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CFL/SE/2024-25/JULY/ 02 July 09, 2024 The Manager (Listing) The Manager (Listing) BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot no. C/1, G Block, Mumbai-400 001 Bandra – Kurla Complex Scrip Code: 508814 Mumbai-400 051 Security ID: “COSMOFIRST”

Subject: Submission of Annual Report

Dear Sir,

Please find enclosed herewith Annual Report for the Financial Year 2023-24 as required under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Annual Report is being sent to the members who have registered their email ID with the Company / Depositories in permitted mode. The members can also access the Annual Report on the - website of the Company at https://www.cosmofirst.com/investors/annual reports

You are requested to take the same on your records.

Thanking You

Yours faithfully For Cosmo First Limited (Formerly Cosmo Films Limited)

Digitally signed by JYOTI JYOTI DIXIT DIXIT Date: 2024.07.09 16:27:21 +05'30'

Jyoti Dixit Company Secretary & Compliance Officer

Encl.: as above

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RESILIENT STRATEGIES, EXPANDING OPPORTUNITIES Annual Report 2023 - 24

Financial Statements

Corporate Overview

Statutory Reports

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CORPORATE INFORMATION

BOARD OF DIRECTORS

Mr. Ashok Jaipuria Chairman & Managing Director

Mr. Anil Kumar Jain Director of Corporate Affairs

Mr. H.K. Agrawal Independent Director

Mrs. Alpana Parida Independent Director

Mr. Pratip Chaudhuri Non-Independent Director

Mr. H. N. Sinor Independent Director

Mr. Anil Wadhwa Independent Director

Mr. Rakesh Nangia Independent Director

Mr. Arjun Singh Independent Director

Mr. Yash Pal Syngal Independent Director

KEY MANAGERIAL PERSONNEL

Mr. Pankaj Poddar Group Chief Executive Officer

Mr. Neeraj Jain Group Chief Financial Officer

Ms. Jyoti Dixit

Company Secretary & Compliance Officer

BUSINESS HEADS

Mr. Kulbhushan Malik Films Division

Mr. Sanjay Chincholikar Rigid Packaging & Window Films

Mr. Raj Sharma

Speciality Chemicals

Mr. Sushen Roy Petcare Division

STATUTORY AUDITORS M/s. S.N. Dhawan & Co. LLP Chartered Accountants

BANKERS

Axis Bank Limited

Bajaj Finance Limited Bank of Baroda Limited Export Import Bank of India HDFC Bank Limited

ICICI Bank Limited

IDBI Bank Limited IDFC First Bank Ltd IndusInd Bank Limited

Landesbank BadenWürttemberg

State Bank of India

SVC Bank

Union Bank of India Yes Bank Limited

REGISTRAR & SHARE TRANSFER AGENTS

M/s. Alankit Assignments Ltd. 4E/2, Alankit House, Jhandewalan Extension, New Delhi – 110 055

REGISTERED OFFICE

1st Floor, Uppal Plaza, M-6, Jasola District Centre, New Delhi – 1100 25

Tel: +91 11 49 49 49 49; Fax: +91 11 49 49 49 50

Website: www.cosmofirst.com

PLANTS

MAHARASHTRA

J-4, MIDC Industrial Area, Chikalthana, Aurangabad 431 210; Tel: +91 240 2485894

B-14/8-9. MIDC Industrial Area, Waluj, Aurangabad 431 136; Tel: +91 240 2554611/12/13/14; Fax: +91 240 2554416

AL-24/1, MIDC-SEZ, Shendra Industrial Area, Aurangabad 431 201; Tel: +91 240 2622205, 2622301

GUJARAT

Vermardi Road, Village Navi Jithardi near Inox, Off: N H Road, Taluka Karjan Distt. Vadodara 391 240 Tel: +91 2666 232960, 320707

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RESILIENT STRATEGIES, EXPANDING OPPORTUNITIES

Navigating through various challenges, Cosmo First’s long-term value generating potential remains robust. The Company is dedicated to shaping the future through strategic investments and diversification and establishing new businesses. Cosmo embodies a spirit of pioneering resilience while upholding a commitment to environmental stewardship and sustainability values.

The Company has outperformed the industry, demonstrating a strong commitment to growth and innovation. Its focus on identifying and unlocking new business opportunities ensures it remains at the forefront of market trends and customer needs. By diversifying its portfolio, Cosmo First mitigates risks and capitalises on emerging markets, strengthening its position and preparing for future challenges.

With strategic foresight, Cosmo First anticipates market shifts and adapts proactively, instilling stakeholder confidence through transparent communication and a consistent performance track record.

To promote sustainability and rationalise costs, the Company seeks to source more than 50% of its power through renewable sources.

Introducing monolayer structures in the Cast Polypropylene (CPP) and Biaxially Oriented Polypropylene (BOPP) lines will further bolster sustainability efforts by minimising material usage and waste.

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Annual Report 2023-24
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Corporate Overview Statutory ReportsStatutory Reports Financial Statements
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Emphasising cost optimisation and efficiency is a core part of Cosmo First’s strategy. The Company continuously implements efficiency programmes to optimise costs and improve operational performance, adopting lean operations to eliminate waste and enhance productivity. These efforts ensure that Cosmo First remains competitive and capable of delivering sustained value to its stakeholders.

Financial Statements

Corporate OverviewCorporate Overview Statutory Reports

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CORPORATE OVERVIEW

REDEFINING EXCELLENCE IN PACKAGING SOLUTIONS

Cosmo First Limited (formerly Cosmo Films Ltd.), under the visionary leadership of Mr. Ashok Jaipuria, has embarked on a remarkable journey since its inception in 1981. Starting with a modest capacity of 800 MT, the company has grown over the past four decades to become a leading global manufacturer of packaging films, renowned for providing innovative solutions across various regions.

batch, coating chemical and adhesive; Rigid Packaging under the brand name Cosmo Plastech manufacturing in-wall containers and sheets for a wide range of FMCG products, particularly for the food industry and Zigly, a pet care brand that offers a full range of services and products for pets. The Company plans to launch Sun Control Films/Window Films under the brand Cosmo Sunshield during FY25.

Cosmo First has consistently taken pride in pioneering niche solutions for packaging, lamination, industrial, and labelling applications. The company’s robust R&D team, technical expertise, and unwavering ethical values have kept it ahead of the curve in every venture. In recent years, Cosmo First has expanded its portfolio to include Cosmo Speciality Chemicals having three vertical - master

With a significant global presence in the speciality films segment and a strong leadership team at the helm, Cosmo First is well-positioned to continue its legacy of excellence and growth. Its inspiring diversifications into speciality chemicals, consumer care, and D2C retail are set to pioneer advancements in these previously fragmented industries.

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Vision

We aspire to be recognised among the most innovative business conglomerates in India, developing high-growth businesses that are sustainable, scalable and profitable.

Mission

To deliver lasting value for all our stakeholders through innovation, excellence, collaboration, integrity & customer-centricity

Core Values

People First - People first, foremost, and above all.
Innovation - Champion innovation to stay a step ahead
Unity - Thrive together and win as a team
Integrity - Act with integrity, no matter what
Trust- Continue to build trust with all our stakeholders

Statutory Reports Financial Statements

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Financial Statements

Corporate OverviewCorporate Overview Statutory Reports

Annual Report 2023-24

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PRESENCE

CRAFTING PROGRESSIVE FOOTPRINTS

From its progressive beginnings to its widespread global presence, Cosmo First has established itself as a cornerstone in the packaging industry, renowned for its commitment to quality and excellence.

SUBSIDIARIES

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NETHERLANDS
USA
KOREA
SINGAPORE
THAILAND
JAPAN
INDIA
VADODARA
INDIA
MUMBAI CHENNAI
INDIA INDIA
AURANGABAD
INDIA
NEW DELHI
INDIA
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SUBSIDIARIES
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TOTAL INSTALLED CAPACITIES

MANUFACTURING FOOTPRINTS

Flexible Packaging

Waluj, Aurangabad, Karjan Vadodara, India India

1,96,000 TPA (9 lines) 5 lines 3 lines BOPP BOPP BOPP 20,000 TPA (6 lines) 2 lines 1 line Coating Thermal Coating 7000 TPA (1 line) 3 lines 2 lines CSP Coating Metalising 40,000 TPA (8 lines) 1 line 1 line Thermal Metalising CPP 1 line 1 line 22,000 TPA (4 lines) CPP CSP Metalising 1 line 30,000 TPA (1 line) BOPET BOPET Shendra, Aurangabad, 10,000 TPA (2 lines) India CPP 1 line Speciality Chemicals BOPP Masterbatches 5 lines 10,000 TPA Thermal 2 lines Coating Chemicals Coating 5,000 TPA 1 line Adhesives Metalising 2,500 TPA UPCOMING Rigid Packaging 10,000 TPA CAPACITIES CPP line (25000 TPA-H1’FY25) Waluj, Aurangabad

SALES OFFICE

BOPP line (678000 TPA-H1’FY26) Waluj, Aurangabad

Corporate OverviewCorporate Overview Statutory Reports Financial Statements

Annual Report 2023-24

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Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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BUSINESS OVERVIEW

SPEARHEADING PROGRESS ACROSS VARIED VERTICALS

Cosmo First stands at the forefront of industry evolution and is committed to progressive solutions and customer-centric innovation. From flexible packaging, Speciality Chemicals, Rigid Packaging, Zigly and Sunshield, Cosmo First is redefining standards across multiple sectors, ensuring excellence and sustainability in every endeavour.

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KEY HIGHLIGHTS

Targetting 50%+ capacity expansion by FY26
Enhanced focus on expanding Speciality Films portfolio
Diversification in strength areas-Speciality Chemicals, Rigid packaging and Sun control Films.
Developed a centralised R&D center at Aurangabad

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Increased R&D headcount to 30+ highly qualified members. Further enhancing R&D capacity

Speciality films focused business with target to sell 80% BOPP based volume of speciality films by FY26 (FY24 Speciality 64%)

Implementing Cost rationalization initiatives

Verticals:

Masterbatch (From FY21)
Coating Chemicals (From FY22)
Adhesive (From FY24)

End-to-end rigid packaging vertical (From Q3’FY24)

Zigly is D2C, Digital First Omni Channel platform for Pets (Petcare is high growth Industry growing at 25% CAGR)

Automotive, architectural, safety & decorative window films (Upcoming in FY’25)

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Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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PRODUCT PORTFOLIO

Flexible Packaging Films

With Cosmo First innovative range of flexible packaging films, the Company has been able to establish itself as the go-to solution provider for leading global FMCG brands. The films are highly sought after due to their superior printability, optical properties, and low sealing temperature. Additionally, Cosmo First offer high hot tack and stable COF, making them a preferred choice for all flexible packaging applications.

Printing & Pouching Films

Cosmo First offers high-performance printing and pouching films that are utilised in various packaging applications such as snack foods, bakery products, ice creams, fresh foods, chocolates, and confectionery. These films are designed to support excellent quality printing and converting, providing superior performance in both mono web and laminate forms. They are suitable for use on both horizontal form fill seal (HFFS) and vertical form fill seal (VFFS) packaging machines, making them versatile and widely applicable.

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Anti-fog films/Keep Fresh Anti-fog Film
Low COF & Stable COF Films
Cast Polypropylene(CPP) Films
Thin metalized Films
Cold Seal Films
Low SIT Films

Barrier Films

With a keen focus on meeting customers’ needs, Cosmo First has developed a range of high-performance barrier films to address two key challenges in the packaging industry. These innovative films are designed to enhance the shelf life of food products and reduce packaging material consumption through laminate rationalisation. The range includes solvent free coated films with excellent machinability that provide moisture, oxygen, and aroma barriers. Typically used in duplex/triplex laminate structures, these films are an effective solution for enhancing food preservation while also promoting sustainability.

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Transparent Barrier Films
Metalized Barrier Films
Aroma Barrier Films
Aroma & Oxygen Barrier Films (AOB)
High Moisture Barrier Films
High Seal Strength Barrier Films(HSS)
High-Speed Barrier Films with High Hot Tack (HSB)
Ultra High Barrier Films (UHB)

Overwrap Films

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Cosmo First offers a wide range of overwrap films that are utilised in diverse applications such as general overwrap, cable overwrap, and cigarette overwrap. Their cigarette overwrap films are made of co-extruded, low heat sealing and hot slip modified non-treated BOPP films that can be run smoothly on high-speed machines. These films are available in different shrinkage values, supporting the wrapping of single as well as medium bundled packs. Cosmo First’ overwrap films provide a reliable and efficient packaging solution for a variety of products.

Overwrap Films

Lamination Films

Cosmo First provides lamination films for protecting and extending the life of printed surfaces in the print publishing and graphic art film industries. Additionally, the Company offers films that provide a luxurious texture and tactile feel to high-end packaging. These films are supplied to laminators, printers, and packaging manufacturers worldwide through a network of distributors.

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Lamination Films- Standard Range

The Company’s standard range of lamination films is used for both thermal lamination and wet lamination processes.

Thermal Lamination Films- BOPP
Thermal Lamination Films- PET
Wet Lamination Films- BOPP

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Laminating films – Special applications

These converting films are specially engineered to provide protection for some special applications.

Insulation Films – Thermal BOPP
Mapped and Matched films – Thick PET

Disclosure: Images are registered trademark of respective owners

Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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Premium Lamination Films

Cosmo First offers a premium range of lamination films that cater to the needs of luxury packaging and high-end graphic lamination industries. The portfolio includes new and improved velvet, scuff-free matte, and digital lamination films, providing a beautiful texture and tactile feel to the packaging.

Scuff Free Matte Lamination Films
Digital Lamination Films

In Mould Label (IML) Films

The demand for In Mould Labels (IML) is on the rise due to their durability, aesthetic appeal, and the elimination of an extra step in labelling the container. The Company currently offers white films with excellent anti-static properties and an orange peel effect, while also developing transparent films to add to their portfolio.

White In Mould Label (IML) Films
Transparent In Mould Label (IML) Films

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Label Films

Cosmo First offers a range of Label Films and Coated Labels that enable the information to be legible and enhance the brand value. The label films are designed to provide a transparent and sleek ‘no label’ look, while the metallised labels add an attractive visual element to the packaging. Cosmo First understands the importance of product labels in distinguishing a brand from its competitors and ensuring clear communication of product information on a limited surface area.

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Pressure Sensitive Label Stock Films

The Company’s label stock films are widely used for self-adhesive labels in the home care and personal care industries. Additionally, their Pressure Sensitive LabelStock (PSL) Films are used for both functional and aesthetic purposes in the beverage and pharmaceutical industries.

Transparent Pressure Sensitive Label Stock Films
White Pressure Sensitive Label Stock Films
Metalized Pressure Sensitive Label Stock Films

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Wrap-Around Label Films

The Wrap Around Label Film offered by Cosmo First is extensively used by leading food and beverage brands for labelling their products. The Company supplies this film for both cut and stack and reel-fed applications, catering to the diverse needs of its customers.

Transparent Wrap-Around Label Films
Pearlised Wrap-Around Label Films
Metalized Wrap-Around Label Films

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Label over lamination films

The Company offers a range of label over lamination films that serve both functional and aesthetic purposes. These films not only protect the printed labels but also enhance their visual appeal. The product range includes both standard and premium options to cater to the varying needs of the customers.

Transparent label over lamination films

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Direct Thermal Printable (DTP) Films

Direct Thermal Printable Film or DTP Film is a type of BOPP film that can produce images upon contact with the print head of a thermal printer due to its proprietary coating. The coated surface is protected from abrasion, weather conditions, and chemicals by applying a protective layer, which makes the film scuff and water-resistant. This film provides a paper-like matte finish and consumes minimal energy during printing, producing dark images. It is commonly used in various applications such as airport baggage tags, retail tracking, POS weight and price labelling, and more.

Disclosure: Images are registered trademark of respective owners

Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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Industrial Films

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The Company provides an extensive selection of ready-to-use industrial films for various practical applications. These films can be used for manufacturing adhesive tapes, textile bags, printing applications, and more.

Adhesive Tape Films

The Company provides a range of non-heat sealable transparent films that are suitable for pressure-sensitive tapes and range from 21-40 microns in thickness. These films are designed with a treated surface on one side to enable adhesive anchorage with water, solvent, and acrylic-based pressuresensitive adhesives. The films are known for their excellent flatness, gloss, and clarity.

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Textile Bag Films

The Company provides a range of non-heat sealable transparent films for textile bags in various thicknesses. These films are designed with a treated surface that allows for surface printing and offers excellent flatness, gloss, clarity and good mechanical properties for pouching applications.

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Release Film

Cosmo First is a prominent manufacturer of Release Films worldwide. Their product line includes a variety of transparent, untreated, non-heat sealable Release Films for release liner applications in various thicknesses, ranging from 12 to 20 microns. These Release Films are highly sought after as they possess low surface energy and provide excellent optics.

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Synthetic Paper

Synthetic Paper is a durable and long-lasting alternative to traditional paper. It is a white opaque, polypropylene-based synthetic film that looks like paper. Synthetic Paper is resistant to moisture and chemicals and is non-tearable with excellent lay flatness. This type of paper is eco-friendly, conserving water and preventing air pollution as it does not require the use of hazardous chemicals in its manufacturing process. It is compatible with most printing technologies and can be folded, sheeted, die-cut, perforated, serrated, foil stamped, laminated, and written on with oil-based pens and pencils.

COSMO PLASTECH

Cosmo Plastech is the end-to-end rigid packaging solutions division of Cosmo First that specializes in creating customized packaging solutions for a variety of fast-moving consumer goods (FMCG) products. At Cosmo Plastech, we use injection moulding and thermoforming techniques to manufacture our products, which are made from highquality materials to ensure durability and reliability.

Cosmo Plastech works closely with their clients to understand their specific packaging needs, and then designs and manufactures customized containers to meet those needs. Our expertise in injection moulding and thermoforming techniques, as well as our BOPP-based film, makes us a trusted partner for many companies in across the globe.

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Product Portfolio

Rigid Sheets

Rigid sheets are flat, solid panels made from polyester, metal, or composite materials. These sheets are characterized by their stiffness and inability to flex or bend easily.

Polyethylene Terephthalate (PET) Sheet
Electrostatic Discharge (ESD) Plastic Sheet
Polypropylene (PP) Sheet
High Impact Polystyrene (HIPS) Sheet

Thermoformed Containers

This includes the glass clear, single colour, dual colour cups, containers in sizes ranging from 85ml to 400ml round containers suitable for dairy, ice-cream, fruit jam, coconut water, energy drinks, and diverse food packaging needs and another size vary from 250gm & 500gm rectangle shape containers useful for sweet, snack, bakery, & takeaway food.

Thermoformed Round Containers
Thermoformed Rectangle Containers

Injection Moulded Containers

This Consist of Twist, Round, Oval, Rectangle types containers size from 125ml to 1000ml can be used for Food, Household, Cosmetic packaging. Another rectangle hinged containers (1 Oz to 34 Oz) which can be used for food, cosmetics and pet products packaging.

IML Decorated Containers
Non-IML Packs

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Disclosure: Images are registered trademark of respective owners

Statutory ReportsStatutory Reports Financial Statements

Corporate OverviewCorporate Overview

Annual Report 2023-24

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COSMO SPECIALITY CHEMICALS

expertise. The application engineers are proficient in various textile application methods, adhering to global standards. The R&D team features scientists from leading multinational corporations in the United States, Korea, and Japan, as well as PhDs, post-docs, and postgraduates from prestigious overseas universities and institutions like IITs, NITs, and UDCT.

Cosmo Speciality Chemicals boasts textile laboratories equipped with cutting-edge development tools from Daelim Starlet, including a Padding mangle, IR dyeing equipment, and a combo steamer cum stenter, along with an incubator and assessment tools. Their formulations cover various surfactants — anionic, cationic, non-ionic, and amphoteric — supported by advanced technologies and extensive textile processing

Product Portfolio

Coating Chemicals

Masterbatch

Cosmo Speciality Chemicals manufactures a wide range of coatings for excellent ink adhesion, gloss, clarity, durability, and resistance to scuff and scratches for a wide range of packaging, lamination and synthetic paper applications.

Cosmo Speciality Chemicals produce solid colouring additive for plastic. Based on Sustainable science, our Masterbatches are concentrated mixture of pigments and/or additives encapsulated during a heat process into a carrier resin which is then cooled and cut into a granular shape. Masterbatch allows the processor to color raw polymer economically during the plastics goods manufacturing.

Adhesives

Adhesives are frequently used in the food and pharmaceutical industries, as well as for cosmetics, textiles, and technical lamination. Cosmo speciality is the fastest growing eco-friendly and sustainable Laminating Adhesives Manufacturing Company in India. It works with food packaging industries as well as nonfood applications in India. Company provides both dry and wet lamination adhesives.

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Pressure Sensitive Adhesives (PSA)
Lamination Adhesives
Flexible Packaging Adhesives

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COSMO SUNSHIELD

Combining cutting-edge technology, innovative solutions, and a customer-centric approach, Cosmo Sunshield endeavours to revolutionise window films into environmentally conscious, energy-saving solutions. This durable shield is designed to elevate residential and commercial spaces, offering both comfort and modern sophistication.

Product Portfolio

Privacy Films

Sun Protection Films

Cosmo Sunshield films offer a versatile and stylish way to maintain privacy while adding an attractive element to your space.

Cosmo Sunshield sun protection films reject up to 95% heat causing IR Rays resulting in up to 10% Savings in Air-conditioning Bills.

Safety Films

Cosmo Sunshield Safety films offer a cost-effective way to strengthen the glass and protect against shattering, while also offering heat rejection.

Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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ZIGLY PET CARE

Zigly is India’s leading digital-first Omni-channel retail and services platform offering the widest range of Pet care products such as food, nutritional supplements, hygiene products, accessories and toys as well as services ranging from vet care, grooming and training. To build a tech-enabled integrated ecosystem, ZIGLY serves as a platform for Pet families looking for quality, affordable and standardized Pet care while providing equitable income opportunities for people who have chosen Petcare as a profession. Zigly’s experience centers have a wholistic presence in Delhi, and the company plans to expand to several other tier 1 cities in the next six months. The Zigly App and website caters to pet parents across the country, and our on the go grooming vans are making their way across Delhi NCR.

Product Portfolio

Vet Care Practices

Surgeries
Consultation
Pathology
Radiology
Pharmacy

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KEY HIGHLIGHTS

44 Cr GMV

6200+ SKU’s available

4.5 Cr

Current Monthly GMV

39K+ with 6K+

Zigly Pro members Customers served

450K+ Customer database

150K+

Social media followers

Launched the first pet care app

Vaccination

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Pet Spa & Grooming

Certified & Passionate Groomers
Premium Products
Advanced Tools

Premium Pet Products

Premium Pet Fashion-Zigly Lifestyle
Pet wellness-Furpo
150+ Premium brands

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Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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GOVERNANCE

SHAPING THE STORY OF SUCCESS THROUGH VISIONARY LEADERSHIP

Cosmo First embodies a governance structure rooted in expertise, experience, and integrity. The Board, which includes visionary founders and professionals in finance, diplomacy, taxation, and business management, represents various backgrounds and perspectives.

Board of Directors

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Mr. Ashok Jaipuria

Chairman & Managing Director

Mr. Ashok Jaipuria, the founder, Chairman and Managing Director of Cosmo First, brings over 40 years of corporate experience to his leadership role. He also serves as an Independent Director of Hindware Home Innovation Ltd. Mr. Jaipuria has been a member of the Board of Governors (BoG) at several prestigious institutions, including the Indian Institutes of Technology (IIT) in Indore and Patna and the Institute of Liver and Biliary Sciences. Additionally, he has served on the Executive Committee of the Federation of Indian Chamber of Commerce and Industry (FICCI). He holds an Associate of Arts degree in Business Administration and a Diploma in Marketing Science.

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Mr. A.K. Jain

Director of Corporate Affairs

Mr. Jain brings over 40 years of experience in finance, accounts, and general management. He holds the position of Director of Corporate Affairs at Cosmo First. His career includes significant positions at Mawana Sugars, A.F. Ferguson & Co., and the National Mineral Development Corporation. Mr. Jain holds a Commerce degree from Meerut University and an AICWA from ICWAI. Additionally, he is a Certified Information System Auditor, accredited by the Information System Audit and Control Association, USA.

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Mr. H.K. Agrawal

Independent Director

Mr. H.K. Agrawal is an Independent Management Consultant with over four decades of experience. His expertise encompasses strategic management, organisational structure, and finance, both in India’s public and private sectors. Mr. Agrawal has provided consulting services to numerous multinational companies, large Indian corporates, small entrepreneurial organisations, and developmental institutions. He holds a degree in Mechanical Engineering from the University of Jodhpur and an MBA from the prestigious Indian Institute of Management, Ahmedabad.

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Mrs. Alpana Parida

Independent Director

With over two decades of experience in retail and marketing communications spanning both the US and India, Mrs. Parida is a seasoned professional in her field. She previously served as the president of DY Works, India’s oldest and largest branding firm, and she conducts branding workshops for large corporations. Mrs. Parida graduated from the esteemed Indian Institute of Management, Ahmedabad, in 1985 and holds a degree in Economics from St. Stephen’s College, Delhi University.

Mr. Pratip Chaudhuri

Non-Executive & Non-Independent Director

Mr. Pratip Chaudhuri, a Certified Associate of the Indian Institute of Bankers (CAIIB), brings a wealth of experience to the table, having retired as Chairman of the State Bank of India. His expertise spans corporate finance, treasury, asset management, and international banking. Mr. Chaudhuri has held prominent positions such as Chairman of SBI Life Insurance Company Ltd, SBI Mutual Fund, and SBI Pension Fund, among others, and served on the Board of the Exim Bank of India. He holds a B.Sc. (Hons) Degree from St. Stephen’s College, Delhi University, and a Master’s in Business Administration from University Business School, Chandigarh.

Mr. H.N. Sinor

Independent Director

Mr. H. N. Sinor, with over four decades of extensive experience in the banking sector, has held key positions in both public and private sector banks, including Union Bank of India, Central Bank of India, and ICICI Bank. Notably, he served as the Managing Director and CEO of ICICI Bank and later assumed the role of Joint MD following the merger with ICICI. Mr. Sinor has also held significant leadership roles as the Chief Executive of the Indian Banks’ Association and the Association of Mutual Funds in India. He has actively contributed to various policy committees and currently serves as an Independent Director on the boards of several reputed companies. Beyond his professional endeavours, Mr. Sinor is dedicated to philanthropic activities and is involved with charitable and social trusts.

Mr. Anil Wadhwa

Independent Director

Mr. Anil Wadhwa, a distinguished former Member of the Indian Foreign Services, brings a wealth of diplomatic experience to his career. He holds a Master’s Degree in History, specialising in Chinese History and Medieval Indian History and Architecture. Mr. Wadhwa served in various significant roles throughout his tenure, including as the Indian Ambassador to Poland, Lithuania, the Sultanate of Oman, Thailand, Italy, and San Marino. Additionally, he served as the Permanent Representative of India to the Rome-based UN Agencies—FAO, WAD, and WFP. His expertise extended to serving as Secretary (East) in the Ministry of External Affairs in New Delhi from 2014 to 2016.

Financial Statements

Corporate Overview

Annual Report 2023-24

Statutory Reports

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Mr. Rakesh Nangia

Independent Director

Mr. Rakesh Nangia, with nearly four decades of expertise in tax advisory services, is also a seasoned tax veteran. He is the Founder and Managing Partner of Nangia & Co LLP. He serves as the Chairman of Nangia Andersen Consulting Pvt. Ltd. Mr. Nangia’s leadership extends beyond his firm, as he has held prominent roles such as the National President of The Indo-Canadian Business Chamber. Currently, he serves as the Co-Chairman at ASSOCHAM’s International Tax Council and is actively involved with organisations like the Indo-American Chamber of Commerce. Additionally, Mr. Nangia contributes his expertise as a council member of PHD Chambers, CII’s National Committee on Taxation, and FICCI’s Council for Taxation. He has been acknowledged for his outstanding contributions and was ranked as the top Tax Leader in India in 2015 by International Tax Review, UK.

Mr. Arjun Singh

Independent Director

Mr. Arjun Singh’s distinguished career spans over 25 years, marked by senior leadership roles in renowned organisations across Asia and beyond. As the former Managing Director for Asia and head of Envestnet I Yodlee’s operations in India, he played a pivotal role in driving growth and expanding operations. Before this, Mr. Singh held significant positions at Aon Hewitt, WNS, ABN AMRO Bank, GE Capital Information Services, and ANZ Grindlays Bank, gaining invaluable experience in business management. Under his stewardship, Envestnet I Yodlee India flourished, growing to over fourteen hundred employees and achieving remarkable success in international sales. Mr. Singh holds an MBA from IIM Calcutta and a Bachelor’s in chemical engineering from IIT Bombay. Beyond his professional endeavours, he is deeply committed to philanthropy, serving as a trustee at the Om Foundation School for underprivileged children. He has contributed his expertise as a Board member of Welham Girls School and the Advisory Board for SHRM in India, reflecting his passion for education and social impact.

Mr Yash Pal Syngal

Independent Director

Mr. Syngal boasts over three decades of experience in various leadership capacities, having occupied senior roles at Aon PLC, Genpact, American Express, and Fidelity International Limited. His primary areas of expertise include technology, business modelling, and business process management. He holds a B. Tech degree from IIT Delhi and has completed an Executive Management Program at the University of Chicago Booth School of Business. He is a Green Belt in Six Sigma certified Project Management Professional (PMP). His accolades include GE’s Worldwide Award for Customer Excellence, the American Express Worldwide Chairman’s Award, and the Best Function Award at GE India.

SUSTAINABLE INITIATIVES

CULTIVATING A SUSTAINABLE ENVIRONMENT

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The company’s commitment towards the Environmental, Social, and Governance (ESG) framework extends across various dimensions to ensure a sustainable future.

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Environmental

Cosmo First’s environmental initiatives are designed to mitigate the company’s operations’ environmental impact, conserve natural resources, and promote sustainability.

15% 45% 50%+ Reduction in Water Targeted Renewable Power carbon emission Treatment Consumption by FY25

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Social

The company has made significant efforts to promote community wellbeing through a diverse range of initiatives under its Social Responsibility framework. These efforts encompass substantial investments in Corporate Social Responsibility (CSR) activities, targeted programs to promote women’s well-being, comprehensive support for educational institutions, and health, sanitation, environmental, and plantation initiatives.

6.03 Cr 7,00,000 10,00,00 Total spending on Lives touched No: of saplings planted CSR activities through CSR under CSR with 90%+ survival rate ▶ Promoting ▶ Provision to ▶ Gujarat, women wellinfrastructure Maharashtra, being and qualified Himanchal Pradesh, professionals Madhya Pradesh & to support New Delhi Educational Institution

Financial Statements

Corporate Overview

Annual Report 2023-24

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Education

6

52 Total Schools

1,000+

Schools Enrolled in FY23-24

New Students

13,000+

142 Village covered

500 Desktop & laptops Allotted

Students Impacted

▶ Computer Education was ▶ 6191 students learned delivered to 8477 students Basic English language through 25 Computer labs in 16 rural schools

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Sanitation Community Engagement

200 Toilet

Parents Engagement
E-Service
Covid Awareness
Children’s Fair & Summer Camps
Health Camps

500

Counselling ▶ Events Competitions

Waste Bins Installed

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Publication of Educational Resources

Cosmo English Tutor: ▶ Geet Gunjan-Book on Youtube Channel Children’s Songs & Web Portal
Basic English
▶ Curriculum for Computer, Conversation Book Digital Foundational and Basic English Literacy
Correct use of Toilet-A booklet
Manual on Net Banking & Digital Payments
Posters on Covid Awareness & Health

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Governance

The company’s governance framework fosters robust risk management, active shareholder engagement, and professional management practices.

1 70%

6

Number of Active Women Director(s) Committees

Independent Directors in Cosmo First

▶ Robust Risk ▶ Professional ▶ Whistle Blower Management Management Mechanism ▶ Active Shareholder ▶ Board Performance ▶ Separate Engagement Evaluation Independent Directors ▶ Statutory Auditor ▶ Diversity and Meeting :M/s SN Dhawan & Inclusion Co (Mazars)

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Co (Mazars)
29
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Corporate Overview

Annual Report 2023-24Annual Report 2023-24

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SUSTAINABILITY IN MANUFACTURING PRACTICES

Cosmo First is propelled by a deliberate dedication to environmental stewardship. Through innovative endeavours, the organisation seamlessly weaves ecological responsibility into all facets of its activities. The company also merges inventive solutions with proficiency, emphasising the establishment of a secure and nurturing workplace environment.

Recycling of manufacturing waste for further film Production (about 95%).
50%+ usage of solar power as a source of energy in plants by FY25.
INR 30 Cr investment to reduce environment impact and rationalize costs.
45% of water treated at Cosmo. Planning towards Zero Liquid Discharge.
Constant monitoring of parameters - noise, illumination, ventilation etc.

SUSTAINABILITY IN PRODUCT PRACTICES

Cosmo First takes the helm in the packaging sector, with a commitment to sustainability across the entire lifecycle of its products. From the meticulous curation of renewable and recyclable materials to the integration of energy-conserving manufacturing methods, Cosmo First guarantees that its offerings epitomise both environmental consciousness and top-notch quality.

Offering mono-material for ease of recycling.
Designed heat resistant BOPP films replacing BOPET; giving push to creation of mono-material structures.
Partnered with some of the best global brands to offer structure rationalization.
BOPP and CPP films offer better yield, hence enabling reduced consumption of plastics.
UV stabilized Synthetic Paper used to replace PVC in outdoor promotional applications for duration requirements up to one year.
Offer a suitable substitute for aluminum foil in form of its Ultra-High Barrier Films.
Offer Oxo-Biodegradable Films.

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Particulars 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Results
Net sales 2587 3,065 3,038 2,285 2,204 2,157 1,967 1,696 1,621 1,647
(EBITDA) 251 434 620 430 280 181 168 169 190 113
as % of Sales 10% 14% 20% 19% 13% 8% 9% 10% 12% 7%
Profit before Tax 72 304 517 329 163 72 64 91 124 38
as % of Sales 3% 10% 17% 14% 7% 3% 3% 5% 8% 2%
Profit after Tax 62 244 397 237 113 61 64 86 96 28
as % of Sales 2% 8% 13% 10% 5% 3% 3% 5% 6% 2%
Balance Sheet and Cash Flow Statement
Shareholders Fund 1,298 1298 1191 854 741 680 620 573 456 381
Capital Expenditure 298 380 283 75 50 91 77 224 88 48
as % of Sales 12% 12% 9% 3% 2% 4% 4% 13% 5% 3%
Data Per Share
Earning per share (₹) 23.9 90.9 147.7 84.7 39.5 21.3 22.4 29.8 33.0 9.5
Dividend per share (₹) 3.0 5.0 35.0 25.0 15.0 6.0 6.0 10.0 10.0 3.5
Market capitalisation, 1,311 1,544 3,148 1,127 405 377 480 725 566 150
March ended as per BSE
31
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MEDIA COVERAGE

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Corporate Overview

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Annual Report 2023-24

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DIRECTOR’S REPORT

Your directors are pleased to present their 47[th] Annual Report together with the Audited Statement of Accounts of the Company for the year ended 31[st] March 2024.

1. SUMMARY FINANCIAL RESULTS

The Financial Results of the Company for the year ended 31[st] March 2024, were as follows:

(₹. in Crores)

Particulars	Standalone Consolidated
	Year Ended 31st March 2024 Year Ended 31st March 2023 Year Ended 31st March 2024 Year Ended 31st March 2023
Net Sales	2,391 2,742 2,587 3,065
Other Income	65 58 68 52
Proft before Interest, Depreciation and Tax	213 396 251 434
Finance Cost	85 52 89 55
Depreciation	85 69 89 75
Proft before Tax	43 275 72 304
Provision for Taxation
- Current Tax	8 48 15 57
- Deferred Tax	(3.3) 19 (1.4) 09
-Tax adjusted for earlier years	0.1 (6) (3) (6)
Proft After Tax	39 214 62 244
Earnings per Equity Share
Basic	15 80 24 91
Diluted	15 78 24 89

FLEXIBLE PACKAGING

2. PERFORMANCE SNAPSHOT

During the FY24, on consolidated basis the Company registered sales of ₹ 2,587 Crores vs ₹ 3,065 Crores last year. Consolidated EBITDA for the year was ₹ 251 Crores as against ₹ 434 Crores in FY23 primarily due to margin pressure in BOPP & BOPET industry due to commissioning of several new production lines during last 18 months. However, the Company has outperformed the industry at large due to higher sales of speciality films.

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On Standalone basis, the Company registered sales of ₹ 2391 Crores vs ₹ 2,742 Crores last year. Standalone EBITDA for the year changed to ₹ 213 Crores against ₹ 396 Crores in FY23 primarily for the reasons explained above.

As on 31[st] March 2024, consolidated Net Debt/ EBITDA stands at 2.2 times and Net Debt/Equity at 0.4 times. The Company’s financials remain strong.

The Global Flexible Packaging Market size in terms of production volume is expected to grow from 34.67 Million tonnes in 2024 to 40.94 Million tonnes by 2029, at a CAGR of 3.38% during the forecast period (2024-2029)[1] . Asia-Pacific flexible packaging market share is anticipated to exhibit a CAGR of 5.02% during the period 2023-2031[2] . The India Flexible packing market is projected to grow from $ 32847.54 Million in 2024 to $ 43656.77 Million by 2032 as a compound annual growth rate (CAGR) of 3.62%.[3]

The flexible packaging market is driven by a combination of factors, including increasing demand for convenient and lightweight packaging solutions, rising consumer awareness toward sustainability, and advancements in packaging technology for improved shelf life and product protection. As industries prioritize eco-friendly solutions and consumers seek convenience and functionality, the flexible packaging market is poised to expand. Asia-Pacific region is the most desirable market for manufacturers of flexible packaging due to its high domestic demand and plentiful, low-cost labour.

With increasing long term demand potential for flexible packaging, the Company has planned about 50% capacity addition in flexible packaging business in phases starting from FY25. While specialized BOPET line got commissioned during FY23, the CPP line and BOPP line are expected to get commissioned in FY25 and FY26 respectively. Both the lines will be the world’s largest production capacity lines with lower cost of production.

The Company’s focus shall continue to be on improving speciality films, R&D efforts particularly on sustainability which would yield results in coming years. These actions would continue to de-commoditize business model and would contribute in long term sustainable growth. The Company’s speciality films sales stand at 64% during FY24. On BOPET line as well, the company is looking to kick off few specialty products which includes window films, security films, PET-G films, and many others.

METALLIZED FILM FOR CAPACITORS

The Company invested into a new category of film- Metallized Film for Capacitors with benefits under production linked incentive scheme. The commercial production started in Q3 FY24.

COSMO SUNSHIELD

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Applications of Cosmo Sunshield

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Residential
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Commercial
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Automotive
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The Company plans to launch Sun Control Films/ Window Films under the brand Cosmo Sunshield during FY25. This is a unique and innovative sun control film introduced in the Indian market to address the ever rising heat wave problem, which has a significant impact on energy demand and public health. This film can protect 99% of ultra

1 https://www.mordorintelligence.com/industry-reports/ fexible-packaging-market
2 https://www.globenewswire.com/
3 https://www.credenceresearch.com/report/indiafexible-packaging-market

Corporate Overview

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Annual Report 2023-24

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violet rays that can cause damage and fading to furniture and interior items. This film is designed to make glass shatter-resistant by holding the glass pieces together when broken. These films are built using special micro-layered polyester technology, which significantly increases tear resistance. The commercial production will start in FY25.

The Company is currently having five registered patents; nine in pipeline and another three are being applied.

SPECIALITY CHEMICALS

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Cosmo Specialty Chemicals

Masterbatchs Coating Adhesives Chemicals

In Speciality Chemicals the Company has three verticals i.e. masterbatch, coating chemicals and adhesive. In each of these segment the Company plans to cater to niche speciality focused either to address current problem area for the Industry or significantly better product compared to currently available.

India Master Batch Market size was valued at $ 12.4 Billion in 2023 and the total India Master Batch Market revenue is expected to grow at a CAGR of 4.8 % from 2024 to 2030, reaching nearly $ 17.22 Billion.[4] The substitution of metal with plastics across end-use industries such as automotive and transportation, building and construction, consumer goods, and packaging is anticipated to be a crucial factor for the increasing global market size in the forecast period.

The Global Adhesives Market size is estimated at $ 68.88 Billion in 2024, and is expected to reach $ 87.04 Billion by 2028, growing at a CAGR of 6.03% during the forecast period (2024-2028).[5] The India Adhesives Market size is estimated at $ 2.87 Billion in 2024, and is expected to reach $ 3.76 Billion

4 https://www.maximizemarketresearch.com/marketreport/india-master-batch-market/20058/
5 https://www.mordorintelligence.com/industry-reports/ global-adhesives-market

by 2028, growing at a CAGR of 6.98% during the

forecast period (2024-2028)[6] .

Global Adhesives Market

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Market Size in USD Billion
CAGR 6.03%
$ 87.04 B
$ 68.88 B
2024 2028
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Indian Adhesives Market

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Market Size in USD Billion
CAGR 6.98% $ 3.76 B
$ 2.87 B
2024 2028
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The global industrial coatings market is expected to be worth $ 129.2 Billion by 2028 growing at the CAGR of 3.3% between 2023 and 2028. Environmental regulations boost the demand for VOC-free coatings and are major factor behind the market growth.

The annual capacity of the Company for masterbatch is 10KMT, adhesives is 2.5KMT and Coating Chemicals is 5KMT. The Company targets to achieve 7%-8% of Company’s consolidated revenue from speciality chemicals in 3-5 years with 25% ROCE.

6 https://www.mordorintelligence.com/industry-reports/ india-adhesives-market/market-size

COSMO PLASTECH

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During the year, the Company invested into Rigid Packaging which includes Rigid sheets, Thermoforming and Injection Moulding. Cosmo Plastech is the end-to-end rigid packaging solution that specializes in creating customized packaging solutions for a variety of fast-moving consumer goods (FMCG) products.

Cosmo Plastech works closely with its clients to understand their specific packaging needs, and then designs and manufactures customized containers to meet those needs. Company’s expertise in injection moulding and thermoforming techniques, as well as our BOPP-based film, makes it a trusted partner for many companies across the globe.

The phase one commercial production started in FY24 and phase two will start in FY25. The annual capacity of the Company for rigid packaging is 4.8KMT The Company also attained globally recognized FSSC 22000 food safety certification, a mandatory requirement for packaging material coming into direct contact with food. Earning this rigorous accreditation required demonstrating a systematic and meticulous approach to food packaging production.

PETCARE—ZIGLY

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The Global Pet Care Market size is estimated at $ 20.02 Billion in 2024, and is expected to reach $ 24.59 Billion by 2029, growing at a CAGR of 4.20% during the forecast period (2024-2029)[7] .India’s Petcare market is currently around ₹ 5000 Cr and is expected to cross ₹ 12000 Crores by 2027.

The Company’s Petcare division Zigly launched in September 2021 follows an Omni Channel approach. It offers complete Petcare solution. It has a team of seasoned veterinarians with diverse expertise in critical care services viz: surgeries, consultation, pathology, radiology, pharmacy and vaccination. It offers premium pet products and spa and grooming services for pets. With 23 experience centers operational as on FY24, the Company targets to have 50+ experience centres in next couple of years.

Key Transactions

44 Cr 4.5 Cr GMV (FY 24) Current Monthly GMV

39K+

39K+ 6200+ Customers served with SKU’s available 6k+ Zigly Pro members

39% App Q4 FY24 Repeat First Petcare Customers app in India

450K+

150K+

Customers Social Media database followers

7 https://www.mordorintelligence.com/industry-reports/ pet-care-market

Corporate Overview

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Annual Report 2023-24

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Zigly - Business Model

Retail Outlets

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One stop solution retail outlets offering. Products Veterinary Grooming Medicines under one roof.

Own E-commerce website and App

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4200+ SKUs available on website including Private label

Service Marketplace

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Acting as an aggregator for panel of groomers and trainers on commission basis through own website

Other Marketplace

Private label available on Amazon

Grooming Van

Grooming Van in Delhi NCR

Pets familia community

Social community with 1lac + followers.

3. SUSTAINABILITY

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The Company is working on several sustainability projects.

The Company targets to achieve carbon foot print reduction of 1.02 lacs MT equivalent CO2 emission by FY25 and 1.40 lacs MT equivalent Co2 emission by FY 26.

The roof top solar power plants have been installed for all manufacturing units. The Company is currently using around 15% of Renewable power. The Company targets to raise the use of Renewable power to more than 50% of its total power consumption by FY25 and further increase it to more than 60% of total power consumption by FY26.

The Company has taken several steps towards rain water harvesting. 17% of the water consumed is being harvested.

The Company has water treatment plants. 45% of the waste water is being reused.

Noise reduction measures were taken across our Waluj, Shendra, and Karjan plants operations by using various noise control technologies and strategic operational adjustments. Acoustic enclosures are provided at high noise area to reduce noise to 80-85 dB.

The Company has taken several steps to minimise the waste generation. It has dedicated recycling plant for MLP and Post Industrial waste.

Initiatives have been taken for installing Wet Scrubber for Thermopack Boilers to improve resource efficiency and reduce impact due to emissions, effluent discharge, waste generated. Wet scrubber is used to reduce the amount of air pollution. In wet scrubbing processes, solid particles are removed from a gas stream by transferring them to a liquid. The liquid most commonly used is water.

Several other sustainability initiatives are as under:

Offer Oxo-Biodegradable Films
Offer mono layered structure for ease of recycling
partnering with some of the best global brands to offer structure rationalization & recyclability solutions.
Both BOPP and CPP films offer better yield, hence enabling reduced consumption of plastics.
Invest in R&D and grow its speciality film portfolio offering sustainable solutions for a better tomorrow.
Innovated heat resistant BOPP film to facilitate mono material structure.
UV stabilized Synthetic Paper can be used to replace PVC in outdoor promotional applications for duration requirements up to one year.
Focus on reducing Green House Gas missions, green energy at plants, waste reduction, water treatment etc.
Constant monitoring of parameters like noise, illumination, ventilation, air quality etc.
Rain water harvesting and reuse of effluent treated water.
Reutilization of reprocessed granules from waste material as input for film production.
Working on 3R principles i.e. Reducing waste, reusing and recycling resources and products.
Continuous efforts to reduce water usage, waste generation and GHG emissions.
Manufacturing environment friendly, sustainable polymers, which are easily recycled and reused in a variety of ways.

These steps will not only contribute to the environment but will also rationalize costs in coming quarters

5. DETAILS OF SUBSIDIARIES

The Company has Nine subsidiaries including step down subsidiaries. Pursuant to Section 129(3) of the Companies Act, 2013 and Accounting Standards issued by the Institute of Chartered Accountants of India, Consolidated Financial Statements presented by the Company include the Financial Statements of its Subsidiaries.

Consolidated Financial Statements form part of this Annual Report. Statement containing the salient features of the financial statement of the Company’s subsidiaries in Form AOC-1, is enclosed to this Annual Report.

In terms of provisions of Section 136 of the Companies Act, 2013, the Company place separate audited accounts of the Subsidiary Companies on its website at https://www.cosmofrst.com/ disclosure-under-regulation

The subsidiaries of Cosmo First Limited as on FY 24, are listed hereunder:
CF (Netherlands) Holdings Limited B.V.
Cosmo Films Japan, GK
Cosmo Films Singapore Pte Limited
Cosmo Films Korea Limited
Cosmo Films Inc.
CF Investment Holding Private (Thailand) Company Limited
Cosmo Speciality Chemicals Private Limited
Cosmo Speciality Polymers Private Limited
Cosmo Global Films Private Limited

*During the year, the Company closed its wholly owned subsidiary company at Poland-Cosmo Films Poland SP. Z.O.O w.e.f. 13[th] September 2023. This was a non material dormant subsidiary and was closed due to low business prospects. It had no financial impact on the Company.

Subsidiary’s EBITDA stood same as last year at ₹ 38 Crores.

4. EXPORTS

Use of Water Based Coatings
Offer a suitable substitute for aluminium foil in form of its Ultra-High Barrier Films.
The Exports for the financial year are ₹ 1,047 Crores which is 44% of total sales. The Company exports to 80+ countries across the globe.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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6. SHARE CAPITAL

During the year under review, there was no change in the Company’s issued, subscribed and paid-up equity share capital. On 31[st] March 2024, it stood at ₹ 26.25 Crores divided into 26249727 equity shares of ₹ 10/- each.

Net Worth and Book Value per share

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1,348
1,298
1,191
854
741
680
620
573
456
381 443 483 513
305
258
156 199 216 237
133
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Global Net Worth (INR Crores) Book Value per Share
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9. RESEARCH AND DEVELOPMENT (R&D)

7. RESERVE

The Special Economic Zone (SEZ) Re-investment reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961 and the amount of Rs. 42.70 Cr. has been transferred therein. The reserve will be utilised by the company for acquiring plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.

Mass Spectrometer Thermo Gravimetric Analysis Barrier Testing (OTR & MVTR) UV Spot Coating and Screen Printing Dynamic Mechanical Analyzer Scanning Electron Microscope Optical Microscope Infrastructure FTIR Microscope ANSI Barcode Scanner Dynamic Mechanical Analyzer Differential Scanning Calorimetry

8. RETURN TO SHAREHOLDERS

The Board of Directors of the Company recommended Equity dividend of ₹ 3/- (30%) per share for the year ended 31[st] March 2024 amounting to ₹ 7.87 Crores.

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Previous Year Company declared dividend of ₹ 5/(50%) per Equity Share of ₹ 10/- each amounting to ₹ 13.12 Crores.

