/- (previous year Rs. Nil).

12. Previous Year Comparatives :

Previous years figures have been regrouped where necessary to conform to this years classification.