2.09 Provisions and Contingent Liabilities

Provisions:

Provisions are recognised when there is a
present obligation as a result of a past event, it
is probable that an outflow of resources
embodying economic benefits will be reguired
to settle the obligation and there is a reliable
estimate of the amount of the obligation.
Provisions are measured at the best estimate
of the expenditure reguired to settle the present
obligation at the Balance sheet date.

If the effect of the time value of money is
material, provisions are discounted using a
current pre-tax rate 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.

Contingent Liabilities:

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 reguired to settle or a reliable
estimate of the amount cannot be made. The
Company does not recognise a contingent
liability but discloses its existence in the
financial statements.

2.10 Financial Instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or eguity instrument of another
entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial
recognition, as subseguently measured at
amortised cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing
them. With the exception of trade receivables
that do not contain a significant financing
component, the Company initially measures a
financial asset at its fair value plus, in the case
of a financial asset not at fair value through
profit or loss, transaction costs that are
attributable to the acguisition of financial asset.
Trade receivables that do not contain a
significant financing component are measured
at the transaction price determined under Ind
AS 115. Refer to the accounting policies in
section 2.4 for Revenue from contracts with
customers.

In order for a financial asset to be classified
and measured at amortised cost or fair value
through OCI, it needs to give rise to cash flows
that are 'solely payments of principal and
interest (SPPI)' on the principal amount
outstanding. This assessment is referred to as
the SPPI test and is performed at an instrument
level. Financial assets with cash flows that are
not SPPI are classified and measured at fair
value through profit or loss, irrespective of the
business model.

The Company's business model for managing
financial assets refers to how it manages its
financial assets in order to generate cash
flows. The business model determines whether
cash flows will result from collecting
contractual cash flows, selling the financial
assets, or both. Financial assets classified and
measured at amortised cost are held within a
business model with the objective to hold
financial assets in order to collect contractual
cash flows while financial assets classified and
measured at fair value through OCI are held
within a business model with the objective of
both holding to collect contractual cash flows
and selling.

Purchases or sales of financial assets that
reguire delivery of assets within a time frame
established by regulation or convention in the
market place (regular way trades) are
recognised on the trade date, i.e., the date that
the Company commits to purchase or sell the
asset.

2.11 Financial Instruments continued

Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in following
categories:

• Financial assets at amortised cost

• Financial assets at fair value through profit
or loss

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses

• Financial assets designated at fair value
through OCI with no recycling of cumulative
gains and losses upon derecognition

A 'financial asset' is measured at amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are
solely payments of principal and interest
(SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into
account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is
included in finance income in the profit or loss.
The losses arising from impairment are
recognised in the profit or loss. The Company's
financial assets at amortised cost includes
loans and other financial assets.

A 'financial asset' is measured at FVOCI if both
the following conditions are met:

a) The objective of the business model is
achieved both by collecting contractual
cash flows and selling the financial assets,
and

b) The asset's contractual cash flows
represent SPPI.

Upon initial recognition, the Company can elect
to classify irrevocably its equity investments as
equity instruments designated at fair value
through OCI when they meet the definition of
equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The
classification is determined on an instrument-
by-instrument basis. Equity instruments which
are held for trading and contingent
consideration recognised by an acquirer in a
business combination to which Ind AS103
applies are classified as at FVTPL.

Gains and losses on these financial assets are
never recycled to profit or loss. Dividends are
recognised as other income in the statement of
profit and loss when the right of payment has
been established, except when the Group
benefits from such proceeds as a recovery of
part of the cost of the financial asset, in which
case, such gains are recorded in OCI. Equity
instruments designated at fair value through
OCI are not subject to impairment assessment.

Financial assets at fair value through profit or
loss are carried in the balance sheet at fair
value with net changes in fair value recognised
in the statement of profit and loss. This
category includes investments in mutual funds.
Dividends on such investments are recognised
in the statement of profit and loss when the
right of payment has been established.

Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of
similar financial assets) is primarily
derecognised (i.e. removed from a Company's
balance sheet) when:

• The rights to receive cash flows from the
asset have expired, or

• The Company has transferred its rights to
receive cash flows from the asset and either
(a) the Company has transferred
substantially all the risks and rewards of the
asset, or (b) the Company has neither
transferred nor retained substantially all the
risks and rewards of the asset, but has
transferred control of the asset.

Impairment of financial assets

A financial asset is assessed at each reporting
date to determine whether there is any
objective evidence that it is impaired. A
financial asset is considered to be impaired, if
objective evidence indicates that one or more
events have had a negative effect on the
estimated future cash flows of that asset.

For trade receivables, the Company applies a
simplified approach in calculating ECLs.
Therefore, the Company does not track
changes in credit risk, but instead recognises a
loss allowance based on lifetime ECLs at each
reporting date. The Company has established a
provision matrix that is based on its historical
credit loss experience, adjusted for forward-
looking factors specific to the debtors and the
economic environment.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at
fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs

Subsequent measurement

For purposes of subsequent measurement,
financial liabilities are classified in two
categories:

• Financial liabilities at fair value through
profit or loss

• Financial liabilities at amortised cost (loans
and borrowings)

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification is
treated as the derecognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognised in the statement of
profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are
offset and the net amount is reported in the
balance sheet if there is a currently enforceable
legal right to offset the recognised amounts
and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities
simultaneously.

Derivative financial instruments

Derivatives are initially recognized at fair value
on the date a derivative contract is entered into
and are subseguently re-measured to their fair
value at the end of each reporting period. The
accounting for subseguent changes in fair
value depends on whether the derivative is
designated as a hedging instrument, and if so,
the nature of the item being hedged and the
type of hedge relationship designated.

Forward contracts arc used to hedge forecast
transactions, the Group generally designates
only the change in fair value of the forward
contract related to the spot component as the
hedging instrument. Gains or losses relating to
the effective portion of the change in the spot
component of the forward contracts are
recognized in other comprehensive income in
cash flow hedging reserve within eguity.

In some cases, the entity may designate the full
change in fair value of the forward contract
(including forward points) as the hedging
instrument. In such cases, the gains and losses
relating to the effective portion of the change in
fair value of the entire forward contract arc
recognized in the cash flow hedging reserve
within eguity.

2.12 The Company as a lessee

The Company's lease asset classes primarily
consist of leases for factory Plant and
Machinery including factory building. The
Company assesses whether a contract
contains a lease, at inception of the contract. A
contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. To assess whether a
contract conveys the right to control the use of
an identified asset, the Company assesses
whether:

i. the contract involves the use of an
identified asset

ii. the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and

iii. the Company has the right to direct the
use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset
("ROU”)and a corresponding lease liability for all
lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases) and low value
leases. For these short-term and low value
leases, the Company recognizes the lease
payments as an operating expense on a
straight-line basis over the term of the lease.

The Company recognises right-of-use asset
representing its right to use the underlying
asset for the lease term at the lease
commencement date. The cost of the right -of-
use asset measured at inception shall
comprise of the amount of the initial
measurement of the lease liability adjusted for
any lease payments made at or before the
commencement date, plus any initial direct
costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and
removing the underlying asset or restoring the
underlying asset or site on which it is located.
The right-of-use assets is subseguently
measured at cost less any accumulated
depreciation, accumulated impairment losses,
if any and adjusted for any remeasurement of
the lease liability. The right-of-use assets is
depreciated using the straight -line method
from the commencement date over the lease
term.

The Company measures the lease liability at
the present value of the lease payments that
are not paid at the commencement date of the
lease. The lease payments are discounted
using the interest rate implicit in the lease.
Lease liabilities are remeasured with a
corresponding adjustment to the related right
of use asset if the Company changes its
assessment as to whether it will exercise an
extension or a termination option.

Lease liability and ROU asset have been
separately presented in the Balance Sheet and
lease payments have been classified as
financing cash flows.

The Company does not have any lease
contracts wherein it acts as a lessor.

Ind AS 116 will result in an increase in cash
inflows from operating activities and an
increase in cash outflows from financing
activities on account of lease payments.