In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) the Dividend Distribution Policy is available on the Company’s website at - https://www.cosmofrst.com/investors/policies and-code-of-conduct

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The Company has been continuously investing and upgrading its research and development capabilities keeping customer needs in mind for providing industry first innovative and sustainable solutions.. The Company’s R&D labs are equipped with state of the art equipment and instruments. The R&D team is actively driving several sustainability projects to ensure that the Company remains at the forefront for providing sustainable solutions.

In FY24, the Company has invested on a R&D food laboratory (Packsmart). This laboratory is equipped with state of the art equipment and instruments like Vertical Form Fill Seal (VFFS) machine, Vacuum leak tester, Stability chamber food shelf life analysis in new sustainable structure. This is the first of its kind initiative by a film manufacturer globally which will help local and global brands for faster introduction of products in the market. With this capability Cosmo can develop innovative sustainable laminate structures and study shelf life of food packed in new laminate structure by simulating real life conditions thereby reducing the product development costs and time for local and global brands.

Cosmo First’s dedicated R&D team plays a crucial role in keeping it ahead of the curve when it comes to product innovation. Comprising of more than 30 scientists and technologists from esteemed universities located worldwide, the team has a wealth of global experience in areas such as packaging, polymer engineering, biopolymers and renewable energy material. The Company will keep strengthening its R&D team and infrastructure to stay ahead of the curve by focusing on the sustainable product development.

The Company launched several new products during the financial year in various categories of Packaging, lamination, labelling & synthetic paper applications. Some of the notable product developments are Cold Seal release matte BOPP films, High puncture resistance BOPP, CPP films for nitrogen flushing, CPP film for high retort packaging, various grades of PET-G Shrink label films, Gold metalized, Digital and photo album laminations films, FDA approved coated CSP-Flexi, UV Inkjet printable PSA label film, High barrier coated film for hot melt adhesives, PVC free film for wide format graphics applications, metalized films for capacitors used in electronics application.

ANALYTICAL FACILITY

The Company has outstanding track record of continuous investment in R&D infrastructure by keep adding new instruments and hiring of strong and skilled analytical team. Our state of art

analytical lab has equipment’s like FTIR microscope, GC & GC Ms with headspace & TGA hyphenation, particle size analyser, UV-Vis spectrophotometer, scanning electron microscope (with EDX) IV measurement system etc. The team has developed new analytical methods to solve customer issues fast and develop new product with fundamental understanding. Our state of art analytical lab can be extensively utilized for all kind of analysis of film substrates, coatings, resins, adhesives and master batches. The lab is capable of surface, structural and elemental analysis from nano to macro level.

The application labs of the Company can analyse all critical customer requirements in films, packaging adhesives, compounds, additives and coating segment. New instruments to perform weatherability testing have recently been added. Cosmo also have pilot synthesis, coating and extrusion facilities that help to launch our products faster in the market.

During the year under review, your Company incurred the expenditure on Research & Development of ₹ 9.00 Cr.

10. CAPITAL EXPENDITURE

Your Company has three state of the art manufacturing facilities spread in India with a total installed capacity of –

1,96,000 MT per annum of BOPP films (9 lines),
40,000 MT per annum of Thermal Lamination Films (8 lines),
22,000 MT per annum of Metalized Films (4 lines),
20,000 MT per annum of Coated Films (6 lines),
• 10, 000 MT per annum of CPP Films (2 lines),
7,000 MT per annum of CSP Line (1 line),
30,000 MT per annum of BOPET Line (1 line),

In Cosmo Speciality Chemicals, Company has installed capacity of 10,000 MT per annum of Masterbatches, 2,500 MT per annum of adhesives and 5,000 MT per annum of Coating Chemicals.

The installed capacity of Rigid Packaging is 10,000 MT per annum.

During the year under review, your Company incurred capital expenditure of ₹ 297.51 Crores as compared to ₹ 380.40 Crores for FY24.

The capital expenditure incurred during FY24 shall facilitate enhanced sale of speciality films & rigid packaging sustainability initiatives and solar power as a source of energy.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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11. CORPORATE GOVERNANCE

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Board of
Directors and
Committees
Policies and Procedures Vision Mission Regulatory Legal and
Framework
Corporate
Smart Governance
Goals Strategy
Transparency
and Organizational
Accountability Objectives Hierarchy
Monitoring
and Internal
Control
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Cosmo is committed to maintaining best standards of Corporate Governance and has always tried to build the maximum trust with shareholders, employees, customers, suppliers and other stakeholders.

A separate section on Corporate Governance forming part of the Directors’ Report and the certificate from the Practicing Company Secretary confirming compliance of the Corporate Governance norms as stipulated in the Listing Regulations is included in the Annual Report in Annexure – A .

12. INTERNAL FINANCIAL CONTROL AND ITS

ADEQUACY

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Risk Control
Assessment Activities
Internal
Control
Program
Assurance Information
Via, Internal Communication
Audit
Monitoring
Process
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The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, safeguarding of its assets, prevention and detection of fraud, error reporting mechanisms, accuracy and completeness of the accounting records, and timely preparation of reliable financial disclosures.

The Internal Financial control is supplemented by an extensive program of internal audit conducted by in house trained personnel and external firm of Chartered Accountants appointed on recommendation of the Audit Committee and the Board. The audit observations and corrective action, if any, taken thereon are periodically reviewed by the Audit committee to ensure effectiveness of the Internal Financial Control System. The internal financial control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of persons.

13. RISK MANAGEMENT

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FRAMEWORK
First Line of Defence –
Managers of Businesses/Processes
Head of Business
Board of Directors &
Committees of Board
Heads of Function
or Departments
Risk Management
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Cosmo has a robust process in place to identify key risks across the organisation and prioritise relevant action plans to mitigate these risks. The Company has constituted a Risk Management Committee which has been entrusted with the responsibility to assist the Board in (a) approving the Company’s Risk Management Framework and (b) Overseeing all the risks that the organization faces such as strategic, financial, liquidity, security, regulatory, legal, reputational and other risks that have been identified and assessed to ensure that there is a sound Risk Management Policy in place to address such concerns / risks. The Risk Management process covers risk identification, assessment, analysis and mitigation. Incorporating sustainability in the process also helps to align potential exposures with the risk appetite and highlight risks associated with chosen strategies.

The risk management procedure is reviewed by the Audit Committee and Board of Directors on regular basis at the time of review of quarterly financial results of the Company. The Audit Committee has additional oversight in the area of financial risks and controls. Major risks identified by the business and functions are systematically addressed through mitigating actions on a continuing basis.

A report on the various risks that may pose challenge to your Company are set out as a part of Management, Discussion and Analysis section of this report. Details of the composition of the Risk Management Committee, Meetings held, attendance of the Directors at such Meetings and other relevant details are provided in the Corporate Governance Report.

14. VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has adopted a Whistle Blower Policy establishing vigil mechanism, to provide a formal mechanism for the Directors and employees to report their concerns about unethical behaviour, actual or suspected fraud or violation of the Company’s Code of Conduct or ethics policy without fear of reprisal. The policy is accessible on the Company’s website at https://www.cosmofrst. com/investors/policies-and-code-of-conduct

15. DIVERSITY OF THE BOARD

The Company believes that diversity is important to the work culture at any organisation. In particular, a diverse Board, among others, will enhance the quality of decisions by utilizing different skills, qualifications and professional experience for achieving sustainable and balanced development.

16. DIRECTORS

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20%
Board
70% Composition 10%
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Non- Executive Independent Director Executive Director Non- Executive Director

(A) CHAIRMAN

Mr. Ashok Jaipuria, is the Chairman & Managing Director of the Company.

(B) APPOINTMENT AND RE-APPOINTMENTEXECUTIVE DIRECTORS

Mr. Anil Kumar Jain, Whole time Director is liable to retire by rotation and being eligible offers himself for re-appointment at the ensuing Annual General Meeting.

The tenure of Mr. Anil Kumar Jain, Whole Time of the Company is expiring on 30[th] September 2024. The Board of Directors in its meeting held on 15[th] May 2024, on the recommendation of the HR, Nomination & Remuneration Committee and subject to the approval of Members of the Company reappointed him for a further period of five years w.e.f. 01[st] October 2024.

The details of the proposed appointment/ reappointment of Directors are mentioned in the Explanatory Statement under Section 102 of the Companies Act, 2013 of the Notice of 47[th] Annual General Meeting (AGM) of your Company.

(C) STATUS OF OTHER DIRECTORS

Mr. Pratip Chaudhuri is acting as Non Independent Non Executive Director, liable to retire by rotation.

Mr. Har Kishanlal Agrawal, is acting as Independent Director of the Company. His tenure is expiring on 24[th] July 2024.

Mr. Hoshang Noshirwan Sinor, is acting as Independent Director of the Company. His present tenure of five years is from 22[nd] May 2020 to 21[st] May 2025.

Mr. Rakesh Nangia, is acting as Independent Director of the Company. His present tenure of five years is from 10[th] November 2020 to 09[th] November 2025.

Mr. Arjun Singh, is acting as Independent Director of the Company. His present tenure of five years is from 27[th] October 2021 to 26[th] October 2026.

Ms. Alpana Parida is acting as Independent Director of the Company. Her present tenure of 5 years is from 15[th] May 2024 till 14[th] May 2029.

Mr. Anil Wadhwa is acting as Independent Director of the company. His present tenure of 5 years is from 23[th] May 2023 till 22[th] May 2028.

Mr. Yash Pal Syngal is acting as Independent Director of the company. His present tenure of 5 years is from 08[th] November 2023 till 07[th] November 2028.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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(D) INDEPENDENT DIRECTORS DECLARATION

The Company has received necessary declaration from each Independent Director under section 149(7) of the Companies Act, 2013 that they meet the criteria of independence laid down in section 149(6) of the Companies Act, 2013 and Regulation 16 of Listing Regulations.

17. STATEMENT OF BOARD OF DIRECTORS

The Board of Directors of the Company are of the opinion that the Independent Directors of the Company appointed/re-appointed during the year possesses integrity, relevant expertise and experience (including the proficiency) required to best serve the interest of the Company. The Independent Directors have confirmed compliance of relevant provisions of Rule 6 of the Companies (Appointments and Qualifications of Directors) Rules, 2014.

18. KEY MANAGERIAL PERSONNEL

During the year under review, there was no change in KMP of the Company. The following personnel’s continue as KMPs as per the definition under Section 2(51) and Section 203 of the Companies Act, 2013:

Mr. Ashok Jaipuria, Chairman & Managing Director
Mr. Anil Kumar Jain, Director - Corporate Affairs
Mr. Pankaj Poddar, Chief Executive Officer
Mr. Neeraj Jain, Chief Financial Officer
Ms. Jyoti Dixit, Company Secretary

19. FAMILIARIZATION PROGRAMME FOR THE INDEPENDENT DIRECTORS

The Company follows a well-structured induction programme for orientation and training of Directors at the time of their joining so as to provide them with an opportunity to familiarise themselves with the Company, its management, its operations and the industry in which the Company operates.

At the time of appointing a Director, a formal letter of appointment is given to him/her, which inter alia explains the role, function, duties and responsibilities expected of him/her as a Director of the Company. The Director is also explained in detail the Compliance required from him/ her under the Companies Act, 2013, the Listing Regulations and other relevant regulations and affirmation taken with respect to the same.

The induction programme includes:

1) For each Director, a one to one discussion with the Chairman and Managing Director to familiarise the former with the Company’s operations.
2) An opportunity to interact with the CEO, CFO & Company Secretary, business heads and other senior officials of the Company, who also make presentations to the Board members on a periodical basis, briefing them on the operations of the Company, strategy, risks, new initiatives, etc.

The details of the familiarisation programme may be accessed on the Company’s corporate website at https://www.cosmofrst.com/disclosure-underregulation

20. REMUNERATION POLICY

Your Company is driven by the need to foster a culture of leadership with mutual trust. Cosmo’s remuneration policy, which is aligned to this philosophy, is designed to attract, motivate, retain manpower and improve productivity by creating a congenial work environment, encouraging initiative, personal growth and teamwork besides offering appropriate remuneration package. Pursuant to the applicable provisions of the Companies Act, 2013 and the Listing Regulations, the Board, in consultation with its HR, Nomination & Remuneration Committee, has formulated a framework containing, inter-alia, the criteria for performance evaluation of the entire Board of the Company, its Committees and Individual Directors, including Independent Directors.

Members can download the complete remuneration policy on the Company’s website at - https://www.cosmofrst.com/investors/policies and-code-of-conduct

Disclosure of details of payment of remuneration to Managerial Personnel under Schedule V(C)(6) of Listing Regulations forms part of the Corporate Governance Report.

21. PERFORMANCE EVALUATION OF THE BOARD,

COMMITTEES AND INDIVIDUAL DIRECTORS

In terms of provisions of Companies Act, 2013 read with the Rules issued thereunder and Listing Regulations, the Board has adopted a formal mechanism for evaluating the performance of its Board, Committees and individual Directors, including the Chairman of the Board. Further, a structured performance evaluation exercise was carried out based on criteria such as:

Board/Committees composition;
Structure and responsibilities thereof;
Ethics and Compliance;
Effectiveness of Board processes;
Participation and contribution by members;
Information and functioning;
Specific Competency and Professional Experience /Expertise;
Business Commitment & Organisational Leadership;
Board/Committee culture and dynamics; and
• Degree of fulfilment of key responsibilities, etc.

The performance of Board, Committees thereof, Chairman, Executive and Non-Executive Directors and individual Directors is evaluated by the Board/ Separate meeting of Independent Directors. The results of such evaluation are presented to the Board of Directors.

22. BOARD AND COMMITTEE MEETINGS

Diversity of Board/Committee's

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33%
75%
33% NED
ID
ID
33%
ED 25%
ED
10% NED
ED
20%
ID
80%
ID
NED
70%
20%
Board of Directors Audit Committe
HR, NRC Stakeholder Committe
Board of
Directors
Audit Committe
Stakeholder Committe HR, NRC
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ED: Executive Director
NED: Non-Executive Director
ID: Non-Executive Independent
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During FY23, Five(5) meetings of the Board of Directors and Four (4) Audit Committee meetings were held. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013 and Listing Regulations.

Details of the composition of the Board and its Committees and of the Meetings held, attendance of the Directors at such Meetings and other relevant details are provided in the Corporate Governance Report.

There have been no instances of non-acceptance of any recommendations of the Audit Committee by the Board during the Financial Year under review.

23. AUDITORS

(A) STATUTORY AUDITORS

M/s. S.N. Dhawan & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 000050N/N500045) were appointed as the statutory auditors of the Company in the 43[rd] Annual General Meeting held on 07[th] August 2020, to hold office for a period of five consecutive years from the conclusion of the 43[rd] Annual General till the conclusion of the 48[th] Annual General Meeting to be held in the

year 2025. The Statutory Auditors have confirmed they are not disqualified from continuing as Auditors of the Company.

There are no observations (including any qualification, reservation, adverse remark or disclaimer) of the Auditors in their Audit Report that may call for any explanation from the Directors. Further, the notes to accounts referred to in the Auditor`s Report are self-explanatory.

During the year, the Auditor had not reported any matter under Section 143 (12) of the Companies Act, 2013, therefore no detail is required to be disclosed under Section 134(3) of the Companies Act, 2013.

(B) COST AUDITORS

Mr. Jayant B. Galande, Cost Accountants were appointed as Cost Auditors of the Company for the Financial Year 2024. In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, since the remuneration payable to the Cost Auditors is required to be ratified by the shareholders, the Board recommends the same for approval by shareholders at the ensuing AGM.

In terms of the Section 148 of the Companies Act, 2013 (‘the Act’) read with Rule 8 of the Companies (Accounts) Rules, 2014, it is stated that the cost accounts and records are made and maintained by the Company as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013.

(C) SECRETARIAL AUDITORS

The Company had appointed M/s. BLAK & Co., Company Secretaries, New Delhi, to conduct its Secretarial Audit for the FY2023-24. The Secretarial Audit report is annexed herewith as Annexure - B to this report. There are no qualifications, reservations or adverse remarks made by Secretarial Auditor in his report. During the year, the Auditor had not reported any matter under Section 143 (12) of the Companies Act, 2013, therefore no detail is required to be disclosed under Section 134(3) of the Companies Act, 2013.

24. RELATED PARTY TRANSACTION

With reference to Section 134(3) (h) of the Companies Act, 2013, all contracts and arrangements with related parties under Section 188(1) of the Companies Act, 2013, entered into by the Company during the Financial Year, were in the ordinary course of business and on an arm’s length

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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basis. The details of the related party transactions as required under Indian Accounting Standard are set out in Note 44 to the standalone financial statements forming part of this Annual Report.

As per the Listing Regulations, all related party transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee has been obtained for the transactions which are of unforeseen and repetitive nature. The transactions entered into pursuant to the omnibus approval are presented to the Audit Committee by way of a statement giving details of all related party transactions. The Company has developed a Related Party Transactions Policy for the purpose of identification and monitoring of such transactions and can be accessed on the Company’s website at https://www.cosmofrst. com/investors/policies-and-code-of-conduct.

No Material Related Party Transactions (i.e. one thousand crore or ten per cent of the annual consolidated turnover of the listed entity as per the last audited financial statements, whichever is lower) were entered during the year by your Company. The disclosure of Related Party Transactions as required under section 134(3)(h) of the Companies Act, 2013, in Form AOC – 2 is attached as Annexure – C .

25. MANAGEMENT’S DISCUSSION AND ANALYSIS

REPORT

Pursuant to regulations 34 of the Listing Regulations, Management’s Discussion and Analysis Report for the year is presented in a separate section forming part of the Annual Report.

26. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

Pursuant to regulations 34 of the Listing Regulations, Business Responsibility and Sustainability Report for the year is presented in a separate section forming part of the Annual Report.

27. DEPOSITS

The Company has not accepted deposit from the public within the ambit of Section 73 of the Companies Act, 2013 and The Companies (Acceptance of Deposits) Rules, 2014.

28. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO

The details of energy conservation, technology absorption and foreign exchange earnings and outgo as required under Section 134(3) of the

Companies Act, 2013, read with the Rule 8 of Companies (Accounts of Companies) Rules, 2014 is annexed herewith as Annexure - D to this report.

29. PARTICULARS OF LOANS, GUARANTEES OR

INVESTMENTS

The Company have duly complied with the provision of Section 186 of the Companies Act, 2013 during the year under review. The details of loans, guarantees and investments are covered in the notes to the Financial Statements.

30. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

During the year under review, no significant / material orders were passed by the regulators or the Courts or the Tribunals impacting the going concern status and the Company’s operations in future.

31. CHANGE IN NATURE OF BUSINESS, IF ANY

There was no change in the nature of business during the year under review.

32. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING FINANCIAL POSITION OF THE COMPANY

There were no other material changes / commitments affecting the financial position of the Company or that may require disclosure, between 31[st] March 2024 and the date of Board’s Report.

33. LISTING WITH STOCK EXCHANGES

The Company confirms that it has paid the Annual Listing Fees for the year FY24 to the NSE and the BSE where the Company’s equity shares are listed.

34. ANNUAL RETURN

Pursuant to the provisions of section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, the Annual Return of the Company is available on the website of the Company at the link: https://www. cosmofrst.com/investors/notifcations-notices.

35. INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Details of Unclaimed Dividend and Shares transferred to IEPF during Financial Year 2023-24 are given in Corporate Governance Report.

36. CORPORATE SOCIAL RESPONSIBILITY

Some of the Flagship Programs (Education to 13,000+ Students).

Computer Operation & Digital Skill Building Program

Covers 8,000+ students with 25 Computer Labs

Basic English Learning Program

Implementation in 16 rural schools with 6000+ students

Cosmo Gyan Vihar Kendra

Identifies enrolls and grades 4,000+ students from class 1 to VII every year to strengthen their reading & writing skills

As a socially responsible Company, Cosmo is committed to increasing its Corporate Social Responsibility (CSR) impact with an aim of playing a bigger role in sustainable development of our society. In pursuit of this objective, a Corporate Social Responsibility (CSR) Committee had been formed by the Company which oversees and facilitates deliberation on the social and environmental consequences of each of the decisions made by the Board.

The Company has in place a Corporate Social Responsibility Policy pursuant to the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.

The initiatives undertaken by your Company during the year have been detailed in CSR Section of this Annual Report. The Annual Report on CSR activities in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, is set out herewith as Annexure - E to this Report.

37. PROMOTION OF WOMEN’S WELL BEING AT WORK PLACE

Cosmo First has zero tolerance for sexual harassment at workplace and has adopted a Policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder for prevention and redressal of complaints of sexual harassment at workplace. The Company has complied with provisions relating to the constitution of Internal Complaints Committee under the said act. The details related to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 forms a part of Corporate Governance Report.

38. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is also enclosed as Annexure - F to this Report.

The information pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 pertaining to the top ten employees in terms of remuneration drawn and their other particulars also form part of this report. However, the report and the accounts are being sent to the members excluding the aforesaid annexure. In terms of Section 136 of the Companies Act, 2013, the said annexure is open for inspection at the Registered Office of the Company. Any shareholder interested in obtaining a copy of the same may write to the Company Secretary.

39. EMPLOYEE STOCK OPTIONS

The Company has an Employee Stock Option Plan for the Employees of the Company and its Subsidiaries named as Cosmo Films Shares Based Employee Benefit Scheme, 2021 (“CF SBEB Scheme”). The Plan is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and is administered by the HR, Nomination and Remuneration Committee of the Board constituted by the Company pursuant to the provision of Section 178 of the Companies Act, 2013 and Listing Regulations.

The details of the CF SBEB Scheme form part of the Notes to accounts of the Financial Statements in this Annual Report and also available on our website at www.cosmofrst.com.

Corporate Overview Statutory Reports

Financial Statements

Annual Report 2023-24

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ANNEXURE-A CERTIFICATE ON CORPORATE GOVERNANCE

40. INSOLVENCY & BANKRUPTCY CODE/ 42. AWARDS & ACCOLADES SETTLEMENT

During the Year, Company has bagged:

No proceedings are made or pending under the Insolvency and Bankruptcy Code, 2016 and there is no instance of one-time settlement with any Bank or Financial Institution.

Cosmo Films bags SIES SOP Star Award for Packaging Materials & Components across 4 entries
the prestigious Forbes Asia Best Under a Billion Companies Awards 2023

41. DIRECTOR’S RESPONSIBILITY STATEMENT

the IFCA Star Awards 2023 in the innovative category
Pursuant to the section 134 (5) of the Companies Act, 2013, the Board of Directors, to the best of knowledge and belief and according to the information and explanations obtained by them, hereby confirm that:
the “Most Enterprising Business Award” from the prestigious Entrepreneur Magazine
Zigly bagged the top 100 D2C retail businesses of the year by the Retailer Magazine
I. In preparation of the annual accounts, applicable accounting standards have been followed along with proper explanation relating to material departures.
ET Leadership Excellence Award to Mr. Pankaj Poddar for Excellence in the Manufacturing of Films and Chemicals
the Top 10 Companies from India in the Forbes Asia Best Under A Billion 2022 list
II. Accounting policies selected were applied consistently. Reasonable and prudent judgments and estimates are made so as to give a true and fair view of the state of affairs of the Company as of 31[st] March 2024 and of the profits of the Company for the year ended on that date.
Ranked as one of India’s Fastest Growing Companies by BW Business World Magazine

43. SECRETARIAL STANDARDS

During the FY24, the Company has complied with applicable Secretarial Standards issued by the Institute of the Company Secretaries of India.
III. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

44. ACKNOWLEDGEMENT

Your Directors would also like to extend their gratitude for the co-operation received from financial institutions, the Government of India and regulatory authorities, and the governments of the countries we have operations in. The board places on record its appreciation for the continued support received from customers, vendors, retailers and business partners, which is indispensable in the smooth functioning of Cosmo. Your Directors also take this opportunity to thank all investors and shareholders, and the stock exchanges for their continued support. Your Directors place on record their deep appreciation to employees at all levels for their hard work, dedication and commitment. Their contribution to the success of this organization is immensely valuable.
IV. The annual accounts of the Company have been prepared on a going concern basis.
V. Proper Internal Financial Controls were in place and that the Financial Controls were adequate and were operating effectively.
VI. Systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

For and on behalf of the Board of Directors

The Members of COSMO FIRST LIMITED

1[st] Floor, Uppal Plaza,

M-6 Jasola District Centre,

New Friends Colony, New Delhi-110025

We have examined the compliance of conditions of Corporate Governance by COSMO FIRST LIMITED (the Company) for the year ended on 31[st] March 2024, as stipulated in Regulation 17 to 27 and clause (b) to (i) of Regulation 46(2) and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulation, 2015 as amended (“SEBI Listing Regulation”).

MANAGEMENT’S RESPONSIBILITY

The compliance of conditions of corporate governance is the responsibility of the management of the Company. This responsibility includes the designing, implementing and operating effectiveness of internal control to ensure compliance with the conditions of Corporate Governance as stipulated in the Listing Regulations.

OUR RESPONSIBILITY

Our responsibility is limited to examining the procedure and implementation thereof, adopted by the Company for ensuring the compliance of conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
We have examined the relevant records and documents maintained by the Company for the purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.

OPINION

Based on our examination of the relevant records and according to the information and explanations provided to us and the representations provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the Listing Regulations during the year ended 31[st] March 2024.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

for BLAK & CO .

Company Secretaries

Place: Ghaziabad, NCR Date: 15[th] May 2024

(Archana Bansal)

Mg. Partner M.No. – A17865 COP No.- 11714 PR No.: 1844/2022

Ashok Jaipuria Chairman

Date: 15[th] May 2024 Place: New Delhi

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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ANNEXURE-B

FORM NO. MR-3

SECRETARIAL AUDIT REPORT

For the Financial Year ended 31[st] March 2024

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,

The Members,

COSMO FIRST LTD

1[st] Floor, Uppal Plaza,

M-6 Jasola District Centre,

New Friends Colony, New Delhi - 110025

We have conducted the Secretarial Audit for the compliance of applicable statutory provisions and the adherence to good corporate practices by COSMO FIRST LIMITED (hereinafter called the company) for the Financial Year ended 31[st] March 2024. The secretarial Audit was conducted in a manner that provided us with a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): -
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, We hereby report that in our opinion, the company has, during the audit period covering the financial year ended on 31[st] March 2024, complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018; (Not applicable to the Company during the Audit Period)
d) Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable to the Company during the Audit Period);

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31[st] March, 2024 according to the provisions of applicable following laws:

f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 and 2021; (Not applicable to the Company during the Audit Period) and
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
h) The Securities and Exchange Board of India (Buyback of Securities) Regulations 2018; (Not applicable to the Company during the Audit Period)
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
(vi) The other laws as may be applicable specifically in case of the Company on the basis of documents/ information produced before us:
a) Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
xviii.Hazardous Waste (Management and Handling) Rules, 1989 and Amendment Rules, 2003,
xix. Environment Protection Act, 1986,
b) Air (Prevention and Control of Pollution) Act, 1981 and the rules and standards made thereunder.
xx. Industrial Employment (Standing Orders) 1946,
xxi. Trade Union Act, 1946,
xxii. Weekly Holidays Act, 1942,
c) Water (Prevention and Control of Pollution) Act, 1974 and Water (Prevention and Control of Pollution) Rules, 1975.
xxiii. Child Labour (Prohibition and Regulation) Act, 1986,
xxiv. Employees Provident Fund Act 1952 and EPS 1995,
d) Environment Protection Act, 1986 and the rules, notifications issued thereunder.
xxv. All other labour laws applicable to the industries.
(vii) Following Labour laws as applicable to the Company;
We have also examined compliance with the applicable clauses of the following:
i. The Factories Act 1948 and rules made thereunder,
i. The compliances of the listed entity are in
ii. Payment of wages Act, 1936 and rules made accordance with the applicable Secretarial thereunder, Standards (SS) issued by the Institute of Company Secretaries of India (ICSI), as notified by the
iii. Minimum wages Act, 1948 and rules made Central Government under section 118(10) of the
thereunder, Companies Act, 2013 and mandatorily applicable.
iv. Employees State Insurance Act, 1948 and rules made thereunder, ii. The Listing Agreement entered into by the Company with the Bombay Stock Exchange
v. Employee Compensation Act, 1923, (BSE) and National Stock Exchange (NSE) read
vi. Equal Remuneration Act, 1976, with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
vii. Contract Labour (Abolition & Regulation) Act, Regulations, 2015.
vii. Contract Labour (Abolition & Regulation) Act, 1970,
viii. Payment of Bonus Act, 1965 and rules made During the Audit period under review, the thereunder, Company has complied with the provisions of the
ix. Payment of Gratuity Act, 1972 and rules made Act, Rules, Regulations, Guidelines, standard etc. mentioned above.
ix. Payment of Gratuity Act, 1972 and rules made thereunder,
x. The Apprentices Act, 1961, We further report that:
xi. Industrial Disputes Act, 1947 and rules made 1. The Board of Directors of the Company is duly thereunder, constituted with proper balance of Executive
xii. Fatal Accident Act, 1955 Directors, Non-Executive Directors and Independent Directors. The changes in the
xiii. The Equal Remuneration Act, 1976 and rules composition of the Board of Directors that took
made thereunder, place during the period under review were carried
xiv. out in compliance with the provisions of the Act.
xiv. The Employee Compensation Act, 1923 and rules made thereunder,
Adequate notice is given to all directors for the
xv. Maternity Benefit Act, 1961 and rules made Board Meetings. Agenda and detailed notes on the
thereunder, agenda were sent in advance, and a system exists
xvi. The Air (Prevention and Control of Pollution) for seeking and obtaining further information Act, 1981 and rules made thereunder, and clarifications on the agenda items before the meeting and for meaningful participation
xvii. The Water (Prevention and Control of Pollution) at the meeting.
xvii. The Water (Prevention and Control of Pollution) Act, 1974 and rules made thereunder,

Corporate Overview Statutory Reports

Financial Statements

Annual Report 2023-24

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As per the minutes of the meetings duly recorded compliance with applicable laws, rules, regulations and signed by the Chairman, all the decisions of and guidelines. the Board and Committee Meetings were carried with requisite majority. We further report that:

During the audit period there were no specific events/ actions occurred having a major bearing on the Company’s affairs in pursuance of the above-referred laws, rules, regulations, guidelines and standards, during the FY23-24.

We further report that:

Based upon the compliance mechanism established by the Company and on the basis of compliance certificate issued by the management of the Company and taken on record by the Board of Directors of the Company, there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure

All the compliances as per Act, Law, Rule, Regulations as required to giving effect to the abovementioned transaction has been complied accordingly.

for BLAK & CO .

Company Secretaries

Place: Ghaziabad, NCR Date: 15[th] May 2024

(Archana Bansal)

Mg. Partner

M.No. – A17865 COP No.- 11714 PR No.: 1844/2022

ANNEXURE ‘I’

Our Secretarial Auditor Report for the Financial Year ended 31[st] March 2024 of even date is to be read along with this letter.

MANAGEMENT’S RESPONSIBILITY

Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

AUDITOR’S RESPONSIBILITY

We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.
The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards are the responsibility of management. Our examination was limited to the verification of procedures on test basis.

DISCLAIMER

The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor the efficacy or effectiveness with which the management has conducted the affairs of the Company.

UDIN- A017865F000384506

We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

for BLAK & CO . Company Secretaries

Place: Ghaziabad, NCR Date: 15[th] May 2024

(Archana Bansal)

Mg. Partner M.No. – A17865 COP No.- 11714 PR No.: 1844/2022 UDIN- A017865F000384506

Note: This report is to be read with our ANNEXURE ‘I’ of even date which are annexed and forms an integral part of this report.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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ANNEXURE-C

FORM NO. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis:

There are no contract/arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 which are not at arm’s length basis.

2. Details of material contracts or arrangement or transactions at arm’s length basis:

(a)	(b)	(c)	(d)	(e)	(f)
Name of the	Nature of	Duration of	Salient terms of	Date of approval	Amount paid as
related party	contracts /	the contracts /	the contracts or	by the Board, if	advances, if any
and nature of	arrangements/	arrangements/	arrangements	any
relationship	transactions	transactions	or transactions
			including the
			value, if any
			NIL

ANNEXURE-D

THE INFORMATION ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO STIPULATED UNDER SECTION 134(3)(M) OF THE COMPANIES ACT, 2013 READ WITH RULE 8 OF THE COMPANIES (ACCOUNTS) RULES, 2014

A. CONSERVATION OF ENERGY

(i) Steps taken/Impact on Conservation of Energy:
Improvement in energy efficiency is a continuous process at Cosmo and conservation of energy is given a very high priority in all our plants and offices.

The energy cost saving measures carried out by the company during the year are listed below:

(i) Contract Demand reduction - The theme behind this project is to reduce partial Contract demand to match optimum load requirement & to avail Load factor incentive in monthly Electricity bill;
(ii) Installation of Inverters for Blowers. The theme behind this project is to run blowers at variable speed instead of fixed speed as per process requirement resulting to achieve Energy saving;
(iii) Utilization of CT water for Lines, Chill Roll water Bath instead of Chilled Water. The theme behind this project is to utilize CT water in place of Chilled water to reduce chilling load on Chillers resulting saving in Energy;
(iv) Energy Saving in Air Compressor by optimizing operational parameters;
(v) Energy Saving from Chiller Cooling Tower Pump by reducing Flow;
(vi) Incorporated interlock such that Chill Roll & Water bath is “OFF” during plant stoppage - The theme behind this project is to stop wastage of power during plant stoppage;
(vii) Optimum loading of Power & Distribution Transformer to reduce the Load losses;

For and on behalf of the Board of Directors

(viii) FCU for Panel room - The theme behind this project is to replace Air-conditioned load with low consumption FCU Unit without affecting cooling performance;
(ix) Centralized Chilling system for coating plants;

Place: New Delhi Date: 15[th] May 2024

Ashok Jaipuria Chairman

Improving the Equipment Efficiency;

(x)
(xi) Energy Efficient heating system for EREMA recycling plant;
(xii) Energy Efficient heating system for NGR recycling plant;
(xiii) Installation of LED Lighting (Indoor & Outdoor);
(xiv) SEZ - Optimization of FO Consumption;
(xv) Use of day light for illumination.

(ii) Steps taken by the Company for utilizing alternate sources of energy.

i) Installation of Solar Generation plant - The theme behind this project is to utilize Solar Energy for power generation thus reduction in unit cost & support to green environment;
ii) Use of Wind Energy - The theme behind this project is to utilize wind Energy for power generation thus reduction in unit cost & support to green environment;
iii) Converted electrical heating into oil heating;
iv) Converted gas based heating to FO/Coal based heating.
(iii) Capital investment on energy conservation equipment’s during the year: ₹ 1.27 Crores

Corporate Overview Statutory Reports

Financial Statements

Annual Report 2023-24

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ANNEXURE-E

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

B. TECHNOLOGY ABSORPTION

[Pursuant to clause (o) of sub-section (3) of section 134 of the Act and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014]

(i) Efforts made towards technology absorption :

The Company’s technology is developed in house, which has helped in improving efficiency and developing new products.

The technology absorption efforts made by the company during the year are listed below:

i) Metalizer up gradation - The theme behind this project is to upgrade Electronic & Mechanical so as to reduce vacuum cycle time / increase up time & productivity of plant;
ii) Modifications in Heating system(Extrusion);
iii) Installation of Induction heaters for Co-extruder - The theme behind this project is to convert conventional electrical heating by use of Induction heating cause less energy consumption;
iv) Automation of Raw material feeding System;
v) Upgradation of AHU cooling system.
(ii) The benefits derived are like product improvement, cost reduction, product development, import substitution and Growth in business
(iii) In case of imported technology (Imported during the last 3 years reckoned from the beginning of the financial year)
(a) Details of Technology Imported
(b) Year of Import
(c) Whether the technology been fully absorbed
(d) If not fully absorbed, areas where this has not taken place, and reasons thereof

N.A. (The Company has not imported any technology)

(iv) Expenditure incurred on Research and Development: ₹ 8.59 Crores R & D expenditure as percentage of net sales: 0.33%

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

The Company’s foreign exchange earnings were ₹ 1047.46 Cr (Previous Year ₹ 1268.88 Crores). The total foreign exchange utilized during the year amounted to ₹ 511.98 Cr (Previous Year ₹ 599.30 Crores).

1. BRIEF OUTLINE ON CSR POLICY OF THE COMPANY

Cosmo First is committed to sustainable development of all sections of society and preservation of Environment. CSR Projects of the Company are primarily related to education, empowerment & environment including plantation drive, life skill education, green and clean initiatives and COVID relief activities.

Detail of projects and programs undertaken by the Company with respect to CSR are covered under Corporate Social Responsibility Section of Annual Report.

2. THE COMPOSITION OF THE CSR COMMITTEE:

			Number of	Number of
			Meetings	meetings
SI. No.	Name of Director	Designation/Nature of Directorship	of CSR Committee	of CSR Committee
			held during	attended
			theyear	during theyear
1.	Mr. Anil Wadhwa	Chairman/Non-Executive Independent Director	1	1
2.	Mr. Ashok Jaipuria	Member/Executive Director	1	1
3.	Mr. Anil Kumar Jain	Member/Executive Director	1	1
4.	Ms. Alpana Parida	Member/Non-Executive Independent Director	1	1

3. Web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the Board are disclosed on the website of the company: https://www.cosmofrst.com/investors/policies-and-code-ofconduct

Details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report): Not Applicable
Amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: Not Applicable

	SI. No.	Financial	Year	Amount available for set-off from preceding fnancial years (in Rs.)	Amount required to be setoff fnancial year, if any (in Rs)	(₹in Cr) for the

Average net profit of the company as per section 135(5): ₹ 334.11 Crores.

7. (a) Two percent of average net profit of the company as per section 135(5): ₹ 6.68 Crores.

(b) Surplus arising out of the CSR projects or programs or activities of the previous financial years: NIL
(c) Amount required to be set off for the financial year, if any: NIL
(d) Total CSR obligation for the financial year (7a+7b-7c): ₹ 6.68 Crores.

8. (a) CSR amount spent or unspent for the financial year:

(₹ in Cr)

Amount Unspent

Total Amount Spent	Total Amount transferred to Unspent	Total Amount transferred to Unspent	Amount transferred to any fund specifed	Amount transferred to any fund specifed	Amount transferred to any fund specifed
for the Financial Year	CSR Account as per section 135(6)		under Schedule VII as per second proviso
				to section 135(5)
	Amount	Date of transfer	Name of	Amount	Date of
			the Fund		transfer
6.04(*)	0.65	24thApril,2024		NIL

(*) includes ₹ 0.30 crores spent on ongoing projects of previous financial years

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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(b) Details of CSR amount spent against ongoing projects for the financial year: NIL

(d) Amount spent in Administrative Overheads: NIL

(₹ in Cr.)

(e) Amount spent on Impact Assessment, if applicable: NIL

		(₹in Cr.)
(1) (2) (3) (4)	(5) (6) (7) (8) (9) (10)	(11)
S. No Name of the Project Item from the list of activities in Schedule VII to the Act Local area (Yes/ No)	Location of the Project Project duration Amount allocate for the project for 3 years Amount spent in the current fnancial Year Amount transferred to Unspent CSR Account for the project as per Section 135(6) Mode of Implementation- Direct (Yes/No) State District	Mode of Implementation - Through Implementing Agency
		Name CSR Registration No.

NIL

(₹ in Cr.)


(1) (2) (3) (4)	(5) (6) (7)	(8)
S. No Name of the Project Item from the list of activities in Schedule VII to the Act Local area (Yes/ No)	Location of the Project Amount spent for the project in current year Mode of Implementa- tion- Direct (Yes/No) State District	Mode of Implementation - Through Implementing Agency ()**
		Name CSR Registration No.
1 Cosmo Educational Programs Promoting education Yes	Gujarat Maharashtra New Delhi Vadodara Aurangabad Delhi 2.71 Direct	Cosmo Foundation CSR00007606
2 Health camps and Health Hygiene Awareness and support – toilets, drinkingwater Promoting health care Yes	Gujarat Maharashtra New Delhi Vadodara Aurangabad Delhi 0.18 Direct	Cosmo Foundation CSR00007606
3 Environmental Initiatives - Garden Maintenance, Rain water harvesting, Solar energy Kagzipura water treatment etc. Environment sustainability Yes	Gujarat Maharashtra Vadodara Aurangabad 0.16 Direct	Cosmo Foundation CSR00007606
4 Women’s Empowerment Livelihood and Skill Building Yes	Gujarat Maharashtra Madhya Pradesh Vadodara Aurangabad Chhindwara 0.35 Direct	Cosmo Foundation CSR00007606
5 Medical & Health Care promoting excellence in medical & health care & rural health Yes	NA NA 2.50 Indirect	Sitaram Jaipuria Foundation CSR00016249
	5.90(*)

(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ₹ 5.74 crores
(g) Excess amount for set off, if any:

(₹ in Cr.)

		(₹in Cr.)
SI.	Particulars	Amount
No.
i.	Two percent of average net proft of the company as per section 135(5)	Nil
ii.	Total amount spent for the Financial Year	Nil
iii.	Excess amount spent for the fnancial year [(ii)-(i)]	Nil
iv.	Surplus arising out of the CSR projects or programmes or activities of the previous fnancial	Nil
	years, if any
v.	Amount available for set off in succeeding fnancial years [(iii)-(iv)]	Nil

(a) Details of Unspent CSR amount for the preceding three financial years:

SI. No. Preceding Financial Year Amount transferred to Unspent CSR Account under section 135 (6) Amount spent in the reporting Financial Year	Amount transferred to any fund specifed under Schedule VII as per second proviso to section 135(6)	Amount remaining to be spent in Succeeding fnancial years
	Name of the Fund Amount Date of transfer
1 2020-21 NIL NIL	NIL	NIL
2 2021-22 0.75 0.33		NIL
3 2022-23 0.70 0.70		NIL

Notes :

(*) includes ₹ 0.16 crores spent by the foundation received from third parties and the surplus carried forward from previous year
(**) Includes programs implemented through other registered organisations/trusts
i) Udayan Care – Cosmo-Udayan Shalini Fellowship program.
ii) INTACH - Environmental Sustainability Project at Model village Kagzipura.
iii) Maharani Chimnabai Stree Udyogalaya - Nari Ki Savari – four-wheeler driving course for women.
iv) Imperial Society of Innovative Engineers - EV automobile technician course for women.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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ANNEXURE-F

(THIS REPORT FORMS PART OF DIRECTORS’ REPORT)

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):

(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
S.	Project	Name of	Financial	Project	Total	Amount	Cumulative	Status
No	ID	the Project	Year in	Duration	amount	spent on	amount	of the
			which the		allocated	the project	spent at	project -
			project was		for the	in the	the end of	Completed
			Commenced		project	reporting	reporting	/Ongoing
						Financial	Financial
						Year	Year
1.	FY22	Cosmo	2021-22	3 years	1.71	0.41	1.58	Ongoing
		Tree
		Plantation
		2022
2.	FY23	Cosmo	2022-23	3 years	1.46	0.92	0.94	Ongoing
		Tree
		Plantation
		2023

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year: (asset-wise details): Not Applicable

11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5).: Not Applicable as the total spent including the amount transferred to unspent CSR account equals to two percent of the average net profit as per section 135(5).

DISCLOSURE IN DIRECTORS’ REPORT PURSUANT TO SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) AMENDMENT, RULES, 2016

1. The ratio of the remuneration of each Director to the median remuneration of the employees of the company for the Financial Year.

Name of the Director	Name of the Director	Ratio
1.	Mr. Ashok Jaipuria	204.28
2.	Mr. Anil Kumar Jain	33.83

2. The percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the Financial Year.

Name	Designation	% Increase/(Decrease)
Mr. Ashok Jaipuria	Chairman& Managing Director	(50%)
Mr. Anil Kumar Jain	Whole Time Director	(31%)
Mr. Pankaj Poddar	Chief Executive Offcer	(27%)
Mr. Neeraj Jain	Chief Financial Offcer	(21%)
Ms. Jyoti Dixit	Company Secretary	5%

3. Percentage increase in the median remuneration of all employees in the FY24: 14.42%

4. Number of Permanent employees on the rolls of Company as on 31[st] March, 2024: 1,241

5. Average percentage increase made in salary of employees other than the Managerial Personnel in the last Financial Year and its comparison with the percentage increase in the Managerial Remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the Managerial Remuneration:

Ashok Jaipuria

Anil Wadhwa

(Chairman & Managing Director) (Chairman -CSR Committee) DIN: 00214707 DIN: 08074310

Average increase in remuneration for Employees other than Managerial Personnel is 7.23%. However, for Managerial Personnel there is average decrease in remuneration by 48.3%. The decrease in remuneration of managerial personnel is due to lower profits .

6. Affirmation that the remuneration is as per the Remuneration Policy of the Company:

It is confirmed that the remuneration paid to the Directors, Key Managerial Personnel’s and Senior Management is as per the Remuneration Policy of the Company.

7. Information pursuant to Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 pertaining to the top ten employees in terms of remuneration drawn and their other particulars also form part of this report. However, the report and the accounts are being sent to the members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said annexure is open for inspection at the Registered Office of the Company. Any shareholder interested in obtaining a copy of the same may write to the Company Secretary.

General Note:

Managerial Personnel includes Chairman and Managing Director and Whole-time Director.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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MANAGEMENT DISCUSSION & ANALYSIS

1. COMPANY OVERVIEW

Cosmo First, originally established as Cosmo Films in 1981, pioneered the introduction of BOPP films in India. Today, the Company stands as the world's largest producer of thermal lamination films and the second-largest producer of specialty label films globally. It is also a leading player in the Indian BOPP films market. Cosmo First's commitment to innovation is underscored by its advanced R&D center in Aurangabad, which has secured five patents, with nine more in the pipeline. The Company prides itself on practicing excellent corporate governance and maintaining a culture of professional management, which provides a long-term competitive advantage.

Cosmo First has developed a well-diversified business model that caters to the evolving needs of its customers. The Company combines specialty and commodity films, specialty chemicals, rigid plastics, window films (set to launch in FY'25) and its pet care brand, Zigly, under one umbrella.

Such a diversified approach helps mitigate potential uncertainties in the business environment, positioning the Company for sustainable growth. By focusing on its strategic objectives and delivering a unique value proposition to customers, Cosmo First continues to drive long-term value creation for shareholders and stakeholders.

Despite facing challenges in FY24, Cosmo First's longterm value-generating potential remains robust. The Company's diversification into new product segments, such as shrink films, rigid plastics, window films (set to launch in FY'25), metallizers films and capacitor films, demonstrates its commitment to innovation and market expansion. Additionally, the growth potential in specialty chemicals and the pet care segment is significant, bolstering strong domestic demand for packaging solutions.

With plans to invest in enhancing capabilities, Cosmo First is poised for a bright future of growth, greater value, innovative products, and sustainable profitability. The Company's strategic investments and a focus on customer needs, combined with a capable and experienced team and a people-first approach, ensure that Cosmo First will continue to thrive and create value for all stakeholders.

2. MACROECONOMIC OVERVIEW AND OUTLOOK

2.1 ECONOMIC RESILIENCE AMID GLOBAL CHALLENGES

Despite a challenging global landscape, India's economy demonstrated remarkable resilience. The country solidified its position as the world's fifth-

largest economy, showcasing its significant economic strength and establishing itself as one of the fastestgrowing major economies.

Economic Performance and Growth

According to the Reserve Bank of India's (RBI) annual report, the Indian economy exhibited resilience during 2023-24, with real GDP growth improving to 7.6% from 7.0% in FY23. The manufacturing and services sectors were the main contributors to this growth, while agriculture faced challenges due to unfavorable weather conditions. Food and beverages inflation averaged 7.0% in FY24, slightly higher than the 6.7% recorded a year ago. India's exports showed positive momentum, reaching a value of USD 119.10 billion during the January-March 2024 quarter.

Key Drivers of Economic Robustness

The International Monetary Fund (IMF) highlighted strong domestic demand and a rising working-age population as key factors contributing to India's economic robustness. During the 54[th] Annual Meeting of the World Economic Forum in January 2024, it was noted that India's large and young population, often referred to as a "demographic dividend," can significantly boost economic growth when coupled with investments in upskilling, leading to increased productivity and innovation.

Consumer Behavior

While the overall economy displayed promising signs of growth, consumer spending, particularly in rural areas, remained sluggish. Urban demand supported private consumption, but the rural sector faced challenges due to an uneven monsoon and elevated food inflation, resulting in subdued rural income in 2023.

Digitalization and E-commerce Growth

The increased adoption of mobile wallets and internet banking has made online transactions for FMCG purchases smoother and more secure, further fueling e-commerce growth in the sector. India, with the second-largest online market globally and some of the world's cheapest data rates, has made the internet more accessible for consumers. The Unified Payments Interface (UPI) network processed a recordbreaking 13.44 billion transactions in March 2024, highlighting the remarkable growth of India's digital payments ecosystem.

Inclusivity and Market Accessibility

The vast online ecosystem offers access to a wider range of products and brands for both urban and rural consumers. This digitalization fosters inclusivity by bringing more options to a broader population, potentially enabling more informed and democratized purchase decisions.

Startup Ecosystem and Innovation

India boasts the third largest number of unicorns globally, signifying a thriving startup ecosystem with immense potential for innovation and economic growth. This dynamic environment highlights India's capacity for fostering entrepreneurial ventures that drive technological advancements and economic progress.

2.2 INDIAN ECONOMY

In FY 2025, India’s economic activity and GDP growth are expected to remain resilient despite ongoing geopolitical uncertainties. As a result, India is poised to become one of the major economies in the world with a promising growth outlook. The RBI is projecting steady growth in the Indian economy at 7%. This is due to strong private consumption, increased government spending and investment. Inflation is expected to ease gradually by 2025.

3. INDUSTRY OVERVIEW

Cosmo First, a prominent leader in the flexible packaging industry, has established a robust presence worldwide. With an expansive product portfolio encompassing BOPP films, BOPET films, thermal films, coated and other specialty films, the company effectively serves diverse packaging requirements across various industries.

Additionally, Cosmo Specialty Chemicals, launched in 2020, aims to revolutionize the masterbatch, coating chemicals, and adhesive segments through sustainable technology.

Further, our comprehensive rigid packaging solutions launched in FY’24 are designed to craft customized packaging for a wide range of FMCG products. Utilizing advanced injection molding and thermoforming techniques, we ensure our packaging is made from premium materials for exceptional durability and reliability.

Furthermore, Cosmo First addresses the needs of the pet care industry through its rapidly growing brand, Zigly.

Driven by innovation, a customer-centric approach, and a commitment to sustainability, Cosmo First continues to drive growth and deliver significant value to its stakeholders across these dynamic industries.

3.1. FLEXIBLE PACKAGING INDUSTRY OVERVIEW

The global packaging industry has not only experienced robust growth over the past few decades but has thrived, driven by demographic shifts like population growth, rapid urbanization, increased trade, and heightened demand for packaging solutions.

Sustainability and digitalization are increasingly popular trends that not only pose challenges but also offer significant opportunities for innovation within the industry. Furthermore, changing consumer preferences, margin pressures, and heightened focus on food safety have stimulated demand for new packaging products and advancements.

In FY21, the global packaging industry reached approximately $1,002.4 billion[1] and is projected to grow to $1,275 billion by 2027. The flexible packaging segment, which constitutes over 60% of the total market, is predominantly utilized in food, personal care, pharmaceuticals, household products, and industrial applications. The global flexible packaging market is anticipated to expand at a CAGR of 4.8%[2] , from $248.9 billion in 2022 to $315.5 billion in 2027. Major regions driving this growth include Western Europe, North America, Central & East Asia, and Southeast Asia & Oceania. Notably, the flexible packaging market in India is forecasted to grow at a remarkable CAGR of 12.6% from 2022 to 2027, driven by rising disposable incomes and improved living standards in the region.

Several factors propel the packaging industry's growth, including the burgeoning e-commerce sector, evolving consumer preferences favoring customization, convenience, health, and affordability, and increasing global demand for processed foods. Moreover, sustainability mandates and heightened scrutiny across the value chain, coupled with digitalization and automation, are set to enhance efficiency and foster innovation, particularly in the realm of smart packaging development.

3.2. SPECIALITY CHEMICALS INDUSTRY OVERVIEW

The specialty chemicals market is pivotal across diverse sectors of the global economy, including construction, automotive, electronics, textiles, and healthcare. These chemicals are tailored to perform specific functions and enhance the value of end-use products. They find application in various areas such as adhesives, coatings, polymers, agrochemicals, food additives, and personal care products, supporting high-performance and sustainable solutions.

The global specialty chemicals market was valued at $ 285 billion in 2023 and is expected to reach $ 365 billion in 2028, growth projected at a CAGR of 5% from 2023 to 2028. The Asia Pacific region leads this market, driven by substantial demand in industries like pharmaceuticals, nutraceuticals, personal care, cosmetics, automotive, and electrical and electronics, particularly in China and India.

Source: 1) GlobeNewswire 2) Markets and Markets

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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As per KPMG, the Indian speciality chemicals market represents 22% of the country’s chemicals and petrochemicals market with a valuation of $ 32 Billion. With the industry expected to grow at a CAGR of 12% from 2020 – 2025, India has the scope for further exponential growth.

KPMG reports that India's specialty chemicals market constitutes 22% of the country’s chemicals and petrochemicals sector, valued at $32 billion. With an anticipated CAGR of 12% from 2020 to 2025, India offers significant opportunities for exponential growth in this sector.

Masterbatches, which enhance plastic properties and provide color variations, were valued at $11.1 billion in 2020 and are projected to grow at a CAGR of 5.1%, reaching approximately $14.3 billion[3] by 2025. Meanwhile, the adhesives and sealants market within specialty chemicals is forecasted to grow globally at a CAGR of 3.7%, reaching $85.8 billion[4] by 2026. In India, the adhesive market is expected to grow at a CAGR of 10.26%, reaching $1842.9 million by 2028[5] .

3.3. RIGID PACKAGING:

The global rigid packaging market, valued at USD 207.8 billion[6] in 2022, is poised for significant growth, projected to reach USD 262.5 billion by 2027, with a robust CAGR of 4.7% during this period. This expansion is driven by its widespread applications across key industries like beverages, food, and healthcare. Strong demand in prominent APAC markets, particularly India and China, along with increasing needs in the food and beverage packaging sectors, underpin this growth trajectory.

3.4. PET CARE INDUSTRY

The global trend towards urbanization, nuclear families, double-income households, and evolving lifestyles, coupled with the growing phenomenon of pet humanization, has significantly bolstered the global population of pet owners. India, in particular, has seen a remarkable surge in pet ownership, boasting a thriving pet population of 32 million that is expanding annually by over 12%. This rise has spurred the development of a robust pet-care ecosystem encompassing retail chains, pet nutrition and services, and pet care services. Additionally, the advent of e-commerce has facilitated widespread access to pet products.

Despite being smaller compared to the global market, valued at ₹ 5,100 Crore, the Indian pet care market is experiencing rapid growth, projected to increase by 25% annually from 2023 to 2027. This growth is fueled by the growing awareness that pets require specialized nutrition for their health and development, prompting the entry of leading international brands into the

market. While the market remains largely unorganized, there is a noticeable shift among consumers towards choosing nutrition tailored specifically for pets rather than traditional human-consumption food. With the pet care markets in the U.S., Canada, and Europe becoming increasingly saturated, Asia, particularly India, is emerging as an attractive destination for toptier brands in the industry.

4. BUSINESS SEGMENTS AND PERFORMANCE

Cosmo First offers a comprehensive range of products, all conveniently available in one place. The Company operates state-of-the-art manufacturing facilities with a combined annual installed capacity of:

1,96,000 MT per annum of BOPP films (9 lines),
40,000 MT per annum of Thermal Lamination Films (8 lines),
22,000 MT per annum of Metalized Films (4 lines),
20,000 MT per annum of Coated Films (6 lines),
10, 000 MT per annum of CPP Films (2 lines),
7,000 MT per annum of CSP Line (1 line),
30,000 MT per annum of BOPET Line (1 line),

In Cosmo Speciality Chemicals, Company has installed capacity of 10,000 MT per annum of Masterbatches, 2,500 MT per annum of adhesives and 5,000 MT per annum of Coating Chemicals.

The installed capacity of Rigid Packaging is 10,000 MT per annum.

Cosmo First proudly offers an extensive and diverse range of products across multiple segments, including Specialty Films, BOPP Films, and Specialty Chemicals. Our comprehensive portfolio of BOPP Films caters to various applications such as flexible packaging, lamination, labeling, and industrial uses. This range features innovative specialty films like high barrier films, velvet thermal lamination films, and direct thermal printable films.

As a market leader in the BOPP sector, Cosmo First excels in delivering high-quality films and provides additional value-added services. We are among the top four global players in BOPP specialty films and rank as the second-largest player in the world for specialty label films. Additionally, Cosmo First is the largest supplier of thermal lamination films worldwide.

Source: 3) Markets and Markets (Masterbatch Market)
4) Markets and Markets (Adhesives and Sealants Market)
5) knowledge-sourcing.com
6) https://www.marketsandmarkets.com/MarketReports/rigid-plastic-packaging-market-178852016.html

Flexible Packaging

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Packaging Lamination Label Industrial
Print & Pouching
Standard Range PS Label Stock Films Synthetic Paper
Films
Transparent Barrier Special Application
In-Mould Films Tape & Textile Films
Films Lamination Films
Metalized Barrier Premium Lamination Wrap Around Label
Films Films Films
Overwrap Films
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Speciality Chemicals
MasterBatch Coating Chemical Adhesives
Rigid Packaging
Rigid Sheets Thermoforming Injection Mounding
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Zigly (D2C Petcare)
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Our unwavering commitment to excellence and innovation ensures that we consistently meet and exceed the expectations of our customers across various industries.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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4.1. FLEXIBLE PACKAGING

Despite the challenges faced by the flexible packaging segment which includes specialty films and BOPP films, Cosmo First has outperformed the industry. In FY24, we achieved a revenue of ₹ 2587 Crore and an EBITDA of ₹ 251 Crore, primarily driven by our valueadded specialty films.

The flexible packaging industry experienced an excess supply scenario during FY23 and FY24, with new supplies adding pressure to margins across the sector. However, Cosmo First successfully navigated these challenges, maintaining robust margins compared to our peers. This resilience is attributed to our high share of specialty films, which constituted 64% of our portfolio in FY24.

Growth:

The Company is planning a significant expansion in its flexible packaging business, with close to a 50% increase in capacity over the next two fiscal years. Following the successful commissioning of the specialized BOPET line in FY23, the CPP and BOPP lines are set to be commissioned in phases within the next two years. These lines will boast the world’s largest production capacities, ensuring lower production costs.

The Company remains focused on enhancing its specialty films and advancing R&D efforts, particularly in sustainability. These initiatives will yield results in the coming years, helping to de-commoditize the business model and contribute to long-term sustainable growth. In FY24, specialty films accounted for 64% of the Company’s sales.

Furthermore, the Company plans to introduce a range of specialty products on the BOPET line, including window films, security films, PET-G films, and more. This strategic focus underscores the Company’s commitment to innovation and excellence in the flexible packaging industry.

4.2. SPECIALITY CHEMICALS

In the Specialty Chemicals segment, Cosmo First excels with three distinct verticals: masterbatch, coating chemicals, and adhesives. Each segment focuses on niche specialties, addressing current industry challenges or providing significantly superior products compared to those currently available. Our annual capacities are impressive, with 10KMT for masterbatch, 2.5KMT for adhesives, and 5KMT for coating chemicals. We aim to achieve 7%-8% of the company’s consolidated revenue from specialty chemicals within the next 3-5 years, targeting a 25% ROCE.

In FY24, our specialty chemicals subsidiary achieved remarkable success, recording total sales of ₹ 142 Crore.

4.3. RIGID PACKAGING (PLASTECH):

Our comprehensive rigid packaging solutions are designed to craft customized packaging for a wide range of FMCG products. Utilizing advanced injection molding and thermoforming techniques, we ensure our packaging is made from premium materials for exceptional durability and reliability. We are proud to have achieved the globally recognized FSSC 22000 food safety certification, reflecting our commitment to the highest standards.

With a target ROCE in the teens and operating in an industry growing at over 10%, we are focused on establishing direct partnerships with leading brands. Our dedication to quality and innovation positions us as a trusted partner in the FMCG sector, ensuring we consistently meet and exceed the expectations of our clients.

4.4. PET CARE

The company's direct-to-consumer vertical, launched under the brand Zigly in September 2021, is progressing well as per plan. With 23 experience centers operational as of March 2024, the Company is on targetting to achieve same-store sales growth.

Zigly's current monthly Gross Merchandise Value (GMV) is approximately ₹ 4.5 Crore, and the Company aims to achieve tenfold growth in the coming years. In FY24, Zigly's division GMV reached ₹ 44 Crore, marking a remarkable threefold increase from the previous year's sales. Zigly has already served over 39,000 customers, with a significant portion being repeat customers.

The Company's focus is to further amplify Zigly's growth in the coming years, both organically and through potential acquisitions.

5. FINANCIAL PERFORMANCE

During the financial year 2024, Cosmo First achieved consolidated sales of ₹ 2,587 crores. Consolidated EBITDA for the year stood at ₹ 251 crores, compared to ₹ 434 crores in the previous financial year, primarily due to margin pressure in the BOPP and BOPET industry resulting from the commissioning of several new production lines over the last eighteen months. Despite these challenges, the Company has significantly outperformed the industry, with twothirds of revenue generated from specialty films that have successfully withstood margin pressures.

On a standalone basis, the Company recorded sales of ₹ 2,391 crores. Standalone EBITDA was ₹ 213 crores, compared to ₹ 396 crores in the previous year, primarily for the reasons mentioned above.

The financial strength of Cosmo First is further highlighted by a healthy Net Debt/Equity ratio of 0.4 times and a Net Debt/EBITDA ratio of 2.2 times.

The Company has made concerted efforts to enhance brand visibility. Exports for the financial year amounted to ₹ 1,047 crores, representing 44% of total sales. Cosmo First exports to over 100 countries across the globe.

During this year, Cosmo First incurred capital expenditure of ₹ 298 crores, compared to ₹ 380 crores in the previous financial year. This expenditure is set to enhance the sale of specialty films, support sustainability initiatives, and sourcing solar power as an energy source. Continuous investment in R&D, sales and marketing, employee practices, quality, and customer satisfaction has reaffirmed the Company's growth strategy, as evidenced by the year-on-year growth in specialty films sales.

These strategic initiatives and strong financial performance highlight Cosmo First’s resilience and commitment to sustainable growth and industry leadership.

The performance of the overseas subsidiaries remained broadly consistent with that of the previous year. However, an improvement is anticipated in FY25.

6. KEY FINANCIAL INDICATORS

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) the Company is required to give details of significant changes (i.e. changes of 25% or more as compared to the immediately previous financial year) in key financial ratios.

There is no significant changes (i.e. 25% or more) in financial ratios viz. Current Ratio, Total Debt/Equity, Inventory and Trade Receivable Turnover Ratios.

Ratio	FY24	FY23	% Change	Explanation
Interest Coverage Ratio (in times)	2.81	7.83	-64.11	Primarily lower due to decrease in operating income due to temporary margin pressure caused by signifcant capacity addition in the domestic industry and change in interest rate signifcantly
Net Debt to Equity Ratio	48.88	38.50	-26.98	Primarily increase due to higher net debt resulting from growth capex incurred.
				Primarily lower due to decrease in operating income
Net Proft Margin	1.62	7.79	-79.19	due to temporary margin pressure caused by
				signifcant capacity addition in the domestic industry

7. CHANGE IN RETURN ON NET WORTH

9. R&D AND NEW PRODUCT DEVELOPMENT

During the FY24, despite a reduction in PAT, Cosmo First maintained a positive return on net worth of 4.62%.

Cosmo First takes immense pride in its continuous investment in research and development, focusing on delivering innovative solutions that drive accelerated growth and spearhead new product development globally. In the year under review, the company invested ₹ 9 Crore in R&D, underscoring its commitment to innovation.

8. LIQUIDITY

As of 31[st] March 2024, Cosmo First reported a consolidated net debt of ₹ 561 Crore. The Company maintains a robust financial position, evidenced by its substantial cash and cash equivalents, including liquid investments, totaling ₹ 417 Crore as of 31[st] March 2023 at the consolidated level.

Our state-of-the-art R&D labs, located in India and the USA, are equipped with cutting-edge equipment and instruments. These facilities are at the heart of our innovation efforts, where our dedicated R&D team actively pursues several sustainability projects, ensuring that Cosmo First remains a leader in sustainable film solutions.

The financial strength of Cosmo First is further highlighted by a healthy Net Debt/Equity ratio of 0.4 times and a Net Debt/EBITDA ratio of 2.2 times. These metrics demonstrate the Company’s prudent financial management and strong ability to leverage its resources for sustained growth and stability.

Cosmo First has an impressive track record in product development, with five registered patents and nine

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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more in the pipeline. Our dedicated R&D team, consisting of more than 30 scientists and technologists from prestigious universities in the USA and Europe, brings extensive global experience in packaging, polymer engineering, and biopolymers. This team plays a crucial role in maintaining our competitive edge through continuous innovation.

Our relentless focus on R&D enables us to stay ahead of industry trends and meet evolving market demands. Throughout the year, our R&D efforts have resulted in the development of several new and sustainable products, significantly contributing to our growth and success.

Looking ahead, Cosmo First is set to launch a groundbreaking product in FY25: the sun control film, 'Cosmo Sunshield'. This innovative product will blend advanced technology with sustainable practices, redefining window films as an energy-saving solution. Over the next two years, we plan to increase our organizational capacity by 50% by expanding our Cast Polypropylene (CPP) and Biaxially Oriented Polypropylene (BOPP) production capabilities.

Cosmo First's commitment to research and development not only drives our current success but also positions us for a bright future of growth, innovation, and sustainable profitability. By continually enhancing our R&D capabilities, we are well-equipped to deliver cutting-edge solutions that meet the needs of our customers and contribute to a sustainable future.

10. SUSTAINABILITY AND ESG INITIATIVES

Cosmo First is deeply committed to sustainability, continuously enhancing the environmental performance of its products, operations, and supply chain. By prioritizing product efficiency and eliminating high-impact gases, the Company has significantly reduced its carbon footprint. Recognizing that sustainability not only benefits the environment but also enhances business performance, Cosmo First stays ahead of customer demand for sustainable products and practices. This commitment positions the Company as an industry leader, dedicated to protecting the planet while driving innovation.

ENVIRONMENT

Cosmo First actively promotes sustainable practices and contributes to the circular economy. The Company offers mono-layered film structures to facilitate recycling and collaborates with renowned global brands to provide structure rationalization and recyclability solutions. Its R&D efforts have led to the development of Oxo-Biodegradable Films, WaterBased Coatings, and heat-resistant BOPP films, all

designed to enhance recyclability. By improving the yield of BOPP and CPP films, Cosmo First reduces plastic usage without compromising product integrity.

Beyond film production, Cosmo First explores alternatives to harmful materials, such as replacing PVC with UV-stabilized Synthetic Paper for outdoor promotional applications. The Company's Ultra-High Barrier Films serve as a suitable replacement for aluminum foil, reducing reliance on non-recyclable materials. To further minimize environmental impact, Cosmo First implements green energy practices, waste reduction, and water treatment initiatives, including rainwater harvesting and the reuse of treated effluent water.

Cosmo First's dedication to environmental responsibility extends to its manufacturing processes, where it reuses reprocessed granules from waste materials in film production. By adhering to the principles of reducing waste, reusing resources, and recycling, the Company aims to manufacture sustainable polymers that can be easily recycled and reused in various applications.

SOCIAL

The Cosmo Foundation, the Company's CSR arm, reflects its commitment to giving back to the community. This year, the Foundation expanded its foot prints by annexing six new schools, welcoming 1000 more students under its umbrella with a total impact spanning to 13000 rural students from 52 schools and 142 villages. Additionally, the Foundation's Computer Operation & Digital Skill Building program supports 8477 students with 25 computer labs, aligning with India's Digital India initiative. Under Cosmo Fruit Tree Plantation Drive, the foundation has been fostering agroforestry with 115 farmers across 19 villages in Gujarat and Maharashtra boasting an impressive 90% survival rate of 40,000 fruit saplings. Cosmo Foundation has established an Urban Miyawaki Forest at the Army Equestrian Centre and Aahwan Center in New Delhi by planting 16,000 trees and nurture the same to ensure its growth.

Cosmo First is proud of its unwavering commitment to sustainability. Our efforts to enhance product efficiency, reduce emissions, and optimize operations not only benefit the environment but also strengthen our business. We have implemented initiatives such as rainwater harvesting (accounts for 17% of total water consumption for FY’24), reusing treated effluent water (reused 45% of wastewater and are working towards achieving Zero Liquid Discharge.), increasing renewable energy usage by 15 %, and adopting waterbased coatings.

Quality Improvement Projects: The Company collaborates with cross-functional teams to initiate small-scale quality improvement projects aimed at reducing customer quality complaints.

10.3. GOVERNANCE

Cosmo First is deeply committed to ethical and responsible business practices, not just to ensure fairness but because it is the right thing to do. The Company integrates economic, social, and environmental considerations into its strategic planning, risk management, and governance approach.

Technical Training for Sales and Marketing: Shop floor technical training has been provided to the sales and marketing team to enhance their understanding of product applications and manufacturing processes.

Governance and Responsibility

The Board of Directors bears the overall responsibility for upholding the highest standards of corporate governance. Supported by senior management, the Board ensures best practices are followed consistently. This is achieved through a consultative approach, seeking input from all stakeholders, including shareholders, employees, vendors, suppliers, customers, community representatives, government authorities, and industry representatives.
Weekly Quality Assurance Meetings: A weekly Quality Assurance meeting for customer complaints has been established, contributing to the continuous improvement of the quality management system.

Success Stories Sharing: The Company shares success stories of its products through social media platforms to highlight achievements and build brand reputation.

Philosophy of Corporate Governance

Online Certificate of Analysis (COA) Application:

For Cosmo First, maintaining top-tier corporate governance is a fundamental principle and an integral part of its core values. The Company's corporate governance philosophy aims to achieve business excellence by enhancing shareholder value. Transparency and ethical business practices are essential in fulfilling corporate responsibilities and achieving this goal.

An online COA generation application has been developed in SAP for all three units, providing customers with system-generated COAs, enhancing transparency and efficiency.

These initiatives underscore Cosmo First’s commitment to maintaining and improving the quality standards of its products and operations, ensuring customer satisfaction and operational excellence.

By adhering to these principles, Cosmo First strives to foster trust and confidence among its stakeholders, ensuring long-term sustainable growth and a positive impact on society and the environment.

12. INTERNAL CONTROL SYSTEMS, RISKS AND MITIGATION STRATEGY

At Cosmo First, the Risk Management, Internal Control Systems, and Internal Audit functions collaborate to form a comprehensive risk management framework. This framework is designed to effectively identify and mitigate risks across the organization.

11. QUALITY PERFORMANCE

Cosmo First takes pride in its quality systems and the continuous improvements implemented throughout the year. Here are some of the key initiatives undertaken:

INTERNAL CONTROL SYSTEMS

The Company has implemented comprehensive systems and controls across its operations, covering various financial and operational functions. These measures ensure:

Six Sigma Implementation: The Company has adopted the Six Sigma System at the organizational level to foster a culture of quality improvement.
5S Methodology: The 5S methodology has been implemented on the shop floors to establish world-class standards and enhance operational efficiency.
Efficient execution of operations
Safeguarding of assets
- Prevention and detection of fraud and errors
Enhanced Shop Floor Operations: Measures such as double door systems and automated door • closures have been introduced to improve shop floor operations. •
Accuracy and completeness of accounting records
Timely preparation of reliable financial reports

The Internal Audit Department plays a crucial role in ensuring compliance with operating procedures, internal policies, and legal requirements, while also providing recommendations for system and process improvements. Additionally, Cosmo First has identified

Sustainability Recognition: Cosmo First has been awarded a green rating by EcoVadis Sustainability Ratings in recognition of its green practices.

Corporate Overview Statutory Reports

Financial Statements

Annual Report 2023-24

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and documented key internal financial controls for critical processes across all plants, warehouses, and offices involved in financial transactions. These controls are regularly evaluated through ongoing monitoring and review processes by management and independent assessments by the internal audit team.

RISKS & MITIGATION STRATEGY

The Company has in place a robust risk management framework that identifies and evaluates business risks and opportunities. Cosmo recognises that the risks need to be handled effectively and mitigated to protect the interests of the shareholders and stakeholders, to achieve business objectives and create sustainable value and growth.

Few factors have been identified that could potentially have an adverse impact on the Company's consolidated financial position, results of operations, or cash flows.

1. MARKET DEMAND AND SUPPLY GAP

The addition of capacity in the industry within a short time frame may temporarily impact margins. To mitigate this, Cosmo First has taken steps to increase resistance to market fluctuations by shifting its product mix to specialty products.

2. ECONOMIC SLOWDOWN

A global economic slowdown due to current developments could impact growth in the short term. However, the flexible packaging industry, being part of the essential commodities sector, is expected to experience minimal impact.

3. STRATEGIC RISKS

Strategic risks include shifts in consumer demand, competition, intellectual property issues, and potential loss of key customers. To mitigate these risks, the Company focuses on:

Staying ahead in new product development
Leveraging patent, trademark, copyright, and trade secret protections
Implementing non-disclosure agreements Fostering strong customer relationships through a dedicated Key Account Team

4. OPERATIONAL RISKS

Operational risks involve attracting and retaining key personnel, global health outbreaks, and information technology vulnerabilities. Cosmo First addresses these risks by:

Creating a supportive work environment that promotes personal and professional growth

• Implementing measures to mitigate IT risks, although acknowledging the susceptibility to advanced threats that could disrupt operations and compromise sensitive data

5. FINANCIAL RISKS

Financial risks include exchange rate risks, interest rate risks, and internal control risks. To manage these risks, the Company uses various derivative contracts, such as foreign exchange forward contracts, currency options, cross-currency swaps, and interest rate swaps. Additionally, the Company:

Follows a policy to minimize exposure to longterm financing interest rate fluctuations
Maintains adequate internal financial controls, adhering to criteria established by the Institute of Chartered Accountants of India (ICAI)

6. LEGAL AND COMPLIANCE RISKS

In response to regulations concerning safety, greenhouse gas emissions, climate change, and plastic recycling, Cosmo First takes proactive measures to ensure compliance with all safety, health, and environmental regulations. The Company's legal and R&D functions work diligently to protect its patents and proprietary technology across different regions. Robust systems and processes are in place to monitor and ensure compliance with relevant laws, rules, regulations, and guidelines, thereby upholding legal and regulatory compliance at all levels of the organization.

13. OPPORTUNITIES

1. INNOVATIVE PACKAGES

Marketers understand the significant value and perception associated with brands. In the FMCG industry, many companies are embracing the idea of refreshing their packaging designs to align with their brand's core values. Packaging not only safeguards the product but also protects and enhances the brand. Cosmo First is dedicated to creating inventive packaging solutions that attract customers and drive sales. The Company focuses on developing packages that captivate consumers and effectively communicate the essence of its brands.

2. E-COMMERCE

The growth of e-commerce has heightened the demand for packaging, especially for new products, and has spurred innovations in last-mile delivery solutions to meet the evolving requirements. Cosmo First is well-positioned to capitalise on the trend by offering advanced packaging solutions that meet the needs of the e-commerce sector.

3. DIGITISATION AND INTERNET OF THINGS (IOT)

Companies are leveraging digital initiatives to reduce expenses and gain a competitive advantage. One such example is the integration of technology in packaging, enhancing customer value and service. With the rise of IoT (Internet of Things), packaging is becoming more intuitive, providing instant information to consumers about the products they purchase. This evolution positions packaging as an enabler, facilitating seamless communication and interaction between products and consumers. Cosmo First is at the forefront of this digital transformation, developing smart packaging solutions that enhance consumer engagement and satisfaction.

4. SUSTAINABLE PACKAGING SOLUTIONS

Sustainable packaging solutions represent a significant opportunity for Cosmo First, and the Company is committed to leading in this area. As awareness of sustainable packaging requirements grows, Cosmo First sees this as an opportunity to meet these demands through its products and manufacturing processes. Consumers increasingly seek sustainable packaging options, and Cosmo First collaborates closely with its customers to ensure its products meet their sustainability needs.

Through partnerships with leading global brands, Cosmo First offers structure rationalisation and recyclability solutions in various categories such as biscuits, noodles, tea and coffee sachets, and soap wrappers, among others. With a dedicated team of over 30 researchers, we proudly lead the way as one of the few packaging companies globally with such a robust R&D structure. Our relentless focus on R&D enables us to continuously innovate, staying ahead of industry trends and market demands. Throughout the year, our R&D endeavours have borne fruit, resulting in the development of several new and sustainable products that have significantly contributed to our growth and success.

In FY25, we will be launching a sun control film, 'Cosmo Sunshield'. This innovative product will blend technology and innovation, redefining window films as a sustainability-driven and energy-saving solution. In the next two years, we will aim for organizational growth by increasing our capacity by 50% by expanding Cast Polypropylene (CPP) and Biaxially Oriented Polypropylene (BOPP) capacities.

14. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Cosmo First recognises that its people are its greatest assets, and the belief in people is central to its human resource strategy. The Company places a strong emphasis on talent management, succession planning, performance management, and learning and development initiatives to foster inspiring, strong, and trustworthy leadership. By promoting knowledge, entrepreneurship, and creativity, Cosmo First leverages its human capital to drive competitiveness. The Company also embraces workforce diversity and is committed to building employees' careers through targeted interventions. Learning opportunities enhance employee engagement, boost productivity, reduce turnover, and cultivate a positive culture.

Labour relations across all India operations remained favourable. The Company’s plants in India provided various opportunities to encourage an open and supportive work environment, promoting participative decision-making. Cosmo First continued to provide its workers with team-building and collaboration training to strengthen team cohesiveness.

As of 31[st] March 2024, the total employee strength stood at 1,241.

15. CAUTIONARY STATEMENT

This report will include ‘Forward-Looking Statements,’ such as statements about the implementation of strategic plans and other statements about Cosmo First’s potential business developments and financial results. While these statements reflect the Company’s current assessments and future expectations, several risks, uncertainties, and unknown factors could cause actual results to differ significantly from those anticipated.. General market, macroeconomic, governmental, and regulatory patterns, changes in currency exchange and interest rates, competitive pressures, technical advances, changes in the financial conditions of third parties doing business with the Company, regulatory developments, and other main factors that may have an effect on the Company’s business and financial results. The Company does not undertake any obligation to update or revise forwardlooking statements to reflect new information, future events, or circumstances that may arise.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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REPORT ON CORPORATE GOVERNANCE

(PURSUANT TO SCHEDULE V OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015)

of the Board comprises of Independent Directors. The Company’s Board consists of eminent persons with considerable professional expertise and experience. The Independent Directors do not have any pecuniary relationship or transactions with the company, promoters, and management, which may affect independence or judgement of the Directors in any manner.

COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE

For Cosmo, maintaining the highest standards of corporate governance is not a matter of mere form but also of substance. It is an article of faith, a way of life, and an integral part of the Company’s core values. Your company is committed for adopting best global practice of Corporate Governance. The philosophy of Corporate Governance as manifested in the Company’s functioning is to achieve business excellence by enhancing long-term shareholders value and interest of its entire shareholders. Efficient conduct of the business of the company through commitment to transparency and business ethics in discharging its corporate responsibilities are hallmarks of the best practices already followed by the Company.

Board Composition

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20%
70% 10%
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The Company’s compliance of Corporate Governance guidelines of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) is as follows:

A. COMPOSITION OF THE BOARD AND RECORD OF OTHER DIRECTORSHIPS HELD

The Company is managed and controlled through a professional body of Board of Directors, which comprise of an optimum combination of Executive and Non-Executive Independent Directors headed by the Chairman. The strength of Board of Directors is Ten (10), out of which two (2) are Executive Directors, One (1) is Non-Independent NonExecutive Director and Seven (7) are Independent Non-Executive Directors. Therefore, more than half

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Non- Executive Independent Director
Executive Director
Non- Executive Director
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I. THE COMPOSITION OF THE BOARD OF DIRECTORS OF THE COMPANY IS IN CONFORMITY WITH THE PROVISIONS OF REGULATION 17 OF LISTING REGULATIONS .THE STRUCTURE OF THE BOARD AND RECORD OF OTHER DIRECTORSHIPS, COMMITTEE MEMBERSHIPS & CHAIRMANSHIPS AND SHAREHOLDING IN THE COMPANY AS ON 31ST MARCH, 2024 IS AS UNDER:

Name of the Director	DIN	Category	Designation	No. of other Directors- hips Held	Total No. of other Chairmanships /Memberships of Board Level Committees	Total No. of other Chairmanships /Memberships of Board Level Committees	Total No. of other Chairmanships /Memberships of Board Level Committees	Shareholding (as on 31st March 2024)
					Chairmanship	Membership	Total
Mr. Ashok Jaipuria	00214707	Promoter Director	Chairman & Managing Director	2	Nil	Nil	Nil	543254
Mr. Anil Kumar Jain	00027911	Executive Director	Whole Time Director	1	1	1	2	48500
Ms. Alpana Parida	06796621	Independent Non- Executive Director	Director	3*	-	3	3	Nil
Mr. H. K. Agrawal	00260592	Independent Non- Executive Director	Director	Nil	Nil	Nil	Nil	1500
Mr. H. N. Sinor	00074905	Independent Non- Executive Director	Director	Nil	Nil	Nil	Nil	Nil

Name of the Director	DIN	Category	Category	Designation	No. of other Directors- hips Held	Total No. of other Chairmanships /Memberships of Board Level Committees	Total No. of other Chairmanships /Memberships of Board Level Committees	Total No. of other Chairmanships /Memberships of Board Level Committees	Total No. of other Chairmanships /Memberships of Board Level Committees	Shareholding (as on 31st March 2024)
						Chairmanship		Membership	Total
Mr. Pratip Chaudhuri	00915201	Non-Independent Non- Executive Director		Director	3	Nil		3	3	Nil
Mr. Anil Wadhwa	08074310	Independent Non- Executive Director		Director	2	Nil		1	1	200
Mr. Rakesh Nangia	00147386	Independent Non- Executive Director		Director	Nil	Nil		Nil	Nil	31114
Mr. Arjun Singh	01942319	Independent Non- Executive Director		Director	Nil	Nil		Nil	Nil	Nil
Mr. Yash Pal Syngal	01486597	Independent Non- Executive Director		Director	Nil	Nil		Nil	Nil	Nil
Ms. Alpana Parida resigned from Directorship of JIVAGRO Ltd w.e.f 26thApril 2024 Notes: I. The Directorships held by Directors as mentioned above, do not include Directorships in Foreign Companies, Companies registered under Section 8 of Companies Act, 2013, Private Limited Companies and high value debt listed Companies. II. Membership(s) / Chairmanship(s) of only the Audit Committee and Stakeholders Relationship Committee of all Public Limited Companies have been considered. III. None of the Directors is a member of more than 10 Board-level committees of public Companies in which they are Directors, nor is chairman of more than 5 such committees. IV. None of the Independent Directors of the Company serves as an Independent Director in more than seven Listed Companies and where any Independent Director is serving as whole-time director in any listed company, such director is not serving as Independent Director in more than three listed companies. V. None of the Directors had any relationships inter-se. NAME OF OTHER LISTED ENTITIES WHERE DIRECTORS OF THE COMPANY ARE DIRECTORS AND THE CATEGORY OF DIRECTORSHIP:*
Name of the Director		DIN	Name of listed entities in which the concerned Director is a Director				Category of Directorship
Mr. Ashok Jaipuria		00214707	Hindware Home Innovation Limited				Independent Non- Executive Director
Mr. Anil Kumar Jain		00027911	-				-
Ms. Alpana Parida		06796621	Nestle India Limited				Independent Non- Executive Director
			FSN E-Commerce Ventures Limited				Independent Non- Executive Director
Mr. H. K. Agrawal		00260592	-				-
Mr. H. N. Sinor		00074905	-				-
Mr. Pratip Chaudhuri		00915201	CESC Limited				Independent Non- Executive Director
			Firstsource Solutions Limited				Independent Non- Executive Director
			Spencer's Retail Limited				Independent Non- Executive Director
Mr. Anil Wadhwa		08074310	AGI Greenpac Limited				Independent Non- Executive Director
Mr. Rakesh Nangia		00147386	-				-
Mr. Arjun Singh		01942319	-				-
Mr. Yash Pal Syngal		01486597	-				-

I. The Directorships held by Directors as mentioned above, do not include Directorships in Foreign Companies, Companies registered under Section 8 of Companies Act, 2013, Private Limited Companies and high value debt listed Companies.
II. Membership(s) / Chairmanship(s) of only the Audit Committee and Stakeholders Relationship Committee of all Public Limited Companies have been considered.
III. None of the Directors is a member of more than 10 Board-level committees of public Companies in which they are Directors, nor is chairman of more than 5 such committees.
IV. None of the Independent Directors of the Company serves as an Independent Director in more than seven Listed Companies and where any Independent Director is serving as whole-time director in any listed company, such director is not serving as Independent Director in more than three listed companies.

II. NAME OF OTHER LISTED ENTITIES WHERE DIRECTORS OF THE COMPANY ARE DIRECTORS AND THE

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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III. SKILLS/ EXPERTISE/ COMPETENCIES MATRIX OF THE BOARD OF DIRECTORS

The core skills/ expertise/ competencies as identified by the Board of Directors as required in the context of the Company’s business(es) and sector(s) for it to function effectively and those actually available with the Board of Directors are given below.

The matrix below highlights the skills and expertise, which are currently available with the Board of Directors of the Company.

Skills/Expertise/ Competencies	Mr. Ashok Jaipuria	Mr. Anil Kumar Jain	Mr. H.K. Agrawal	Mr. H.N. Sinor	Mr. Pratip Chaudhuri	Ms. Alpana Parida	Mr. Anil Wadhwa	Mr. Rakesh Nangia	Mr. Arjun Singh	Mr. Yash Pal Syngal
Business accumen and experience
Strategic thinking and planning
Financial and risk management
People management and leadership
Digital technology and e-commerce
Corporate governance, legal and regulatory
Corporate social responsibility (CSR) and ESG

3. RECORD OF THE DIRECTORS’ ATTENDANCE AT

B. BOARD MEETINGS:

BOARD MEETINGS AND AGM

1. SCHEDULING AND SELECTION OF AGENDA ITEMS FOR BOARD MEETINGS

Name of the Director	Number of Board Meetings held during tenure of Directors and attended by them	Number of Board Meetings held during tenure of Directors and attended by them	Attendance at last AGM held on, 4th August, 2023
	Held	Attended
Mr. Ashok Jaipuria	5	5	Yes
Mr. Anil Kumar Jain	5	5	Yes
Ms Alpana Parida	5	4	No
Mr. H.N. Sinor	5	5	Yes
Mr. H. K. Agrawal	5	2	No
Mr. Pratip Chaudhuri	5	4	No
Mr. Anil Wadhwa	5	5	Yes
Mr. Rakesh Nangia	5	5	Yes
Mr. Arjun Singh	5	4	No
Mr. Yash Pal Syngal*	5	2	No

The months for holding the Board Meetings in the ensuing year are usually decided in advance and most Board Meetings are held at the Company’s registered office in New Delhi. The agenda for each meeting, along with explanatory notes, is sent in advance to the Directors. The Board meets at least once in a quarter to review the quarterly results and other items on the agenda.

2. NUMBER OF BOARD MEETINGS

The Cosmo First Board met five times on 11[th] May 2023, 29[th] May 2023, 10[th] August 2023, 8[th] November 2023, & 13[th] February 2024 during the Financial Year ended 31[st] March 2024. The maximum time gap between any two meetings was not more than one hundred twenty days.

*Mr. Yash Pal Syngal appointed as Non- Executive Independent Director w.e.f. 08[th] November 2023

in detail the Compliance required from him/ her under the Companies Act, 2013, the Listing Regulations and other relevant regulations and affirmation taken with respect to the same.

4. AVAILABILITY OF INFORMATION TO THE BOARD

The Board has unfettered and complete access to any information within the Company and to any employee of the Company. Necessary information as mentioned in Schedule II of (Listing Regulations has been regularly placed before the Board for its consideration.

The induction programme includes:

For each Director, a one to one discussion with the Chairman and Managing Director to familiarise the former with the Company’s operations.

C. FAMILIARISATION PROGRAMME FOR DIRECTORS

An opportunity to interact with the CEO, CFO & Company Secretary, business heads and other senior officials of the Company, who also make presentations to the Board members on a periodical basis, briefing them on the operations of the Company, strategy, risks, new initiatives, etc.

The details of the familiarisation programme may be accessed on the Company’s website at https:// www.cosmofrst.com/disclosure-under-regulation

D. BOARD LEVEL COMMITTEES

In accordance with the Companies Act, 2013 and Listing Regulations on Corporate Governance, the following committees were in operation:

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----- Start of picture text -----

AUDIT HR, NOMINATION STAKEHOLDERS
COMMITTEE & REMUNERATION COMMITTEE RELATIONSHIP COMMITTEE
Mr. Rakesh Nangia Mr. H.N.Sinor Ms. Alpana Parida
(Chairman) (Chairman) (Chairman)
Mr. H.N. Sinor Mr. Ashok Jaipuria Mr. Anil Kumar Jain
Mr. Pratip Chaudhuri Mr. H.K. Agrawal Mr. Pratip Chaudhuri
Mr. Anil Wadhwa Mr. Rakesh Nangia
Mr. H.K. Agrawal
CSR RISK MANAGEMENT
COMMITTEE COMMITTEE
Mr. Anil Wadhwa Mr. Ashok Jaipuria
(Chairman) (Chairman)
Mr. Ashok Jaipuria Mr. Anil Kumar Jain
Ms. Alpana Parida Ms. Alpana Parida
Mr. Anil Kumar Jain Mr. Arjun Singh
Mr. Pankaj Poddar
Mr. Neeraj Jain
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responsibilities of monitoring financial reporting process, reviewing the Company’s established systems and processes for internal financial controls, governance and reviewing the Company’s Statutory and Internal Audit Activities. All the members are Non-executive Directors and each member has rich experience in financial sector. The Committee is governed by a charter which is in line with the regulatory requirements mandated by the Section 177 of the Companies Act, 2013 and Part C of Schedule II of Listing Regulations.

Recommendations made by these Committees have been duly accepted by the Board. Detailed terms of reference, composition, quorum, meetings, attendance and other relevant details of these committees are as under:

1. AUDIT COMMITTEE

Terms of reference

The Audit Committee acts as a link between the Statutory and the Internal Auditors and Board of Directors. The purpose of the Committee is to assist the Board in fulfilling its oversight

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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Meetings and attendance during the year

The Audit Committee met Four times during the financial year from 01[st] April 2023 to 31[st] March 2024 1. 29[th] May 2023
10[th] August 2023
08[th] November 2023
13[th] February 2024

The attendance record of the audit committee members is given in following table:

Name of the Audit Committee members	Number of Audit Committee Meetings	Number of Audit Committee Meetings
	Held during the tenure of Members	Attended
Mr. Rakesh Nangia	4	4
Mr. H.N. Sinor	4	4
Mr. Pratip Chaudhuri	4	3
Mr. Anil Wadhwa	4	4
Mr. H.K. Agrawal	4	1

2. HR, NOMINATION AND REMUNERATION COMMITTEE

Terms of reference

This Committee shall identify the persons, who are qualified to become Directors of the Company who may be appointed in Senior Management in accordance with the criteria laid down, recommend to the Board their appointment and removal and also shall carry out evaluation of every director’s performance and devising a policy on diversity of board of directors. Committee shall also formulate the criteria for determining qualifications, positive attributes, independence of the Directors and recommend to the Board a Policy, relating to the remuneration for the Directors, Key Managerial Personnel and other employees.

The terms of the reference of HR, Nomination and Remuneration Committee covers the areas mentioned under Part D of Schedule II of Listing Regulations as well as section 178 of the Companies Act, 2013.

Meetings and attendance during the year

The HR, Nomination & Remuneration Committee met four times during the financial year from 01[st] April, 2023 to 31[st] March, 2024

11[th] May 2023
29[th] May 2023
10[th] August 2023
08[th] November 2023

Names of the HR, Nomination and Remuneration Committee members	Number of Meetings	Number of Meetings
	Held during the tenure of Directors	Attended
Mr. H.N. Sinor	4	4
Mr. H. K. Agrawal	4	1
Mr. Ashok Jaipuria	4	4
Mr. Rakesh Nangia	4	4

Compliance Officer

The Compliance Officer for this committee is Ms. Jyoti Dixit, Company Secretary.

Remuneration Policy

A. Remuneration to Non-Executive Directors

The Non-Executive Directors are paid remuneration by way of Commission and Sitting Fees. The Non-Executive Directors are paid sitting fees for each meeting of the Board or Committee of Directors attended by them. The total amount of sitting fees paid during the Financial Year 2023-24 was ₹ 26.00 Lakhs. The Non-Executive Independent Directors do not have any material pecuniary relationship or transactions with the Company.

B. Remuneration to Executive Directors

The appointment and remuneration of Executive Directors including Chairman and Managing Director and Whole-time Director is governed by the recommendation of the HR, Nomination and Remuneration Committee, resolutions passed by the Board of Directors and shareholders of the Company. The remuneration package of Chairman and Managing Director and Whole-time Director comprises of salary, perquisites, allowances, and contributions to Provident and other Retirement Benefit Funds as approved by the shareholders at the General Meetings.

The remuneration policy is directed towards rewarding performance, based on review of achievements. It is aimed at attracting and retaining high calibre talent.

Remuneration Paid to Directors

Following tables gives the details of remuneration paid to directors, during the year from 01[st] April 2023 to 31[st] March 2024:

Remuneration to Non- Executive Directors

S. No.	Name of Director	Sitting Fees (Rs.)	Commission (Rs.)
1.	Mr. H.K. Agrawal	1,50,000	11,00,000
2.	Mr. Pratip Chaudhuri	4,00,000	11,00,000
3.	Mr. H.N Sinor	4,50,000	11,00,000
4.	Ms. Alpana Parida	3,75,000	11,00,000
5.	Mr. Anil Wadhwa	3,75,000	11,00,000
6.	Mr. Rakesh Nangia	4,50,000	11,00,000
7.	Mr. Arjun Singh	3,25,000	11,00,000
8.	Mr. Yash Pal Syngal*	1,00,000	4,36,000

*Mr. Yash Pal Syngal appointed as Non- Executive Independent Director w.e.f. 08[th] November, 2023 therefore commission paid on pro-rata basis.

Remuneration to Executive Directors*

Sl. No.	Particulars	Designation	Salary (₹)	Commission (₹)	Contribution to provident & Superannuation Funds (₹)	Total Amount (₹)
1	Mr. Ashok Jaipuria	Chairman & Managing Director	7,50,00,000	4,21,80,043	2,02,50,000	13,74,30,043
2.	Mr. Anil Kumar Jain	Whole time Director	1,93,98,746	-	14,82,731	2,08,81,477

*This does not include value of perquisites

The Company under the Cosmo First Share Based Employee Benefits Scheme, 2021 (erstwhile known as Cosmo First Employee Stock Plan 2015) granted 79100- stock options to Mr. Anil Kumar Jain, Executive Director in four installments. These Options vested after 3 years from the respective granting date. These options were exercisable within ten years from the date of vesting of the options.. The outstanding options and the exercise price was adjusted for Bonus Issue announced in June 2022. Out of these 3000 options were exercised during the financial year and 48000 are outstanding as on 31[st] March 2024. 37500 Restricted Stock Units were also exercised during the financial year.

the Board has delegated the power of share transfer to M/s Alankit Assignments Limited viz. Registrar and Share Transfer Agents who attend the share transfer formalities at least once in a fortnight.

Meetings and attendance during the year

The Stakeholders Relationship Committee met four times during the financial year from 01[st] April, 2023 to 31[st] March, 2024:

29[th] May 2023
10[th] August 2023
09[th] November 2023
13[th] February 2024

The above mentioned Remuneration paid to directors does include both the fixed component and performance linked incentives as per the confidential service contract executed with director.

The attendance record of the Stakeholders Relationship Committee members is given in following table:

Names of the Stakeholders Relationship Committee members	Number of Meetings	Number of Meetings
	Held during the tenure of Directors	Attended
Ms. Alpana Parida	4	4
Mr. Pratip Chaudhuri	4	4
Mr. Anil Kumar Jain	4	4

3. STAKE HOLDERS RELATIONSHIP COMMITTEE

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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Compliance Officer

The Compliance Officer for this committee is Ms. Jyoti Dixit, Company Secretary.

Shareholders’ Complaints etc. received during the FY- 2023-24

During the year from 01[st] April 2023 to, 31[st] March 2024 the Company received 12 complaints from various Investors / Shareholders. The same were attended to the satisfaction of the Investors. At the end of 31[st] March 2024, 2 complaint was pending for redressal.

4. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility (CSR) Committee has been constituted by the Board in compliance with the requirements of Section 135 of the Act.

Terms of reference

The terms of reference of the CSR Committee are:

a. Formulate and recommend to the Board, a CSR Policy indicating the activity or activities to be undertaken by the Company as specified in Schedule VII to the Act.
b. Recommend the amount to be spent on CSR activities.
c. Monitor, implementation and adherence to the CSR Policy of the Company from time to time.
d. formulate and recommend to the Board, an annual action plan in pursuance of its CSR policy which shall include the following, namely:-
the list of CSR projects or programmes that are approved to be undertaken in areas or subjects specified in Schedule VII of the Act;
the manner of execution of such projects or programmes as per the CSR policy adopted by the Board;
the modalities of utilisation of funds and implementation schedules for the projects or programmes;
monitoring and reporting mechanism for the projects or programmes; and
details of need and impact assessment, if any, for the projects undertaken by the company.
e. Such other activities as the Board of Directors determine as they may deem fit in line with CSR Policy.

The Board has adopted the CSR Policy as formulated and recommended by the Committee. The CSR Policy is available on the website of the Company at https://www.cosmofrst.com/ investors/policies-and-code-of-conduct

Meetings and attendance during the year

The Corporate Social Responsibility Committee met once during the financial year from 01[st] April 2023 to 31[st] March 2024

13[th] March 2024

Name of the Corporate and Social Responsibility members	Number of Meetings	Number of Meetings
	Held during the tenure of Directors	Attended
Mr. Anil Wadhwa	1	1
Mr. Ashok Jaipuria	1	1
Ms. Alpana Parida	1	1
Mr. Anil Kumar Jain	1	1

5. RISK MANAGEMENT COMMITTEE

Terms of reference

The Risk Management Committee of the Company comprises of four directors and two members. The Terms of reference of the Risk Management Committee are in conformity with the provisions of Regulation 21 and Part D of Schedule II of Listing Regulations and includes monitoring and reviewing of risk management plan and reporting the same to the Board of Directors periodically as it may deem fit, in addition to any other terms as may be referred by the Board of Directors, from time to time.