2.13 Cash and Cash Equivalents

Cash and cash eguivalent in the balance sheet
comprise of cash balances at banks, on hand
cash balances and demand deposits with an
original maturity of three months or less, that
are readily convertible to a known amount of
cash and subject to an insignificant risk of
changes in value.

In the cash flow statement, cash and cash
eguivalents includes cash in hand, cash at
bank, demand deposits with banks, other short¬
term highly liguid investments with original
maturities of three months or less.

2.14 Earnings Per Share

Basic earnings per share is calculated by
dividing the net profit for the year attributable to
eguity shareholders by the weighted average
number of eguity shares outstanding during the
year. Earnings considered in ascertaining the
Company's earnings per share is the net profit
for the year after deducting any attributable tax
thereto for the year. For the purpose of
calculating diluted earnings per share, the net
profit for the year attributable to eguity
shareholders and the weighted average number
of shares outstanding during the year is
adjusted for the effects of all dilutive potential
eguity shares.

2.15 Segment Reporting

Based on "Management Approach” as defined
in Ind AS 108 - Operating Segments, the Chief
Operating Decision Maker evaluates the
Company's performance and allocates the
resources based on an analysis of various
performance indicators by business segments.
Inter segment sales and transfers are reflected
at market prices. Unallocable items includes
general corporate income and expense items
which are not allocated to any business
segment.

Assumption also need to be made, when
company assesses, whether as asset may
be Capitalized and which components of
the cost of the assets may be capitalized.

b) Contingencies: Management judgement is
required for estimating the possible
outflow of resources, if any, in respect of
contingencies/ claim/ litigation against
company as it is not possible to predict the
outcome of pending matters with
accuracy.

c) Fair value measurements and valuation
processes: Some of the Companies assets
and liabilities are measured at fair value for
financial reporting purposes. The
Management determines the appropriate
valuation techniques and inputs for the fair
value measurements. In estimating the fair
value of an asset or a liability, the Company
used market-observable data to the extent
it is available. Where Level 1 inputs are not
available, the Company engaged third party
qualified valuers to perform the valuations
in order to determine the fair values based
on the appropriate valuation techniques
and inputs to fair value measurements
such as Discounted Cash Flow model. The
inputs to these models are taken from
observable markets where possible, but
where this is not feasible, a degree of
judgment is required in establishing fair
values. Judgments include considerations
of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions
about these factors could affect the
reported fair value of financial instruments.

d) Estimation of defined benefit plans: The

obligation arising from defined benefit plan
is determined on the basis of actuarial
assumptions. Key actuarial assumptions
include discount rate, trends in salary
escalation, actuarial rates and life
expectancy. The discount rate is
determined by reference to market yields at
the end of the reporting period on
government bonds. The period to maturity
of the underlying bonds correspond to the
probable maturity of the post-employment
benefit obligation.

e. Tax expense: Tax expense is calculated
using applicable tax rate and laws that
have been enacted or substantially
enacted. In arriving at taxable profit and all
tax bases of assets and liabilities, the
Group determines the taxability based on
tax enactments, relevant judicial
pronouncements and tax expert opinions,
and makes appropriate provisions which
includes an estimation of the likely
outcome of any open tax assessments /
litigations. Any difference is recognized on
closure of assessment or in the period in
which they are agreed.

Deferred income tax assets are recognized
to the extent that it is probable that future
taxable income will be available against
which the deductible temporary
differences, unused tax losses, unabsorbed
depreciation and unused tax credits could
be utilised.

f. Operating lease commitments: Company
as lessor The Company has entered into
lease agreement for certain plant and
machinery. The Company has determined
based on an evaluation of the terms and
conditions of the arrangements, such as
the lease term not constituting a major part
of the economic life of the asset and the
fair value of the asset, that it retains all the
significant risks and rewards of ownership
of these properties and accounts for the
contracts as operating leases.

2.17 Recent accounting 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 March 31,
2025, MCA has not notified any new standards
or amendments to the existing standards
applicable to the Company.

30. Financial risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. The Board is responsible for developing and monitoring the
Company's risk management policies. The Board holds regular meetings on its activities.