Meetings and attendance during the year

The Risk Management Committee met two times during the financial year from 01[st] April 2023 to 31[st] March 2024:

18[th] September 2023
13[th] March 2024

The attendance record of the Risk Management Committee members is given in following table:

Names of the Risk Management Committee members	Number of Meetings	Number of Meetings
	Held during the tenure of Directors	Attended
Mr. Ashok Jaipuria	2	2
Mr. Anil Kumar Jain	2	2
Ms. Alpana Parida	2	2
Mr. Arjun Singh	2	2
Mr. Pankaj Poddar	2	2
Mr. Neeraj Jain	2	1

Their presence on the Board is advantageous and fruitful in taking business decisions.

E. INDEPENDENT DIRECTORS:

It is hereby confirmed that all the Independent Directors fulfill the conditions specified in SEBI (LODR) Regulations, 2015 and Companies Act, 2013 and all are independent of Management. The Company has also obtained declarations from all the Independent Directors pursuant to section 149 (7) of the Companies Act, 2013.

C) SEPARATE MEETING OF THE INDEPENDENT DIRECTORS

The Independent Directors held a Meeting on 13[th] February 2024 without the attendance of Non-Independent Directors and members of Management. All the Independent Directors were present at the meeting. The following issues were discussed in detail:

A) TRAINING OF INDEPENDENT DIRECTORS

Whenever new Non-Executive and Independent Directors are inducted in the Board they are introduced to our Company’s culture through appropriate orientation session and they are also introduced to our organization structure, our business, constitution, board procedures, our major risks and management strategy.

I. Reviewed the performance of Executive Directors, Non-Independent Directors and the Board as a whole;
II. Reviewed the performance of the Chairperson of the Company, taking into account the views of Executive Directors and Non-Executive Directors;

The appointment letters of Independent Directors has been placed on the Company’s website at https://www.cosmofirst.com/disclosure-underregulation.

III. Reviewed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

B) PERFORMANCE EVALUATION OF NONEXECUTIVE AND INDEPENDENT DIRECTORS

The Board evaluates the performance of NonExecutive and Independent Directors every year.

During the period under review, no Independent Director had resigned from the Board before the completion of his/her tenure.

All the Non-Executive and Independent Directors are eminent personalities having wide experience in the field of business, industry and administration.

F. GENERAL BODY MEETINGS

I. DATE / VENUE / TIME OF PREVIOUS THREE ANNUAL GENERAL MEETINGS:

Year	Place	Date	Time	Status of Resolutions
2020-21	Through Video Conferencing (Deemed venue of the meeting: 1008, DLF Tower-A, Jasola District Centre, New Delhi-110025	23rdJuly 2021	3:00 P.M.	Special Resolutions were Passed
2021-22	Through Video Conferencing (Deemed venue of the meeting: 1008, DLF Tower-A, Jasola District Centre, New Delhi-110025)	29thJune 2022	3:00 P.M.	Special Resolutions were Passed
2022-23	Through Video Conferencing (Deemed venue of the meeting: 1008, DLF Tower-A, Jasola District Centre, New Delhi-110025	4thAugust 2023	3:00 P.M.	Special Resolutions were Passed

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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Rules, 2014, the Company provided the facility to the members to exercise their votes only through e-voting and the e-voting portal of CDSL remained open from Thursday, 30[th] November 2023 (09.00 a.m.) to Friday, 29[th] December 2023 (05.00 p.m.). The scrutinizer submitted his report on E-voting on 29[th] December, 2023. On the basis of the scrutinizer’s report, Chairman declared the result of postal ballot through e-voting on 29[th] December 2023 and announced that all the Special Resolutions in the Postal Ballot Notice were duly passed by the requisite majority. The Results declared along with the Scrutinizer’s Report were placed on the website of the Company i.e. (www.cosmofrst.com) and on the website of Central Depository Services (India) Limited “CDSL” and simultaneously communicated to the Stock Exchanges.

II. POSTAL BALLOT

The Company has passed One (1) Special Resolution through Postal Ballot during the FY23-24. Mr. Sanjiv Aggarwal, Practicing Chartered Accountant and partner of M/s B.K. Shroff & Co. (FRN: 302166E), was appointed as scrutinizer to conduct the Postal Ballot only through e- voting process in fair and transparent manner. Pursuant to the provisions of section 110 of Companies Act, 2013 and Companies (Management and Administration) Rule, 2014, postal ballot notice was sent only by electronic means to those members whose name(s) appeared on the Register of Members / list of Beneficial Owners as received from National Securities Depository Limited (NSDL) /Central Depository Services (India) Limited (CDSL) as on cut-off date i.e. Friday, 10[th] November, 2023. Pursuant to the Companies (Management and Administration)

Result of voting through Postal Ballot by remote e-voting was as follows:

Item on in the notice	Ordinary/ special resolution	Votes cast in favour of the resolution	% of votes cast in favour	Votes cast against the resolution	% of votes cast against	Invalid votes	Status
1	Special	13048293	99.98	1557	0.01	NIL	Passed as Special resolution

There is no special resolution proposed to be conducted through postal ballot.

Procedure for Postal Ballot:

G. AFFIRMATIONS AND DISCLOSURES:

The notices containing the proposed resolutions and explanatory statements thereto are sent to all members of the Company at their registered postal/e-mail addresses alongwith a Postal Ballot Form and a postage pre-paid business reply envelope containing the address of the Scrutinizer appointed by the Board for carrying out postal ballot process.
- COMPLIANCE WITH MANDATORY REQUIREMENTS OF LISTING REGULATIONS
- The Company has complied with all the applicable mandatory requirements of Listing Regulations.

1. Related Party Transactions: All transactions entered into with Related Parties as defined under Listing Regulations during the financial year were in the ordinary course of business and on an arm’s length pricing basis and do not attract the provisions of Section 188 of the Companies Act, 2013.

The Postal Ballot Forms/e-voting received within 30 days of dispatch are considered by the Scrutinizer.

All such transactions were reviewed and approved by the Audit Committee. Prior omnibus approvals are granted by the Audit Committee for related party transactions which are of repetitive nature, entered in the ordinary course of business and are on arm’s length basis in accordance with the provisions of Companies Act, 2013 read with the Rules issued there under and the Listing Regulations.

The Scrutinizer submits his report to the Chairman of the Company or a person authorised by him, who on the basis of the report, announces the results; and
The Company has entered into an agreement with Central Depository Services (India) Limited (CDSL) for providing e-voting facility to its members. Under this facility, members are provided an electronic platform to participate and vote on the proposals of the Company.

There were no materially significant transactions with related parties during the financial year which were in conflict with the interest of the Company. Suitable disclosure as required by the Accounting Standards has been made in the notes to the Financial Statements. A statement in summary form of transactions with related parties in the ordinary course of business and arm’s length basis is periodically placed before the Audit Committee for approval.

freely communicate their concerns about illegal or unethical practices.

Policy on Material Subsidiaries: The Company has framed a Policy for determining Material Subsidiaries and the same is available on the website of the Company at www.cosmofirst.com weblink of the same is given below:

https://www.cosmofrst.com/investors/policies and-code-of-conduct

The Company has a policy for related party transactions which has been uploaded on the Company’s website weblink of which is provided as below:

During the Financial Year ended 31[st] March, 2024 the Company did not engage in commodity hedging activities.
https://www.cosmofrst.com/investors/policies and-code-of-conduct
During the Financial Year ended 31[st] March, 2024, the Company did not raised any funds through preferential allotment or qualified institutions placement as specified under Regulation 32(7A).
The Company has complied with the requirements of stock exchanges or SEBI on matters related to Capital Markets, as applicable. Neither were any penalties imposed, nor were any strictures passed by Stock Exchange or SEBI or any statutory authority on any capital market related matters during the last three years. The Company received a letter from SEBI dated 26[th] July 2021 seeking several information and documents. The information was 9. duly submitted within the prescribed timeline. During FY24 SEBI had further asked for several information, which was duly replied. Some officials of the Company were summoned for personal appearances. The concerned officials duly attended the SEBI hearings. This matter related to purchase of shares of the Company in year 2020 by Mr. Rakesh Nangia, prior to his becoming Director of the Company. The matter is closed now as per the settlement order issued under (Settlement Proceedings) Regulations, 2018.
During the Financial Year ended 31[st] March, 2024, the Company had shifted its registered office from 1008, 10[th] Floor, DLF Tower A, Jasola District Center, New Delhi-110025 to 1[st] Floor, Uppal’s Plaza, M-6, Jasol District Centre, New Delhi-110025.
- During the Financial Year ended 31[st] March, 2024 the Company has not issued any debt instruments or fixed deposit programme involving mobilization of funds, whether in India or abroad.
A certificate from a company secretary in practice confirming that none of the Directors on the Board of the company have been debarred or disqualified from being appointed or continuing as Directors of companies by the Board/Ministry of Corporate Affairs or any such statutory authority, is annexed to this report.
There have been no instances of non-acceptance of any recommendations of any of the Committee by the Board during the Financial Year under review.

3. Code of Conduct: The Company has adopted a Code of Conduct for the members of the Board of Directors and the senior management of the Company. The Code of Conduct is displayed on the website of the Company. All the directors and the senior management personnel have affirmed compliance with the code for the Financial Year ended 31[st] March 2024. A declaration to this effect, signed by the Chief Executive Officer is annexed to this report.

Total fees of Rs. 67 Lakhs for financial year 20232024, for all services, was paid by the Company and its subsidiaries, on a consolidated basis, to the statutory auditor and all entities in the network firm/network entity of which the statutory auditor is a part.
Details related to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for the financial year 2023-24 are as under:

4. Whistleblower Policy: The Company has a vigil mechanism/whistle blower policy. No personnel of the Company has been denied access to the Audit committee and whistle blower mechanism enabling stakeholders, including individual employees and their representative bodies, to

a. number of complaints filed during the financial year: 1 (One)

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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b. number of complaints disposed of during the financial year: 1 (One)
c. number of complaints pending as on end of the financial year: NIL
The necessary certificate under Part B of Schedule II of Listing Regulations, is annexed to this report.
The Company Secretary has a key role to play in ensuring the Board procedures and statutory compliances are properly followed. A certificate from the Company Secretary indicating the compliance of Companies Act, 2013 and Listing Regulations has been annexed to this report.
Management Discussion and Analysis Report: The Management Discussion and Analysis has been discussed in detail separately in this Annual Report.
Compliance Certificate from Practicing Company Secretary: Certificate from Practicing Company Secretary confirming compliance with conditions of Corporate Governance as stipulated in Part C of Schedule V of Listing Regulations, is annexed to this report.
Other disclosures as required under Listing Regulations has been given at relevant places in the Annual Report.
Non-mandatory requirements—Adoption of nonmandatory requirements of the Listing Regulations is being reviewed by the Board from time to time.
The Company has fully complied with the applicable requirements specified in Reg. 17 to 27 and clause (b) to (i) of sub-regulation (2) of regulation 46.
There has been no instance of non-compliance of any requirement of Corporate Governance Report.
The Company has not given any loan and advance to firms/companies in which Directors are interested.
The details of the material subsidiary/(ies) of the Company: Nil
Particulars of Senior Management Personnel and changes since the close of previous financial year

Name of Senior Management	Designation
Mr. Pankaj Poddar	KMP-Group Chief Executive Offcer
Mr. Neeraj Jain	KMP-Group Chief Financial Offcer
Ms. Jyoti Dixit	KMP-Company Secretary
Mr. Kulbhushan Malik	Head-Global Sales
Mr. Sanjay Chincholkar	Head-Operations
Ms. Ashima Roona	Head-HR
Mr. Rajib Chaudhary	Head Supply Chain- Projects
Mr. Ghanshyam Singh	Head-Supply Chain- Films Division
Mr. Sriram Arthanari	Head-Information Technology
Mr. Sushen Roy	Business Head-Zigly
Mr. Raj Sharma	Business Head- Chemicals
Mr. Ritesh Pensalwar	Head -Operations
Mr. Mahesh Bhale	Head- Projects
Mr. Deepak Gupta	Head-Legal
Ms. Shagun Walia	Head-Marketing Communication

During the FY 2023-24, following changes were done:

a) Mr. Kishore Shouche ceased to be Vice PresidentIndian Operations w.e.f. 02[nd] September 2023.
b) Mr. Ritesh Pensalwar, AssociateVice President (Manufacturing) designed as Head Operations- Films Business, India w.e.f. 23[rd] August 2023.
c) Mr. Sushen Roy had been appointed as the Vice President- Business Head of Petcare business (Zigly) w.e.f. 7[th] August 2023.

H. MEANS OF COMMUNICATION / INVESTORS’ COMMUNICATION

The quarterly and half-yearly/Annual financial results are forthwith communicated to the Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (NSE), where the shares of the Company are listed, as soon as

they are approved and taken on record by the Board of Directors.

Financial Results are published in leading newspapers, one English newspaper and one Hindi newspaper.
The financial results are also put up on Company’s website at www.cosmofrst.com
Presentation(s) made to Institutional Investors or analysts are also put up on Company’s website i.e. www.cosmofrst.com.

I. INFORMATION TO SHAREHOLDERS

1. REGISTERED AND CORPORATE OFFICE

1[st] Floor, Uppal’s Plaza, M-6, Jasola District Centre, New Delhi-110025

2. ANNUAL GENERAL MEETING

The date, time & venue of the next Annual General Meeting and the next Book Closure date will be as per the Notice calling the Annual General Meeting.

3. FINANCIAL CALENDAR

Financial Year is 01[st] April 2024 to 31[st] March 2025 and tentative schedule for approval of the quarterly / half yearly / yearly financial results is given below:

Particulars	Month (Tentative)
Financial results for the 1st quarter ending 30thJune 2024	August, 2024
Financial results for the 2nd quarter and half year ending 30thSeptember 2024	November, 2024
Financial results for the 3rd quarter and nine months ending 31stDecember 2024	February, 2025
Financial results for the last quarter and fnancial year ending 31stMarch 2025	May, 2025

4. WEBSITE

The address of the Company’s website is www.cosmofrst.com

5. DIVIDEND

The Board has recommended Dividend of Rs. 3/per Equity Share for the Financial Year 2023-24. The Dividend if declared at the Annual General Meeting shall be paid on or before September 01, 2024.

The Dividend Distribution Policy (“Policy”) of the Company is available on the website of the Company at: https://www.cosmofrst.com/ investors/policies-and-code-of-conduct

Unpaid/Unclaimed Dividends

In accordance with the provisions of Sections 124 and 125 of Companies Act, 2013 and Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) dividends not encashed / claimed within seven years from the date of declaration are to be transferred to the Investor Education and Protection Fund (IEPF) Authority.

The IEPF Rules mandate companies to transfer shares of Members whose dividends remain unpaid / unclaimed for a continuous period of seven years to the demat account of IEPF Authority. The Members whose dividend / shares are transferred to the IEPF Authority can claim their shares / dividend from the Authority.

In accordance with the said IEPF Rules and its amendments, the Company had sent notices to all the Shareholders whose shares were due to be transferred to the IEPF Authority and simultaneously published newspaper advertisement.

In terms of the provisions of Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, Rs. 24,27,660 /- of unpaid / unclaimed dividend (unpaid since FY 2015-16) and 5518 equity shares were transferred during the financial year 2023-24 to the Investor Education and Protection Fund (IEPF)

6. LISTING ON STOCK EXCHANGES

LISTING ON STOCK EXCHANGES	LISTING ON STOCK EXCHANGES
The names of the stock exchanges at which Company’s shares are listed as on 31stMarch, 2024 and details of “Stock Codes” are as mentioned below:
Name of the Stock Exchange Stock Code	Stock Code
BSE Ltd.	508814
National Stock Exchange of India Ltd.	COSMOFIRST

7. INTERNATIONAL SECURITIES IDENTIFICATION

NUMBER (ISIN)

ISIN is a unique identification number of traded scrip. This number has to be quoted in each transaction relating to the dematerialized equity shares of the company. The ISIN number of the shares of Cosmo First Ltd. is INE757A01017

8. ANNUAL LISTING FEE

Annual Listing Fee for the year 2023-24 has been paid to each of the above mentioned stock exchanges. There are no arrears of listing fees with any of the said stock exchanges till date.

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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9. DISTRIBUTION OF SHAREHOLDING AS ON 31[ST] MARCH 2024

Following tables gives the data on shareholding according to types of shareholders and class of Shareholders.

11. SHARE PERFORMANCE IN COMPARISON TO BSE SENSEX AND NSE NIFTY

Monthly high/low of market price of the Company’s equity shares (Rs. 10 each) traded on the Stock Exchanges during the year 2023-24 is given hereinafter:

Distribution of the shareholdings according to type of shareholders:

Particulars	31st March, 2024	31st March, 2024	31st March, 2023	31st March, 2023
	No. of Shares	%(Holding)	No. of Shares	%(Holding)
Promoters	11821616	45.04	11654448	44.40
Institutional Investors	837988	3.19	1495478	5.70
Bodies Corporate	1048706	4.00	962248	3.67
Others	12541417	47.77	12137553	46.23
Total	26249727	100	26249727	100

Distribution of shareholding according to the number of shares:

No. of Equity Shares	31st March, 2024	31st March, 2024	31st March, 2024	31st March, 2024	31st March, 2023	31st March, 2023	31st March, 2023	31st March, 2023
	No. of	% of	No. of shares	% of share Capital	No. of	% of	No. of shares	% of share Capital
	Shareholders				Shareholders
1-500	42748	92.32	3246767	12.37	46256	92.35	3513027	13.38
501-1000	1860	4.02	1341660	5.11	2020	4.03	1437807	5.48
1001-2000	874	1.89	1245504	4.74	933	1.86	1314438	5.01
2001-3000	271	0.59	675202	2.57	324	0.65	804444	3.06
3001-4000	113	0.24	393049	1.50	112	0.22	388452	1.48
4001-5000	98	0.21	443332	1.69	92	0.18	411906	1.57
5001-10000	165	0.36	1167371	4.45	169	0.34	1177263	4.48
10001 and above	176	0.38	17736842	67.57	184	0.37	17202390	65.54
Total	46305	100.00	26249727	100.00	50090	100.00	26249727	100.00

10. MARKET PRICE DATA

Monthly high and low prices of equity shares of the company traded at The Bombay Stock Exchange Limited and National Stock Exchange of India Limited are given below:

MONTH	BSE	BSE	NSE	NSE
	HIGH (Rs.)	LOW (Rs.)	HIGH (Rs.)	LOW (Rs.)
Apr-23	643.55	591.25	644.00	590.05
May-23	695.45	596.00	697.00	595.80
Jun-23	716.25	586.05	717.20	591.10
Jul-23	719.65	613.80	719.45	613.75
Aug-23	749.00	614.90	749.80	613.00
Sep-23	771.20	665.00	773.05	662.50
Oct-23	703.05	605.20	699.70	612.20
Nov-23	655.00	599.00	655.05	598.50
Dec-23	629.00	594.50	629.40	594.00
Jan-24	666.40	609.35	661.95	610.15
Feb-24	622.60	512.20	626.15	510.00
Mar-24	543.85	451.45	543.80	451.50

a. Company’s Share Price Movement vis a vis BSE SENSEX

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b. Company’s Share Price Movement vis a vis NIFTY
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b. Company’s Share Price Movement vis a vis NIFTY

12. DEMAT & LIQUIDITY

Your Company’s equity shares are compulsorily traded in dematerialised form by all categories of investors. Equity shares of your Company are 19.62% available for trading in the depository systems of both the Depositories viz. The National Securities Depositories Limited (NSDL) and the Central Depositories Service (India) Limited (CDSL). Equity Shares 1.41% As on 31[st] March, 2024 98.59% (i.e 25879214 Equity Shares) of the total Equity Share Capital (i.e. NSDL (78.97%) 26249727 equity shares) were held in demat form. CDSL (19.62%) 78.97% Physical (1.41%)

Corporate Overview

Financial Statements

Annual Report 2023-24

Statutory Reports

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13. EQUITY SHARES IN UNCLAIMED SUSPENSE ACCOUNT

275 Equity Shares are lying in the unclaimed suspense account as at 31[st] March, 2024, the details of which are mentioned herein under:

Sr. No.	Particulars	Details
a.	aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year;	No of Shareholders: 03 Number of Shares : 275
b.	number of shareholders who approached listed entity for transfer of shares from suspense account during the year	NIL
c.	number of shareholders to whom shares were transferred from suspense account during the year	NIL
d.	aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year	No of Shareholders: 03 Number of Shares : 275
e.	that the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares	No

14. OUTSTANDING GDRS/ADRS/ WARRANTS OR ANY CONVERTIBLE INSTRUMENTS

17. ADDRESS FOR CORRESPONDENCE:

i. Investors’ Correspondence may be addressed to the following:

There were no outstanding GDRs/ ADRs/ Warrants or any convertible instruments as at 31[st] March 2024.

Ms. Jyoti Dixit Company Secretary Cosmo First Limited 1[st] Floor, Uppal’s Plaza, M-6 Jasola District Centre, New Delhi 110 025 E-mail: [email protected] Ph: +91-11-49494949 Fax: +91-11-49494950

15. REGISTRAR AND SHARE TRANSFER AGENTS

AND SHARE TRANSFER SYSTEM

The Company has appointed a common Registrar i.e. Alankit Assignments Limited for share transfer and dematerialisation of shares. To expedite the process of share transfers the Board has delegated the power of share transfer to Alankit Assignments Limited viz. Registrar and Share Transfer Agents who will attend to the share transfer formalities at least once in fortnight. Their contact details are as follows;

To the Registrar and Share Transfer Agent i.e: Alankit Assignments Limited at the address mentioned under clause 15 of “Information to Shareholders” in this report.

Alankit Assignments limited

4E/2, Alankit House, Jhandewalan Extension New Delhi 110 055 Ph: +91 11 42541234 Fax: +91 11 011-42541967 Contact Person: Mr. Vijay Pratap Singh

ii. Queries relating to the Financial Statements of the Company may be addressed to following:

Mr. Neeraj Jain Chief Financial Officer Cosmo First Limited 1[st] Floor, Uppal’s Plaza, M-6 Jasola District Centre, New Delhi 110 025 E-mail: [email protected]

16. PLANT LOCATIONS

The addresses of the Company’s plants are mentioned elsewhere in this Annual Report.

ANNUAL DECLARATION OF COMPLIANCE OF CODE OF CONDUCT BY CEO

The Board of Directors Cosmo First Limited (Formerly known as Cosmo Films Ltd.)

1[st] Floor, Uppal’s Plaza, M-6 Jasola District Centre,

New Delhi -110 025

The Code of Conduct has been laid down for all the Board members and Senior Management and other employees of the Company.
The Code of conduct has been posted on website of the Company.
The Board members and Senior Management personnel have affirmed compliance with the code of conduct for the year 2023-24

Date: 15[th] May 2024 Place: New Delhi

Pankaj Poddar Chief Executive Officer

18. CREDIT RATING

The Company has been awarded long term rating of AA- and short term rating of A1+ by CRISIL It indicates a stable outlook for the Company. The rating reflects that the Company has serviced its financial obligations on time. The details of the Credit Rating are available on the website of the Company at www.cosmofrst.com

Corporate Overview Statutory Reports

Financial Statements

Annual Report 2023-24

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CERTIFICATE IN PURSUANT TO REGULATION 17(8) OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 FOR THE YEAR ENDED 31[ST] MARCH, 2024

CERTIFICATE FROM THE COMPANY SECRETARY

I, Jyoti Dixit, Company Secretary of Cosmo First Limited (“i.e. Company”) confirm that the Company has:

(i) Maintained all the statutory registers required under the Companies Act, 2013 (“the Act”) and the Rules made there under.

To The Board of Directors Cosmo First Limited (Formerly known as Cosmo Films Ltd.)

We, the undersigned hereby certify that:

(a) We have reviewed the financial statements and the cash flow statement for the Financial Year 2023-24 and to the best of our knowledge and belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading.
(ii) These statements together present a true and fair view of the Company’s affairs and are in Compliance with existing accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year 2023-24 which are fraudulent, illegal or violative of the Company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the auditors and the Audit Committee:
(ii) Filed all the forms and returns and furnished all the necessary particulars to the Registrar of Companies and/ or Authorities as required by the Companies Act, 2013.
(iii) Issued all notices required to be given for convening of Board Meeting and General Meeting, within the time limit prescribed by law.
(iv) Conducted the Board Meetings and Annual General Meeting as per the Act.
(v) Complied with all the requirements relating to the minutes of the proceedings of the meetings of the Directors and the Shareholders.
(vi) Made due disclosure required under the Act including those required in pursuance of the disclosure made by the Directors.
(vii) Obtained all necessary approvals of Directors, Shareholders and Central Government as per the requirements.
(viii) Paid dividend amounts to the Shareholders and unpaid dividend amounts, if applicable, have been transferred to the Investor Education and Protection Fund within the limit prescribed.
(ix) Complied with all the requirements of SEBI Listing Regulations, 2015.
(x) The company has also complied with other statutory requirements under the Companies Act, 2013 and other related statutes in force.

The certificate is given by the undersigned according to the best of her knowledge and belief, knowing fully well that on the faith and strength of what is stated above; full reliance will be placed on it by the Shareholders of the Company.

(i) Significant changes in internal control over financial reporting during the year;
(ii) Significant changes in accounting policies during the year and the same has been disclosed in the notes to the financial statements; and

Date: 15[th] May 2024 Place: New Delhi

Jyoti Dixit Company Secretary

(iii) Instances of significant fraud, if any, of which we have become aware and the involvement therein of the management or an employee having a significant role in the company’s internal control system over financial reporting.

Neeraj Jain

Chief Financial Officer

Pankaj Poddar Chief Executive Officer

Date: 15[th] May 2024 Place: New Delhi

Annual Report 2023-24

Corporate Overview

Financial Statements

Statutory Reports

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BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT FOR FY 2023-24

Cosmo believe in partnering & empowering our stakeholders and creating a culture of transparency and accountability. We see our responsibility to take the lead in sustainable development not only as a duty to the society but also as an opportunity to do well by doing good. By embracing sustainable development and going beyond minimum information disclosure requirements and regulatory compliance, we aim to protect and deliver value to all our stakeholders. This report speaks about the Company’s ESG approach which propels the business strategy to deliver Company’s purpose and pursue sustainable goals.

II. Products/services

Details of business activities (accounting for 90% of the turnover):

S. No.	Description of Main Activity	Description of Business Activity	% of Turnover of the entity
1	Manufacturing	Manufacturer of Flexible Packaging Films (including Value added oriented flms for packaging, labels, lamination and industrial applications). The Company has three plants in India (Maharashtra & Gujarat).	99%

Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

Corporate Identity Number (CIN) of the Listed Entity - L92114DL1976PLC008355
Name of the Listed Entity - COSMO FIRST LIMITED (Formerly Cosmo Films Limited) (the Company)
Year of incorporation - 1976
Registered office address - 1[st] Floor, Uppal Plaza, M-6 Jasola District Centre, New Delhi - 110025
Corporate address: 1[st] Floor, Uppal Plaza, M-6 Jasola District Centre, New Delhi - 110025
E-mail - [email protected]
Telephone - 011-49494949
Website - www.cosmofrst.com
Financial year for which reporting is being done - 2023-2024
Name of the Stock Exchange(s) where shares are listed - National Stock Exchange (COSMOFIRST) Bombay Stock Exchange (508814)
Paid-up Capital - ₹ 26,24,97,270
Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report -
Jyoti Dixit-Company Secretary
[email protected]
011-49494949
Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together) - Standalone Basis
Name of assurance provider - Not Applicable
Type of assurance obtained - Not Applicable

S. No.	Product/Service	NIC Code	% of total Turnover contributed
1.	Manufacture of Flexible Packaging Films (including Value added oriented flms for packaging, labels, lamination and industrial applications)	22201	99%

III. Operations

Number of locations where plants and/or operations/offices of the entity are situated:

Location	Number of plants	Number of offces	Total
National	3	5	8
International	0	6	6

Markets served by the entity:
a. Number of locations

Locations	Number
National (No. of States)	Prominent share in the Indian market across India
International (No. of Countries)	100+

b. What is the contribution of exports as a percentage of the total turnover of the entity?

44%

c. A brief on types of customers

Cosmo First Limited provides industry-first niche solutions in the areas of packaging, lamination, industrial and labelling applications. The Company’s customer base includes the leading FMCG brands in India and globally, flexible packaging converters, label manufacturers and an extensive network of channel partners across the world for distribution of its range of flexible packaging films.

IV. Employees

Details as at the end of Financial Year:
a. Employees and workers (including differently abled):

S. No.	Particulars	Total (A)	Total (A)	Male	Male	Female	Female
				No. (B)	% (B / A)	No. (C)	% (C / A)
			EMPLOYEES

1.	Permanent (D)	1,170		1,093	93%	77	7%
2.	Other than Permanent (E)	0		0	0	0	0
3.	Total employees (D + E)	1,170		1,093	93%	77	7%

Annual Report 2023-24

Corporate Overview

Financial Statements

Statutory Reports

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S. No.	Particulars	Total (A)	Total (A)	Male	Male	Female	Female
				No. (B)	% (B / A)	No. (C)	% (C / A)
			WORKERS

4.	Permanent (F)	70		70	100%	-	-
5.	Other than Permanent (G)	1,568		1,551	99%	17	1%
6.	Total workers (F + G)	1,638		1,621	99%	17	1%

b. Differently abled Employees and workers:

S. No	Particulars			Total (A)	Male	Male	Female	Female
					No. (B)	% (B / A)	No. (C)	% (C / A)
		DIFFERENTLY ABLED EMPLOYEES

1.	Permanent (D)			-	-	-	-	-
2.	Other than Permanent (E)			-	-	-	-	-
3.	Total differently abled employees (D + E)			-	-	-	-	-
			DIFFERENTLY ABLED WORKERS

4.	Permanent (F)			-	-	-	-	-
5.	Other than permanent (G)			-	-	-	-	-
6.	Total differently abled workers (F + G)			-	-	-	-	-

21. Participation/Inclusion/Representation of women

	Total (A)	No. and percentage of Females	No. and percentage of Females
		No. (B)	% (B / A)
Board of Directors	10	1	10%
Key Management Personnel	3	1	33.33%

22. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)

	FY2023-24 (Turnover rate in current FY)	FY2023-24 (Turnover rate in current FY)	FY2023-24 (Turnover rate in current FY)	FY2022-23 (Turnover rate in previous FY)	FY2022-23 (Turnover rate in previous FY)	FY2022-23 (Turnover rate in previous FY)	FY2021-22 (Turnover rate in the year prior to the previous FY)	FY2021-22 (Turnover rate in the year prior to the previous FY)	FY2021-22 (Turnover rate in the year prior to the previous FY)
	Male	Female	Total	Male	Female	Total	Male	Female	Total
Permanent Employees*	17.90%	2.20%	20.10%	12.9%	2.8%	15.6%	11.9%	1.95%	13%
Permanent Workers*	18%	0%	18%	6.1%	0%	6.1%	14.9%	0%	14.9%

*As per SEBI Guidelines, for calculating turnover rate, persons leaving the employment shall include those who left the entity voluntarily or due to dismissal, termination, retirement or death in service.

V. Holding, Subsidiary and Associate Companies (including joint ventures)

(a) Names of holding / subsidiary / associate companies / joint ventures

S. No.	Name of the holding / Subsidiary / associate companies / joint ventures (A)	Indicate whether holding/ Subsidiary/ Associate/ Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)
1	CF (Netherlands) Holding Limited B.V.	Subsidiary	100	No

S. No.	Name of the holding / Subsidiary / associate companies / joint ventures (A)	Indicate whether holding/ Subsidiary/ Associate/ Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)
2	Cosmo Films Japan, GK	Subsidiary	100	No
3	Cosmo Films Singapore Pte Limited	Subsidiary	100	No
4	Cosmo Films Korea Limited	Subsidiary	100	No
5	Cosmo Films Inc.	Subsidiary	100	No
6	CF Investment Holding Private (Thailand) Company Limited	Subsidiary	100	No
7	Cosmo Speciality Chemicals Pvt Ltd	Subsidiary	100	Yes
8	Cosmo Speciality Polymers Pvt Ltd	Subsidiary	100	Yes
9	Cosmo Global Films Pvt Ltd	Subsidiary	100	Yes
10	Renew Green (GJS One) Private Limited*	Associate	20%+	No
11	OPGS Power Gujarat Private Limited*	Associate	20%+	No
12	Bhadreshwar Vidyut Private Limited*	Associate	20%+	No
13	O2 Renewable Energy XV Private Limited*	Associate	20%+	No

Investment in captive power companies are held by the company as a consumer in accordance with the requirements of the Electricity Act, 2005. The Company does not exercise significant influence as defined under IND AS over these companies and therefore their annual accounts are not consolidated with the annual accounts of the company.

VI. CSR Details

(i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) - Yes
(ii) Turnover (in `) - 2391 Crores
(iii) Net worth (in `) - 1174.36 Crores

VII. Transparency and Disclosures Compliances

Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder group from	Grievance Redressal	FY Current	FY Current	2023-24 Financial Year	2023-24 Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year
whom complaint is received	Mechanism in Place (Yes/No) (If Yes, then provide web- link for grievance redress policy)*	Number of complaints fled during the year	Number of complaints pending resolution at close of the year		Remarks	Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks
Communities	Yes	Nil	Not Applicable		-	Nil	Not Applicable	-

Annual Report 2023-24

Corporate Overview

Financial Statements

Statutory Reports

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Stakeholder group from	Grievance Redressal	FY Current	FY Current	Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year
whom complaint is received	Mechanism in Place (Yes/No) (If Yes, then provide web- link for grievance redress policy)*	Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks	Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks
Investors (other than shareholders)	Yes	Nil	Not Applicable	-	Nil	Not Applicable	-
Shareholders	Yes	12	2	Resolved as on date	4	0	Not Applicable
Employees and workers	Yes	1	0	Not Applicable	Nil	Not Applicable	-
Customers	Yes	177	18	Pending due to further details awaited from the customers	206	10	Pending due to further details awaited from the customers.
Value Chain Partners	Yes	Nil	Not Applicable	Not Applicable	Nil	Not Applicable	Not Applicable
Other (please specify)	-	-	-	-	-	-	-

*The Company has a well-defined grievance redressal mechanism in place for all its stakeholders, wherein processes are set internally and communicated to all the stakeholders.

The Grievance redressal mechanism for Investors and shareholders is placed at the Company’s website https://www.cosmofrst.com/investors/grievance-redressal. Further, there is a specific email ID (investor. [email protected]) for addressing queries raised by any Investors and Shareholders.

In addition to this, the Company also has various other Policies, covering different aspects related to grievance redressal including but not limited to Policy on Prevention of Sexual Harassment (POSH), Whistle Blower Policy, Grievance Redressal Policy to safeguard the interest of the employees and workers (including females).

Further, the Company has separate e-mail IDs for its customers and suppliers wherein they can report/ raise their concerns i.e., https://login.salesforce.com and [email protected] respectively.

Furthermore, the Company deploys its local employees who regularly visit the communities and interact with people to gauge and address community concerns.

Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format:

S. No.	Material issue identifed	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk/ opportunity	In case of risk, approach to adapt or mitigate	Financial implications of the risk or opportunity (Indicate positive or negative implication)
Please refer to the Risk and Opportunity section mentioned in Management Discussion & Analysis of Annual Report

Please refer to the Risk and Opportunity section mentioned in Management Discussion & Analysis of Annual Report

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

The National Guidelines on Responsible Business Conduct (NGRBC) released by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These are briefly as under:

P1 Businesses should conduct and govern themselves with integrity and in a manner that is ethical, transparent and accountable

P2 Businesses should provide goods and services in a manner that is sustainable and safe

P3 Businesses should respect and promote the well-being of all employees, including those in their value chains

P4 Businesses should respect the interests of and be responsive to all its stakeholders

P5 Businesses should respect and promote human rights

P6 Businesses should respect and make efforts to protect and restore the environment

P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

P8 Businesses should promote inclusive growth and equitable development

P9 Businesses should engage with and provide value to their consumers in a responsible manner

Disclosure Questions	P 1	P 2	P 3	P 4	P 5	P 6	P 7	P 8	P 9
Policy and management processes
1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No)
Air emission Policy						√
Archival Policy	√
Environmental Policy		√				√
Occupational Health & Safety Policy		√	√
Quality Policy		√							√
Climate Change Policy		√				√
Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information	√	√					√		√
CSR Policy				√		√		√
Dividend Distribution Policy	√			√
Energy Conservation Policy		√				√
Human Rights Policy			√	√	√
IT Policy	√								√
Nomination and Remuneration Policy	√			√
Policy For Determining Material Subsidiaries	√			√
Policy on Determination of Materiality of Events	√			√
Policy on Related Party Transactions	√			√
POSH Policy			√		√
Raw Material Conservation Policy		√							√
Responsible Supply Chain Policy	√	√		√	√	√		√	√
Supplier code of conduct	√	√	√	√	√	√		√	√
Sustainable Procurement policy 2022	√	√		√	√	√		√	√
Waste Management policy		√				√
Waste Water management Policy		√				√
Water Resource Management Policy		√				√
Whistle Blower Policy	√		√	√			√

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b. Has the policy been The policies as per SEBI regulations are approved by the Board. approved by the Raw Material Conservation Policy, Water Resource Management Policy, Waste Board? (Yes/No) Water Management Policy, Waste Management policy, Supplier Code of Conduct, Responsible Supply Chain Policy, Energy Conservation Policy, Climate Change Policy, and Air Emission Policy are approved by the ESG committee.
c. Web Link of the The policies as per SEBI regulations are available on company’s website at the link - Policies, if available https://www.cosmofrst.com/investors/policies-and-code-of-conduct Other policies are internally made available to the concerned departments.
Whether the entity has Yes, all the policies of the Cosmo First Limited have been translated into procedures translated the policy and are being monitored regularly for implementation. into procedures. (Yes / No)
Do the enlisted policies The policies followed by the Company are applicable to value chain partners and are extend to your value listed on the Company’s website. The value chain partners are expected to follow the chain partners? (Yes/ applicable policies. No)
Name of the national The policies of Cosmo First are framed and guided by National Guidelines on and international codes/ Responsible Business Conduct (NGRBC), based on the UN Guiding Principles for certifications/labels/ Business and Human Rights (UNGPs), UN Sustainable Development Goals (SDGs), standards (e.g. Forest Paris Agreement on Climate Change, Core Conventions of the International Labour Stewardship Council, Organization (ILO) and The Companies’ Act, 2013. Fairtrade, Rainforest P1: BRCGS Global Standard ISO 14001: 2015

Alliance, Trustea) P2: BRCGS Global Standard ISO 9001: 2015

standards (e.g. SA P4: ISO 9001: 2015 ISO 14001: 2015

8000, OHSAS, ISO, BIS) P6: ISO 14001: 2015

adopted by your entity P8: ISO 14001: 2015

and mapped to each P9: ISO 9001: 2015

principle.

Specific commitments, Cosmo First Limited is in the process of developing a well-defined ESG Roadmap with goals and targets set by structured commitments, goals, and targets. For near future, the Company has also the entity with defined identified some of the Environmental and Social Key Performance indicators (KPIs) timelines, if any. which includes: • Enhance renewable energy consumption to more than 50% of total power consumption by FY 25.

• Enhance renewable energy consumption to more than 60% of total power consumption by FY 26.

• Achieve Carbon footprint reduction - 1.20 lakhs MT equivalent Co2 emission by FY 25.

• Achieve Carbon footprint reduction - 1.40 lakhs MT equivalent Co2 emission by FY 26.

• Reduction in waste generation by 5% by FY 26.

Performance of the Performance of specific targets is reviewed periodically by various Committees led by entity against the the Management. specific commitments, The company has been working towards achieving these goals and has also made goals and targets alongprogress, demonstrating its commitment to sustainability and environmental with reasons in case the responsibility. same are not met. For performance against specific targets, please refer to the ESG section on our website https://www.cosmofrst.com/esg

Governance, leadership and oversight

Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure)
And our governance structure is driven by policies that are reviewed periodically and set the core framework for our operations. Our policies apply to all operating locations, businesses and subsidiaries, helping us manage our operational, regulatory and reputational risks, effectively and efficiently. Each policy framework has owners at the top who drive implementation and, where appropriate, corrective actions are taken to ensure that everyone understand their responsibilities and play their role.
We wish to reiterate our commitment towards the aim which is to build an organization that positively impacts all three aspects – environment, social, and governance. Making disclosures on sustainability is the first small step we have taken towards the journey of becoming a truly sustainable organization. As one of India’s leading packaging solutions companies, we have always acknowledged the contribution towards environment, social and governance (ESG) aspects.
Details of the highest authority responsible for implementation Mr. Anil Kumar Jain, and oversight of the Business Responsibility policy (ies). Director-Corporate Affairs
Does the entity have a specified Committee of the Board/ Director Mr. Anil Kumar Jain, Director Corporate responsible for decision making on sustainability related issues? Affairs is responsible for decision making (Yes / No). If yes, provide details. on sustainability related issues.
Details of Review Indicate whether review was Frequency (Annually/ Half yearly/ of NGRBCs by the undertaken by Director / Committee of Quarterly/ Any other – please specify) Company: the Board/ Any other Committee Subject for Review P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 Performance against The senior management of the company annually reviews the company’s performance above policies and with respect to various policies. follow up action Compliance with Yes, the Managing Director & Chief Executive Officer / Chief Financial Officer / statutory requirements Company Secretary and senior officials present to the Board of Directors with a of relevance to the Statutory Compliance Certificate on applicable laws. principles, and, Status of compliance with all applicable statutory requirements is reviewed by the rectification of any nonBoard on a quarterly basis. compliances
Has the entity carried P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 out independent Currently, the Company is conducting the assessment/evaluation of the workings assessment/ evaluation of its policies internally. However, in due course the Company might also get these of the working of its reviewed by external agencies. policies by an external agency? (Yes/No). If yes, provide name of the agency.

If answer to question (1) above is “No” i.e. not all Principles are	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:	covered by a policy, reasons to be stated:
Questions	P 1	P 2	P 3	P 4	P 5	P 6	P 7	P 8	P 9
The entity does not consider the Principles material to its business (Yes/No)	Not Applicable
The entity is not at a stage where it is in a position to formulate and implement the policies on specifed principles (Yes/No)	Not Applicable
The entity does not have the fnancial or/human and technical resources available for the task (Yes/No)	Not Applicable
It is planned to be done in the next fnancial year (Yes/No)	Not Applicable
Any other reason (please specify)	Not Applicable

Cosmo First Limited is committed to sustainability. Driving product efficiency, eliminating high-impact gases, and improving efficiency throughout operations and our supply chain is not only good for the environment, it’s good for business too. Company looks to build on this success, we are working continuously to improve and develop our products. We will continue to focus our efforts to both reduce power demand as well as opportunities for further investment in renewable energy. Carbon reduction has always been a focus and our board has been consistently evaluating our Climate and Carbon Management Strategy which is appropriate for our Company.

At Cosmo First Limited, we take pride in the fact that apart from striving for business growth and operational excellence, we focus on the betterment of the marginalized communities and the society in general by addressing Social part of the ESG. We have always been passionate about our philanthropic initiatives. The Cosmo Foundation aims to empower local communities by assisting them in attaining their potential. As an extension of our existing programs on computer literacy, basic English learning, and clean and green initiatives, we also engaged ourselves in providing resources to the poor who were impacted the most by the pandemic.

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SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

Essential Indicators

Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

Segment	Total number of training and awareness programmes held	Topics / principles covered under the training and its impact	%age of persons in respective category covered by the awareness programmes
Board of Directors	The Board Members at the time of their appointments / regular intervals (as part of board meetings) are briefed/ updated on issues related to the business, regulatory, safety, environmental, social and governance matters, etc. These topics provided insights on the said Principles.	Topics covered through trainings conducted: • Corporate Governance, • Companies Act, 2013, • SEBI Listing Regulations, • Environmental & Safety matters	100%
Key Managerial Personnel	11	Selling on Marketplaces, Window Films, POSH, ESG, Prompt Engineering, Pet G, BOPET, Corporate Governance, BOPP Food Grade Structure, Go To Market Strategy, Thick Pet & Coated Pet Films	60%
Employees other than BoD and KMPs	185	Selling on Marketplaces, Window Films, POSH, ESG, Prompt Engineering, Pet G, BOPET, Corporate Governance, BOPP Food Grade Structure, Go To Market Strategy, Thick Pet & Coated Pet Films, Goal Setting, Advanced Excel, BOPP Process & Operating Procedure, Operatives at manufacturing process control points, ESG, MS Excel, Analytical Tools, Water Based Adhesives, Basic in Electrical Technology, Pet G, TQM Awareness Session, Cosmo Competencies, Time Management, Gallup, Year End Appraisal & Goal Setting Training.	89.40%
Workers	16	Goal Setting, Advanced Excel, BOPP Process & Operating Procedure, Operatives at manufacturing process control points, ESG, MS Excel, Analytical Tools, Water Based Adhesives, Basic in Electrical Technology, Pet G, TQM Awareness Session, Cosmo Competencies, Time Management, Gallup, Year End Appraisal & Goal Setting Training, Firefghting & Fire Extinguisher handling Training, Medical Concerns and First Aid.	93%

Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):

		Monetary	Monetary
	NGRBC Principle	Name of the regulatory/ enforcement agencies/ judicial institutions	Amount (`)	Brief of the Case	Has an appeal been p r e f e r r e d ? (Yes/No)
Penalty/Fine	NIL	NIL	NIL	NIL	NIL
Settlement (Amount paid by Directors) Mr. Ashok Jaipuria Mr.Rakesh Nangia	Principle 1	Securities and Exchange Board of India	49.4 Lakhs 1,18.98 Lakhs	Alleged violation of SEBI Act read with SEBI (PIT) Regulations, 2015 pertaining to purchase of shares of the Company in year 2020 by Mr. Rakesh Nangia prior to his becoming Director of the Company.	Not Applicable
Compounding fee	NIL	-	-	NIL	-
		Non-Monetary
	NGRBC Principle	Name of the regulatory/enforcement agencies/ judicial institutions		Brief of the Case	Has an appeal been preferred? (Yes/No)
Imprisonment	Not applicable	Not applicable		Not applicable	Not applicable
Punishment	Not applicable	Not applicable		Not applicable	Not applicable

Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary action has been appealed.

Case Details Name of the regulatory/ enforcement agencies/ judicial institutions

Not Applicable

Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.

Yes, the Company has a dedicated Code of Conduct which contains guidelines on anti-bribery and anti-corruption. We at Cosmo First Limited are committed to conduct our business with the greatest levels of morality, integrity and ethical standards, and do not tolerate bribery or corruption in any form. Cosmo First Limited does not stand any form of bribery by, or of, its employees or any persons or companies acting for it or on its behalf and for that purpose encourage and protect all of its employees who wish to raise and report their genuine concerns about any unethical behaviour, actual or suspected fraud or violation of Company’s Code of Conduct.

The policy is available on the Company website: https://www.cosmofrst.com/investors/policies-and-code-of-

conduct

Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption:

	FY (Current	2023-24 Financial Year)	FY 2022-23 (Previous Financial Year)
Directors	There have been no cases involving disciplinary action taken by any law enforcement agency for the charges of bribery / corruption against any directors / KMPs / employees / workers.
KMPs
Employees
Workers

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Details of complaints with regard to conflict of interest:

	FY (Current	2023-24 Financial Year)	FY2022-23 (Previous Financial Year)	FY2022-23 (Previous Financial Year)
	Number	Remarks	Number	Remarks
Number of complaints received in relation to issues of Confict of Interest of the Directors	Nil	-	Nil	-
Number of complaints received in relation to issues of Confict of Interest of the KMPs	Nil	-	Nil	-

Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
Not Applicable, as there were no cases of corruption and conflicts of interest which were reported during

the year.

Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:

	FY (Current	2023-24 Financial Year)	FY2022-23 (Previous Financial Year)
Number of days of accounts payables		121	84

Open-ness of business

Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format:

Parameter	Metrics	FY (Current	2023-24 Financial Year)	FY2022-23 (Previous Financial Year)
Concentration of Purchases	a. Purchases from trading houses as % of total purchases		-	-
	b. Number of trading houses where purchases are made from		-	-
	c. Purchases from top 10 trading houses as % of total purchases from trading houses		-	-
Concentration of Sales	a. Sales to dealers / distributors as % of total sales		-	-
	b. Number of dealers / distributors to whom sales are made		-	-
	c. Sales to top 10 dealers / distributors as % of total sales to dealers / distributors		-	-
Share of RPTs in*	a. Purchases (Purchases with related parties / Total Purchases)		7%	6%
	b. Sales (Sales to related parties / Total Sales)		13%	15%
	c. Loans & advances (Loans & advances given to related parties / Total loans & advances)		0%	0%
	d. Investments (Investments in related parties / Total Investments made)	37.60%		38.24%

Leadership Indicators

Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same.

Yes, the Company has processes in place to avoid/manage conflict of interests involving members of the Board. Cosmo First Limited has a detailed ‘Code of Conduct for its Directors and Senior Management’, which contains comprehensive guidelines and mechanism for avoiding the conflict of interest and for disclosing any such situations that may trigger a potential conflict. The Company also receives an annual confirmation from its Board of Directors regarding the entities they are interested in, and it ensures that the necessary approvals as required under the applicable laws and regulations are obtained before engaging into transactions with each of the entities.

PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe Essential Indicators

Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

	FY Current	2023-24 Financial Year	FY 2022-23 Previous Financial Year	Details of improvements in environmental and social impacts
R&D	Environmental and Social impact assessment is one of the key inputs for the new product development/ process changes. Capital expenditure and R&D spends incurred by the Company embeds cost incurred to mitigate environmental & social hazards. These are inseparable cost of the projects and hence separately identifying such cost is not feasible. Increasing share of renewable energy in overall energy portfolio is a fagship initiative which demonstrated our commitment towards sourcing clean energy and transition to low carbon operation having a direct impact on the environment
Capex

a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
- Yes, the Company has procedures in place for sustainable sourcing.
b. If yes, what percentage of inputs were sourced sustainably?
- The Company is committed towards sustainably sourcing its raw material. We constantly work towards nurturing sustainable relationships with our supply chain partners by building trust, fair treatment and transparency in all procurement related decisions. However, the company is in the process of further strengthening sustainable sourcing and maintaining data around the same.
Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

The majority of the plastic waste that is generated internally is recycled and reused. Company is into Business to business (B2B) business and the products manufactured by it are not supplied to ultimate consumer directly, therefore, once the Company’s products are sold to customers such as converters, brands, etc, the post-consumer waste is untraceable.

Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

Extended Producer Responsibility (EPR) is not applicable to the Company’s activities. However, the company is in the process of registration in applicable categories with Central Pollution Control Board portal and deliberating upon the way forward in complying with the legislation.

*Related parties are Wholly Owned Subsidiaries.

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Leadership Indicators

1) Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:

	FY Current	FY Current	2023-24 Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year
	Re-Used	Recycled	Safely Disposed	Re-Used	Recycled	Safely Disposed
Plastics (including packaging)	8,686 MT	0	0	17,908 MT	0	0
E-waste	0	0	0	0	0	0
Hazardous waste	0	0	Spent oil - 4.79 MT Sludge - 29.78 MT	0	0	Spent oil - 21.425 MT Sludge - 74.625 MT
Other waste	0	0	0	0	0	0

PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value chains

Essential Indicators

a. Details of measures for the well-being of employees:

Category					% of employees covered by	% of employees covered by	% of employees covered by
	Total (A)	Health insurance		Accident i	nsurance	Maternity benefts		Paternity Benefts		Day Care facilities*
		Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Permanent	employees
Male	1,093	1,093	100%	1,093	100%	N/A	N/A	1,093	100%	-	-
Female	77	77	100%	77	100%	77	100%	N/A	N/A	-	-
Total	1,170	1,170	100%	1,170	100%	77	100%	1,093	100%	-	-
Other than	Perman	ent employees
Male	-	-	-	-	-	-	-	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-	-	-	-	-

b. Details of measures for the well-being of workers:

Category				% of workers covered by	% of workers covered by	% of workers covered by	% of workers covered by
	Total (A)	Health insurance		Accident insurance		Maternity	benefts	Paternity Benefts		Day Care facilities*
		Number (B)	% (B/A)	Number (C)	% (C/A)	Number (D)	% (D/A)	Number (E)	% (E/A)	Number (F)	% (F/A)
Permanent	workers
Male	70	70	100%	70	100%	N/A	N/A	70	100%	-	-
Female	0	0	0%	0	0%	0	0%	N/A	N/A	-	-
Total	70	70	100%	70	100%	0	0%	70	100%	-	-
Other than	Perman	ent workers
Male	-	-	-	-	-	-	-	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-	-	-	-	-

*The Company has location wise tie-ups with third party day care centres, which employees can avail of.

(c) Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format –

	FY Current	2023-24 Financial Year	FY 2022-23 Previous Financial Year
Cost incurred on well-being measures as a % of total revenue of the company	0.002%		-

Details of retirement benefits, for Current FY and Previous Financial Year.

	FY Current	FY Current	2023-24 Financial Year	FY2022-23 Previous Financial	FY2022-23 Previous Financial	Year
Benefts	No. of employees covered as a % of total Employees#	No. of workers covered as a % of total Workers#	Deducted and deposited with the authority (Y/N/N.A.)#	No. of employees covered as a % of total Employees#	No. of workers covered as a % of total workers#	Deducted and deposited with the authority (Y/N/N.A.)#
PF*	100%	100%	Y	100%	100%	Y
Gratuity*	100%	100%	Y	100%	100%	Y
ESI*	100%	0%	Y	100%	100%	Y
Others – please specify	-	-	-	-	-	-

PF/Gratuity/ESI eligibility as per statute.
Percentages above are calculated for eligible employees.
Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

As required under the RPwD Act 2016, all new building structures are being made in compliance with the accessibility requirement. We also plan to modify workstations and washrooms for existing infrastructure in accordance with the regulations.

Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.

The Company is committed to provide equal employment opportunities without any discrimination on the grounds of age, color, origin, nationality, disability, religion, race, caste, gender, sex and sexual orientation. The Company’s Code of Conduct for employees specifically calls out for no discrimination on any grounds.

The Code of Conduct can be accessed at the following link on our website at https://www.cosmofrst.com/ investors/policies-and-code-of-conduct.

The Company is in the process of formulating a documented policy on Equal Employment Opportunity in accordance with the provisions of the Rights of Persons with Disabilities Act, 2016.

Return to work and Retention rates of permanent employees and workers that took parental leave.

Gender	Permanent employees	Permanent employees	Permanent workers	Permanent workers
	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	100%	100%	100%	100%
Female	100%	100%	N/A	N/A
Total	100%	100%	100%	100%

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Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details of the mechanism in brief.

Yes/No (If Yes, then give details of the mechanism in brief)

	Yes/No (If Yes, then give details of the mechanism in brief)
Permanent Workers	Yes, The Company is committed to providing a safe and conducive work environment to all of its employees, workers and associates. Transparency and openness are organizational values and are practiced across all levels. Employees are encouraged to share their concerns with their Reporting Manager or the members of the senior management. Employees can reach out independently to the Human Resource Function if they so choose to. The Company has an open-door approach, wherein any employee irrespective of hierarchy has access to the senior management. In addition, the Company has formulated Whistle blower policy for employees to report any kind of suspected or actual misconduct in the organisation and Prevention of Sexual Harassment at Workplace policy for prevention, prohibition and redressal of sexual harassment at workplace and Internal Complaints Committee has also been set up to redress any such complaints received. The Company periodically conducts sessions for employees across the organization to build awareness about the Policy. Also, the company has workers committee / Grievance Handling Committee at its manufacturing plants.
Other than Permanent Workers
Permanent Employees
Other than Permanent Employees

Membership of employees and worker in association(s) or Unions recognised by the listed entity:

Category	FY (Current	FY (Current	2023-24 Financial Year)	FY2022-23 (Previous Financial Year)	FY2022-23 (Previous Financial Year)	FY2022-23 (Previous Financial Year)
	Total employees / workers in respective category (A)	No. of employees / workers in respective category, who are part of association(s) or Union (B)	% (B / A)	Total employees / workers in respective category (C)	No. of employees / workers in respective category, who are part of association(s) or Union (D)	% (D / C)
Total Permanent Employees	1,170	0	0%	1,066	0	0%
- Male	1,093	0	0%	1,003	0	0%
- Female	77	0	0%	63	0	0%
Total Permanent Workers	70	70	100%	82	82	100%
- Male	70	70	100%	82	82	100%
- Female	0	0	0%	0	0	0%

Details of training given to employees and workers:

Category		FY Current	FY Current	2023-24 Financial Year	2023-24 Financial Year		FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year
	Total (A)	On Health and safety measures		On Skill upgradation		Total (D)	On Health and safety measures		On Skill upgradation
		No. (B)	% (B/A)	No. (C)	% (C/A)		No. (E)	% (E/D)	No. (F)	% (F/D)
				Employees
Male	1,093	1,028	94%	940	86%	1,003	923	92%	946	94%
Female	77	71	92%	77	100%	63	57	90%	58	92%
Total	1,170	1,099	94%	1,017	87%	1,066	980	92%	1,004	94%

					Workers
Male	70	64	92%	65	93%	82	74	90%	75	92%
Female	0	0	0%	0	0%	0	0	0%	0	0%
Total	70	64	92%	65	93%	82	74	90%	75	92%

Details of performance and career development reviews of employees and worker:

Category	FY Current	2023-24 Financial Year	2023-24 Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year
	Total (A)	No. (B)	% (B / A)	Total (C)	No. (D)	% (D / C)
		Employees
Male	1,093	1,093	100%	1003	1003	100%
Female	77	77	100%	63	63	100%
Total	1,170	1,170	100%	1066	1066	100%
		Workers
Male	70	70	100%	82	82	100%
Female	0	0	0%	0	0	0%
Total	70	70	100%	82	82	100

Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage such system?

Yes, We recognise safety and health as an essential part of our operations. Our Health and Safety Policy ensures safe and healthy workplace for all. Based on the policy, we have established robust safety management systems across all our plants which includes, training on safety parameters including case studies, awareness campaigns, identification of hazards and tangible interventions to make the workplace safer. We have an Occupational Health Centre (OHC) in our plants which caters to any type of injury sustained by a worker or an employee. The OHC is managed round the clock by qualified doctors and trained paramedic staff.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

We have a well-defined safety observation system i.e., Hazard Identification and risk assessment (HIRA) procedures in place to ensure continual improvement of the organization’s occupational health and safety while continuously using steps to promote employee well-being and healthcare. HIRA is the process of defining and describing risks by characterizing their probability, frequency, and severity, as well as assessing unfavourable consequences, such as possible losses and injuries.

c. Whether you have processes for workers to report the work related hazards and to remove themselves from such risks. (Y/N)
Yes, the Company have specific processes for workers to report the work-related hazards. The Company has put in place the appropriate mechanisms to ensure the workers safety, which includes reporting of such incidents, if any observed by the safety teams during the safety rounds and alternatively the workers can also share the same with the safety team.
d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)

Yes, Health and Personal accident insurance is in place.

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11. Details of safety related incidents, in the following format:

Safety Incident/Number	Category	FY 2023-24 Current Financial Year	FY2022-23 Previous Financial Year
Lost Time Injury Frequency Rate	Employees	2.16	2.63
(LTIFR) (per one million-person hours worked)*	Workers	5.20	4.93
Total recordable work-related	Employees	34	16
injuries*	Workers	58	30
No. of fatalities	Employees	0	0
	Workers	0	0
High consequence work-related	Employees	0	0
injury or ill-health (excluding fatalities)	Workers	0	0

*Including in the contract workforce

Describe the measures taken by the entity to ensure a safe and healthy work place.

Safety has always been a core principle and top priority at Cosmo First Limited. The Company has a well structured safety framework in place to monitor, implement, and take corrective actions for safety improvements. Cosmo First Limited is taking the following measures to ensure a safe and healthy work place:

Occupational Health & Safety Policy in place.
Proper systems in place for reporting of unsafe acts and conditions.
Periodic trainings are being conducted on safe work practices and use of emergency systems.
Adopted new technologies to control adverse events and putting in place high-level safety measures including cut-resistant gloves, metal detectors, spill kits, scaffolds, electrical hand gloves etc.

13. Number of Complaints on the following made by employees and workers:

		FY (Current	2023-24 Financial Year)	FY2022-23 (Previous Financial Year)	FY2022-23 (Previous Financial Year)	FY2022-23 (Previous Financial Year)
	Filed during the year	Pending resolution at the end of year	Remarks	Filed during the year	Pending resolution at the end of year	Remarks
Working Conditions	2	0	The concerned raised were immediately acted upon. Transportation:One window of the bus was damaged which was repaired in time. Washroom:Washroom hygiene condition was improved by deploying a daily checklist.	1	0	-
Health & Safety	0	0	-	-	0	-

14. Assessments for the year:

	% of your plants and offces that were assessed (by entity or statutory authorities or third parties)
Health and safety practices	100%
Working Conditions	100%

Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions.
The Company has best practices across sites for injury/incidents prevention and ensures safety improvements, as well as taking many efforts to prevent workplace accidents, such as:
Implementing cut resistance gloves for preventing cut injuries.
- Spill kits for collecting oil spill in production areas to avoid fire risk.
Implementation of Machine Guarding.

Leadership Indicators

Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).

Yes, the employees and permanent workers are covered under Group Health Insurance/Mediclaim Policy and Term Life Insurance and in the unfortunate event of the death of an employee including workers. The Company extends financial support to the surviving family members of such employees and permanent workers.

Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners.

The Company emphasize to engage with the suppliers and value chain partners who comply with all the Statutory requirements. The Company takes immediate and suitable action for any breach in the statutory compliance as it comes in the knowledge.

Provide the number of employees / workers having suffered high consequence work- related injury / ill-health / fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment:

		Total no. of affected employees/ workers	No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment	No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment
	FY2023-24 (Current Financial Year)	FY2022-23 (Previous Financial Year)	FY2023-24 (Current Financial Year)	FY 2022-23 (Previous Financial Year)
Employees	Nil	Nil	Nil	Nil
Workers	Nil	Nil	Nil	Nil

Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/ No)

Yes, the Company provides transition assistance programs to facilitate continued employability and the management of career endings resulting from retirement or termination of employment. For instance, retainership is made available to retiring employees on case-to-case basis. In case of termination of employment, the departing employee is given assistance with their job hunt.

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Financial Statements

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Details on assessment of value chain partners:

Particulars	% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices	The company ensures health and safety practices and working conditions followed by the value chain partners through the certifcations. Additionally, we are in the process to collect and verify the essential certifcations of value chain partners periodically (half-yearly/annually).
Working Conditions

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders Essential Indicators

Describe the processes for identifying key stakeholder groups of the entity.
We take a collaborative approach when it comes to working with both internal and external stakeholders namely employees, suppliers, dealers, customers, shareholders / investors, communities surrounding the operations and government / regulatory authorities and gives utmost importance to healthy relationship and continuous engagement with them.
List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Stakeholder Group	Whether identifed as Vulnerable & Marginalized Group (Yes/ No)	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other	Frequency of engagement (Annually/ Half yearly/ Quarterly / others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement
Employees	No	Email, notice board, intranet, Town Halls	Regularly	Recognition & Rewards, Talent management, new opportunities, CSR & Sustainability updates, HR Policies & engagement surveys, Business and Performance Updates, Physical and Wellbeing Sessions, Code of Conduct, Ethics & Compliance, Cyber Security, Diversity, Equity & Inclusion.
Community	Yes	Community meetings, pamphlets	Regularly	Need assessment, development programs
Suppliers	No	Email, website	Regularly	Query and grievance redressal, Supply Chain Management (SCM), Adaptation of procurement processes to environmental, economic and ethical requirements
Investors or external channels	No	Email, SMS, ads, website, newspaper	Regularly	General updates, Queries, Business Performance, ESG Updates, Events & Activations (campaigns & announcement)
Shareholders	No	Email, ads, website, n e w s p a p e r , a n n o u n c e m e n t s through Stock Exchanges, Investor/ Analyst Meet, Company's Website, Media Releases	Quarterly	Corporate Event updates such as Dividend Updates, Business Performance, Sustainability announcements, Financial Performance, Operational Performance, New Product Launches, Business Outlook, CSR Programs, Corporate Governance, Material Disclosures, MoU, Partnerships

Stakeholder Group	Whether identifed as Vulnerable & Marginalized Group (Yes/ No)	Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website), Other	Frequency of engagement (Annually/ Half yearly/ Quarterly / others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement
Customers	No	Customers meets, O n e – o n – o n e interaction,	Regularly	Anticipating requirements, Creating value, Customer feedback on product, Product safety and value for money, Understanding client’s data privacy and security requirements, Understanding client’s industry and business challenges
Government Regulatory Bodies	No	E-mails and letters, C o n f e r e n c e s , Industry forums, R e g u l a t o r y flings, Meetings with offcials, Representations	Regularly	Inputs for ease of doing business, Inputs for regulatory changes, Ensuring compliance with laws, Understanding areas for sustainable development

Leadership Indicators

Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.

The Company maintain a constant and proactive engagement with our key stakeholders that enables us to communicate our strategy and performance at each level. We practice continuous two-way communication and engagement to align expectations from each group of stakeholders with that of the management. The board regularly keeps revisiting various developments based on the feedback received from all the stakeholders.

PRINCIPLE 5 Businesses should respect and promote human rights

Essential Indicators

Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

Category	FY Current	FY Current	2023-24 Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year
	Total (A)	No. of employees / workers covered (B)	% (B / A)	Total (C)	No. of employees / workers covered (D)	% (D / C)
Employees
Permanent	1,170	1,145	98%	1,066	1,066	100%
Other than permanent	0	0	0%	0	0	0%
Total Employees	1,170	1,145	98%	1,066	1,066	100%
Workers
Permanent	70	70	100%	82	82	100%
Other than permanent	1,568	1,568	100%	1,615	1,615	100%
Total Workers	1,638	1,638	100%	1,697	1,697	100%

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2. Details of minimum wages paid to employees and workers, in the following format:

Category		FY Current	FY Current	2023-24 Financial Year	2023-24 Financial Year		FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year	FY2022-23 Previous Financial Year
	Total (A)	Equal to Minimum Wage		More than Minimum Wage		Total (D)	Equal Minimum Wage		More than Minimum Wage
		No. (B)	% (B/A)	No. (C)	% (C/A)		No.(E)	% (E/D)	No.(F)	% (F/D)
				Employees
Permanent
Male	1,093	0	0%	1,093	100%	1,003	0	0%	1,003	100%
Female	77	0	0%	77	100%	63	0	0%	63	100%
Other than Permanent
Male	-	-	-	-	-	-	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-
				Workers
Permanent
Male	70	0	0%	70	100%	82	0	0%	82	100%
Female	0	0	0%	0	0%	0	0	0%	0	0%
Other than Permanent
Male	-	-	-	-	-	-	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-

Details of remuneration/salary/wages
a. Median remuneration / wages:


	(`in Lakhs)
	Male		Female
	Number	Median remuneration/ salary/ wages of respective category	Number	Median remuneration/ salary/ wages of respective category
Board of Directors (BoD)	9	15.00	1	14.75
Key Managerial Personnel	2	324.11	1	28.37
Employees other than BoD and KMP	1019	5.40	76	5.31
Workers	70	9.71	0	-

b. Gross wages paid to females as % of total wages paid by the entity 5.40, in the following format:

	FY Current	2023-24 Financial Year	FY2022-23 Previous Financial Year
Gross wages paid to females as % of total wages		5%	5%

Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)
Yes, Head HR is responsible for addressing human rights impacts or issues caused or contributed to by the business.
Describe the internal mechanisms in place to redress grievances related to human rights issues.

Respect for human rights is one of the Company’s fundamental and core principles, and it works to defend, protect, and promote human rights in order to ensure fair and ethical business and employment practices. The Company’s commitment to human rights and fair treatment is reflected in the various Company’s policies including Company’s Human Rights, Code of Conduct, Ethics Policy, POSH, Grievance Redressal Policy

etc. All Employees and applicants are treated equally according to their individual qualifications, abilities, experiences, and other employment standards. Company ensures no discrimination due to race, religion, colour, national origin, sex, age, disability etc.

Number of Complaints on the following made by employees and workers:

	FY Current	FY Current	2023-24 Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year	FY 2022-23 Previous Financial Year
	Filed during the year	Pending resolution at the end of year	Remarks	Filed during the year	Pending resolution at the end of year	Remarks
Sexual Harassment	1	Nil	-	Nil	Nil	-
Discrimination at workplace	Nil	Nil	-	Nil	Nil	-
Child Labour	Nil	Nil	-	Nil	Nil	-
Forced Labour/ Involuntary Labour	Nil	Nil	-	Nil	Nil	-
Wages	Nil	Nil	-	Nil	Nil	-
Other human Rights related issues	Nil	Nil	-	Nil	Nil	-

Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

	2023-24 Financial Year	FY2022-23 Previous Financial Year
Total Complaints reported under Sexual Harassment on of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)	1	-
Complaints on POSH as a % of female employees / workers	1.3%	-
Complaints on POSH upheld	-	-

Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

In cases of discrimination and harassment, we at Cosmo First Limited guarantee that the complainants are completely protected from reprisals, sanctions, or other forms of action for voicing honest concerns. In the Company’s Grievance Redressal Mechanism, Whistle Blower Policy, and POSH Policy, there are specific clauses regarding the confidentiality of the complainant that state that all reports/records associated with complaints, along with the information exchanged during a specific process/investigations, would be considered as confidential and access of the same would be restricted by the Company as deemed fit.

Do human rights requirements form part of your business agreements and contracts? (Yes/No)

Currently, human rights requirements are not completely forming part of all the business agreements and contracts. However, recently the Company has started incorporating relevant clauses on Human Rights in the agreements being executed by the Company.

Assessments for the year:

	% of your plants and offces that were assessed (by entity or statutory authorities or third parties)
Child labour	100% (considering 3 plants)
Forced/involuntary labour	100% (considering 3 plants)
Sexual harassment	100% (considering 3 plants)
Discrimination at workplace	100% (considering 3 plants)
Wages	100% (considering 3 plants)
Others – please specify	-

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Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 10 above.

There were no risks or concerns identified during FY 2023-24.

Leadership Indicators

Details of a business process being modified / introduced as a result of addressing human rights grievances/ complaints.

The Code of Conduct, as adopted by the Board, is applicable to Directors, senior management and employees of the Company. The Code covers the Company’s commitment to human rights aspects like self-respect and human dignity, child labour, gender friendly workplace, ethical dealings with suppliers and customers, health & safety, environment, transparency, anti-bribery and corruption, and exemplary personal conduct. Any violation of the Code by an employee renders the person liable for disciplinary action.

Parameter	FY (Current	FY 2022-23 (Previous Financial Year)
Total energy consumed (A+B+C+D+E+F)	1101411856	965073841
Energy intensity per rupee of turnover(Total energy consumed / Revenue from operations)	0.047 MJ/₹	0.035
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)(Total energy consumed / Revenue from operations adjusted for PPP)	1.054 MJ/$₹	–
Energy intensity in terms of physical output	7,777 MJ/MT	–
Energy intensity (optional) – the relevant metric may be selected by the entity	–	–

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Details of the scope and coverage of any Human rights due-diligence conducted.

NO

The Company is planning to form an Internal committee for Human Rights due diligence. Human rights due diligence process and mechanisms are being established to enhance the current human rights assessment in CFL.

Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?
Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

Not Applicable

Presently, majority of our premises / offices are largely accessible to differently abled visitors and workers. However, the Company is attempting to make further improvements to the current system.
Details on assessment of value chain partners:

	% of value chain partners (by value of business done with such partners) that were assessed
Sexual Harassment	The Company’s code of conduct covers the policy on Human Rights and the value chain partners are required to adhere to the same.
Discrimination at workplace
Child Labour
Forced Labour/Involuntary Labour
Wages
Others – please specify

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

Parameter	FY (Current	FY2022-23 (Previous Financial Year)
From renewable sources
Total electricity consumption in Mega Joules (A)	16842744	21251401
Total fuel consumption in Mega Joules (B)	0	0
Energy consumption through other sources (C)
Total energy consumed from renewable sources (A+B+C)	16842744	21251401
From non-renewable sources
Total electricity consumption in Mega Joules (D)	675144331	592597008
Total fuel consumption in Mega Joules (E)	409424781	351225432
Energy consumption through other sources (F)	0	0
Total energy consumed from non- renewable sources (D+E+F)	1084569112	943822440

Provide details of the following disclosures related to water, in the following format:

Parameter	FY (Current	2023-24 Financial Year)	FY 2022-23 (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water		0	0
(ii) Groundwater	186775		243765
(iii) Third party water	484902		134659
(iv) Seawater / desalinated water	0		0
(v) Others	0		0
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)	671677		378424
Total volume of water consumption (in kilolitres)	671677		378424
Water intensity per rupee of turnover(Total water consumption / Revenue from operations)	0.0000286909 kl/₹		0.00001380102
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)(Total water consumption / Revenue from operations adjusted for PPP)	0.000642677 kl/$₹		–
Water intensity in terms of physical output	4.742912221 kl/MT		–
Water intensity(optional) – the relevant metric may be selected by the entity	–		–

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

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4. Provide the following details related to water discharged:

Parameter	FY (Current	FY2022-23 (Previous Financial Year)
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(ii) To Groundwater
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(iii) To Seawater
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
(iv) Sent to third-parties
- No treatment	0	0
- With treatment – please specify level of treatment	70084	48666
(v) Others
- No treatment	0	0
- With treatment – please specify level of treatment	0	0
Total water discharged (in kilolitres)	70084	48666

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter	Unit	FY (Current	2023-24 Financial Year)	FY 2022-23 (Previous Financial Year)
Total Scope 1 emissions(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	Metric tonnes of CO2 equivalent		24843	20457
Total Scope 2 emissions(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available)	Metric tonnes of CO2 equivalent	172537		151441
Total Scope 1 and Scope 2 emission intensity per rupee of turnover(Total Scope 1 and Scope 2 GHG emissions / Revenue from operations)		0.0000084312 MTCO2e /₹		0.00000626907
Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)(Total Scope 1 and Scope 2 GHG emissions / Revenue from operations adjusted for PPP)		0.000188858 MTCO2e /$₹		–
Total Scope 1 and Scope 2 emission intensity in terms of physical output		1.393759224 MTCO2e/MT		–
Total Scope 1 and Scope 2 emission intensity(optional) – the relevant metric may be selected by the entity		–		–

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

NO

Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

NO

Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
Yes, the Company has taken up various projects to reduce the Green House Gas emissions, which includes installation of Solar Plants at various locations, the details of which are given below:

implementation.

Cosmo First Limited recognizes the need of efficient water resource management both within and outside of its working sites. Efforts are being undertaken to optimize the efficiency of water consumption while simultaneously ensuring its availability for all stakeholders.

Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

Parameter	Please specify unit	2023-24 Financial Year)	FY2022-23 (Previous Financial Year)
NOx	mg/NM3	28	25
SOx	mg/NM3	99	130
Particulate matter (PM)	mg/NM3	47	37
Persistent organic pollutants (POP)		NA	NA
Volatile organic compounds (VOC)		NA	NA
Hazardous air pollutants (HAP)		NA	NA
Others – please Specify		NA	NA

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

NO

Plant	Renewable units consumed (kwh)	Renewable units consumed (kwh)	MT of C02 equivalent	MT of C02 equivalent
	FY 2023-24	FY 2022-23	FY 2023-24	FY 2022-23
Waluj	1227591	1202688	1043	1022
Shendra	2524392	2701607	2146	2296
Karjan	24054227	1998872	20446	1699
Total	27806210	5903167	23635	5017

Provide details related to waste management by the entity, in the following format:

Parameter	FY (Current	FY 2022-23 (Previous Financial Year)
Total Waste generated (in metric tonnes)
Plastic waste(A)	9084	7769.89
E-waste(B)	0	0
Bio-medical waste(C)	0	0
Construction and demolition waste(D)	0	0
Battery waste(E)	0	0
Radioactive waste(F)	0	0
Other Hazardous waste. Please specify, if any.(G)	Spent oil - 4.79 MT Sludge - 29.78 MT	98.86

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Parameter	FY (Current	FY2022-23 (Previous Financial Year)
Other Non-hazardous waste generated(H). Please specify, if any. (Break-up by composition i.e. by materials relevant to the sector)	419 MT (Other Non HW like, Scrap, sweepage & Coal Ash)	2,158.92
Total (A+B + C + D + E + F + G + H)	9,537.57	10,027.67
Waste intensity per rupee of turnover(Total waste generated / Revenue from operations)	0.0000004074 MT/₹	–
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)(Total waste generated / Revenue from operations adjusted for PPP)	0.0000091258 MT/$₹	–
Waste intensity in terms of physical output	0.067347635 MT/MT	–
Waste intensity(optional) – the relevant metric may be selected by the entity	–	–
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)
Category of waste-Plastic Waste (MT)
(i) Recycled	24391	22594
(ii) Re-used	9744	9768
(iii) Other recovery operations	-	-
*Total*	34135	32362
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste	-	-
(i) Incineration	-	-
(ii) Landflling	-	-
(iii) Other disposal operations	-	-
*Total*	-	-

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

NO

Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

The Company has implemented a strong waste management system that supports the Company’s activities in order to effectively manage waste and ensures safe disposal in accordance with the waste management rules of the Pollution Control Board (PCB). The Company ensures that hazardous and non-hazardous waste generated by our operations are managed responsibly and are efficiently disposed of to minimize environmental impacts. The Company does not manage Hazardous waste at site. The Hazardous waste is sent to registered disposal facility as per consent conditions.

If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format:

S. No. Location of operations/offices Type of Whether the conditions of environmental operations approval / clearance are being complied with? (Y/N) If no, the reasons thereof and corrective action taken, if any.

Not Applicable, as the Company does not have any operations/offices in or around ecologically sensitive areas.

Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:

Name and brief details of project	EIA Notifcation No.	Date	Whether conducted by independent external agency (Yes / No)	Results communicated in public domain (Yes / No)	Relevant Web link
Not Applicable

Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:
Yes, the Company has complied with the applicable environmental laws/regulations/ guidelines applicable in India.

S. No.	Specify the law / regulation / guidelines which was not complied with	Provide details of the non- compliance	Any fnes / penalties / action taken by regulatory agencies such as pollution control boards or by courts	Corrective	action taken, if any
Not Applicable

PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

Essential Indicators

a. Number of affiliations with trade and industry chambers/ associations.

5

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a member of/ affiliated to.

S. No.	Name of the trade and industry chambers/ associations	Reach of trade and industry chambers/ associations (State/National)
1	Confederation of Indian Industry (CII)	National
2	Federation of Indian Chambers of Commerce & Industry (FICCI)	National
3	Organization of Plastics Processors of India (OPPI)	National
4	Label Manufacturers Association of India (LMAI)	National
5	All India Plastics Manufacturers Association (AIPMA)	National

Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity, based on adverse orders from regulatory authorities. Name of authority Brief of the case Corrective action taken Not Applicable as the Company has not received any adverse orders from regulatory authorities.

Leadership Indicators

Details of public policy positions advocated by the entity:

S. No.	Public policy advocated	Method resorted for such advocacy	Whether information available in public domain? (Yes/No)	Frequency of Review by Board (Annually/ Half yearly/ Quarterly / Others – please specify)	Web Link, if available
The Company strategically channels industry-specifc suggestions and contributions through active participation in trade bodies or associations, rather than direct public advocacy.

The Company strategically channels industry-specific suggestions and contributions through active participation in trade bodies or associations, rather than direct public advocacy.

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PRINCIPLE 8 Businesses should promote inclusive growth and equitable development Essential Indicators

Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

Name and brief details of project	SIA Notifcation No.	Date of notifcation	Whether conducted by independent external agency (Yes / No)	Results communicated in public domain (Yes / No)	Relevant Web link
Not Applicable, as there were no projects that required SIA as per the law in the current year.

Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format:

S. No.	Name of Project for which R&R is ongoing	State	District	No. of Project Affected Families (PAFs)	% of PAFs covered by R&R	Amounts paid to PAFs in the FY (In INR)
Not Applicable

Describe the mechanisms to receive and redress grievances of the community.

If we receive any grievances from the communities, we call the parties involved, have a mutual discussion with them, and decide on a solution that is viable for the community, and close the matter accordingly.

Percentage of input material (inputs to total inputs by value) sourced from suppliers:

	FY Current	2023-24 Financial Year	FY2022-23 Previous Financial Year
Directly sourced from MSMEs/ small Producers	The Company gives priority to suppliers in local community for sourcing of input material, baring speciality chemicals which are procured from sellers who may not be available in local vicinity.
Directly from within India

Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost

Location	2023-24 Financial Year	FY2022-23 Previous Financial Year
Rural	0	0
Semi-urban	0	0
Urban	0	0
Metropolitan	100%	100%

(Place to be categorized as per RBI Classification System - rural / semi-urban / urban / metropolitan)

Leadership Indicators

Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above):

Details of negative social impact identified Corrective action taken Not Applicable

Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies:

S. No.	State	Aspirational District	Amount spent (In INR)
Not undertaken projects in aspirational district

(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized /vulnerable groups? (Yes/No)

As stated in our Business code of Conduct, we do not discriminate on any basis while selecting our suppliers and provide equal opportunities for engagement to all potential suppliers. We encourage working with local suppliers or suppliers that are available in local vicinity (including small-scale industries). However, we have not specifically considered marginalized/ vulnerable groups in our supplier qualifying criteria.

(b) From which marginalized /vulnerable groups do you procure?

Not Applicable.

Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge	Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge	Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge	Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge	Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge	Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge	Details of the benefts derived and shared from the intellectual properties owned or acquired by your entity (in the current fnancial year), based on traditional knowledge
S. No.	Intellectual Property based on traditional knowledge		Owned/ Acquired (Yes/No)	Beneft shared (Yes / No)		Basis of calculating beneft share
Not Applicable
Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved.
Name of authority		Brief of the Case			Corrective action taken
Not Applicable

PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Cosmo First Limited has a strong complaint handling procedure to ensure that consumer complaints are addressed immediately and effectively. Further, to better understand its customers’ expectations, the Company communicates with them via email, specialized customer software, and other channels. The Company is constantly monitoring the complaints and taking appropriate action within the time frame set by the Company.
Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

	As a percentage to total turnover
Environmental and social parameters relevant to the product	Company is into B2B business and the products manufactured by it are not supplied to ultimate consumer directly, hence not applicable.
Safe and responsible
Usage Recycling and/or safe disposal

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Number of consumer complaints in respect of the following

	FY (Current	2023-24 Financial Year)	Remarks	FY 2022-23 (Previous Financial Year)	FY 2022-23 (Previous Financial Year)	Remarks
	Received during the year	Pending resolution at end of year		Received during the year	Pending resolution at end of year
Data privacy	NIL	NIL	NA	NIL	NIL	NA
Advertising	NIL	NIL	NA	NIL	NIL	NA
Cyber-security	NIL	NIL	NA	NIL	NIL	NA
Delivery of essential services	NIL	NIL	NA	NIL	NIL	NA
Restrictive Trade Practices	NIL	NIL	NA	NIL	NIL	NA
Unfair Trade Practices	NIL	NIL	NA	NIL	NIL	NA
Other	177	18	Pending due to further details awaited from the customers	206	10	NA

Leadership Indicators

Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).

Information on products and services of the entity can be accessed on the following web links:

a) https://www.cosmofrst.com/
b) https://www.cosmoflms.com/
c) https://www.cosmosunshield.com/ d) https://www.cosmochem.in/
e) https://www.cosmosyntheticpaper.com/
f) https://zigly.com/
Details of instances of product recalls on account of safety issues:

	Number	Reasons for recall
Voluntary recalls	NIL	Not Applicable
Forced recalls	NIL	Not Applicable

Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.
The Company has Information Technology Policy which is been further reviewed to match the latest cyber security laws and risk related to data privacy.
The web link for the current IT policy is as follows: https://cosmoupdates.com/empportal/index.php/front/ getPagedata/34
Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.
a. Undergone VAPT exercise and implemented remediations.
b. Implemented Centralized 24*7 Remote Monitoring (NOC) for IT Infrastructure & Network.
c. Implemented Centralized 24*7 Security Ops Centre (SOC) for cyber threat Identification, detection & remediation.
Provide the following information relating to data breaches:
a. Number of instances of data breaches: Nil
b. Percentage of data breaches involving personally identifiable information of customers: Nil
c. Impact, if any, of the data breaches: NA

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INDEPENDENT AUDITOR’S REPORT

To the Members of Cosmo First Limited (formerly ‘Cosmo Films Limited’)

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the accompanying standalone financial statements of Cosmo First Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2024, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matter described below to be the key audit matters to be communicated in our report:

Key audit matter

How our audit addressed the key audit matter

Derivative financial instruments

We assessed the design and implementation and tested the operating effectiveness of the key controls over management’s processes for valuation of derivative financial instruments. Our audit procedures included, but were not limited to, the following substantive procedures:

The Company has entered into various derivative contracts including foreign exchange forward contracts, currency options, cross currency swaps and interest rate swaps which are used to manage and hedge foreign currency exchange risks and interest rate risks.

• Obtained independent direct confirmations from banks to confirm the outstanding financial instruments in order to verify existence and rights.

The Company has reported net derivative financial assets at fair value of ₹ 0.70 Crores and net derivative financial liabilities at fair value of ₹ 0.11 Crores as of 31 March 2024.

• Reviewed the hedging strategy of the Company, economic relationship and hedge ratio between hedged items and hedging instruments to assess the hedge effectiveness of derivative contracts to the extent hedge accounting is applied.

The Company’s accounting policy on derivatives is disclosed in note 1 (iii) k) (iii) and related disclosures are included in note 46. The Company’s significant judgements in applying accounting policy are disclosed in note 1(v).

• Inspected the underlying agreements and deal confirmations for the derivatives.

The fair value of the derivative financial instruments is based on year-end quotes received from counterparty banks. In respect of designated hedging relationships, the Company measures the effectiveness thereof using valuation models, such as hypothetical derivative method.

Assessed whether the accounting policy is consistent with the requirements of Indian Accounting Standard 109 ‘Financial Instruments’.
Evaluated the appropriateness of disclosures in relation to financial risk management, derivative financial instruments and hedge accounting.

Key audit matter

How our audit addressed the key audit matter

Testing the fair valuation of derivative instruments and effectiveness of hedging relationships, where applicable, are complex exercises and hence required substantial involvement of senior personnel on the audit engagement with relevant experience.

We have also obtained written representations from management and those charged with governance on whether the significant assumptions used in valuation of derivatives are considered reasonable.

Accordingly, valuation of the derivative financial instruments and hedge accounting is determined to be a key audit matter.

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the standalone financial statements and our auditor’s report thereon.

The Board of Directors are also responsible for overseeing the Company’s financial reporting process.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to • the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; • selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

In preparing the standalone financial statements, • the management is responsible for assessing the Company’s ability to continue as a going concern,

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• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report to the extent applicable that:
(a) We have sought and obtained all the information and explanations which to the best

of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except for the matter stated in the paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31 March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164 (2) of the Act.
(f). The modifications relating to the maintenance of accounts and other matters connected therewith in respect of audit trail are as stated in the paragraph 2(b) above on reporting under Section 143(3)(b) of the Act and paragraph 2(i) (vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.

(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements – Refer Note 39 to the standalone financial statements.
As stated in note 19 to the financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that, to the best of it’s knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vi. The Company uses accounting software(s) for maintaining its books of account which has a feature of recording audit trail (edit log) facility and based on our examination which included test checks, the same has operated throughout the year for all relevant transactions recorded in such accounting software(s). However, with respect to the primary accounting software, the audit trail feature is not enabled for direct changes to data when using certain privileged/administrative access rights to the underlying database. As informed to us by the management of the Company, such privileged/administrative access rights to the database are with service provider only and changes, if any, are mandatorily recorded to sufficiently demonstrate its audit trail (edit log).
(b) The management has represented, that, to the best of it’s knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
- Further, to the extent audit trail (edit log) facility was enabled and operated throughout the year for the respective accounting software(s), we did not come across any instance of the audit trail feature being tampered with.
- As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended is applicable for the Company only with effect from 01 April 2023, therefore, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended, on preservation of audit trail as per the statutory requirements for record retention is not applicable for financial year ended 31 March 2024.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the For S.N. Dhawan & CO LLP circumstances, nothing has come Chartered Accountants to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) Rajeev Kumar Saxena contain any material misstatement.
Firm Registration No.: 000050N/N500045

Partner

Membership No.: 077974 UDIN: 24077974BKEZUF3729

v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.

Place: New Delhi Date : 15 May 2024

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ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of the Independent Auditor’s Report of even date to the members of Cosmo First Limited on the standalone financial statements as of and for the year ended 31 March 2024)

(i) a) A. The Company has maintained proper e) There are no proceedings which have been records showing full particulars, including initiated or are pending against the Company quantitative details and situation of for holding benami property under the property, plant and equipment and Benami Transactions (Prohibition) Act, 1988 relevant details of right of use assets and (45 of 1988) (as amended in 2016) and Rules investment properties. made thereunder.
- B. The Company has maintained proper (ii) a) The management has conducted physical records showing full particulars of verification of inventory at reasonable intervals intangible assets. during the year (except for goods-in-transit, in respect of which, the goods have been
- The Company has a regular program of received subsequent to year end). According to physical verification of its property, plant and the information and explanations given to us equipment, right of use assets and investment and based on the audit procedures performed property under which all these assets are by us, we are of the opinion that the coverage verified at least once in every three years, and procedure of such verification by the which, in our opinion, is reasonable having management is appropriate and no material regard to the size of the Company and the discrepancies of 10% or more in the aggregate nature of its assets. In accordance with this for each class of inventory were noticed on program, physical verification was conducted physical verification as compared to the by management during the previous financial book records.
b. The Company has a regular program of physical verification of its property, plant and equipment, right of use assets and investment property under which all these assets are verified at least once in every three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, physical verification was conducted by management during the previous financial year by engaging an outside expert and according to the information and explanations given to us, no material discrepancies were noticed on such verification
b) According to the information and explanations given to us, during the year, the Company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks or financial institutions on aggregate basis, are in agreement with the unaudited books of account of the Company, for the respective quarters, except for some differences due to non-reporting of advances received from customers primarily comprising of subsidiaries, and other differences due to filing of quarterly returns or statements with banks based on the provisional financial statements and subsequent corrections being carried out in the financial statements during limited reviews of respective quarters/ year end audit.
c) According to the information and explanations given to us and based on the examination of the title deeds, mortgage deeds provided to us, we report that, the title deeds of all the immovable properties which are included under the head of property, plant and equipment and investment properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.
d) The Company has not revalued its property, plant and equipment (including right-of-use assets) and intangible assets during the year, being under cost model. Accordingly, the provisions of clause 3(i)(d) of the Order are not applicable.
(iv) According to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees, and security, as applicable.
(iii) a) According to the information and explanations given to us, the Company has made investments in companies and granted loans, secured or unsecured to other parties, during the year, the details of which are as follows:

Particulars	Loans
	(₹ in Crores)
Aggregate amount granted during the year - Chief executive offcer - Other employees	- 1.51	(v)
Balance outstanding as at balance sheet date in respect of above cases	4.48 2.78
- Chief executive offcer - Other employees

According to the information and explanations given to us, the Company has neither accepted any deposits nor the amounts which are deemed to be deposits during the year and further the Company had no unclaimed deposits at the beginning of the year within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

The Company has not provided any advances in the nature of loans, secured or unsecured, guarantee or security to companies, firms, Limited Liability Partnerships (LLPs) or any other parties.

(vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013 in respect of Company’s products. We have broadly reviewed the books of account maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of Company’s products and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained by the Company. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
b) In our opinion and according to the information and explanations given to us, the investments made and the terms and conditions of grant of all loans are not, prima facie, prejudicial to the Company’s interest.
c) According to the information and explanations given to us, in respect of aforesaid loans, the schedule of repayment of principal and payment of interest has been stipulated and, in our opinion, repayments/receipts of the principal amount and the interest are regular.
(vii) (a) In our opinion and according to the information and explanations given to us, undisputed statutory dues including goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and other material statutory dues, as applicable, have generally been regularly deposited to the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.
d) According to the information and explanations given to us, there is no overdue amount in respect of aforesaid loans granted to such other parties.
e) According to the information and explanations given to us, there are no loans or advances in the nature of loans granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties. Accordingly, the provisions of clause 3(iii)(e) of the Order are not applicable.
f) According to the information and explanations given to us, the Company has not granted any loans or advances in the nature of loans which are either repayable on demand or without specifying any terms or period of repayment. Accordingly, the provisions of clause 3(iii)(f) of the Order are not applicable.

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==> picture [73 x 18] intentionally omitted <==

b) According to the information and explanations given to us, there are no statutory dues referred to in sub-clause (a) that have not been deposited with the appropriate authorities on account of any dispute except for the following cases:

Name of the	Nature of	Amount	Amount paid	Period to which	Forum where dispute is
statute	dues	(₹ in Crores)	under protest	the amount	pending
			(₹ in Crores)	relates
Income-tax Act, 1961	Income tax Income tax	0.09 3.47	- 4.55	(Financial year) 2016-17 2012-13	Income Tax Appellate Tribunal Income Tax Appellate Tribunal
	Income tax	1.00	1.00	2011-12	Income Tax Appellate Tribunal
	Income tax	1.22	1.62	2010-11	Income Tax Appellate Tribunal
	Income tax	5.57	6.61	2009-10	Income Tax Appellate Tribunal
	Income tax Income tax	2.98 1.76	3.07 -	2008-09 2005-06	Income Tax Appellate Tribunal High Court
	Income tax	4.71	4.71	2002-03	Hon’ble Supreme Court of India
	Income tax	1.40	-	1997-98	High Court
Central Excise	Excise duty	16.10	1.83	2005-06 to	Appellate Tribunal
Act, 1944				2017-18
	Excise duty	0.75	-	2015-16 to 2017-18	Assistant Commissioner
	Service tax	0.99	0.12	2006-07, 2012- 13 to 2017-18	Appellate Tribunal
	Service tax	1.65	0.10	2009-10 to 2014-15	Assistant Commissioner
	Goods and	17.82	0.82	2017-18 to	Commissioner (Appeals)
	service tax			2020-21

e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has neither taken any funds from any entity or person during the year nor it has raised funds through issue of shares or borrowings on account of or to meet the obligations of its subsidiaries.
(viii) According to the information and explanations given to us, there are no such transactions which were not recorded in the books of account earlier and have been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (43 of 1961).
(ix) a) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries.
b) According to the information and explanations given to us, we report that the Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(x) a) According to the information and explanations given to us, the Company did not raise moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, the provisions of clause 3(x) (a) of the Order are not applicable.
c) In our opinion and according to the information and explanations given to us, the term loans were applied for the purposes for which the loans were obtained.
b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally). Accordingly, provisions of clause 3(x)(b) of the Order are not applicable.
d) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.
(xi) a) To the best of our knowledge and according (xvii) The Company has not incurred cash losses in the to the information and explanations given to current financial year and in the immediately us, no material fraud by the Company or on preceding financial year. the Company has been noticed or reported during the period covered by our audit. (xviii) There has been no resignation of the statutory
- (xviii) There has been no resignation of the statutory auditors during the year.
b) No report under sub-section (12) of Section 143 of the Act has been filed in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 (as amended) with
- (xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on
the Central Government, during the year and upto the date of this report
c) As represented to us by the management, there are no whistle blower complaints received by the Company during the year.
our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion and according to the information and explanations given to us, all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
(xiv) a) In our opinion and based on our examination, the Company has an internal audit system commensurate with the size and nature of its business.
- (xx) a) There is no unspent amounts towards Corporate Social Responsibility (“CSR”) on other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act.
b) We have considered the internal audit reports of the Company issued till date, for the period under audit.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.
```
 - b) In respect of ongoing projects, the Company has transferred unspent amount to a special account, within a period of thirty days from the end of the financial year in compliance with Section 135(6) of the said Act.
```
- (xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements. Accordingly, no comment in respect of the said clause has been included in this report.
(xvi) a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provisions of clause 3(xvi)(a) of the Order are not applicable.
b) The Company has not conducted non-banking financial or housing finance activities during the year.

For S.N. Dhawan & CO LLP

Chartered Accountants

Firm Registration No.: 000050N/N500045
c) The Company is not a Core Investment Company (“CIC”) as defined in the regulations Rajeev Kumar Saxena made by the Reserve Bank of India. Partner Accordingly, provisions of clause 3(xvi)(c) of Membership No.: 077974 the Order are not applicable. UDIN: 24077974BKEZUF3729
d) The Group has no CIC which are part Place: New Delhi of the Group. Date:

Date: 15 May 2024

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ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2(g) under ‘Report on Other Legal and Regulatory Requirements’ section of the Independent Auditor’s Report of even date to the members of Cosmo First Limited on the standalone financial statements as of and for the year ended 31 March 2024)

controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.

Independent Auditor’s report on the Internal Financial Controls with reference to financial statements under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We have audited the internal financial controls with reference to financial statements of Cosmo First Limited (“the Company”) as of 31 March 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to the financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Company’s business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system with reference to financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by the Institute of Chartered Accountants of India (“the ICAI”) and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion, the Company has, in all material respects, adequate internal financial controls systems with reference to financial statements and such internal financial controls with reference to financial statements

were operating effectively as at 31 March 2024, based on the internal financial control with reference to the financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S.N. Dhawan & CO LLP

Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena

Partner Membership No.: 077974 UDIN: 24077974BKEZUF3729

Place: New Delhi Date: 15 May 2024

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STANDALONE BALANCE SHEET as at 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

STANDALONE STATEMENT OF PROFIT AND LOSS

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars Note no.	As at 31 March 2024 As at 31 March 2023
ASSETS Non-current assets a) Property, plant and equipment 2 1,410.68 1,316.95 b) Capital work-in-progress 3 262.84 140.07 c) Investment property 4 7.81 7.93 d) Intangible assets 5 14.40 6.38 e) Right of use assets 6 66.46 40.54 f) Financial assets (i) Investments 7 260.34 244.27 (ii) Loans 8 4.68 5.59 (iii) Other fnancial assets 9 3.35 3.65 g) Income tax assets (net) 32.04 33.19 h) Other non-current assets 10 92.21 112.61 2,154.81 1,911.18 Current assets a) Inventories 11 365.19 344.58 b) Financial assets (i) Investments 12 369.21 374.80 (ii) Trade receivables 13 242.57 157.49 (iii) Cash and cash equivalents 14 11.60 10.47 (iv) Bank balance other than (iii) above 15 10.57 13.12 (v) Loans 16 1.99 1.47 (vi) Other fnancial assets 17 95.36 54.01 c) Other current assets 18 133.20 80.90 1,229.69 1,036.84 TOTAL ASSETS 3,384.50 2,948.02 EQUITY AND LIABILITIES Equity a) Equity share capital 19 26.25 26.25 b) Other equity 20 1,148.11 1,121.05 1,174.36 1,147.30 Liabilities Non-current liabilities a) Financial liabilities (i) Borrowings 21 680.36 546.37 (ii) Lease liabilities 63.99 38.00 b) Provisions 22 19.67 18.07 c) Deferred tax liabilities (net) 23 155.14 159.78 d) Other non-current liabilities 24 54.94 57.58 974.10 819.80 Current liabilities a) Financial liabilities (i) Borrowings 25 283.25 291.82 (ii) Lease liabilities 5.04 4.16 (iii) Trade payables (a) Total outstanding dues of micro and small enterprises 26 7.98 6.34 (b) Total outstanding dues of creditors other than micro and small enterprises 26 685.30 502.92 (iv) Other fnancial liabilities 27 88.54 71.27 b) Other current liabilities 28 151.41 90.48 c) Provisions 29 14.52 13.93 1,236.04 980.92 TOTAL EQUITY AND LIABILITIES 3,384.50 2,948.02 Summary of material accounting policies 1 The accompanying summary of material accounting policies and other explanatory information are an integral part of the standalone fnancial statements.	1,410.68 1,316.95 262.84 140.07 7.81 7.93 14.40 6.38 66.46 40.54 260.34 244.27 4.68 5.59 3.35 3.65 32.04 33.19 92.21 112.61
	2,154.81 1,911.18
	365.19 344.58 369.21 374.80 242.57 157.49 11.60 10.47 10.57 13.12 1.99 1.47 95.36 54.01 133.20 80.90
	1,229.69 1,036.84
	3,384.50 2,948.02
	26.25 26.25 1,148.11 1,121.05
	1,174.36 1,147.30
	680.36 546.37 63.99 38.00 19.67 18.07 155.14 159.78 54.94 57.58
	974.10 819.80
	283.25 291.82 5.04 4.16 7.98 6.34 685.30 502.92 88.54 71.27 151.41 90.48 14.52 13.93
	1,236.04 980.92
	3,384.50 2,948.02

This is the Balance Sheet referred to in our report of even date.

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited

(formerly Cosmo Films Limited)

Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena Ashok Jaipuria Anil Kumar Jain Partner Chairman & Managing Director Director Corporate Affairs Membership No.: 077974 DIN: 00214707 DIN: 00027911 Place : New Delhi Pankaj Poddar Neeraj Jain Jyoti Dixit Date : 15 May 2024 Chief Executive Officer Chief Financial Officer Company Secretary Membership No.: 096861 Membership No.: 097576 Membership No.: F6229

Particulars Note no.	Year ended 31 March 2024 Year ended 31 March 2023
Income Revenue from operations 30 2,391.09 2,741.73 Other income 31 65.01 57.71 Total income 2,456.10 2,799.44 Expenses Cost of materials consumed 1,686.59 1,850.50 Purchase of traded goods 19.66 7.55 Change in inventory of fnished goods and stock in trade 32 (25.34) 5.75 Employee benefts expense 33 165.42 168.90 Depreciation and amortisation expense 34 85.16 69.08 Finance costs 35 84.95 51.46 Allowance for expected credit losses 1.05 (0.01) Other expenses 36 395.28 371.20 Total expenses 2,412.77 2,524.43 Proft before tax 43.33 275.01 Tax expense - Current tax 37 7.79 48.06 - Deferred tax expense/(credit) (3.28) 19.64 - Tax pertaining to prior years 0.05 (6.33) Total tax expense 4.56 61.37 Net proft for the year 38.77 213.64 Other comprehensive income 1) Items that will not be reclassifed to proft or loss - Remeasurements of net defned beneft plans 0.96 0.76 - Tax on above items (0.34) (0.27) 2) Items that will be reclassifed to proft or loss - Effective portion of gain/(loss) on hedging instrument in cash fow hedge (4.88) (22.71) - Net changes in fair value of debt instruments carried at fair value through other comprehensive income 0.27 (2.43) - Tax on above items 1.61 8.79 Total other comprehensive income (2.38) (15.86) Total comprehensive income 36.39 197.78 Earnings per equity share 38 - Basic 14.95 79.57 - Diluted 14.74 78.33 Summary of material accounting policies 1 The accompanying summary of material accounting policies and other explanatory information are an integral part of the standalone fnancial statements.	2,391.09 2,741.73 65.01 57.71
	2,456.10 2,799.44
	1,686.59 1,850.50 19.66 7.55 (25.34) 5.75 165.42 168.90 85.16 69.08 84.95 51.46 1.05 (0.01) 395.28 371.20
	2,412.77 2,524.43
	43.33 275.01
	7.79 48.06 (3.28) 19.64 0.05 (6.33)
	4.56 61.37
	38.77 213.64
	0.96 0.76 (0.34) (0.27) (4.88) (22.71) 0.27 (2.43) 1.61 8.79
	(2.38) (15.86)
	36.39 197.78
	14.95 79.57 14.74 78.33

This is the Statement of Profit and Loss referred to in our report of even date.

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited Chartered Accountants (formerly Cosmo Films Limited) Firm Registration No.: 000050N/N500045

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Statutory Reports

==> picture [73 x 18] intentionally omitted <==

STANDALONE STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

A. EQUITY SHARE CAPITAL

A. EQUITY SHARE CAPITAL
Opening balance as at 1 April 2022	18.17
Issue of bonus shares	9.09
Buyback of shares	(1.01)
Closing balance as at 31 March 2023	26.25
Changes during the year	-
Closing balance as at 31 March 2024	26.25

B. OTHER EQUITY

			Rese	rves and surplus	rves and surplus			Items of ot	her comprehensive income	Treasury Shares	Total
	Retained earnings	Securities premium	Share options outstanding account	Capital reserve	Special Economic Zone (SEZ) Re- investment reserve	General reserve	Capital Redemption Reserve	Effective portion of cash fow hedges	Debt instruments through other comprehensive income
Balance as at 1 April 2022	829.18	7.42	6.60	3.32	-	230.86	1.27	5.71	1.36	(16.00)	1,069.72
Proft for the year	213.64	-	-	-	-	-	-	-	-	-	213.64
Other comprehensive income for the year	0.49	-	-	-	-	-	-	(14.77)	(1.58)	-	(15.86)
Total comprehensive income for the year	214.13	-	-	-	-	-	-	(14.77)	(1.58)	-	197.78
Transaction with owners
Buyback of equity share capital including expenses thereto	-	-	-	-	-	(132.77)	-	-	-	-	(132.77)
Transfer from general reserve on account of buyback of equity share capital	-	-	-	-	-	(1.01)	1.01	-	-	-	-
Issue of Bonus shares	-	(4.50)	-	(3.32)	-	-	(1.27)	-	-	-	(9.09)
Employee stock option expense	-	-	6.45	-	-	-	-	-	-	-	6.45
Transfer from share option outstanding on exercise and lapse	-	0.54	(0.54)	-	-	-	-	-	-	-	-
Sale/ (acquisition) of treasury shares (Net)	-	(2.61)	-	-	-	-	-	-	-	(8.43)	(11.05)
Balance as at 31 March 2023	1,043.31	0.85	12.51	-	-	97.08	1.01	(9.06)	(0.22)	(24.43)	1,121.05

STANDALONE STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

==> picture [495 x 319] intentionally omitted <==

----- Start of picture text -----

Reserves and surplus Items of other Treasury Total
comprehensive income Shares
Retained Securities Share Capital Special General Capital Effective Debt
earnings premium options reserve Economic reserve Redemption portion of instruments
outstanding Zone Reserve cash flow through other
account (SEZ) Re- hedges comprehensive
investment income
reserve
Balance as at 1 1,043.31 0.85 12.51 - - 97.08 1.01 (9.06) (0.22) (24.43) 1,121.05
April 2023
Profit for the year 38.77 - - - - - - - - - 38.77
Other 0.62 - - - - - - (3.17) 0.17 - (2.38)
comprehensive
income for the
year
Total 39.39 - - - - - - (3.17) 0.17 - 36.39
comprehensive
income for the
year
Transaction with
owners
Equity Dividend (12.97) - - - - - - - - - (12.97)
Transfer to - - - - 42.70 (42.70) - - - - -
Special Economic
Zone (SEZ)
Re-investment
reserve refer note
20 (iv)
Employee stock - - 6.44 - - - - - - - 6.44
option expense
Transfer from - 1.88 (1.88) - - - - - - - -
share option
outstanding on
exercise and
lapse
Sale/(acquisition) - (2.73) - - - (6.63) - - - 6.56 (2.80)
of treasury shares
(Net)
Balance as at 31 1,069.73 - 17.07 - 42.70 47.75 1.01 (12.23) (0.05) (17.87) 1,148.11
March 2024
----- End of picture text -----

Summary of material accounting policies 1 The accompanying summary of material accounting policies and other explanatory information are an integral part of the standalone financial statements. This is the Statement of Changes in Equity referred to in our report of even date.

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited Chartered Accountants (formerly Cosmo Films Limited) Firm Registration No.: 000050N/N500045

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Statutory Reports

==> picture [73 x 18] intentionally omitted <==

STANDALONE STATEMENT OF CASH FLOWS

for the year ended 31 March 2024

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(All amounts in ₹ Crores, unless otherwise stated)
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
A. Cash fow from operating activities Proft before tax Adjustment for Depreciation and amortisation expense Finance costs Interest on fnancial assets carried at amortised cost Gain on investments carried at fair value through proft and loss Loss on investments carried at fair value through other comprehensive income Dividend income Increase/(decrease) in allowance for expected credit losses Interest Income Grant income on export promotion capital goods Liabilities no longer required written back (Gain)/loss on sale of property, plant and equipment Employee share based compensation Unrealised loss/(gain) on exchange fuctuation Unrealised claims recoverable Unrealised sales tax incentives Gain on derivatives classifed under other comprehensive income Operating proft before working capital changes Adjustment for Inventories Trade receivables Other fnancial assets Loans Other assets Trade payables Other fnancial liabilities Other liabilities and provisions Cash fow from operating activities post working capital changes Income tax paid (net) Net cash fow from operating activities (A) B. Cash fow from investing activities Purchase of property, plant and equipment, intangible assets and capital work in progress (including capital advances) Sale of property, plant and equipment Sale/(purchase) of current and non-current investments (net) Purchase of non-current investments in subsidiaries Interest received Dividend received Investments in / (redemption of) fxed deposits (net) Net cash fow used in investing activities (B) C. Cash fow from fnancing activities Proceeds from long term borrowings Repayment of long term borrowings (Repayment) of / proceeds from short term borrowings (net) Sale/(acquisition) of treasury shares (net) Interest paid Dividend paid Buyback of equity shares including expenses and tax Payment of lease liabilities Net cash fow from/(used) in fnancing activities (C) Increase/(decrease) in net cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year (refer note 14) Cash and cash equivalents at the end of the year (refer note 14)	43.33 275.01 85.16 69.08 84.95 51.46 (1.06) (0.32) (27.40) (12.14) 0.88 0.97 (0.60) (0.55) 1.05 (0.01) (13.82) (15.41) (3.60) (3.27) - (6.36) (2.90) 0.33 6.44 6.45 2.18 (2.86) (0.83) (5.93) (18.96) (6.27) (3.71) (3.93)
	151.11 346.25
	(20.61) 13.04 (84.67) 40.12 (48.74) (26.58) 0.40 0.40 (34.31) (23.08) 183.04 168.26 (5.78) (14.98) 65.01 49.13
	205.45 552.56
	(7.06) (60.33)
	198.39 492.23
	(257.12) (338.58) 3.50 0.75 15.79 35.67 - (81.10) 14.14 16.10 0.60 0.55 2.51 1.85
	(220.58) (364.76)
	306.28 203.42 (151.67) (139.46) (26.51) (6.53) (2.80) (11.06) (83.38) (50.26) (12.97) - - (133.78) (5.63) (2.07)
	23.32 (139.74)
	1.13 (12.27) 10.47 22.74
	11.60 10.47

Summary of material accounting policies 1 The accompanying summary of material accounting policies and other explanatory information are an integral part of the standalone financial statements.

This is the Statement of Cash Flows referred to in our report of even date.

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited Chartered Accountants (formerly Cosmo Films Limited) Firm Registration No.: 000050N/N500045 Rajeev Kumar Saxena Ashok Jaipuria Anil Kumar Jain Partner Chairman & Managing Director Director Corporate Affairs Membership No.: 077974 DIN: 00214707 DIN: 00027911 Place : New Delhi Pankaj Poddar Neeraj Jain Jyoti Dixit Date : 15 May 2024 Chief Executive Officer Chief Financial Officer Company Secretary Membership No.: 096861 Membership No.: 097576 Membership No.: F6229

1. CORPORATE INFORMATION, BASIS OF PREPARATION AND SUMMARY OF MATERIAL ACCOUNTING POLICIES

i) Corporate information

Cosmo First Limited (formerly Cosmo Films Limited) (the ‘Company’), manufacturers of Bi-axially Oriented Polypropylene Films (BOPP) was incorporated in India in 1981, under the Companies Act, 1956. The Company is engaged in the production of flexible packaging films. Company’s products majorly comprise of BOPP Films, Thermal Films and Coated Films. In India, the Company is currently having manufacturing facilities at Waluj and Shendra in Aurangabad, Maharashtra and at Karjan in Gujarat. It also has its subsidiaries operating in different countries.

In addition to the above, Cosmo First Limited also owns Zigly, a tech- enabled omnichannel brand that provide a range of premium products and services for pet grooming, veterinary care and behaviour training. With Zigly, customers can choose from a variety of top-of-the-line pet products and explore the world of happy pets at great prices.

Further to it, during the current financial year,

the Company invested into Rigid Packaging which includes Rigid sheets, Thermoforming and Injection Moulding. Cosmo Plastech is the end-toend rigid packaging solution that specializes in creating customized packaging solutions for a variety of fast-moving consumer goods (FMCG) products.

Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

These financial statements are separate financial statements of the Company. The Company has also prepared consolidated financial statements for the year ended 31 March 2024 in accordance with Ind AS 110 and the same were also approved for issue by the Board of Directors, along with these financial statements on 15 May 2024.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements. The financial

statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
fair value.

ii) Material accounting policies

a) Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification.

An asset is treated as current when it is:

Expected to be realised or intended to be sold or consumed in normal operating cycle,
Held primarily for the purpose of trading,
Expected to be realised within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle,
It is held primarily for the purpose of trading,
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

b) Property, plant and equipment

The residual values, useful lives and method of depreciation of are reviewed at each financial year end and adjusted prospectively, if appropriate.

Recognition and initial measurement

Property, plant and equipment are stated at their cost of acquisition. The cost comprises the purchase price, borrowing cost (if capitalisation criteria are met) and any attributable costs of bringing the asset to its working condition for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Property, plant and equipment acquired in a business combination are recognised at fair value at the acquisition date. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits attributable to such subsequent cost associated with the item will flow to the Company. All other repair and maintenance costs are recognised in statement of profit or loss as incurred.

Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, or significant components replaced; depreciation on such assets is calculated on a pro rata basis as individual assets with specific useful life from the month of such addition or, as the case may be, up to the month on which such asset has been sold, discarded, demolished or destroyed or replaced.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

In case an item of property, plant and equipment is acquired on deferred payment basis, interest expenses included in deferred payment is recognised as interest expense and not included in cost of asset.

Subsequent measurement (depreciation and

c) Investment property

useful lives)

Recognition and initial measurement

Depreciation on property, plant and equipment is provided on the straight line method arrived on the basis of the useful life prescribed under Schedule II of the Companies Act, 2013. The following useful life of assets has been taken by the Company:

Investment properties are measured initially at cost, including transaction costs and where applicable, borrowing costs. Following initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The Company measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.

Tangible assets Building – Factory Building – Non factory	Useful life 30 years 60 years
Continuous process plant and	25 years
machinery
Plant and Machinery used in	40 years
generation, transmission and
distribution of power
Other plant and machinery	15 years
Furniture and fttings Vehicles	10 years 6-8 years
Offce equipment	3-5 years

Subsequent measurement (depreciation and

useful lives)

Subsequent to initial recognition, an expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Cost of the leasehold land and leasehold improvements are amortised over the period of the lease.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

Investment properties are depreciated over the useful economic life and assessed for impairment whenever there is an indication that the investment properties may be impaired.

	Intangible assets	Useful life (in years)
	Software	Amortised over a period of 6 years
	Brand name/trade	Amortised over a
	marks Customer database	period of 6 years Amortised over a period of 6 years

De-recognition

Investment properties are de-recognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.

Goodwill is initially recognised based on the accounting policy for business combinations and is tested for impairment annually.

De-recognition

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

d) Intangible assets

Recognition and initial measurement

Intangible assets acquired separately are measured on initial recognition at cost. Cost of intangible assets acquired in business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. Internally generated intangibles, excluding capitalized development cost, are not capitalized and the related expenditure is reflected in statement of profit and loss in the period in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

e) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest calculated using the effective interest method that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

f) Inventory

Subsequent measurement (depreciation and useful lives)

Inventories are stated at lower of cost or net realisable value. The cost in respect of the various items of inventory is computed as under:

All finite-lived intangible assets, including internally developed intangible assets, are accounted for using the cost model whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Raw material cost includes direct expenses and is determined on the basis of weighted average method.
Stores and spares cost includes direct expenses and is determined on the basis of weighted average method.
In case of finished goods, cost includes raw material cost plus conversion costs and other overheads incurred to bring the goods to their present location and condition.
Net realisable value is the estimated selling price in the ordinary course of business less any applicable selling expenses. Provision for obsolescence and slow moving inventory is made based on management’s best estimates of net realisable value of such inventories.

Residual values and useful lives are reviewed at each reporting date. The following useful lives are applied:

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

g) Foreign currency translation

to all lease contracts existing on 1 April 2019 using the modified retrospective method and elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition.

Functional and presentation currency

The financial statements are presented in Indian Rupees (INR or ₹) and are rounded to two decimal places of Crores, which is also the Company’s functional currency.

The Company as a lessee

Transactions and balances

The Company’s leased asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a 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.

Transactions in foreign currencies are initially recorded by the Company at its functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items as at reporting date are recognised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

At the date of commencement of the lease,

the Company recognises 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 recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

Exchange differences

As per the generally accepted accounting principles followed by the Company till 31 March 2017, exchange differences arising on translation/ settlement of long‐term foreign currency monetary items pertaining to the acquisition of a depreciable asset were adjusted to the cost of the asset. Exchange differences arising on other long-term foreign currency monetary items existing as on 31 March 2017 are accumulated in the “Foreign Currency Monetary Item Translation Difference Account” and amortised over the remaining life of the concerned monetary item. The Company has elected to continue with the said policy on exchange differences arising on long term foreign currency monetary items existing on 31 March 2017, as allowed under Ind AS 101.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

For this purpose, the Company treats a foreign monetary item as “long-term foreign currency monetary item”, if it has a term of 12 months or more at the date of its origination.

h) Leases

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

Transition

Effective 1 April 2019, the Company adopted Ind AS 116 “Leases” and applied the standard

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

All assets and liabilities for which fair value is measured or disclosed in the financial results are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is Unobservable.
i)

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period or each case.

In the principal market for the asset or liability, or
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

j) Revenue recognition - Sale of products and services

The Company recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the Balance Sheet. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognises either a contract asset or a receivable in its Balance Sheet, depending on whether something other than the passage of time is required before the consideration is due.

Sales (including scrap sales) are recognised when control of products is transferred to the buyer as per the terms of the contract and are accounted for net of returns and rebates. Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining benefits from goods. Sales, as disclosed, are exclusive of goods and services tax.

Income in respect of service contracts, which are generally in the nature of providing job work services, are recognised in Statement of Profit and Loss on completion of performance obligation.

k) Financial instruments

Financial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value.

The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. No element of financing is deemed present as the sales are largely made on advance payment terms or with credit term of not more than one year.

If the Company determines that the fair value at initial recognition differs from the transaction price, the Company accounts for that instrument at that date as follows:
At the measurement basis mentioned above if that fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a Level 1 input) or based on a valuation technique that uses only data from observable markets. The Company recognises the difference between the fair value at initial recognition and the transaction price as a gain or loss.

The transaction price is allocated by the Company to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods or services to the customer.

In all other cases, at the measurement basis mentioned above, adjusted to defer the difference between the fair value at initial recognition and the transaction price. After initial recognition, the Company recognises that deferred difference as a gain or loss only to the extent that it arises from a change in a factor (including time) that market participants would take into account when pricing the asset or liability.

For each performance obligation identified, the Company determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time. If the Company does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. A receivable is recognised when the goods are delivered as this is the case of point in time recognition where consideration is unconditional because only the passage of time is required.

Subsequent measurement of financial assets and financial liabilities is described below.

Financial assets

Classification and subsequent measurement

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

i. Financial assets at amortised cost – a financial instrument is measured at amortised cost if both the following conditions are met:

excluding dividends, are recognised in the other comprehensive income (OCI). There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

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

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in profit or loss.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest method. Effective interest rate (EIR) is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial assets. The future cash flows include all other transaction costs paid or received, premiums or discounts if any, etc.

• Mutual funds – All mutual funds in scope of Ind-AS 109 are measured at fair value through profit and loss (FVTPL).

• Bonds – All bonds are in scope of Ind-AS 109 and measured at fair value. Bonds which are held for the purpose of both collecting contractual cash flows and selling financial assets are classified as at fair value through other comprehensive income (FVOCI). Bonds which are held for the purpose of trading are classified as at fair value through profit and loss (FVTPL).

ii. Investments in equity instruments of subsidiaries - Investments in equity instruments of subsidiaries existing as at 1 April 2016, the date of transition to Ind AS, are accounted for at fair value at such date, as per the exemptions available in Ind AS 101. Other investments in equity instruments of subsidiaries are accounted for at their cost.
Derivative assets - All derivative assets are measured at fair value through profit and loss (FVTPL).

De-recognition of financial assets

A financial asset is primarily de-recognised 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.

iii. Financial assets at fair value

• Investments in equity instruments other than above – All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company’s senior management determines change in the business model as a result of external or internal changes

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument,

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

which are significant to the Company’s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

l) Hedge accounting

The Company enters into certain derivative financial instruments to manage its exposure to risk arising from changes in interest rate and foreign exchange rates which are designated as cash flow hedges. Further, the Company has designated certain non-derivative financial instruments in cash flow hedging relationship to manage its exposure to risk arising from changes in foreign exchange rates.

At the inception of a hedge relationship, the Company documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s cash flows attributable to the hedged risk.

Financial liabilities

Subsequent measurement

After initial recognition, the financial liabilities, other than derivative liabilities, are subsequently measured at amortised cost using the effective interest method.

Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The effect of EIR amortisation is included as finance costs in the Statement of Profit and Loss.

To qualify for hedge accounting, the hedging relationship must meet all of the following requirements:

All derivative liabilities are measured at fair value through profit and loss (FVTPL).

There is an economic relationship between the hedged item and the hedging instrument

De-recognition of financial liabilities

The effect of credit risk does not dominate the value changes that result from that economic relationship

A financial liability is de-recognised 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 de-recognition 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 or loss.

The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item.

For the period under audit, the Company has designated certain forward currency contracts, cross currency swaps and foreign currency risk component of borrowings in foreign currencies as hedging instruments in cash flow hedge relationships. The forward currency contracts and cross currency swaps have been entered into to mitigate foreign currency exchange risk arising from financial liabilities denominated in foreign currencies. Further, foreign currency risk component of borrowings in foreign currencies are designated to hedge the foreign currency risk

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.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

in certain highly probable sales transactions denominated in foreign currency.

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets carried at amortised cost.

Cash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):

(i) The cumulative gain or loss on the hedging instrument from inception of the hedge; and
ECL is the weighted average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:
(ii) The cumulative change in fair value (present value) of the hedged item (i.e. the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge.

All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported subsequently at fair value in the Balance Sheet. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income. Any ineffectiveness in the hedge relationship is recognised immediately in profit or loss.

All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade receivables

i. For debtors that are not past due – The Company applies approach permitted by Ind AS 109 ‘Financial Instruments’, which requires lifetime expected credit losses to be recognised upon initial recognition of receivables. Lifetime expected credit losses are the expected credit losses resulting from all possible default events over the expected life of a financial instrument.
At the time the hedged item affects profit or loss, any gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss and presented as a reclassification adjustment within other comprehensive income. However, if a non-financial asset or liability is recognised as a result of the hedged transaction, the gains and losses previously recognised in other comprehensive income are included in the initial measurement of the hedged item.
Life time expected credit losses are assessed and accounted based on company’s historical counter party default rates and forecast of macro-economic factors, by dividing receivables that are not considered to be individually significant by reference to the business segment of the counter party and other shared credit risk characteristics to evaluate the expected credit loss. The expected credit loss estimate is then based on recent historical counter party default rates. The Company defines default as an event when the financial asset is past due for more than 365 days. This definition is based on management’s expectation of the time period beyond which if a receivable is outstanding, it is an objective evidence of impairment.
If a forecast transaction is no longer expected to occur, any related gain or loss recognised in other comprehensive income is transferred immediately to profit or loss. If the hedging relationship ceases to meet the effectiveness conditions, hedge accounting is discontinued and the related gain or loss is held in the cash flow hedge reserve until the forecast transaction occurs.

m) Impairment of financial assets

All financial assets except for those at FVTPL are subject to review for impairment at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets.
ii. For debtors considered past due – any enhancement in the accrual done for

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability are recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

expected credit loss on individually significant receivables is made to recognise any additional expected credit loss on amount recoverable. The Company writes off trade receivables when there is no objective evidence that such amounts would not be recovered. Financial assets that are written-off are still subject to enforcement activity by the Company.

Other financial assets

Other employee benefits

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12 month expected credit losses, else at an amount equal to the lifetime expected credit losses.

Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

n) Post- employment and other employee benefits

Defined contribution plan

Other short term benefits

Provident fund

Expense in respect of other short-term benefits is recognised on the basis of amount paid or payable for the period during which services are rendered by the employees.

The Company makes contribution to statutory provident fund in accordance with Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognised as an expense in the period in which services are rendered by the employee.

o) Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present obligation, as a result of past events and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Superannuation fund

Superannuation is a post-employment benefit defined contribution plan under which the company pays specified contributions to the insurer. The company makes specified quarterly contributions to the superannuation fund. The contribution paid or payable is recognised as an expense in the period in which the services are rendered by the employee.

Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

Defined benefit plans

The Company operates a defined benefit gratuity plan in India. The cost of providing benefits under the defined benefit plan is determined on the basis of actuarial valuation using the projected unit credit method. Gratuity fund is administered through Life Insurance Corporation of India.

Possible obligations which will be confirmed only by future events not wholly within the control of the Company or
Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

p) Earnings per share

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. The carrying amount of deferred tax assets are reviewed at each balance sheet date and derecognised to the extent it is no longer probable that sufficient future taxable profits will be available against which such deferred tax assets can be realised.

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations.

q) Taxes

Minimum Alternate Tax (‘MAT’) credit is recognised as an asset only when and to the extent it is probable that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not probable that the Company will pay normal income tax during the specified period.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

r) Government grants and subsidies

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

When the grant or subsidy relates to revenue, it is recognised as income on a systematic basis in the Statement of Profit and Loss over the periods necessary to match them with the related costs, which they are intended to

Deferred tax

Deferred tax is provided using the liability method on temporary differences between

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

u) Cash and cash equivalents

compensate. Where the grant relates to an asset, it is recognised as deferred income and released to income in equal amounts over the expected useful life of the related asset.

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less.

s) Employee share based payments

The Company has granted stock options/ restricted stock units under Cosmo Films Employees Stock Option Plan 2015/ Share Based Employee Benefit Scheme, 2021 to the employees of the Company and its subsidiaries. The fair value of options granted under Employee Stock Option Plan is recognised as an employee benefits expense with a corresponding increase in share options outstanding account. The total amount to be expensed is determined by reference to the fair value of the options. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to share options outstanding account. Upon exercise of share options, the proceeds received are allocated to share capital up to the par value of the shares issued with any excess being recorded as share premium.

(iii) Other accounting policies

a) Impairment of non-financial assets

For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level.

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists then the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. Impairment losses previously recognised are accordingly reversed in the Statement of Profit and Loss.

t) Business combination

Business combinations are accounted for using the acquisition accounting method as at the date of the acquisition, which is the date at which control is transferred to the Company. The consideration transferred in the acquisition and the identifiable assets acquired and liabilities assumed are recognised at fair values on their acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. Consideration transferred does not include amounts related to settlement of pre-existing relationships. Such amounts are recognised in the standalone statement of profit and loss. Transaction costs are expensed in the standalone statement of profit and loss as incurred.

To determine value-in-use, management estimates expected future cash flows from each cash-generating unit and determines a suitable discount rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Company’s latest approved budget, adjusted as necessary to exclude the effects of future re-organisations and asset enhancements. Discount factors are determined individually for each cash-generating unit and reflect current market assessment of the time value of money and asset-specific risk factors.

b) Non-current assets held for sale An entity shall classify a non-current asset as held for sale if its carrying amount will

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset and its sale is highly probable. Management must be committed to sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

Allocation of common costs

Common allocable costs are allocated to each segment accordingly to the relative contribution of each segment to the total common costs.

Unallocated items

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

Non-current assets classified as held for sale are presented separately and measured at the lower of their carrying amounts immediately prior to their classification as held for sale and their fair value less costs to sell. However, some held for sale assets such as financial assets, assets arising from employee benefits and deferred tax assets, continue to be measured in accordance with the Company’s relevant accounting policy for those assets. Once classified as held for sale, the assets are not subject to depreciation or amortisation.

Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial results of the Company as a whole.

(iv) Significant management judgement in applying accounting policies and estimation uncertainty

c) Treasury shares

The following are the critical judgments and the key estimates concerning the future that management has made in the process of applying the Company’s accounting policies and that may have the most significant effect on the amounts recognised in the financial statements or that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Treasury shares are presented as a deduction from equity. The original cost of treasury shares and the proceeds of any subsequent sale are presented as movements in equity.

d) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

Allowance for expected credit losses – The allowance for doubtful debts reflects management’s estimate of losses inherent in its credit portfolio. This allowance is based on Company’s estimate of the losses to be incurred, which derives from past experience with similar receivables, current and historical past due amounts, write-offs and collections, the careful monitoring of portfolio credit quality and current and projected economic and market conditions. The Company has also taken into account estimates of possible effect from the pandemic relating to COVID-19. Should the present economic and financial situation persist or even worsen, there could be a further deterioration in the financial situation of the Company’s debtors compared to that already taken into consideration in calculating the allowances recognised in the financial statements.

Identification of segments

In accordance with Ind AS 108 – Operating Segment, the operating segments used to present segment information are identified on the basis of information reviewed by the Company’s management to allocate resources to the segments and assess their performance. An operating segment is a component of the Company that engages in business activities from which it earns revenues and incurs expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. Results of the operating segments are reviewed regularly by the management team which has been identified as the chief operating decision maker (CODM), to make decisions about

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Allowance for obsolete and slow-moving inventory – The allowance for obsolete and slow-moving inventory reflects management’s estimate of the expected loss in value, and has been determined on the basis of past experience and historical and expected future trends in the market. A worsening of the economic and financial situation could cause a further deterioration in conditions compared to that taken into consideration in calculating the allowances recognised in the financial statements.

Recognition of deferred tax assets – The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

Evaluation of indicators for impairment of assets – The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

Provisions – At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Useful lives of depreciable/ amortisable assets – Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) – Management’s estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Fair value measurements – Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

Contingent liabilities – The Company is the subject of legal proceedings and tax issues covering a range of matters, which are pending in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the final outcome of such matters. The cases and claims against the Company often raise difficult and complex factual and legal issues, which are subject to many uncertainties, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the differences in applicable law. In the normal course of business management consults with legal counsel and certain other experts on matters related to litigation and taxes. The Company accrues a liability when it is determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated.

2 PROPERTY, PLANT AND EQUIPMENT

Particulars			Owned assets	Owned assets			Leased assets	Leased assets	Total
	Freehold land	Buildings	Plant and equipment	Furniture and fxtures	Vehicles	Offce equipment	Leasehold land	Leasehold improvements
Gross carrying value As at 1 April 2022 Additions Disposals Foreign exchange fuctuation	18.96 - - -	187.92 55.10 - -	1,231.38 377.27 (0.17) 4.90	10.63 1.85 (0.18) -	16.06 3.93 (1.49) -	22.34 2.33 (1.52) -	95.89 4.76 - -	1.80 5.52 - -	1,584.98 450.76 (3.36) 4.90
As at 31 March 2023 Additions Acquisitions through business combination (refer note 52) Disposals/ adjustments Foreign exchange fuctuation	18.96 - - - -	243.02 13.09 - (0.62) -	1,613.38 146.61 0.01 (1.28) 0.13	12.30 2.67 0.06 (0.02) -	18.50 1.36 - (0.29) -	23.15 2.21 0.17 - -	100.65 - - - -	7.32 2.91 0.01 (0.52) -	2,037.28 168.85 0.25 (2.73) 0.13
As at 31 March 2024	18.96	255.49	1,758.85	15.01	19.57	25.53	100.65	9.72	2,203.78
Accumulated depreciation As at 1 April 2022 Charge for the year Disposals/ adjustments As at 31 March 2023 Charge for the year Disposals/ adjustments	- - -	56.82 5.77 -	559.41 51.40 (0.01)	8.54 0.49 (0.01)	8.20 1.96 (0.91)	18.20 1.74 (1.41)	7.82 1.46 -	0.17 0.69 -	659.16 63.51 (2.34)
	-	62.59	610.80	9.02	9.25	18.53	9.28	0.86	720.33
	- -	6.81 (0.59)	60.79 (1.22)	0.52 (0.01)	1.87 (0.13)	2.03 (0.01)	1.45 -	1.43 (0.17)	74.90 (2.13)
As at 31 March 2024	-	68.81	670.37	9.53	10.99	20.55	10.73	2.12	793.10
Net carrying amount as at 31 March 2023	18.96	180.43	1,002.58	3.28	9.25	4.62	91.37	6.46	1,316.95
Net carrying amount as at 31 March 2024	18.96	186.68	1,088.48	5.48	8.58	4.98	89.92	7.60	1,410.68

Note:

a) Additions include ₹ 0.37 Crores (31 March 2023: ₹ 0.56 Crores) towards assets located at research and development facilities. b) Contractual obligation

Refer note 39(B) for disclosure of contractual commitments for the acquisition of property, plant and equipment.

c) Property, plant and equipment pledged as security

Refer note 21 and 25 for information on property, plant and equipment pledged as security by the Company.

Depreciation for the year has been included in “depreciation and amortisation expense” line item in statement of profit and loss.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

3 CAPITAL WORK-IN-PROGRESS

CAPITAL WORK-IN-PROGRESS
Particulars	Amount
As at 1 April 2022	267.84
Add: Addition during the year	318.23
Less: Capitalisation during the year	(446.00)
As at 31 March 2023	140.07
Add: Addition during the year	291.87
Less: Capitalisation during the year	(169.10)
As at 31 March 2024	262.84

(a) Ageing Schedule of Capital-work-in progress

As at 31 March 2024	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of
	<1 Year	1-2 Years	2-3 Years	More than 3 Years	Total
i) Project in progress ii) Projects temporarily suspended	210.50	52.04	0.30	-	262.84
	-	-	-	-	-

As at 31 March 2023	Amount in Capital-work-in progress for a period of
	<1 Year	1-2 Years	2-3 Years	More than 3 Years	Total
i) Project in progress ii) Projects temporarily suspended	139.74 -	0.33 -	- -	- -	140.07 -

4 INVESTMENT PROPERTY

INVESTMENT PROPERTY
Particulars	Land	Building	Total
Gross carrying value As at 1 April 2022 Additions/disposals As at 31 March 2023 Additions/disposals	4.85 - 4.85 -	3.50 - 3.50 -	8.35 - 8.35 -
As at 31 March 2024	4.85	3.50	8.35
Accumulated depreciation As at 1 April 2022 Add: Charge for the year As at 31 March 2023 Add: Charge for the year As at 31 March 2024 Net carrying amount as at 31 March 2023	0.26 0.08 0.34 0.07 0.41 4.51	0.03 0.05 0.08 0.05 0.13 3.42	0.29 0.13 0.42 0.12 0.54 7.93
Net carrying amount as at 31 March 2024	4.44	3.37	7.81

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(i) Amount recognised in statement of profit and loss for investment properties

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Rental income Less: direct operating expenses that generated rental income Less: direct operating expenses that did not generate rental income Proft arising from investment properties before depreciation Less: Depreciation Proft arising from investment properties after depreciation	1.34 1.34 - - - - 1.34 1.34 (0.12) (0.13)
	1.22 1.21

*Direct operating expenses attributable to investment property cannot be specifically identified with property, although management does not expect them to be material.

(ii) Leasing arrangements

Investment property comprises of land and building which is leased to subsidiary companies under long-term operating leases with rentals payable monthly. Refer note 43 for details on future minimum lease rentals.
(iii) Fair value of the investment property as at 31 March 2024 is ₹ 11.56 Crores (31 March 2023 : ₹ 9.29 Crores). The Company has obtained independent valuation for its investment property from a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

5 INTANGIBLE ASSETS

INTANGIBLE ASSETS
Particulars	Software Brand Name & Trademark Customer database Goodwill Total
Gross carrying value As at 1 April 2022 Additions Disposals/Adjustment As at 31 March 2023 Additions Acquisitions through business combination (refer note 52) Disposals/Adjustment	12.77 - - - 12.77 4.91 - - - 4.91 - - - - -
	17.68 - - - 17.68
	5.39 - - - 5.39 0.16 4.43 0.52 0.10 5.21 - - - - -
As at 31 March 2024	23.23 4.43 0.52 0.10 28.28
Accumulated amortisation As at 1 April 2022 Charge for the year Disposals	10.15 - - - 10.15 1.15 - - - 1.15 - - - - -
As at 31 March 2023	11.30 - - - 11.30
Charge for the year Disposals/Adjustment	1.97 0.55 0.07 - 2.58 - - - - -
As at 31 March 2024	13.27 0.55 0.07 - 13.88
Net carrying amount as at 31 March 2023	6.38 - - - 6.38
Net carrying amount as at 31 March 2024	9.96 3.88 0.46 0.10 14.40

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

6 RIGHT OF USE ASSETS- LAND AND BUILDING

RIGHT OF USE ASSETS- LAND AND BUILDING
	(₹ in Crores)
Particulars	Total
Gross carrying value
As at 1 April 2022	8.73
Additions	37.17
As at 31 March 2023	45.90
Additions	33.48
As at 31 March 2024	79.38
Accumulated depreciation As at 1 April 2022 Charge for the year As at 31 March 2023 Charge for theyear	1.07 4.29 5.36 7.56
As at 31 March 2024	12.92
Net carrying amount as at 31 March 2023	40.54
Net carrying amount as at 31 March 2024	66.46

7 NON-CURRENT INVESTMENTS

NON-CURRENT INVESTMENTS
Particulars	As at	As at
	31 March 2024	31 March 2023
Carried at cost
Investment in subsidiaries (unquoted):
Investments in equity instruments
3,136,415 (31 March 2023: 3,136,415) equity shares of EUR 10 each	141.38	141.38
fully paid up in CF (Netherlands) Holdings Limited BV
2,020,000 (31 March 2023: 2,020,000) equity shares of ₹ 10 each fully	2.02	2.02
paid up in Cosmo Speciality Chemicals Private Limited
10,000 (31 March 2023: 10,000) equity shares of ₹ 10 each fully paid up	0.01	0.01
in Cosmo Speciality Polymers Private Limited
10,000 (31 March 2023: 10,000) equity shares of ₹ 10 each fully paid up	0.01	0.01
in Cosmo Global Films Private Limited
Investments in preference shares
70,000,000 (31 March 2023: 70,000,000) non-cumulative optionally	70.00	70.00
convertible preference shares of ₹ 10 each fully paid up in Cosmo
Speciality Chemicals Private Limited
23,300,000 (31 March 2023: 23,300,000) non-cumulative optionally	23.30	23.30
convertible preference shares of ₹ 10 each fully paid up in Cosmo
Speciality Polymers Private Limited
Carried at fair value through proft and lossInvestment in equity
instruments
Other (unquoted):
2,615,000 (31 March 2023: 2,615,000) equity shares of ₹ 0.19 each fully	0.05	0.05
paid up in OPGS Power Gujarat Private Limited
757,000 (31 March 2023: 757,000) equity shares of ₹ 0.19 each fully	0.01	0.01
paid up in Bhadreshwar Vidyut Private Limited
6,225,333 (31 March 2023: 6,225,333) equity shares of ₹ 10 each fully	7.49	7.49
paid up in Renew Green (GJS One) Private Limited
1,606,500 (31 March 2023: Nil) equity shares of ₹ 10 each fully paid up in	1.61	-
O2 Renewable Energy XV Private Limited
1,44,630 (31 March 2023: Nil) compulsorily convertible debenture of ₹	14.46	-
1000 each fully paid up in O2 Renewable Energy XV Private Limited
	260.34	244.27
Aggregate amount of unquoted investments	260.34	244.27

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

8 NON- CURRENT LOANS

NON- CURRENT LOANS
Particulars	As at 31 March 2024 As at 31 March 2023
Loans considered good - secured* - Loans to offcer Loans considered good - unsecured - Loans to employees	2.98 4.56 1.70 1.03
	4.68 5.59

*Loans to officer as mentioned above are secured by equitable mortgage, being first charge on property. There were no significant changes in the quality of the collateral.

The carrying amoCunts of these financial instruments are reasonable approximation of their fair values.

9 OTHER NON-CURRENT FINANCIAL ASSETS

OTHER NON-CURRENT FINANCIAL ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Security deposits	3.35 3.65
	3.35 3.65

Note:

a) The carrying amounts of these financial instruments are reasonable approximation of their fair values.

10 OTHER NON-CURRENT ASSETS

OTHER NON-CURRENT ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Capital advances Prepaid expenses Recoverable from statutory authorities	49.58 72.60 8.79 0.69 33.85 39.32
	92.21 112.61

11 INVENTORIES

(At lower of cost and net realisable value)

INVENTORIES (At lower of cost and net realisable value)
Particulars	As at 31 March 2024 As at 31 March 2023
Raw material (refer note a below) Finished goods (refer note b below) Stock in trade Stores and spares (refer note c below)	164.93 172.52 161.45 139.92 8.02 4.21 30.79 27.93
	365.19 344.58

Note: a) including goods in transit ₹ 37.75 Crores (31 March 2023: ₹ 28.05 Crores)

b) including goods in transit ₹ 47.34 Crores (31 March 2023: ₹ 30.52 Crores)
c) including goods in transit ₹ Nil (31 March 2023: ₹ 1.59 Crores)
d) During the year ended 31 March 2024, ₹ 0.12 Crores was charged to statement of profit and loss (31 March 2023 : ₹ 1.63 Crores was charged to statement of profit and loss) for slow moving and obsolete inventories.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

12 CURRENT INVESTMENTS

CURRENT INVESTMENTS
Particulars	As at 31 March 2024 As at 31 March 2023
Investments carried at fair value through proft and loss Investments in mutual funds (quoted) Investments in equity instruments (quoted) Investments in infrastructure investment trust (quoted) Investment in alternative investment funds (unquoted) Investments in market linked debentures (quoted) Investments in Zero coupon bonds (quoted) Investments in equity instruments (unquoted) Investments in preference shares (unquoted) Investment carried at fair value through other comprehensive income Investments in perpetual bonds and corporate bonds (quoted) a) Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate book value of unquoted investments Aggregate amount of impairment in value of investments	24.15 5.01 15.65 1.08 7.95 9.16 26.22 17.05 103.34 187.22 9.04 - 32.95 13.41 3.25 5.67 146.66 136.20
	369.21 374.80
	294.48 335.21 306.79 338.67 46.79 30.19 - -

13 TRADE RECEIVABLES

TRADE RECEIVABLES
Particulars	As at 31 March 2024 As at 31 March 2023
Trade receivables considered good- unsecured Trade receivables- credit impaired Less: Allowance for expected credit losses	242.57 157.49 3.95 3.36
	246.52 160.85 (3.95) (3.36)
	242.57 157.49

Note:

a) The carrying amounts of these financial instruments are reasonable approximation of their fair values.

b) Refer note 21 and 25 for trade receivables pledged as security for liabilities. c) Ageing Schedule of accounts receivables:

As at 31 March 2024	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
	Unbilled	Not Due	<6 months	6 months- 1 Years	1-2 Years	2-3 Years	More than 3 Years	Total
i) Undisputed trade receivables- considered good ii) Undisputed trade receivables- which have signifcant increase in credit risk iii) Undisputed trade receivables- Credit impaired	-	170.64	70.43	0.84	0.52	-	0.14	242.57
	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

As at 31 March 2024	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
	Unbilled	Not Due	<6 months	6 months- 1 Years	1-2 Years	2-3 Years	More than 3 Years	Total
iv) Disputed trade receivables- considered good v) Disputed trade receivables- which have signifcant increase in credit risk vi) Disputed trade receivables- Credit impaired	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
	-	-	-	0.46	0.57	0.05	2.87	3.95

As at 31 March 2023	Outstanding for following periods from due date of payment
	Unbilled	Not Due	<6 months	6 months- 1 Years	1-2 Years	2-3 Years	More than 3 Years	Total
i) Undisputed trade receivables- considered good ii) Undisputed trade receivables- which have signifcant increase in credit risk iii) Undisputed trade receivables- Credit impaired iv) Disputed trade receivables- considered good v) Disputed trade receivables- which have signifcant increase in credit risk vi) Disputed trade receivables- Credit impaired	- - - - - -	96.15 - - - - -	60.65 - - - - 0.06	0.09 - - - - 0.48	- - - - - 0.08	- - - - - 0.27	0.60 - - - - 2.47	157.49 - - - - 3.36

14 CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Particulars	As at 31 March 2024 As at 31 March 2023
Balances with banks - in current accounts Cash on hand	11.49 10.43 0.11 0.04
	11.60 10.47

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

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Statutory Reports

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

15 OTHER BANK BALANCES

OTHER BANK BALANCES
Particulars	As at 31 March 2024 As at 31 March 2023
Earmarked balances with banks in current accounts - Unclaimed dividend account Pledged deposits (refer note a and b below)	1.84 1.88 8.73 11.24
	10.57 13.12

Note:

a) Pledged deposits include deposits amounting to ₹ 8.73 Crores (31 March 2023: ₹ 6.24 Crores) pledged as margin money for issue of letter of credit and bank guarantees.

b) Deposit amounting to ₹ Nil (31 March 2023: ₹ 5.00 Crores) are pledged against borrowing facility. The carrying amounts of these financial instruments are reasonable approximation of their fair values.

16 CURRENT LOANS

CURRENT LOANS
Particulars	As at 31 March 2024 As at 31 March 2023
Loans to offcer, considered good- secured* Loans considered good- unsecured - Loans to employees	0.96 0.96 1.03 0.51
	1.99 1.47

*Loans to officer as mentioned above are secured by equitable mortgage, being first charge on property. There were no significant changes in the quality of the collateral.

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

17 OTHER CURRENT FINANCIAL ASSETS

OTHER CURRENT FINANCIAL ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Advance to subsidiaries Discount recoverable Export benefts recoverable Derivative assets Security deposits Others	74.63 22.25 13.61 12.56 0.64 8.50 0.70 8.29 1.28 - 4.50 2.41
	95.36 54.01

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

18 OTHER CURRENT ASSETS

OTHER CURRENT ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Advance to suppliers Balances with statutory authorities Prepaid expenses Claims recoverable Others	7.67 9.91 106.69 54.92 7.15 6.23 9.58 8.28 2.11 1.56
	133.20 80.90

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

19 EQUITY SHARE CAPITAL

EQUITY SHARE CAPITAL	EQUITY SHARE CAPITAL
Particulars		As at 31 March 2024 As at 31 March 2023
Authorised 60,000,000 equity shares of ₹ 10 each (31 March 2023 : 60,000,000 equity shares of ₹ 10 each) Issued, subscribed and fully paid up 26,249,727 equity shares of ₹ 10 each (31 March 2023 : 26,249,727 equity shares of ₹ 10 each)		60.00 60.00 26.25 26.25
		26.25 26.25

Reconciliation of number of shares	As at 31 March 2024 As at 31 March 2023
	No of shares Amount No of shares Amount
Equity shares at the beginning of the year Issue of bonus shares Buyback of shares Equity shares at the end of the year	2,62,49,727 26.25 1,81,72,715 18.17 - - 90,86,357 9.09 - - (10,09,345) (1.01)
	2,62,49,727 26.25 2,62,49,727 26.25

Notes:

(i) Of the above 242,051 shares have been allotted to erstwhile shareholders of Gujarat Propack Limited on amalgamation in the financial year 2002-03. No shares has been issued for consideration other than cash in the current reporting year and in last five years immediately preceding the current reporting year.
(ii) a) Of the above 8,486,705 shares have been allotted as fully paid bonus shares by capitalisation of capital reserves and share premium account in the financial year 2002-03.
b) The Company has also allotted 9,086,357 bonus equity shares of ` 10/- each in ratio of 1 (one) equity share for 2 (two) equity share held to the equity shareholder(s) whose name appeared in the register of members on 17 June 2022 i.e. the “Record Date” by capitalisation of capital reserve, security premium account and capital redemption reserves.
(iii) The Board of Directors of the Company at their meeting held on 01 December 2022 had approved Buyback of 1,009,345 equity shares (3.70% of equity capital) of the Company, through the “Tender Offer” route for an aggregate amount of upto ` 108.00 Crores at a price of ₹ 1070 per equity share. The said equity shares bought back were extinguished on 22 February 2022. An amount of ₹ 138.55 Crores (including income tax and direct buyback costs) had been utilized from the other equity for the aforesaid buyback including creation of capital redemption reserve account of ₹ 1.01 Crores (representing the nominal value of the equity shares bought back).
(iv) During the year, the Board of Directors has recommended final dividend of ₹ 3 per equity share (31 March 2023: ₹ 5 per equity shares) subject to approval of shareholders in annual general meeting.