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 Board oversees how management monitors compliance with the Company's risk management
policies and procedures, and reviews the adeguacy of the risk management framework in relation to the
risks faced by the Company.

a. 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.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk of the industry and country in which customers operate.

A default on a financial asset is when the counterparty fails to make contractual payments when they fall
due. This definition of default is determined by considering the business environment in which Company
operates and other macro-economic factors.

Credit guality of a customer is assessed based on its credit worthiness and historical dealings with the
Company, market intelligence and goodwill. Outstanding customer receivables are regularly monitored.
The management uses a simplified approach for the purpose of computation of expected credit loss for
trade receivables and other receivables.

Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances of INR 1,761.53 Lakhs as at
March 31, 2025 INR 326.88 lakhs as at March 31, 2024. The credit worthiness of banks and financial
institutions is evaluated by management on an ongoing basis and is considered to be good.

Loans

Loan is given to outside parties for which credit risk is managed by monitoring the recoveries of such
amounts on regular basis and the Company does not perceive any credit risk related to these financial
assets.

Other financial assets

Other financial assets measured at amortised cost includes deposits and fixed deposits with bank having
original maturity period of more than 12 months. Credit risk related to these financial assets are managed
by monitoring the recoveries of such amounts on regular basis and the Company does not perceive any
credit risk related to these financial assets.

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

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company's
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when they are due.

Maturities of financial liabilities

The below table analyses the Company's financial liabilities into relevant maturity based on their
contractual maturities. The amounts disclosed in the table are contractual undiscounted cash flows.

c. Market risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and
interest rates - that will affect the Company's income or the value of its holdings of financial instruments.
Market risk is attributable to all market risk sensitive financial instruments including foreign currency
receivables and payables 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 the investments. Thus, the exposure
to market risk is a function of investing and borrowing activities and revenue generating and operating
activities in foreign currency.

i. Currency risk

The Company is exposed to currency risk on account of foreign currency transactions including
recognized assets and liabilities denominated in a currency that is not the Company's functional currency
(INR), primarily in respect of United States Dollar. The Company ensures that the net exposure is kept to
an acceptable level.

ii. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations
in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest
bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

The Companies exposure to interest rate risks relates primarily to the Companies interest obligations on
its borrowings. Borrowings taken at variable rates are exposed to fair value interest rate risk. To Company
carries excellent credit ratings, due to which it has assessed that ther are no material interest rate risk and
any exposure thereof.

iii. Capital risk management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going
concern and to optimise returns to its shareholders. The capital structure of the Company is based on
management's judgement of the appropriate balance of key elements in order to meet its strategic and
day-to-day needs. The Company's policy is to maintain a stable and strong capital structure with a focus
on total eguity so as to maintain investor, creditors and market confidence and to sustain future
development and growth of its business.

The Company monitors its capital by using gearing ratio, which is net debt divided to total eguity. Net debt
includes borrowings net of cash and bank balances and total eguity comprises of eguity share capital,
general reserve, securities premium, other comprehensive income and retained earnings.

39. Other Statutory Information

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

ii. The Company do not have any transactions with companies struck off.

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

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

v. The Company have 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 have 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 have not 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.

40. Previous year figures have been regrouped / reclassified to confirm to current year presentation.

For Yogesh Kansal & Company For and on behalf of the Board of Directors of

Chartered Accountants Creative Graphics Solutions India Limited

Firm’s Registration Number: 507136C CIN: L22219DL2014PLC263964

Deepanshu Goel Sarika Goel

Managing Director Executive Director

DIN: 03118826 DIN : 06777690

Place: Noida Place: Noida

Date: May 28, 2025 Date: May 28, 2025

(CA Abhay Kansal) Pulkit Agrawal ^^uJ^{a Arora Mehrotra}

M. No. 439591 Chief Financial Officer Company Secretary

UDIN: 25439591BMHKLA3577 Place: Noida ^M- ^{Na : A65438}

Place: Noida Date: May 28,2025 Place: Noida____

Date: May 28, 2025 ^{Date: Ma}y ²⁸’ ²⁰²⁵