During the year ended 31 March 2024 the amount of per share dividend recognised as distributions to equity shareholders was ₹ 5 per share (31 March 2023: ₹ Nil per share).

(v) Terms and rights attached to equity shares:

The Company has only one class of equity shares having the par value of ₹10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

The dividend proposed by Board of Directors, if any, is subject to approval of shareholders in Annual General Meeting except in case of interim dividend.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(vi) Details of shareholders holding more than 5% shares in the company

Particulars	As at 31 March 2024 As at 31 March 2023
	No of shares % holding No of shares % holding
Mr. Ashok Jaipuria*	1,08,29,304 41.26% 1,06,29,304 40.50%

it includes 10,286,050 shares (31 March 2023: 10,186,050) registered under name of Mr. Ashok Jaipuria where beneficial owner is Gayatri and Annapurna (partnership firm).

(vii) Details of shareholding of promoters

Particulars	As at 31 March 2024	As at 31 March 2024	As at 31 March 2024	As at 31 March 2023	As at 31 March 2023
	No of shares	% holding	% age change	No of shares	% holding
Mr. Ashok Jaipuria Ms. Aanchal Jaipuria Bhandari Mr. Ambrish Jaipuria Ms. Abha Jaipuria Mrs. Yamini Kumar Pravasi Enterprises Ltd Andheri Properties and Developers Pvt Ltd Mr. Ashok Jaipuria -Registered Owner C/o Gayatri & Annapurana - Benefcial Owner Fawkes Management Pvt Ltd - Registered Owner C/o Ashok Jaipuria Private Trust - Benefcial Owner Fawkes Management Pvt Ltd.-Registered Owner C/o Ashok Jaipuria Family Trust -Benefcial Owner	5,43,254	2.07%	0.38%	4,43,254 1,24,433 4,78,628 32,832 1,05,402 6,866 933 1,01,86,050 150 2,75,900	1.69% 0.47% 1.82% 0.13% 0.40% 0.03% 0.00% 38.81% 0.00% 1.05%
	1,24,433	0.47%	-
	4,78,628	1.82%	-
	-	-	-0.13%
	1,05,402	0.40%	-
	6,866	0.03%	-
	933	0.00%	-
	1,02,86,050	39.19%	0.38%
	150	0.00%	-
	2,75,900	1.05%	-
	1,18,21,616	45.03%		1,16,54,448	44.40%

(viii) Shares reserved for issue under options

Shares reserved for issue under options
Particulars	As at	As at
	31 March 2024	31 March 2023
Under the Cosmo Films Employees Stock Option Plan 2015 (CF	3,55,322	3,72,822
ESOP 2015), equity share of ₹ 10 each, at an exercise price as
decided by management on case to case basis

These shares are held as treasury shares under other equity (refer note 20)

For terms and details refer note 41

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

20 OTHER EQUITY

OTHER EQUITY
Particulars	As at 31 March 2024 As at 31 March 2023
Retained earnings As per last balance sheet Proft/(loss) for the year Other comprehensive income/(loss) Dividend paid General reserve As per last balance sheet Buyback of shares Addition during the year Deletion during the year Security premium account As per last balance sheet Addition during the year Deletion during the year Treasury Shares As per last balance sheet Addition during the year Deletion during the year Special Economic Zone (SEZ) Re-investment reserve As per last balance sheet Addition during the year Deletion during the year Share options outstanding account As per last balance sheet Addition during the year Deletion during the year Capital Reserve As per last balance sheet Addition during the year Deletion during the year Effective portion of cash fow hedges As per last balance sheet Addition during the year Deletion during the year	1,043.31 829.18 38.77 213.64 0.62 0.49 (12.97) -
	1,069.73 1,043.31
	97.08 230.86 - (133.78) - - (49.33) -
	47.75 97.08
	0.85 7.42 1.88 0.54 (2.73) (7.11)
	- 0.85
	(24.43) (16.00) 6.56 - - (8.43)
	(17.87) (24.43)
	- - 42.70 - - -
	42.70 -
	12.51 6.60 6.44 6.45 (1.88) (0.54)
	17.07 12.51
	- 3.32 - - - (3.32)
	- -
	(9.06) 5.71 - - (3.17) (14.77)
	(12.23) (9.06)

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Statutory Reports

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	As at 31 March 2024 As at 31 March 2023
Debt instruments through other comprehensive income As per last balance sheet Addition during the year Deletion during the year	(0.22) 1.36 0.17 - - (1.58)
	(0.05) (0.22)
Capital redemption reserve As per last balance sheet Addition during the year Deletion during the year Total other equity	1.01 1.27 - - - (0.26)
	1.01 1.01
	1,148.11 1,121.05

Nature and purpose of reserves

(i) General reserve
The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant to the earlier provision of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.

(ii) Securities premium account

Securities premium account represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act 2013.

(iii) Treasury shares

This reserve represents Company’s own equity shares held by the Cosmo ESOP Trust which is created under the Employee Stock Option Plan, 2015.

(iv) Special Economic Zone (SEZ) Re-investment reserve

The Special Economic Zone (SEZ) Re-investment reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilised by the company for acquiring plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.

(v) Share options outstanding account

The reserve is used to recognize the grant date fair value of the options issued to employees under Company’s employee stock option plan.

(vi) Capital reserve

Capital reserve was created under financial statements prepared in accordance with accounting standards notified under the section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘previous GAAP’) out of the profit earned from a specific transaction of capital nature.

(vii) Effective portion of cash flow hedges

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged transaction occurs.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(viii) Debt instruments through other comprehensive income

The Company has classified investments in perpetual bonds as at fair value through other comprehensive income (FVOCI) since:
(a) perpetual bonds are held within a business model whose objective is achieved by both collecting contractual cash flows and selling those bonds; and
(b) the contractual terms of perpetual bonds give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

This reserve represents changes in fair value of perpetual bonds from the date of such classification to the reporting date. When the perpetual bonds are derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

(ix) Capital redemption reserve

This reserve represents a statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company’s own shares.

21 NON-CURRENT BORROWINGS (SECURED)

NON-CURRENT BORROWINGS (SECURED)
Particulars	As at 31 March 2024 As at 31 March 2023
Foreign currency term loans (refer note A below)* - from banks - from others Rupee term loans (refer note B below) - from banks - from others Vehicle loans (refer note C below) Less:- Current maturities disclosed under current borrowings (refer note 25)	315.66 338.88 30.71 50.29 500.19 301.97 - 2.67 6.13 6.58
	852.69 700.39 172.33 154.02
	680.36 546.37

*include hedged foreign currency borrowings of ₹ 229.34 Crores (31 March 2023: ₹ 324.53 Crores)

Notes :

	Particulars	As at	As at
		31 March 2024	31 March 2023
(A)	Foreign currency term loans comprises of :
(i)	Loan of USD 9,729,936 taken from Export-Import Bank (EXIM)	3.38	16.79
	of India during the fnancial year 2015-16, 2016-17 and 2017-
	18 and carries interest rate based upon SOFR plus 275 bps per
	annum. The loan is repayable in 24 equal quarterly instalments
	commencing after a moratorium of 18 months from scheduled
	commercial operation date or actual commercial operation date
	whichever is earlier.
	Security
	The above loan is secured against (i) frst pari passu charge over the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second
	pari passu charge on current assets of the company both present
	and future.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

	Particulars	As at	As at
		31 March 2024	31 March 2023
(ii)	Loan of EUR 14,614,201 taken from Landesbank Baden Wurttemberg	46.17	58.96
	Bank (LBBW) during the fnancial year 2015-16, 2016-17 and 2017-
	18 and carries interest rate based upon Euribor plus 60 bps per
	annum. The loan is repayable in 20 equal semi-annual instalments
	from the date of 28 February 2018.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at Karjan,
	Vadodara.
(iii)	Loan of USD 4,900,000 (₹ 40 Crores)taken from Export-Import	27.46	33.70
	Bank (EXIM) of India during the fnancial year and carries
	interest rate based upon USD 6 month SOFR plus 325 bps per
	annum. The loan is repayable in 24 equal quarterly instalments
	commencing after a moratorium of 24 months from the date of
	frst disbursement.
	Security
	The above loan is secured against (i) frst pari passu charge over the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second pari passu
	charge on current assets of the companybothpresent and future.
(iv)	Loan of EUR 19,371,000 taken from Landesbank Baden	166.09	173.65
	Wurttemberg Bank (LBBW) during the fnancial year 2021-22 and 2022-23 and carries interest rate fxed at 44 bps per annum. The
	loan is repayable in 20 equal semi-annual instalments starting from
	November 2023.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at Waluj,
	Aurangabad.
(v)	Loan of EURO 12,144,766 (₹ 100 Crores) taken from Bank of	50.77	108.87
	Baroda during the fnancial year 2021-22and carries interest rate
	based upon 6 month EURIBOR plus 2.25% per annum. The loan is
	repayable in 3 half yearly instalments starting from April 2023.
	Security
	The above loan is secured against (i) First pari passu charge over the
	movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) Second pari passu
	charge on current assets of the companybothpresent and future.
(vi)	Loan of EUR 5,685,512 taken from Landesbank Baden	51.32	-
	Wurttemberg Bank (LBBW) during the fnancial year 2023-24,
	carries interest rate based upon Euribor plus 65 bps per annum.
	The loan is repayable in 20 equal semi-annual instalments starting
	from 30 December 2024.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at Waluj,
	Aurangabad.
(vii)	Loan of EUR 369,429 taken from Landesbank Baden Wurttemberg	3.33	-
	Bank (LBBW) during the fnancial year 2023-24 and carries
	interest rate based upon Euribor plus 65 bps per annum. The loan
	is repayable in 20 equal semi-annual instalments starting from 20
	June 2026.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at Waluj,
	Aurangabad.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

	Particulars	As at	As at
		31 March 2024	31 March 2023
B	Rupee term loans comprises of :
(i)	Loan of ₹ 50 Crores taken from Shyam Rao Vithal Co-operative Bank Limited during the fnancial year 2020-21 and carries interest rate PLR less 5 bps per annum. The loan is repayable in 84 months inclusive of 24 months moratorium period. Security The above loan is secured against (i) First paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) Second pari- passu charge on current assets of the company both present and future.	32.41	42.49
(ii)	Loan of ₹40 Crores taken from Bajaj Finance Limited during the fnancial year 2017-18 and carries interest rate linked to SBI’s one year MCLR to be reset quarterly. The loan is repayable in 60 equal monthly instalments after moratorium of 12 months from the date of disbursement. Security The above loan is secured against (i) frst paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) second pari- passu charge on current assets of the company both present and future.	-	2.67
(iii)	Loan of ₹60 Crores taken from IndusInd Bank during the fnancial year 2018-19 and carries interest rate based upon Mibor plus 250 bps per annum.The loan is repayable in 22 equal quarterly instalments after moratorium of 6 months from the frst date of disbursement. Security The above loan is secured against (i) frst pari-passu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) second pari-passu charge on current assets of the company both present and future.	10.91	21.82
(iv)	Loan of ₹ 100 Crores taken from State Bank of India during the fnancial year 2020-21, 2021-22 & 2022-23 and carries interest rate based on 6 months MCLR plus 100 bps per annum. The loan is repayable in 14 half yearly installment after a moratorium of one year from the date of frst disbursement. Security The above loan is secured against (i) First paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) Second pari- passu charge on current assets of the company both present and future.	64.40	85.53
(v)	Loan of ₹ 65 Crores taken from ICICI Bank Limited during the fnancial year 2022-23 and carries interest rate based on 12 months MCLR per annum plus applicable spread, if any. The loan is repayable in 12 quarterly structured installment after a moratorium of three fnancial quarters from the date of frst disbursement. Security The above loan is secured against (i) First paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) Second pari- passu charge on current assets of the company both present and future.	96.25	65.00

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	As at 31 March 2024 As at 31 March 2023
(vi) Loan of ₹ 100 Crores taken from IndusInd Bank Limited during the fnancial year 2022-23 and 2023-24 and carries interest rate based on 91 days T-bill plus 155 bps per annum. The loan is repayable in 28 quarterly installment after a moratorium of one year from the date of frst disbursement. Security The above loan is secured against (i) First paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) Second pari- passu charge on current assets of the company both present and future.	96.43 75.00
(vii) Loan of ₹50 Crores taken from ICICI Bank Limited (ICICI) during the fnancial year 2018-19 and carries interest rate based upon Euribor plus 4.113% per annum. The loan is repayable in 18 quarterly instalments starting from 31 December 2018. Security The above loan is secured against (i) First pari passu charge over the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) Second pari passu charge on current assets of the companybothpresent and future.	- 12.34
(viii) Loan of ₹100 Crores taken from Bank of Baroda during the fnancial year 2023-24 and carries interest rate based upon MCLR plus 8.05% per annum. The loan is repayable in 28 equal quarterly instalments after a moratorium period of 12 months from the month of frst disbursement. Security The above loan is secured against (i) First pari passu charge by way of hypothecation on movable and by way of equitable mortgage over all immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) Second pari passu charge on current assets of the companybothpresent and future.	99.98 -
(ix) Loan of ₹100 Crores taken from Axis Bank Limited during the fnancial year 2023-24 and carries interest rate based upon Repo Rate plus 1.75% per annum. The loan is repayable in 24 quarterly instalments starting from 30 November 2025. Security The above loan is secured against (i) First pari passu charge by way of hypothecation on movable and by way of mortgage over all immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) Second pari passu charge on current assets of the companybothpresent and future.	100.00 -
C Vehicle loans taken from Union Bank of India carries interest @ 8% - 9% per annum. This loan is repayable in 3 years Security Vehicle loans from Union Bank of India are secured against hypothecation of respective vehicles.	6.13 6.58
Less: Adjustment for processing fees on long term loans recognised using effective interest rate	(2.34) (3.01)
	852.69 700.39

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

22 PROVISIONS

PROVISIONS
Particulars	As at 31 March 2024 As at 31 March 2023
Provision for gratuity (refer note 42)	19.67 18.07
	19.67 18.07

23 DEFERRED TAX LIABILITIES (NET)#

DEFERRED TAX LIABILITIES (NET)#
Particulars	As at 31 March 2024 As at 31 March 2023
Deferred tax asset arising on account of: Cash fow hedge reserve Expenses deductible/ Income taxable in future years under Income tax Act, 1961 (net) Carried forward losses Minimum alternative tax credit entitlement Deferred tax liability arising on account of: Property, plant and equipment and other intangible assets - depreciation and amortisation	6.61 4.82 4.08 8.11 24.22 - 36.67 28.50
	71.58 41.43
	226.72 201.21
	226.72 201.21
	155.14 159.78
# Refer note 37 for movement in deferred tax balances. OTHER NON-CURRENT LIABILITIES
Particulars	As at 31 March 2024 As at 31 March 2023
Deferred income on export promotion capital goods scheme	54.94 57.58
	54.94 57.58
CURRENT BORROWINGS (SECURED)
Particulars	As at 31 March 2024 As at 31 March 2023
Cash credit and other working capital facilities (refer note a) Current maturities of long-term borrowings (refer note 21)	110.92 137.80 172.33 154.02
	283.25 291.82

24 OTHER NON-CURRENT LIABILITIES

25 CURRENT BORROWINGS (SECURED)

Notes:

(a) Cash credits and other working capital facilities are secured by first pari passu charge on entire current assets of the company and second pari passu charge on entire fixed assets secured to financial institutions except assets exclusively carved out.

Note:

Refer note 25 - current maturities of long term borrowings are disclosed under the head current borrowings

Refer note 45 and 46 for disclosure of fair values in respect financial liabilities measured at amortised cost and analysis of maturity profile.

Refer note 49 for reconciliation of liabilities arising from financing activities.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

26 TRADE PAYABLES

TRADE PAYABLES
Particulars	As at 31 March 2024 As at 31 March 2023
Trade payables - total outstanding dues of micro and small enterprises - total outstanding dues of creditors other than micro and small enterprises Acceptances Total
	7.98 6.34
	200.70 176.69 484.60 326.23
	693.28 509.26

The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Company.

Particulars	Particulars	31 March	31 March
		2024	2023
i	the principal amount and the interest due thereon remaining unpaid to	7.98	6.34
	any supplier as at the end of each accounting year;
ii	the amount of interest paid by the buyer in terms of section 16, along	0.19	1.31
	with the amounts of the payment made to the supplier beyond the
	appointed day during each accounting year;
iii	the amount of interest due and payable for the period of delay in	-	-
	making payment (which have been paid but beyond the appointed
	day during the year) but without adding the interest specifed under
	this Act;
iv	the amount of interest accrued and remaining unpaid at the end of	0.02	0.03
	each accounting year; and
v	the amount of further interest remaining due and payable even in the	0.43	0.41
	succeeding years, until such date when the interest dues as above are
	actually paid to the small enterprise, for the purpose of disallowance as
	a deductible expenditure under section 23.

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

Ageing schedule of trade payables:

As at 31 March 2024	Outstanding for following periods from due date of payment
	Unbilled Not due <1 year 1 year-2 Years 2 year-3 Years More than 3 Years Total
i) MSME	- 7.28 - - - - 7.28
ii) Others	- 609.46 73.51 0.77 0.23 - 683.97
iii) Disputed dues- MSME	- - 0.67 0.03 - - 0.70
iv) Disputed dues- Others	- - - - - 1.33 1.33

As at 31 March 2023	Outstanding for following periods from due date of payment
	Unbilled Not due <1 year 1 year-2 Years 2 year-3 Years More than 3 Years Total
i) MSME ii) Others iii) Disputed dues- MSME iv) Disputed dues- Others	- 4.65 - - - - 4.65 - 460.48 40.11 - - - 500.59 - - 1.68 0.01 - - 1.69 - - - 0.73 0.28 1.32 2.33

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

27 OTHER CURRENT FINANCIAL LIABILITIES

OTHER CURRENT FINANCIAL LIABILITIES
Particulars	As at 31 March 2024 As at 31 March 2023
Interest accrued but not due on borrowings	2.54 1.72 0.49 0.34 1.84 1.88 24.88 25.55 18.46 23.71 0.11 0.32 40.22 17.75
Security deposits
Unpaid dividend Other accrued liabilities Employee related liabilities Derivative liabilities Payable for capital goods
	88.54 71.27

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

28 OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES
Particulars	As at 31 March 2024 As at 31 March 2023
Statutory dues Advance received from customers Deferred income on export promotion capital goods scheme	5.69 4.40 142.10 82.50 3.62 3.58
	151.41 90.48
PROVISIONS
Particulars	As at 31 March 2024 As at 31 March 2023
Provision for gratuity (refer note 42) Provision for compensated absences	4.26 3.91 10.26 10.02
	14.52 13.93
REVENUE FROM OPERATIONS
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Operating revenue (refer note a below) Sale of products-domestic Sale of products-export Sale of services-domestic Other operating revenue Export beneft income Sales tax incentive Job work charges Scrap sales Others Revenue from operations	1,288.28 1,429.85 1,047.46 1,268.43 5.34 2.91
	2,341.08 2,701.19 22.20 24.51 18.96 6.27 - 0.06 7.09 7.64 1.76 2.06
	2,391.09 2,741.73

29 PROVISIONS

30 REVENUE FROM OPERATIONS

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Note :

a) The Company applies Indian Accounting Standard 115, ‘Revenue from Contracts with Customers’ (‘Ind AS 115’),. Under Ind AS 115, revenue is recognised through a 5-step approach:
(i) Identify the contracts with customer;
(ii) Identify separate performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations; and
(v) Recognise revenue when a performance obligation is satisfied.

(i) Disaggregation of revenue

The Company has performed a disaggregated analysis of revenues considering the nature, amount, timing and uncertainty of revenues. This includes disclosure of revenues by geography and timing of recognition.

Year ended 31 March 2024

==> picture [455 x 139] intentionally omitted <==

----- Start of picture text -----

Revenue from operations Goods & Other operating Total
services revenue
Revenue by geography
Domestic 1,293.62 8.85 1,302.47
Export 1,047.46 - 1,047.46
Total 2,341.08 8.85 2,349.93
Revenue by time
Revenue recognised at point in time 2,349.93
Revenue recognised over time -
Total 2,349.93
----- End of picture text -----*

excludes export benefit income of ₹ 22.20 Crores and sales tax incentive of ₹ 18.96 Crores

Year ended 31 March 2023

Year ended 31 March 2023
Revenue from operations	Goods & services	Other operating revenue*	Total
Revenue by geography Domestic Export Total Revenue by time Revenue recognised at point in time Revenue recognised over time Total	1,432.76 1,268.43	9.76 -	1,442.52 1,268.43
	2,701.19	9.76	2,710.95

			2,710.95 -
			2,710.95

excludes export benefit income of ₹ 24.51 Crores and sales tax incentive of ₹ 6.27 Crores

(ii) Revenue recognised in relation to contract liabilities

Ind AS 115 also requires disclosure of ‘revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period’ and ‘revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods. Same has been disclosed as below:

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars Year ended 31 March 2024 Year ended 31 March 2023	Particulars Year ended 31 March 2024 Year ended 31 March 2023
Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period 80.01 26.88 Revenue recognised in the reporting period from performance obligations satisfed (or partially satisfed) in previous periods - -
Assets and liabilities related to contracts with customers
Particulars As at 31 March 2024 As at 31 March 2023
Contract liabilities related to sale of goods Advance from customers 142.10 82.50
Reconciliation of revenue recognised in Statement of Proft and Loss with Contract price
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Contract price Less: Discount, rebates, credits etc. Revenue from operations as per Statement of Proft and Loss *	2,422.32 2,772.29 72.39 61.34
	2,349.93 2,710.95

(iii) Assets and liabilities related to contracts with customers
(iv) Reconciliation of revenue recognised in Statement of Profit and Loss with Contract price
excludes export benefit income of ₹ 22.20 Crores (31 March 2023 : ₹ 24.51 Crores) and sales tax incentive of ₹ 18.96 Crores (31 March 2023 : ₹ 6.27 Crores)

b) Details of products sold/services

Details of products sold/services
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Manufactured goods- Packaging flms Sale of services Traded goods- Others Total	2,313.33 2,692.05 5.34 2.91 22.41 6.23
	2,341.08 2,701.19

31 OTHER INCOME

OTHER INCOME
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Interest income from:	0.74 0.67 1.06 0.32 11.98 13.40 1.16 1.34 27.40 12.14 (0.88) (0.97) 14.12 17.24 0.95 2.00 1.39 1.39 3.60 3.27 0.60 0.55 - 6.36 2.90 -
- Fixed deposit with banks:
- Other fnancial assets carried at amortised cost - Investment in perpetual bonds carried at fair value through other comprehensive income - Others Gain on investments carried at fair value through proft and loss Gain/(loss) on investments carried at fair value through other comprehensive income Foreign exchange gain (net) Insurance and other claims Rent Grant income on export promotion capital goods Dividend income Liabilities no longer required written back Proft on sale of property, plant and equipment and investment property
	65.01 57.71

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

32 CHANGE IN INVENTORY OF FINISHED GOODS AND STOCK IN TRADE

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Opening inventories Finished goods Stock in trade Closing inventories Finished goods Stock in trade Increase/(decrease) in inventories of fnished goods and stock in trade	139.92 148.92 4.21 0.96
	144.13 149.88
	161.45 139.92 8.02 4.21
	169.47 144.13
	(25.34) 5.75

33 EMPLOYEE BENEFITS EXPENSE

EMPLOYEE BENEFITS EXPENSE
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Salaries, wages, allowances and bonus Employee stock option expense Contribution to provident and other funds Staff welfare expenses	141.97 146.57 6.44 6.45 11.55 11.19 5.46 4.69
	165.42 168.90

34 DEPRECIATION AND AMORTISATION EXPENSE

DEPRECIATION AND AMORTISATION EXPENSE
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Depreciation on property, plant and equipment and investment property Amortisation of intangible assets Depreciation on right-of-use assets	75.02 63.64 2.58 1.15 7.56 4.29
	85.16 69.08

35 FINANCE COSTS

FINANCE COSTS
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Interest on Term loans Cash credit and short term loans Others Foreign exchange fuctuation to the extent regarded as an adjustment to borrowing costs Interest on lease liabilities Other borrowings costs	30.15 11.10 43.60 21.78 1.59 0.70 1.16 11.19 4.10 2.21 4.35 4.48
	84.95 51.46

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

36 OTHER EXPENSES

OTHER EXPENSES
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Rent Rates and taxes Stores, spare parts and packing materials consumed Insurance Repairs and maintenance - Building - Machinery - Others Power and fuel Other manufacturing expenses Printing and stationery Training and recruitment expenses Travelling and conveyance Vehicle running and maintenance Communication expenses Legal and professional charges Corporate social responsibility (CSR) expenditure (refer note b below) Freight and forwarding Other selling expenses Payment to auditors (refer note a below) Loss on sale of property, plant and equipment Miscellaneous expenses	3.92 3.99 1.84 1.20 101.93 104.97 4.54 4.45 1.15 1.64 19.98 18.31 3.29 4.02 180.86 168.40 0.62 0.02 0.93 0.77 2.32 1.86 11.85 8.22 9.99 9.33 0.92 0.82 16.21 14.60 7.12 5.95 2.96 2.74 15.84 12.14 0.65 0.55 - 0.33 8.36 6.89
	395.28 371.20
Note:Other expenses includes research and development expenses (refer note 40)
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
a) Payment to auditors (exclusive of goods and service tax) As auditor - Audit fee - Tax audit fee In other capacity - Certifcation and other matters - Reimbursement of out of pocket expenses Total	0.55 0.50 0.04 0.03 0.05 0.01 0.01 0.01
	0.65 0.55

The finance costs shown above is net of borrowing costs capitalised during the year ended 31 March 2024 of ₹ 16.18 Crores at 7.84% (31 March 2023: ₹ 11.68 Crores at 6.59%).

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
b) Details of corporate social responsibility expenditure
(a) Gross amount required to be spent by the company during	6.68	5.95
the year
(b) Amount of expenditure incurred during the year
(i) Construction or acquisition of any asset	-	-
(ii) On purposes other than (i) above	6.03	5.25
(c) Shortfall at the end of the year out of the amount required to be	0.65	0.70
spent by the Company during the year*;
(d) Total of previous years shortfall	-	0.33
(e) Reason for shortfall	N.A.	Due to ongoing
		projects to be
		completed in 3
		years
(f) Nature of CSR activities	Promoting	Promoting
	Education,	Education,
	Preventive	Hygiene
	Healthcare and	COVID-19,
	Environment	Preventive
	Sustainability	Healthcare and
		Environment
(g) Details of related party transactions:		Sustainability
Contribution to Cosmo Foundation	3.53	3.75
Contribution to Sitaram Jaipuria Foundation	2.50	1.50

*Deposited in CSR unspent account on 24 April 2024 (31 March 2023: 19 April 2023)

37 INCOME TAX

INCOME TAX
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
The income tax expense consists of the following : Current tax expense Deferred tax expense/(credit) Tax related to earlier years: - Current tax - Deferred tax Total income tax The reconciliation of the estimated tax expense at statutory income tax rate to income tax expense reported in the Statement of Proft and Loss is as follows: Proft before tax At India’s statutory income tax rate of 34.94 % (31 March 2023: 34.94%,) Adjustments in respect of current income tax Income exempted from income taxes Tax related to earlier years Other adjustments Total income tax expense	7.79 48.06 (3.28) 19.64 0.14 (11.93) (0.09) 5.60
	4.56 61.37
	43.33 275.01 15.14 96.10 (12.84) (25.93) 0.05 (6.33) 2.21 (2.47)
	4.56 61.37

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Movement of net deferred tax assets and liabilities for the year ended 31 March 2024 is as follows:

Particulars	Opening balance	Deferred tax credit/charge in proft and loss	Deferred tax credit/ charge in Other comprehensive income	Closing balance
Deferred tax liabilities (net) Deferred tax asset arising on account of: Cash fow hedge reserve Expenses deductible/ Income taxable in future years under Income tax Act, 1961 (net) Carried forward losses Minimum alternative tax credit entitlement Deferred tax liability arising on account of: Property, plant and equipment and other intangible assets -depreciation and amortisation

	4.82	0.09	1.70	6.61
	8.11	(3.60)	(0.43)	4.08
	-	24.22	-	24.22
	28.50	8.17	-	36.67
	41.43	28.88	1.27	71.58

	201.21	25.51	-	226.72
	201.21	25.51	-	226.72
	159.78	(3.37)	(1.27)	155.14

Movement of net deferred tax asset and liabilities for the year ended 31 March 2023 is as follows:

	Opening balance	Deferred tax credit/charge in proft and loss	Deferred tax credit/ charge in Other comprehensive income	Closing balance
Deferred tax liabilities (net) Deferred tax asset arising on account of: Cash fow hedge reserve Expenses deductible/ Income taxable in future years under Income tax Act, 1961 (net) Minimum alternative tax credit entitlement Deferred tax liability arising on account of: Cash fow hedge reserve Property, plant and equipment and other intangible assets -depreciation and amortisation	- 11.00 5.89	- (3.47) 22.61	4.82 0.58 -	4.82 8.11 28.50
	16.89	19.14	5.40	41.43
	3.12 156.83	- 44.38	(3.12) -	- 201.21
	159.95	44.38	(3.12)	201.21
	143.06	25.24	(8.52)	159.78

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

38 EARNINGS PER SHARE

EARNINGS PER SHARE
Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Proft for the year (₹ in Crores)	38.77	213.64
Weighted average number of equity shares outstanding for the purpose	2,59,28,979	2,68,50,902
of basic earnings per share
Effect of potential ordinary shares on share options outstanding	3,77,650	4,22,963
Weighted average number of equity shares outstanding for the purpose	2,63,06,629	2,72,73,865
of diluted earnings per share
Earnings per equity share (face value ₹ 10.00 per share)
Basic	14.95	79.57
Diluted	14.74	78.33

39 CONTINGENCIES AND COMMITMENTS

Particulars	Particulars	As at	As at
		31 March 2024	31 March 2023
(A)	Contingent liabilities
I	Claims against the Company not acknowledged as debt	3.70	2.14
II	Disputed demand for Income tax (refer note (a) below)	8.18	8.18
III	Pending duty obligation under Export Promotion Capital Goods	42.15	16.25
	licenses
IV	Disputed demand for Service tax, Excise duty and Goods and	17.19	17.05
	Service tax
V	Disputed demands for labour/employee dispute	0.48	0.48
VI	Bank guarantees issued in favour of third parties	47.24	25.60

Notes:

a) Disputed demand for income tax includes a dispute of ₹ 4.71 Crores (31 March 2023: ₹ 4.71) between the Company and income tax department over computation of deduction under Section 80HHC of the Income-tax Act, 1961. The Company has filed a special leave petition against the order of Hon’ble Delhi High Court which has been accepted by the Hon’ble Supreme Court of India and is pending. Based on the legal opinion taken from an independent expert, the management is of the view that it is more likely than not that matter will be decided in favour of the Company.

(B) Commitments

Commitments
Particulars	As at	As at
	31 March 2024	31 March 2023
a) Capital commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	272.91	343.75
b) Others
Letter of credit opened for which the material has not	22.84	60.56
been shipped as on the date of the balance sheet.
Uncalled funding commitment pertaining to investments	17.18	20.47

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

40 RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditures incurred by the Company during the financial year are mentioned below:

	For the year ended
	31 March 2024 31 March 2023
Research and development capital expenditure (gross) Research and development revenue expenditure Material and consumables Employee benefts expense Other expenses Sales for the year Total research and development expenditure/sales	0.37 0.56 3.46 7.42 4.53 4.81 0.23 0.23
	8.59 13.02
	2,341.08 2,701.19
	0.37% 0.48%

Assets purchased/capitalised for research and development centres

	Assets purchased/capitalised for research and development centres
	Particulars	Amount
	Gross carrying value
	As at 31 March 2022	11.09
	Additions	0.56
	As at 31 March 2023	11.65
	Additions	0.37
	As at 31 March 2024	12.02
	Accumulated depreciation As at 31 March 2022 Depreciation for theyear	4.33 0.90
	As at 31 March 2023	5.23
	Depreciation for theyear	0.89
	As at 31 March 2024	6.12
	Net carrying amount as at 31 March 2023	6.42
	Net carrying amount as at 31 March 2024	5.90

41 1. Employee stock option plan

Pursuant to the approval of the shareholders, the Company has introduced Cosmo Films Share Based Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) which supersedes earlier Cosmo Films Employees Stock Option Plan 2015 (CF ESOP 2015) to provide share based incentive to the eligible employees of the Company and its subsidiaries. However, Options already granted under CF ESOP 2015 will continue to be governed in accordance with the said Plan. The plan is implemented via trust route which will acquire the equity shares of the Company by secondary market acquisition, however, in case of any shortfall the Company will issue new shares as required. When exercisable, each option is convertible into one equity share.

A) Details of options granted under the CF ESOP 2015 are as below:

Scheme	Date of grant	Number of options granted	Vesting condition	Exercise period	Exercise price per share	Exercise price per share post bonus issue
CF Employees Stock Option Scheme 2015:
Option I	13-Jan- 16	1,93,000	On completion of 3 year of service from the date ofgrant	10 years from the date of vesting	₹ 300.05	₹ 200.03

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Scheme	Date of grant	Number of options granted	Vesting condition	Exercise period	Exercise price per share	Exercise price per share post bonus issue
Option II Option III Option IV	13-Jul- 16 07-Jul- 17 02-Jun- 18	2,50,000 2,00,000 2,25,000	On completion of 3 year of service from the date of grant On completion of 3 year of service from the date of grant On completion of 3 year of service from the date ofgrant	10 years from the date of vesting 10 years from the date of vesting 10 years from the date of vesting	₹ 351.40 ₹ 433.20 ₹ 237.70	₹ 234.27 ₹ 288.80 ₹ 158.47

B) Movement of options granted

Particulars	Year ended 31 March 2024	Weighted average exerciseprice	Year ended 31 March 2023	Weighted average exercise price
Options outstanding at the beginning of the year Increase on account of bonus issue Options exercised during the year Options cancelled during the year Options outstanding at the end of theyear	1,95,000	251.18	1,80,915 82,007 (67,922) -	363.64 246.95 222.77 -
	-	-
	(75,000)	240.53
	-	-
	1,20,000	257.83	1,95,000	251.18

The weighted average remaining contractual life outstanding as at 31 March 2024 was 5.99 years

(31 March 2023: 7.02 years). The weighted average exercise price of options outstanding as at 31 March 2024 was ₹ 257.83 (31 March 2023: ₹ 251.18).

C) The fair value of options used to compute proforma net income and earning per equity share has been done on the date of grant using Black-Scholes Model.

The key assumption in Black-Scholes Model for calculating fair value on grant are as under:

	Option-I	Option-II	Option-III	Option-IV
Grant Date Market Price (₹) Exercise Price (₹) Expected Volatility (%) $ Expected forfeiture on each vesting date (%) Expected life (years)* Dividend yield (%) Risk free interest rate (%) Fair value on grant date (₹)	13-Jan-16 300.05 300.05 57.70 Nil 3 1.17 7.59 128.25	13-Jul-16 351.40 351.40 39.55 Nil 3 2.85 7.50 103.45	07-Jul-17 433.20 433.20 27.70 Nil 3 2.31 6.54 98.60	02-Jun-18 237.70 237.70 31.91 Nil 3 2.52 7.83 62.46

$ The expected volatility was determined based on historical volatility data.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

2. Restricted Stock Units (RSUs):

A) Details of options granted under Cosmo Films Share Based Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) are as below:

Scheme	Date of grant	Number of options granted	Number of options post bonus	Number of options post bonus	Vesting condition	Vesting condition	Vesting condition	Exercise period	Exercise period	Exercise price per share
Cosmo Films Share Based Employee Beneft Scheme 2021:
RSU I RSU II RSU III RSU IV RSU V RSU VI RSU VII RSU VIII RSU IX	09-Mar-21 09-Mar-21 09-Mar-21 09-Mar-21 27-May-21 16-Sep-21 16-Sep-21 27-Jan-22 27-Jan-22	25,000 1,05,000 25,000 1,05,000 25,000 50,000 50,000 7,500 7,500	37,500 1,57,500 37,500 1,57,500 37,500 75,000 75,000 11,250 11,250		On completion of 3 year of service from the date of grant On completion of 4 year of service from the date of grant On completion of 5 year of service from the date of grant On completion of 7 year of service from the date of grant On completion of 5.25 year of service from the date of grant On completion of 4 year of service from the date of grant On completion of 7 year of service from the date of grant On completion of 4 year of service from the date of grant On completion of 7 year of service from the date of grant			One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting		₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00
Movement of RSU granted
Particulars				Year ended 31 March 2024		Weighted average exercise price	Year ended 31 March 2023		Weighted average exercise price
Outstanding at the beginning of the year Exercised during the year Increase on account of bonus issue Outstanding at the end of the year				6,00,000		10.00	4,00,000 - 2,00,000		10.00 - 10.00
				(37,500)		10.00
				-
				5,62,500		10.00	6,00,000		10.00

B) Movement of RSU granted

The weighted average remaining contractual life outstanding as of 31 March 2024 was 3.42 years (31 March 2023: 4.41 years). The weighted average exercise price of options outstanding as of 31 March 2024 was ₹ 10.00 (31 March 2023: ₹ 10).

*Options life is considered on the basis of earliest possible exercise after vesting

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

C) The fair value of RSUs used to compute proforma net income and earning per equity share has been done on the date of grant using Black-Scholes Model.

The key assumption in Black-Scholes Model for calculating fair value on grant are as under:

Particulars	RSU-I	RSU-II	RSU-III	RSU-IV	RSU-V	RSU-VI	RSU-VII	RSU-VIII	RSU-IX
Grant Date Market Price (₹) Exercise Price (₹) Expected Volatility (%) $ Expected forfeiture on each vesting date (%) Expected life (years)* Dividend yield (%) Risk free interest rate (%) Fair value on grant date (₹)	09-Mar-21 643.25 10.00 59.23 Nil 3 years 3.89 6.22 564.10	09-Mar-21 643.25 10.00 59.23 Nil 4 years 3.89 6.22 542.76	09-Mar-21 643.25 10.00 59.23 Nil 5 years 3.89 6.22 522.24	09-Mar-21 643.25 10.00 59.23 Nil 7 years 3.89 6.22 483.51	27-May-21 786.65 10.00 59.61 Nil 5.25 years 3.18 5.97 658.41	16-Sep-21 1535.85 10.00 63.43 Nil 4 years 1.63 6.2 1431.10	16-Sep-21 1535.85 10.00 63.43 Nil 7 years 1.63 6.2 1363.78	27-Jan-22 1798.85 10.00 61.33 Nil 4 years 1.39 6.66 1693.59	27-Jan-22 1798.85 10.00 61.33 Nil 7 years 1.39 6.66 1625.35

$ The expected volatility was determined based on historical volatility data.

*Options life is considered on the basis of earliest possible exercise after vesting

3. STOCK APPRECIATION RIGHTS (SARS):

A) Details of SARs under Cosmo Films Share Based Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) are as below:

Scheme	Date of grant	Number of options granted	Number of options post bonus issue	Vesting condition	Exercise period	Exercise price per share	Exercise price per share post bonus issue
Cosmo Films Share Based Employee Beneft Scheme 2021:
Option I Option II	03-Feb- 22 03-Feb- 22	31,650 31,650	47,475 47,475	On completion of 3 year of service from the date of grant On completion of 5 year of service from the date of grant	On completion of 3 year of service from the date of grant On completion of 5 year of service from the date of grant	₹ 1,800.00 ₹ 1,800.00	₹ 1,200.00 ₹ 1,200.00

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

B) Movement of SARs granted

Movement of SARs granted
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Outstanding at the beginning of the year Granted during the year Increase on account of bonus issue Outstanding at the end of the year	94,950 63,300 - - - 31,650
	94,950 94,950

The weighted average remaining contractual life outstanding as of 31 March 2024 was 1.84 years (31 March 2023: 2.84 years). The weighted average exercise price of options outstanding as of 31 March 2024 was ₹ 1200.00 (31 March 2023: ₹ 1200.00).

C) Market value of SARs as at the reporting date is used to determine the fair value amortised in the statement of profit and loss.

42 EMPLOYEE BENEFIT OBLIGATIONS

1) Gratuity

The Company makes contribution towards gratuity to a defined retirement benefits plan for qualifying employees. The Company has taken policy with Life Insurance Corporation of India to provide for payment of retirement benefits to vested employees. The present value of obligation is determined based on actuarial valuation. The expected contribution to the plan for next annual reporting period amounts to ₹ 4.26 Crores (31 March 2023: ₹ 3.91 Crores).
The weighted average duration of the defined benefit obligation as at 31 March 2024 is 4 years (31 March 2023: 4 years).
The amounts recognised in the Balance Sheet and the movements in the net defined benefit obligation over the year are as follows:

a. Reconciliation of present value of defined benefit obligation and the fair value of plan assets

	(₹ in Crore)
Particulars	As at 31 March 2024 As at 31 March 2023
Present value obligation as at the end of the year Fair value of plan assets as at the end of the year Net liability /(assets) recognised in Balance Sheet	33.47 33.57 (9.54) (11.59)
	23.93 21.98

b. Changes in defined benefit obligation

Changes in defned beneft obligation
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Present value obligation as at the start of the year Interest cost Current service cost Past service cost Benefts paid Actuarial loss/ (gain) on obligations Present value obligation as at the end of the year	33.57 31.53 2.52 2.28 1.52 1.30 - - (3.16) (0.98) (0.98) (0.56)
	33.47 33.57

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

c. Table showing changes in the fair value of plan assets

Table showing changes in the fair value of plan assets
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Fair value of plan assets at beginning of year Interest income on plan assets Return on plan assets excluding interest income Contributions Benefts paid Fair value of plan assets at the end of year	11.59 11.54 0.88 0.83 (0.02) 0.20 0.25 0.00 (3.16) (0.98)
	9.54 11.59

d. Amount recognised in the Statement of Profit and Loss

Amount recognised in the Statement of Proft and Loss
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Current service cost Past service cost Net Interest cost Expected return on plan asset Amount recognised in the Statement of Proft and Loss	1.52 1.30 - -
	1.65 1.45
	- -
	3.17 2.75

e. Other Comprehensive Income

Other Comprehensive Income
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Actuarial losses/(gains) on arising from change in demographic assumption Actuarial (gain)/loss on arising from change in fnancial assumption Actuarial loss/(gain) on arising from experience adjustment Return on plan assets excluding interest income Amount recognised in other comprehensive income	- 0.00 0.28 (0.28) (1.26) (0.28) 0.02 (0.20)
	(0.96) (0.76)

f. Actuarial assumptions

Actuarial assumptions
Particulars	As at 31 March 2024 As at 31 March 2023
Discount rate Future salary increase	7.23% 7.50%
	7.00% 7.00%

g. Demographic assumptions

Demographic assumptions
Particulars	As at	As at
	31 March 2024	31 March 2023
Retirement age (Years)	58	58
Mortality rates inclusive of provision for disability	Indian Assured	Indian Assured
	Lives Mortality	Lives Mortality
	(2012-14)	(2012-14)

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

h. Sensitivity analysis for gratuity liability

Sensitivity analysis for gratuity liability
Particulars	As at	As at
	31 March 2024	31 March 2023
Impact of the change in discount rate Present value of obligation at the end of the year	33.47	33.57
a) Impact due to increase of 0.50%	(0.51)	(0.49)
b) Impact due to decrease of 0.50%	0.55	0.52
Impact of the change in salary increase Present value of obligation at the end of the year	33.47	33.57
a) Impact due to increase of 0.50%	0.55	0.52
b) Impact due to decrease of 0.50%	(0.52)	(0.49)
Maturity profle of defned beneft obligation
	As at	As at
	31 March 2024	31 March 2023
April 2024 to March 2025	19.60	19.69
April 2025 to March 2026	1.21	1.72
April 2026 to March 2027	2.09	1.52
April 2027 to March 2028	1.76	2.16
April 2028 onwards	22.95	22.39

i. Maturity profile of defined benefit obligation

j. Investment details

Investment details
Particulars	As at 31 March 2024 As at 31 March 2023
	(₹ in Crore) % invested (₹ in Crore) % invested
Insurance Funds	9.54 100 11.59 100

2) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligations of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Employer’s contribution to Provident Fund	5.99	5.66
Employer’s contribution to Superannuation Fund	1.68	1.72
Employer’s contribution to labour welfare fund and employee state	0.17	0.20
insurance

3) The Company has granted non-recurring long term incentives to select employees which is linked with valuations of specified businesses of a future date. In view of the management, projections of future valuations of specified businesses as at the current reporting date is not feasible. Accordingly, the Company has not recognized any expense on this account for the year ended 31 March 2024

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

43 LEASES

A) Leases disclosure as lessee:

a. The Company has taken residential/commercial premises on lease. There are no restrictions placed upon the Company by entering into these leases and there are no subleases. The Company is prohibited from selling or pledging the underlying leased assets as security. The Company also has certain leases of various assets with lease terms of 12 months or less. The Company applies the ‘short-term lease’ recognition exemptions for these leases.

b. Lease liabilities are presented in the statement of financial position as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
Non-current Current Total	63.99 38.00 5.04 4.16
	69.03 42.16

c. Lease payments not included in measurement of lease liability

The expense relating to payments not included in the measurement of the lease liability is as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
Short-term leases Leases of low value assets Total	3.92 3.99 - -
	3.92 3.99

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

  - d)  Cosmo Global Films Private Limited (incorporated on 9 January 2023)

B. Step-down subsidiary companies
- a) Cosmo Films Inc., USA
- b) Cosmo Films Japan (GK), Japan
- c) Cosmo Films Korea Limited, Korea
- d) CF Investment Holding Private (Thailand) Company Limited, Thailand
- e) Cosmo Films (Singapore) Pte. Limited, Singapore
- f) Cosmo Films Poland Sp Z.O.O, Poland (Liquidated on 13 September 2023)
C. Enterprises over which Key managerial personnel of the Company and their relatives have significant influence:
- a) Sunrise Manufacturing Company Limited
- b) Pravasi Enterprises Limited
- c) Cosmo Foundation
- d) Gayatri & Annapurana (Partnership firm)
- e) Nangia & Company LLP
- f) Fawkes Management Private Ltd
- g) Cosmo Ferrites Limited
- h) Nangia Andersen LLP
- i) Zigly Foundation (formerly Petsfamilia Foundation)
- j) Sitaram Jaipuria Foundation
d. The maturity analysis of lease liabilities are disclosed in Note no. 46.
e. The Company had total cash outflows for leases of ₹ 12.96 Crores (March 31, 2023: ₹ 8.28 Crores).

D. Key management personnel

a) Mr. Ashok Jaipuria, Chairman and Managing Director of Company

B) Leases disclosure as lessor

The Company has given surplus factory land and building on operating lease. The lease arrangement is for a period of 5 years and renewable with mutual consent. The lease rentals of ₹ 1.34 Crores (31 March 2023: ₹ 1.34 Crores) on such lease is included in other income. Lease income is recognised in the statement of profit and loss under “Other income” (refer note 31). With respect to non-cancellable period of the operating lease, the future minimum lease rentals receivable are as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
Within one year Later than one year but not later than fve years Later than fve years Total	1.43 1.34 1.24 2.47 - -
	2.67 3.81

44 RELATED PARTY DISCLOSURES

In accordance with the required Indian Accounting Standard (IndAS-24) on related party disclosures where control exist and where transactions have taken place and description of the relationship as identified and certified by management are as follows:

b) Mr. Anil Kumar Jain, Director of corporate affairs
c) Mr. H. K. Agrawal, Independent Director
d) Mrs Alpana Parida, Independent Director
e) Mr. Rakesh Nangia, Independent Director
f) Mr. Pratip Chaudhuri, Non-Independent Director
g) Mr. H. N. Sinor, Independent Director
h) Mr. Anil Wadhwa, Independent Director
i) Mr. Arjun Singh, Independent Director
j) Mr. Yash Pal Syngal, Independent Director (joined w.e.f. 8 November 2023)
k) Mr. Pankaj Poddar, Chi ef Executive Officer
l) Mr. Neeraj Jain, Chief Financial Officer
n) Mrs. Jyoti Dixit, Company Secretary

E. Relative of key management personnel

a) Mrs. Yamini Kumar
b) Mrs. Aanchal Jaipuria Bhandari
c) Mr. Ambrish Jaipuria

List of related parties and relationships:

A. Subsidiary companies

a) CF (Netherlands) Holdings Limited BV., Netherlands
b) Cosmo Speciality Chemicals Private Limited
d) Mrs. Devyani Jaipuria
e) Ms. Rachna Morarka
f) Ms. Poonam Poddar
g) Ms. Jhanvi Poddar
c) Cosmo Speciality Polymers Private Limited

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Subsidiaries and step- down subsidiaries companies	Subsidiaries and step- down subsidiaries companies	Key management personnel and their relatives	Key management personnel and their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Total	Total
	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023
Transactions during the year 1 Investment made Cosmo Speciality Chemicals Private Limited Cosmo Speciality Polymers Private Limited CF (Netherlands) Holdings Limited BV., Netherlands Cosmo Global Films Private Limited 2 Purchase of goods Cosmo Speciality Chemicals Private Limited Cosmo Speciality Polymers Private Limited 3 Sales Cosmo Films Inc., USA Cosmo Films Korea Limited, Korea Cosmo Films Japan (GK), Japan CF (Netherlands) Holdings Limited BV., Netherlands Cosmo Speciality Chemicals Private Limited Cosmo Global Films Private Limited Sales from Pet care vertical 4 Sales return Cosmo Films Inc., USA CF (Netherlands) Holdings Limited BV.,Netherlands Cosmo Films Korea Limited, Korea 5 Other operating revenues Cosmo Films Inc., USA Cosmo Films Korea Limited, Korea Cosmo Films Japan (GK), Japan								35.00 20.00 26.04 0.01 116.38

	-	35.00	-	-	-	-	-
	-	20.00	-	-	-	-	-
	-	26.04	-	-	-	-	-
	-	0.01	-	-	-	-	-

	123.14	116.38	-	-	-	-	123.14
	0.14	-	-	-	-	-	0.14	-
								265.25 48.62 21.07 73.15 14.83 - 0.05 0.81 0.82 -
	192.14	265.25	-	-	-	-	192.14
	30.39	48.62	-	-	-	-	30.39
	26.06	21.07	-	-	-	-	26.06
	47.70	73.15	-	-	-	-	47.70
	8.76	14.83	-	-	-	-	8.76
	0.31	-	-	-	-	-	0.31
	-	-	0.04	0.05	-	-	0.04

	2.86	0.81	-	-	-	-	2.86
	-	0.82	-	-	-	-	-
	1.89	-					1.89

	0.60	0.70	-	-	-	-	0.60	0.70
	0.26	0.33	-	-	-	-	0.26	0.33 0.23
	0.19	0.23	-	-	-	-	0.19

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Subsidiaries and step- down subsidiaries companies	Subsidiaries and step- down subsidiaries companies	Key management personnel and their relatives	Key management personnel and their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Total	Total
	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023
Cosmo Speciality Chemicals Private Limited 6 Reimbursement received for expenses paid (net) Cosmo Speciality Chemicals Private Limited 7 Expenses incurred Cosmo Films Japan (GK), Japan CF (Netherlands) Holdings Limited BV., Netherlands 8 Rent received/(paid) Pravasi Enterprises Limited	0.47	0.52	-	-	-	-	0.47	0.52 2.62 1.03 0.98 0.02 0.93 0.41 (0.71) 2.04 0.07 0.03 (0.45) (0.24) - 41.86 2.29 5.29 1.69 0.13 0.12 1.06 1.82

	1.94	2.62	-	-	-	-	1.94

	1.75	1.03	-	-	-	-	1.75
	1.05	0.98	-	-	-	-	1.05

	-	-	-	-	0.02	0.02	0.02
Cosmo Speciality Chemicals Private Limited	0.93	0.93	-	-	-	-	0.93
Cosmo Speciality Polymers Private Limited Cosmo Films Japan (GK), Japan 9 Professional fees paid/(received) Mrs. Yamini Kumar Nangia & Company LLP Nangia Andersen LLP Cosmo Ferrites Limited Cosmo Speciality Chemicals Private Limited Cosmo Global Films Private Limited 10 Short term employee benefts 11 Post employment benefts 12 Share based payments 13 Buyback of shares*	0.41	0.41	-	-	-	-	0.41
	(0.74)	(0.71)	-	-	-	-	(0.74)

	-	-	2.10	2.04	-	-	2.10
	-	-	-	-	0.32	0.07	0.32
	-	-	-	-	0.22	0.03	0.22
	-	-	-	-	(0.45)	(0.45)	(0.45)
	(0.24)	(0.24)	-	-	-	-	(0.24)
	(0.02)	-	-	-	-	-	(0.02)
	-	-	21.26	41.86	-	-	21.26
	-	-	2.24	2.29	-	-	2.24
	-	-	5.27	5.29	-	-	5.27

Mr. Ashok Jaipuria	-	-	-	1.69	-	-	-
Mr. Anil Kumar Jain Mr. Rakesh Nangia Mr. Pankaj Poddar Mr. Ambrish Jaipuria	-	-	-	0.13	-	-	-
	-	-	-	0.12	-	-	-
	-	-	-	1.06	-	-	-
	-	-	-	1.82	-	-	-

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Subsidiaries and step- down subsidiaries companies	Subsidiaries and step- down subsidiaries companies	Key management personnel and their relatives	Key management personnel and their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Total	Total
	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023
Mrs. Aanchal Jaipuria Bhandari Mrs. Yamini Kumar Mrs Abha Jaipuria Gayatri & Annapurana Fawkes Management Private Ltd Pravasi Enterprises Limited Mr. Neeraj Jain Mrs. Jyoti Dixit 14 Sitting fee/ commission paid Mr. H. K. Agrawaal Mrs. Alpana Parida Mr. Pratip Chaudhuri Mr. H. N. Sinor Mr. Anil Wadhwa Mr. Rakesh Nangia Mr. Arjun Singh Mr. Yashpal Syngal 15 Purchase of assets Cosmo Films Korea Limited, Korea 16 Loan (repayment) received Mr. Pankaj Poddar 17 Interest income on loan given Mr. Pankaj Poddar 18 Contribution to CSR/ Donation paid Contribution to Cosmo Foundation Contribution to Zigly Foundation Contribution to Sitaram Jaipuria Foundation	-	-	-	0.47	-	-	-	0.47 0.40 0.12 38.78 1.05 0.03 0.20 0.00 0.34 0.33 0.35 0.34 0.34 0.34 0.16 - - (1.38) 0.25 4.44 0.20 1.50
	-	-	-	0.40	-	-	-
	-	-	-	0.12	-	-	-
	-	-	-	-	-	38.78	-
	-	-	-	-	-	1.05	-
	-	-	-	-	-	0.03	-
	-	-	-	0.20	-	-	-
	-	-	-	0.00	-	-	-

	-	-	0.13	0.34	-	-	0.13
	-	-	0.15	0.33	-	-	0.15
	-	-	0.15	0.35	-	-	0.15
	-	-	0.16	0.34	-	-	0.16
	-	-	0.15	0.34	-	-	0.15
	-	-	0.16	0.34	-	-	0.16
	-	-	0.14	0.16	-	-	0.14
	-	-	0.05	-	-	-	0.05

	0.44	-	-	-	-	-	0.44

	-	-	(1.37)	(1.38)	-	-	(1.37)

	-	-	0.20	0.25	-	-	0.20

	-	-	-	-	4.19	4.44	4.19
	-	-	-	-	0.42	0.20	0.42
	-	-	-	-	2.50	1.50	2.50

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Subsidiaries and step- down subsidiaries companies	Subsidiaries and step- down subsidiaries companies	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Key management personnel and their relatives	Key management personnel and their relatives	Total	Total
	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023
Outstanding balances 1 Trade receivables/ Loans & advances Cosmo Films Korea Limited, Korea Cosmo Films Japan (GK), Japan CF (Netherlands) Holdings Limited BV., Netherlands Cosmo Speciality Chemicals Private Limited Cosmo Speciality Polymers Private Limited								16.75 2.10 - 4.45 17.80

	21.47	16.75	-	-	-	-	21.47
	-	2.10	-	-	-	-	-
	21.73	-	-	-	-	-	21.73
	-	4.45	-	-	-	-	-
	32.45	17.80	-	-	-	-	32.45
Cosmo Global Films Private Limited	42.20	-	-	-	-	-	42.20	-
2 Advance received for future supplies
Cosmo Films Inc., USA	107.35	61.39	-	-	-	-	107.35	61.39
CF (Netherlands) Holdings Limited BV., Netherlands	-	7.08	-	-	-	-	-	7.08
Cosmo Films Japan (GK), Japan	19.60	-	-	-	-	-	19.60	-
3 Trade Payables
Cosmo Speciality Chemicals Private Limited	27.79	-	-	-	-	-	27.79	-
4 Remuneration/ commission payable	-	-	-	-	5.98	20.82	5.98	20.82
5 Loan outstanding
Mr. Pankaj Poddar	-	-	-	-	4.48	5.86	4.48	5.86

Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees together.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

45 FAIR VALUE MEASUREMENTS

A) Financial assets and liabilities

The accounting classification of each category of financial instruments, and their carrying amounts, are set out below:

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----- Start of picture text -----

As at 31 March 2024 Fair value Fair value through Amortised
through profit other comprehensive cost
and loss income
Financial assets
(i) Investments 246.17 146.66 -
(ii) Trade receivables - - 242.57
(iii) Cash and cash equivalents - - 11.60
(iv) Other bank balances - - 10.57
(v) Loans - - 6.67
(vi) Derivative assets 0.70 - -
(vii) Others financial assets - - 98.01
Total 246.87 146.66 369.42
Financial liabilities
(i) Borrowings - - 963.61
(ii) Lease liabilities - - 69.03
(iii) Trade payables - - 693.28
(iv) Derivative liabilities 0.11 - -
(v) Other financial liabilities - - 88.43
Total 0.11 - 1,814.35
----- End of picture text -----

As at 31 March 2023	Fair value through proft and loss	Fair value through other comprehensive income	Amortised cost
Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Other bank balances (v) Loans (vi) Derivative assets (vii) Others fnancial assets Total Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (iv) Derivative liabilities (v) Other fnancial liabilities Total	246.15 - - - - 7.33 -	136.20 - - - - 0.96 -	- 157.49 10.47 13.12 7.06 - 49.37
	253.48	137.16	237.51
	- - 0.32 -	- - - -	838.19 42.16 509.26 - 70.95
	0.32	-	1,460.56

Investment in subsidiaries are measured at cost as per Ind AS 27, ‘Separate financial statements’ and hence, not presented here.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

B) Fair value hierarchy

The different levels of fair value have been defined below:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

B) (i) Financial assets and liabilities measured at fair value - recurring fair value measurements

As at 31 March 2024	Note	Level 1	Level 2	Level 3
Financial assets
(i) Investments	7 and 12	203.45	129.56	59.82
(ii) Derivative assets	17	-	0.70	-
Total fnancial assets		203.45	130.26	59.82
Financial liabilities
(i) Derivative liabilities	27	-	0.11	-
Total fnancial liabilities		-	0.11	-

As at 31 March 2023	Note	Level 1	Level 2	Level 3
Financial assets (i) Investments (ii) Derivative assets Total fnancial assets Financial liabilities (i) Derivative liabilities Total fnancial liabilities	7 and 12 17	151.45 -	204.27 8.29	26.63 -
		151.45	212.56	26.63
	27	-	0.32	-
		-	0.32	-

Valuation process and technique used to determine fair values

(i) All financial instruments are initially recognised at cost and subsequently re-measured at fair value as described below:
a) The fair value of investment in quoted Equity Shares is measured at quoted price as at reporting date.
b) The fair value of investment in quoted Bonds and Debentures is measured based on the last traded price on stock exchange as at the reporting date.
c) The fair value of investments in Alternative Investment Funds and Mutual Funds is based on the net asset value (NAV) as stated by the issuers of these funds in the published statements as at the balance sheet date.
d) The fair value for unquoted instruments where Level 1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques used in determining the fair value of various assets is as follows:
- i. Asset Approach: Net Assets Value Method
- ii. Income Approach:Discounted Cash Flows Method
- iii. Market Approach: Comparable Companies Multiples Method

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(ii) Fair value for derivatives contracts is determined using observable forward and option exchange rates and yield curves as at the balance sheet date.

B) (ii) Fair value of financial assets and liabilities measured at amortised cost

The fair values of loans are not materially different from the amortised cost thereof. Further, the management assessed that fair values of trade receivables, cash and cash equivalents, other bank balances, other current financial assets (excluding derivative assets), current borrowings, trade payables and other current financial liabilities (excluding derivative liabilities) approximate their respective carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
All the long term borrowing facilities availed by the Company are variable rate facilities which are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company’s creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

The fair value measurements disclosed in respect of financial assets and liabilities measured at amortised cost fall within Level 3 of fair value hierarchy.

46 RISK MANAGEMENT

The Company’s activities expose it to market risk, liquidity risk and credit risk. The management has the overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

Risk	Exposure arising from	Measurement	Management
Credit risk	Cash and cash equivalents, other bank balances, loans, trade receivables, other fnancial assets and investments	Ageing analysis Credit ratings	“Diversifcation of bank deposits, collateral credit limits and letter of credit Investment guidelines for debt investments”
Liquidity risk	Borrowings and other liabilities	Rolling cash fow forecasts	Availability of committed credit lines and borrowing facilities
Market risk - foreign exchange	Recognised fnancial assets and liabilities not denominated in Indian rupee (INR)	Cash fow forecasting	“Foreign currency forwards Foreign currency options Cross currency swaps”
Market risk - interest rate	Long-term borrowings at variable rates	Sensitivity analysis	Interest rate swaps
Market risk - security price	Investments in mutual funds, debt securities and equity and preference instruments including alternate investment funds	Sensitivity analysis	Diversifcation of portfolio, with focus on strategic investments

A. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Credit risk management

Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date
B: Moderate credit risk
C: High credit risk

The Company provides for expected credit loss based on the following:

Basis of categorisation	Asset class exposed to credit risk	Provision for expected credit loss
Low credit risk	Cash and cash equivalents, other bank balances, loans, trade receivables, other fnancial assets and investments	12 month expected credit loss
Moderate credit risk	Other fnancial assets	12 month expected credit loss unless credit risk has increased signifcantly since initial recognition, in which case allowance is measured at lifetime expected credit loss.
High credit risk	Other fnancial assets	Life time expected credit loss or fully provided for

As the Company’s trade receivables do not contain a significant financing component, it measures the loss allowance in respect thereof at an amount equal to lifetime expected credit losses

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company or debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

Credit risk exposure

Credit risk exposure
Credit rating	Particulars	As at 31 March 2024	As at 31 March 2023
A: Low credit risk B: Medium credit risk C: High credit risk	Cash and cash equivalents	11.60	10.47 13.12 7.06 57.66 157.49 382.35 - -
	Other bank balances	10.57
	Loans	6.67
	Other fnancial assets	98.71
	Trade receivables	242.57
	Investments*	392.83
	-	-
	-	-

*Investment in subsidiaries are measured at cost as per Ind AS 27, ‘Separate financial statements’ and hence, not presented here.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees/letter of credit, from customers where credit risk is high. The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become one year past due. Company obtains the credit insurance for export debtors from Export Credit Guarantee Corporation (ECGC) of India and for domestic debtors from insurance company.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

b) Expected credit loss for financial assets under simplified approach

The Company recognises lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analysing historical trend of default and such provision percentage determined have been considered to recognise life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Customer advances amounting to ₹ 142.10 Crores (31 March 2023 : ₹ 82.50 Crores) were not considered for the purpose of computation of expected credit losses under simplified approach. Based on such simplified approach, an allowance of ₹ 3.95 Crores and ₹ 3.36 Crores as at 31 March 2024 and 31 March 2023 has been recognised respectively.

Investments

This risk refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments, or both.

The Company’s deployment in debt instruments are primarily in bonds and debentures issued by highly rated banks, financial institutions and public sector undertakings. With respect to the Company’s investing activities, counter parties are shortlisted and exposure limits are determined on the basis of their credit rating (by independent agencies), financial statements and other relevant information. As these counter parties are Banks/Financial Institutions /public sector undertakings with investment grade credit ratings and taking into account the experience of the Company over time, the counter party risk attached to such assets is considered to be insignificant.

Furthermore, with respect to the company’s investments in Equity and Preference instruments, Mutual Funds and AIF’s, since these investments are not exposed to counterparty risks, therefore they have been considered under low credit risk instruments.”

Derivative instruments

Credit risk related to derivative instruments is managed by the Company by doing transactions with highly rated banks. Further, management has established limits for use of derivative instruments to minimise the concentration of risks and therefore mitigate financial loss through counterparties potential failure to make payments.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

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----- Start of picture text -----

Age of receivables As at 31 As at 31
March 2024 March 2023
Not due 170.64 96.15
0-180 days past due 70.43 60.71
181-360 days past due 1.30 0.57
More than 360 days past due 4.15 3.42
Total 246.52 160.85
Reconciliation of loss provision – Lifetime expected credit losses
Reconciliation of loss allowance Amount
Loss allowance as on 1 April 2022 3.55
Allowance for expected credit losses (0.01)
Amounts written off (0.18)
Loss allowance on 31 March 2023 3.36
Allowance for expected credit losses 1.05
Amounts written off (0.46)
Loss allowance on 31 March 2024 3.95
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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.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

Company provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses. Since, the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low. In respect of loans, comprising of security deposits, credit risk is considered low because the Company is in possession of the underlying asset. In respect of other financial assets, credit risk is evaluated based on Company’s knowledge of the credit worthiness of those parties.

The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

Management monitors rolling forecasts of the liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Financing arrangements

The Company has access to the following undrawn borrowing facilities at the end of reporting period:

Particulars	As at 31	As at 31
	March 2024	March 2023
Expiring within one year (cash credit and other facilities)	616.77	814.75
Expiring beyond one year	206.67	-

Contractual maturities of financial liabilities

The tables below analyse the financial liabilities into relevant maturity grouping based on their undiscounted contractual maturities (including interest).

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

31 March 2024	Less than and equal to 1 year	1 - 2 years	2 - 5 years	More than 5 years	Total
(i) Borrowings	283.25	139.57	316.92	223.87	963.61
(ii) Lease liabilities	5.04	7.12	26.54	30.33	69.03
(iii) Trade payables	693.28	-	-	-	693.28
(iv) Other fnancial liabilities	88.43	-	-	-	88.43
(v) Derivative liabilities	0.11	-	-	-	0.11
Total	1,070.11	146.69	343.46	254.20	1,814.46

31 March 2023	Less than and equal to 1 year	1 - 2 years	2 - 5 years	More than 5 years	Total
(i) Borrowings (ii) Lease liabilities (iii) Trade payables (iv) Other fnancial liabilities (v) Derivative liabilities Total	291.82 4.16 509.26 70.95 0.32	155.11 4.92 - - -	242.23 17.23 - - -	149.03 15.85 - - -	838.19 42.16 509.26 70.95 0.32
	876.51	160.03	259.46	164.88	1,460.88

C. Market risk

(i) Interest rate risk

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. The Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.

Company’s exposure to interest rate risk on borrowings is as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
Variable rate Fixed rate Total	797.52 664.54 166.09 173.65
	963.61 838.19

The following table illustrates the sensitivity of profit after tax and equity to a possible change in interest rates of +/- 1% in current year (31 March 2023: +/- 1%). These changes are considered to be reasonably possible based on observation of current market conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant.

Particulars	Proft for the year +1%	Proft for the year -1%
As at 31 March 2024 As at 31 March 2023	(5.19)	5.19
	(4.32)	4.32

(ii) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, GBP, Euro and JPY. Fluctuations in foreign currency exchange rates may have an impact on profit or loss and the statement of change in equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Exposures on foreign currency loans are managed through a hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company’s policy is to hedge material foreign exchange risk associated with borrowings, highly probable forecast sales and purchases transactions denominated in foreign currencies. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged.

The Company uses forward exchange contracts, currency swaps, other derivatives and non-derivative instruments to hedge the effects of movements in exchange rates on foreign currency denominated assets, liabilities and highly probable forecast transactions. The sources of foreign exchange risk are outstanding amounts payable for imported raw materials, capital goods and other supplies and as well as financing transactions and loans denominated in foreign currencies. The Company is also exposed to foreign exchange risk on its highly probable forecasted sales and purchases. The policy of the Company is to determine on a regular basis what portion of the foreign exchange risk on financing transactions and loans are to be hedged through forward exchange contracts and other instruments. Short-term net exposures are hedged progressively based on their maturity. The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency exchange rates is appropriately managed. The following analysis is based on the gross exposure as at the reporting date which could affect the profit or loss or other comprehensive income. Instruments designated in hedging relationship and hedge accounting disclosures are include in section “Derivative financial instruments and hedge accounting”.

Forex exposure	As at 31 March 2024 As at 31 March 2023
	Foreign Currency `(Crores)<br>Foreign Currency<br>`(Crores)
Financial assets USD GBP EUR JPY Financial liabilities USD GBP EUR JPY CHF Derivative/non derivative contracts USD EUR	1,82,00,696 151.78 25,22,549 20.90 3,10,309 3.27 4,71,207 4.80 59,55,601 53.76 22,65,537 20.31 - - 2,91,84,585 1.80 1,94,11,600 161.87 2,16,03,314 178.96 685 0.01 7,329 0.07 4,06,46,868 366.88 3,97,20,781 356.10 3,27,340 0.02 - - 9,845 0.09 - - (91,44,618) (76.26) (1,49,47,227) (123.82) (2,54,88,076) (230.06) (3,22,46,476) (289.09)

The following significant exchange rates have been applied:

Particulars	Year end spot rate
	As at 31 March 2024 As at 31 March 2023
USD	83.39 82.84 105.33 101.91 90.26 89.65 0.55 0.62 92.41 89.83
GBP EURO JPY CHF

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Sensitivity analysis

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments and the impact on other components of equity arises from foreign forward exchange contracts and non-derivative financial instruments designated as cash flow hedges.

A)

Particular	Impact on proft after tax Impact on other components of equity
	31 March 2024 31 March 2023 31 March 2024 31 March 2023
USD sensitivity INR/USD increase by 5.00% (31 March 2023- 5.00%) INR/USD decrease by 5.00%% (31 March 2023- 5.00%) GBP sensitivity INR/GBP increase by 5.00% (31 March 2023- 5.00%) INR/GBP decrease by 5.00% (31 March 2023- 5.00%) EUR sensitivity INR/EUR increase by 5.00% (31 March 2023- 5.00%) INR/EUR decrease by 5.00% (31 March 2023 5.00%) JPY sensitivity INR/JPY increase by 5.00% (31 March 2023- 5.00%) INR/JPY decrease by 5.00% (31 March 2023- 5.00%) CHF sensitivity INR/CHF increase by 5.00% (31 March 2023- 5.00%) INR/CHF decrease by 5.00% (31 March 2023- 5.00%)	(0.33) (5.14) - - 0.33 5.14 - - 0.11 0.15 - - (0.11) (0.15) - - (4.78) (5.27) (5.40) (5.65) 4.78 5.27 5.40 5.65 - 0.06 - - - (0.06) - - 0.003 - - -
	(0.003) - - -

Derivative financial instruments

The fair value of the Company’s open derivative positions recorded within financial instruments (derivative) is as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
	Liability Assets Liability Assets
Cash fow hedges - Forward foreign currency contracts - Options - Interest rate swaps Total	0.11 0.27 0.23 0.96 - 0.43 - 7.33 - - 0.09 -
	0.11 0.70 0.32 8.29

*Refer statement of profit and loss and statements of change in equity for the change in the fair value of cash flow hedges.

b) The Company uses foreign currency forward contracts, foreign currency options contracts and non-derivative financial instruments (i.e. foreign currency borrowings) to mitigate exchange rate exposure arising from forecast sales and purchase in USD, EUR and GBP. Also, the Company uses foreign currency options contracts, cross currency swap contracts and interest rate swap contracts to mitigate exchange rate exposure and interest rate exposure arising from foreign currency borrowings.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Hedge effectiveness is determined at inception of the hedge relationship and at every reporting period end through the assessment of the hedged items and hedging instrument to determine whether there is still an economic relationship between the two.

The critical terms of the foreign currency forwards and cross currency swaps entered into exactly match the terms of the hedged item. As such the economic relationship and hedge effectiveness are based on the qualitative factors and the use of a hypothetical derivative where appropriate

In hedges of foreign currency borrowings and forecast transaction, ineffectiveness mainly arises because of Change in timing of hedged item from that of the hedging instrument and cost of hedging. The ineffectiveness in the hedges have been disclosed.

All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported subsequently at fair value in the statement of financial position.

To the extent that the hedge is effective, changes in the fair value of derivatives designated as hedging instruments in cash flow hedges are recognised in other comprehensive income and included within the cash flow hedge reserve in equity. Any ineffectiveness in the hedge relationship is recognised immediately in profit or loss.

If a forecast transaction is no longer expected to occur, any related gain or loss recognised in other comprehensive income is transferred immediately to profit or loss. If the hedging relationship ceases to meet the effectiveness conditions, hedge accounting is discontinued, and the related gain or loss is held in the equity reserve until the forecast transaction occurs.

Other derivatives, which have not been designated in hedging relationship, are considered by management to be part of economic hedge arrangements but have not been formally designated.

Impact of hedging activities

Disclosure of effects of hedge accounting on financial position

Type of hedge and risks	Nominal value	Carrying amount of hedging instrument	Carrying amount of hedging instrument	Maturity date	Hedge ratio	Average strike price	Changes in fair value of the hedging instrument	Change in the value of hedged item used as the basis for recognising hedge effectiveness
		Assets	Liabilities
As at 31 March 2024
Cash fow hedge
Foreign currency and interest rate risk
Derivative instruments (i) Foreign exchange forward contracts	USD 9,406,185	-	0.11	April 2024- September 2024	1:1	USD/INR- 83.96	(0.11)	0.11
(including options, currency swaps)	EUR 7,007,022	0.43	-	April 2024- February 2025	1:1	EUR/INR- 90.48	0.43	(0.43)
	EUR 1,937,100	0.27	-	April 2024- November 2024	1:1	EUR/USD- 1.057	0.27	(0.27)
Non-derivative instruments
(i) Foreign currency borrowings*	EUR 18,402,450	-	166.09	November 2023- May 2033	1:1	-	-	-

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Type of hedge and risks	Nominal value	Carrying amount of hedging instrument	Carrying amount of hedging instrument	Maturity date	Hedge ratio	Average strike price	Changes in fair value of the hedging instrument	Change in the value of hedged item used as the basis for recognising hedge effectiveness
		Assets	Liabilities
As at 31 March 2023 Cash fow hedge Foreign currency and interest rate risk Derivative instruments (i) Foreign exchange forward contracts (including options, currency swaps) Non-derivative instruments (i) Foreign currency borrowings*	USD 14,947,267 EUR 12,875,476 EUR 19,371,000	0.21 7.12 -	0.32 - 173.65	April 2023- September 2023 April 2023- August 2023 November 2023- May 2033	1:1 1:1 1:1	USD/INR- 82.46 EUR/INR- 82.30 -	(0.11) 7.12 -	0.11 (7.12) -

represents outstanding balance of loans designated under natural hedge

Disclosure of effects of hedge accounting on financial performance

For the year ended 31 March 2024

Type of hedge and risks	Change in the value of hedging instrument in other comprehensive income	Change in the value of hedging instrument in other comprehensive income	Hedge ineffectiveness recognised in proft or loss	Amount reclassifed from cash fow hedging reserve to proft or loss	Line item affected in statement of proft and loss because of reclassifcation and hedge ineffectiveness
Cash fow hedge
Foreign currency and interest rate risk
(i) Foreign exchange forward contracts	(4.68)		-	4.68	Finance cost and other expenses/ income
(ii) Foreign currency borrowings	(1.19)		-	(1.00)	Finance cost and other expenses/ income

Type of hedge and risks		Change in the value of hedging instrument in other comprehensive income	Hedge ineffectiveness recognised in proft or loss	Amount reclassifed from cash fow hedging reserve to proft or loss	Line item affected in statement of proft and loss because of reclassifcation and hedge ineffectiveness
Cash fow hedge

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Foreign currency and interest rate risk (i) Foreign exchange forward contracts (ii) Foreign currency borrowings	0.67 (18.54)	- -	5.93 (1.09)	Finance cost and other expenses/ income Finance cost and other expenses/ income

Price risk

Exposure

The Company’s exposure to price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.

Sensitivity

The table below summarises the impact of increases/decreases of the index on the Company’s equity and profit for the period :

Particulars	Impact on proft after tax Impact on other components of equity
	As at 31 March 2024 As at 31 March 2023 As at 31 March 2024 As at 31 March 2023
Investments* Net asset value - increase by 1% Net asset - decreased by 1%	1.45 1.55 0.95 0.89 (1.45) (1.55) (0.95) (0.89)

*Investment in subsidiaries are measured at cost as per Ind AS 27, ‘Separate financial statements’ and hence, not presented here.

47 CAPITAL MANAGEMENT

The Company’s capital management objectives are to ensure the Company’s ability to continue as a going concern as well as to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company monitors capital on the basis of the carrying amount of equity plus its subordinated loan, less cash and cash equivalents as presented on the face of the statement of financial position and cash flow hedges recognised in other comprehensive income.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares. The amounts managed as capital by the Company are summarised as follows:

The Company monitors capital on the basis of its gearing ratio, debt equity ratio and ratio of net debts to its earnings before interest, tax, depreciation and amortisation (EBITDA)

Debt equity ratio

Debt equity ratio
Particulars	As at	As at
	31 March 2024	31 March 2023
Total borrowings (including current maturities of long term debt)	963.61	838.19

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Less: Investments Less: Cash and cash equivalents Less: Pledged deposits	(369.21) (374.80) (11.60) (10.47) (8.73) (11.24)
Net debt Total equity Net debt to equity ratio	574.07 441.68 1,174.36 1,147.30
	48.88% 38.50%

Ratio of net debt to EBIDTA

Particulars	As at 31 March 2024 As at 31 March 2023
Proft before exceptional items and tax* Add: Depreciation and amortisation expenses Add: Finance cost	43.33 275.01 85.16 69.08 84.95 51.46
EBIDTA Net debt Ratio of net debt to EBIDTA	213.44 395.55 574.07 441.68
	2.69 1.12

*Includes other income

Gearing ratio

Gearing ratio
Particulars	As at 31 March 2024 As at 31 March 2023
Net debt Total equity Equity and net debt Gearing ratio	574.07 441.68 1,174.36 1,147.30 1,748.43 1,588.98
	32.83% 27.80%

Dividend Paid during the year	As at 31 March 2024 As at 31 March 2023
Equity Shares: Final dividend for the year ended 31 March 2023 of`5 per shares (31 March 2022: NIL Per share)	12.97

48 SEGMENT REPORTING

In accordance with Ind AS 108, the Board of Directors being the Chief operating decision maker of the Company have determined its only one reportable business segment of packaging films. Further, in terms of Paragraph 4 and 31 of Ind AS 108 ‘Operating Segments’, entity wide disclosures have been presented below:

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

a) Revenue as per geographical markets:

Segment	Domestic Overseas
	For the year ended For the year ended
	31 March 2024 31 March 2023 31 March 2024 31 March 2023
Packaging flms Others Total	1,265.87 1,423.62 1,047.46 1,268.43 27.75 9.14 - -
	1,293.62 1,432.76 1,047.46 1,268.43

b) There is no customer who has contributed more than 10% revenue.

49 RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

The changes in the Company’s liabilities arising from financing activities can be classified as follows:

Particulars	Long-term borrowings	Short-term borrowings	Total
Opening balance as at 1 April 2023	700.39	137.80	838.19
Cash fow:
- Proceeds	306.28	-	306.28
- Repayment	(151.67)	(26.51)	(178.18)
Non cash
- Finance cost adjustment for effective interest rate	0.75	-	0.75
- Foreign exchange difference	(3.06)	(0.37)	(3.43)
Closing balance as at 31 March 2024	852.69	110.92	963.61

Particulars	Long-term borrowings	Short-term borrowings	Total
Opening balance as at 1 April 2022 Cash fow: - Proceeds - Repayment Non cash - Finance cost adjustment for effective interest rate - Foreign exchange difference Closing balance as at 31 March 2023	604.80 203.42 (139.46) 0.37 31.26 700.39	144.25 - (6.53) - 0.08 137.80	749.05 203.42 (145.99) 0.37 31.34 838.19

50 KEY FINANCIAL RATIOS:

Ratio	Measurement unit	Numerator	Denominator	31 March 2024	31 March 2023	Changes	Remarks
a) Current Ratio	Times	Current Assets	Current Liabilities	0.99	1.06	-5.88%	Refer note 1 below

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Ratio	Measurement unit	Numerator	Denominator	31 March 2024	31 March 2023	Changes	Remarks
b) Total debt to equity ratio c) Net debt to equity ratio d) Debt service coverage ratio e) Return on equity ratio f) Inventory turnover ratio g) Trade receivable turnover ratio h) Trade payable turnover ratio i) Net working capital turnover ratio j) Net proft ratio k) Return on capital employed l) Return on investment (Equity instruments) m) Return on investment (Debt instruments)	Percentage	Total Debt	Shareholder’s Equity	82.05%	73.06% 38.50% 1.75 18.62% 5.27 15.43 4.35 49.03 7.79% 15.83% 2.53% 6.76%	12.31% 26.98% -49.57% -82.27% -9.04% -22.53% -34.92% -868.01% -79.19% -63.48% 653.36% 30.21%	Refer note 1 below Increase is primarily due to higher net debt caused by growth capex during FY 23-24. Refer note 2 below Refer note 2 below Refer note 1 below Refer note 1 below Primarily improved due to increase in number of payable days outstanding Primarily improved due to decrease in net working capital in business caused by high trade payable and customer advances Refer note 2 below Refer note 2 below Return imporved in Financial year 2023- 24 due to better market performance. Return imporved in Financial year 2023- 24 due to better market performance.
	Percentage	Net Debt	Shareholder’s Equity	48.88%
	Times	Earnings available for debt service	Debt Service	0.88
	Percentage	Net proft after tax	Shareholder’s Equity	3.30%
	Times	Purchase of goods	Average Inventory	4.79
	Times	Revenue from operations	Average trade receivable	11.95
	Times	Purchase of goods	Average trade payables	2.83
	Times	Revenue from operations	Working Capital	(376.55)
	Percentage	Net proft after tax	Revenue from operations	1.62%
	Percentage	Earning before interest and tax (EBIT)	Average capital employed	5.78%
	Percentage	Net fair value change (including dividend income)	Weighted average cost of instrument during the year	19.08%
	Percentage	Net fair value change (including interest income)	Weighted average cost of instrument during the year	8.80%

Notes:
Since the change in ratio is less than 25%, no explanation is required to be furnished.
Primarily lower due to decrease in operating income caused by margin pressure due to significant capacity addition in the domestic industry. The company could outperformed the industry at large due to higher sale of speciality film.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

51 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013

(i) Details of benami properties held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Valuation of Property, Plant and Equipment and Intangible Assets

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(iii) Details of crypto currency or virtual currency

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

(iv) Wilful defaulter

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

(v) Relationship with struck off companies

The Company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the previous year.

(vi) Compliance with number of layers of companies

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

(vii) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(viii) Registration of charges or satisfaction with registrar of companies

There are no changes or satisfaction which are yet to be registered with the registrar of companies beyond the statutory period.

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Fund received / loaned

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xi) No funds have been received by the Company from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(xii) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with such banks or financial institutions on aggregate basis, are in agreement with the unaudited books of account of the Company, for the respective quarters, except for some differences due to non-reporting of advances received from customers primarily comprising of subsidiaries, and other differences due to filing of quarterly returns or statements with banks based on the provisional financial statements and subsequent corrections being carried out in the financial statements during limited reviews of respective quarters/ year end audit.

52 ACQUISITION OF PETSY STORES PRIVATE LIMITED

On 1 July 2023, the Company acquired the business of online sales of Petcare products as a going concern by way of a slump sale from Petsy Stores Private Limited, an unlisted company incorporated in India and engaged in the business of Petcare products under the brand name of “Petsy”. The deal comprised of online platform/website, brand name and logo, social media handles, tangible assets, customer database and other intangible assets. The acquisition is in line with the Company’s strategy to expand it’s Petcare Business.

(A) Purchase consideration transferred

The amount of consideration transferred on acquisition is ` 6.33 Crores in cash.

(B) Assets acquired, and liabilities assumed is as under:

Assets acquired, and liabilities assumed is as under:
Identifable tangible assets
Property, plant and equipment Identifable intangible assets Brand/trademark Software/Platform Customer database Goodwill Other assets Trade receivables Inventories Other assets Total identifable assets (A) Identifable liabilities Trade payables Other liabilities Total identifable liabilities (B) Total identifable net assets acquired (A)-(B)*	0.25 4.43 0.16 0.52 0.10 0.05 0.94 0.67
	7.12
	0.67 0.12
	0.79
	6.33

Goodwill of ` 0.10 Crores is recognised as ‘Intangible Assets’ on account of synergies expected from acquisition of Petsy.

The gross contractual value and fair value of trade receivables as at the date of acquisition, is expected to be fully recoverable.

(C) Acquisition of brand ‘Petsy’

The Company has also acquired the ‘Petsy’ brand, as part of the acquisition deal. The brand has been valued at ` 4.43 Crores as per the report of independent valuer.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(D) Contingent liabilities

There are no contingent liabilities as on 1 July 2023 pertaining to Petsy.

(E) Analysis on cash flows of acquisition

Analysis on cash fows of acquisition
Particulars	Amount
Cash paid on business acquisition Cash and cash equivalent acquired from Petsy Net cash paid	6.33 -
	6.33

Purchase consideration of Petsy amounting to 6.33 Crores are included under Cash flow from investing activities. Acquisition-related expenses of 0.09 Crore have been recognised under ‘Other expense’ head in the statement of profit and loss.

(F) Impact of acquisition on results

During the year, the acquired business Petsy contributed 4.57 Crores towards Revenue from operations and made a loss of 3.16 Crores.
If the business combination had taken place at the beginning of the year i.e. on 1 April 2023, Petsy would have contributed 6.4 Crores towards Revenue from operations and would have made a loss of 4 Crores.
53 Per transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961, the Company is required to use certain specific methods in computing arm’s length prices of international transactions with associated enterprises and maintain adequate documentation in this respect. Since law requires existence of such information and documentation to be contemporaneous in nature, the Company has appointed independent consultants for conducting a Transfer Pricing Study (the ‘Study’) to determine whether the transactions with associate enterprises undertaken during the financial year are on an “arms length basis”. Management is of the opinion that the Company’s international transactions are at arm’s length and that the results of the on-going study will not have any impact on the financial statements and the independent consultants appointed have also preliminarily confirmed that they do not expect any transfer pricing adjustments.
54 There has been no subsequent events which required any adjustment for the financial year ending 31 March 2024.
55 Previous year numbers have been regrouped wherever consider necessary to confirm to current year classifications.

For and on behalf of Board of Directors of Cosmo First Limited (formerly Cosmo Films Limited)

For S.N. Dhawan & CO LLP Chartered Accountants

Firm Registration No.: 000050N/N500045

The determination of business valuation as at the acquisition date is based on discounted cash flow method. While doing purchase price allocation, property, plant and equipment, current assets and liabilities have been considered on the respective carrying values on the acquisition date and allocation to identifiable intangible assets has been considered based on the importance of each intangible asset for growth of the Company’s business.

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INDEPENDENT AUDITOR’S REPORT

To the Members of Cosmo First Limited (formerly ‘Cosmo Films Limited’)

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the consolidated financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities

Report on the Audit of the Consolidated Financial Statements

OPINION

We have audited the accompanying consolidated financial statements of Cosmo First Limited (“the Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), which comprise the Consolidated Balance Sheet as at 31 March 2024, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the year then ended, and notes to the consolidated financial statements, including a summary of material accounting policies (“the consolidated financial statements”).

in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the other auditors on separate financial statements of the subsidiaries referred to in the Other Matters section below, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India, of their consolidated state of affairs of the Group, as at 31 March 2024, of consolidated profit, consolidated other comprehensive income, consolidated changes in equity and its consolidated cash flows for the year then ended.

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined the matters described below to be the key audit matters to be communicated in our report:

Key audit matter

How our audit addressed the key audit matter

Derivative financial instruments

The group has entered into various derivative contracts including foreign exchange forward contracts, currency options, cross currency swaps and interest rate swaps which are used to manage and hedge foreign currency exchange risks and interest rate risks.

The Group has reported net derivative financial assets at fair value of ₹ 0.70 crores and net derivative financial liabilities at fair value of ₹ 0.11 crores as of 31 March 2024.

• Obtained independent direct confirmations from banks to confirm the outstanding financial instruments in order to verify existence and rights.

The Group’s accounting policy on derivatives is disclosed in note 1 (iv) k) (iii) and related disclosures are included in note 46. The Group’s significant judgements in applying accounting policy are disclosed in note 1 (vi).

• Reviewed the hedging strategy of the Group, economic relationship and hedge ratio between hedged items and hedging instruments to assess the hedge effectiveness of derivative contracts to the extent hedge accounting is applied.

Key audit matter

The fair value of the derivative financial instruments is based on year-end quotes received from counterparty banks. In respect of designated hedging relationships, the Group measures the effectiveness thereof using valuation models, such as hypothetical derivative method.

Accordingly, valuation of the derivative financial instruments and hedge accounting is determined to be a key audit matter.

INFORMATION OTHER THAN THE CONSOLIDATED FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON

The Holding Company’s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act, that give a true and fair view of the consolidated financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and consolidated statement of changes in equity of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act. The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; the selection and application

How our audit addressed the key audit matter

Inspected the underlying agreements and deal confirmations for the derivatives.

Assessed whether the accounting policy is consistent with the requirements of Ind AS 109 ‘Financial Instruments’.

Evaluated the appropriateness of disclosures in relation to financial risk management, derivative financial instruments and hedge accounting.

We have also obtained written representations from management and those charged with governance on whether the significant assumptions used in valuation of derivatives are considered reasonable.

of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding,

among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

OTHER MATTERS

We did not audit the financial statements / financial information of two subsidiaries, whose financial statements reflect total assets (after eliminating intra-group balances) of 139.25 crores as at 31 March 2024, total revenue of 322.86 crores, net profit after tax of 22.82 crores, total comprehensive income of 25.30 crores (after eliminating intra-group transactions) and net cash inflows of ` 3.50 crores for the year ended on that date, as considered in the consolidated financial statements. These financial statements / financial information have been audited by other auditors whose reports have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, is based solely on the reports of the other auditors.

Further, these subsidiaries are located outside India and their financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s management has converted the financial statements of such subsidiaries located outside India from accounting principles generally accepted in their respective countries to accounting principles

generally accepted in India. We have audited these conversion adjustments made by the Holding Company’s management. Our opinion on the consolidated financial statements, in so far as it relates to the balances and affairs of such subsidiaries located outside India, is based on the report of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.

We did not audit the financial statements / financial information of five subsidiaries, whose financial statements / financial information reflect total assets (after eliminating intra-group balances) of 134.69 crores as at 31 March 2024, total revenues of 146.62 crores, total net loss after tax of 7.53 crores, total comprehensive income / (loss) of ( 11.07 crores) (after eliminating intra-group transactions) and net cash outflows of ` 12.93 crores for the year ended on that date, as considered in the consolidated financial statements. These financial statements / financial information are unaudited and have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and our report in terms of sub-section (3) of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries, is based solely on such unaudited financial statements / financial information. In our opinion and according to the information and explanations given to us by the management, these financial statements / financial information are not material to the Group.
Our opinion on the consolidated financial statements above, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done by and the reports of other auditors and the unaudited financial statements / financial information provided by the management.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies (Auditor’s Report) Order, 2020 (the “Order”/ “CARO”) issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor’s report, according to the information and explanations given to us, and based on the CARO reports issued by us for the Company and its subsidiaries included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, we refer to clause ii(b) of CARO report (Annexure A to the Independent Auditor’s Report) of the Holding Company ( i.e. Cosmo First Limited having CIN ‘L92114DL1976PLC008355’).
As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on separate financial statements and other financial information of subsidiaries, as noted in the ‘Other Matters’ paragraph, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors except for the matter stated in the paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Statement of Cash Flows and Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Holding Company and taken on record by the Board of Directors of the Holding Company and on the basis of the written representations received from the directors of three subsidiary companies covered under the Act, none of the directors of the Holding Company and such subsidiary companies covered under the Act, are disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.
(f) The modifications relating to the maintenance of accounts and other matters connected therewith in respect of audit trail are as stated in the paragraph 2(b) above on reporting under Section 143(3)(b) of the Act and paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

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(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company and its subsidiary companies covered under the Act, and the operating effectiveness of such controls, refer to our separate report in Annexure A.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Holding Company to its directors during the year is in accordance with the provisions of Section 197 of the Act. Further, subsidiary companies, which are covered under the Act, have not paid or provided for any managerial remuneration during the year.
(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the other auditors on separate financial statements as also the other financial information of the subsidiaries, as noted in the ‘Other matter’ paragraph:
i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the Group – Refer Note 38 to the consolidated financial statements.
ii. The Group did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company and its subsidiary companies incorporated in India.
iv. (a) The respective managements of the Holding Company and its subsidiaries which are companies incorporated in India, whose financial statements have been audited under the Act, have represented to us that, to the best of their knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium

or any other sources or kind of funds) by the Holding Company or any such subsidiaries to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding Company or any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) The respective managements of the Holding Company and its subsidiaries which are companies incorporated in India, whose financial statements have been audited under the Act, have represented to us that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Holding Company or any of such subsidiaries from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiaries shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any material misstatement.
v. The final dividend paid by the Holding Company during the year in respect of the same declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
As stated in note 18 to the financial statements, the Board of Directors of

the Holding Company have proposed

final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

vi. The Holding Company and the subsidiaries which are companies incorporated in India, use accounting software(s) for maintaining its books of account which has a feature of recording audit trail (edit log) facility and based on our examination which included test checks and that performed by the respective auditors of the subsidiaries which are companies incorporated in India, the same has operated throughout the year for all relevant transactions recorded in such accounting software(s). However, with respect to the primary accounting software, the audit trail feature is not enabled for direct changes to data when using certain privileged/ administrative access rights to the underlying database. As informed to us by the management of the Group, such privileged/administrative access rights to the database are with service provider only and changes, if any, are mandatorily recorded to sufficiently demonstrate its audit trail (edit log).
Further, to the extent audit trail (edit log) facility was enabled and operated throughout the year for the respective accounting software(s), we did not come across any instance of the audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended is applicable for the for the Holding Company and its subsidiaries which are companies incorporated in India, only with effect from 01 April 2023, therefore, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended, on preservation of audit trail as per the statutory requirements for record retention is not applicable for financial year ended 31 March 2024.

For S.N. Dhawan & CO LLP

Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena

Partner

Membership No.: 077974 UDIN: 24077974BKEZUG5593

Place: New Delhi

Date: 15 May 2024

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ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2(g) under ‘Report on Other Legal and Regulatory Requirements’ section of the Independent Auditor’s Report of even date to the members of Cosmo First Limited on the consolidated financial statements as of and for the year ended 31 March 2024)

Independent Auditor’s report on the Internal Financial Controls with reference to financial statements under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.

In conjunction with our audit of the consolidated financial statements of Cosmo First Limited (‘the Holding Company’) and its subsidiaries (the Holding Company and its subsidiaries together referred to as ‘the Group’), as of and for the year ended 31 March 2024, we have audited the internal financial controls with reference to financial statements of the Holding Company and its subsidiaries, which are companies incorporated in India, as of that date.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls systems with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The respective Board of Directors of the Holding Company and its subsidiaries which are companies incorporated in India are responsible for establishing and maintaining internal financial controls based on the internal financial control with reference to financial statements criteria established by the respective companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the company’s business, including adherence to the respective company’s policies, the safeguarding of the company’s assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system with reference to financial statements of the Holding Company and its subsidiaries, as aforesaid.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on the internal financial controls with reference to financial statements of the Holding Company and its subsidiaries as aforesaid, based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India (“the ICAI”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial controls with reference to Financial Statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion, the Holding Company and its subsidiaries, which are companies incorporated in India, have, in all material respects, adequate internal financial controls system with reference to financial

statements and such internal financial controls with reference to financial statements were operating effectively as at 31 March 2024, based on the internal financial controls with reference to financial statements criteria established by the respective companies considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S.N. Dhawan & CO LLP

Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena

Partner Membership No.: 077974 UDIN: 24077974BKEZUG5593

Place: New Delhi Date: 15 May 2024

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Statutory Reports

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CONSOLIDATED BALANCE SHEET as at 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars Note No.	As at 31 March 2024 As at 31 March 2023
ASSETS Non-current assets a) Property, plant and equipment 2 b) Capital work-in-progress 3 c) Investment property 4 d) Intangible assets 5 e) Right of use assets 5A f) Financial assets (i) Investments 6 (ii) Loans 7 (iii) Other fnancial assets 8 g) Deferred tax assets (net) 22 h) Income tax assets (net) i) Other non-current assets 9 Current assets a) Inventories 10 b) Financial assets (i) Investments 11 (ii) Trade receivables 12 (iii) Cash and cash equivalents 13 (iv) Bank balances other than (iii) above 14 (v) Loans 15 (vi) Other fnancial assets 16 c) Other current assets 17 Assets held for sale TOTAL ASSETS EQUITY AND LIABILITIES Equity a) Equity share capital 18 b) Other equity 19 Liabilities Non-current liabilities a) Financial liabilities (i) Borrowings 20 (ii) Lease liabilities (iii) Other fnancials liabilities 26 b) Provisions 21 c) Deferred tax liabilities (net) 22 d) Other non-current liabilities 23 Current liabilities a) Financial liabilities (i) Borrowings 24 (ii) Lease liabilities (iii) Trade payables (a) Total outstanding dues of micro and small enterprises 25 (b) Total outstanding dues of creditors other than micro and small enterprises 25 (iv) Other fnancial liabilities 26 b) Other current liabilities 27 c) Provisions 28 d) Current tax liabilities (net) TOTAL EQUITY AND LIABILITIES Summary of material accounting policies 1	1,495.47 1,367.28 357.20 185.48 11.47 12.70 14.42 6.38 67.64 40.54 23.77 7.70 4.68 5.59 4.96 3.70 15.55 17.77 35.35 35.00 94.86 116.40
	2,125.37 1,798.54
	510.37 534.93 381.85 410.03 261.48 199.56 24.75 32.94 10.57 13.12 2.71 2.51 23.87 32.85 165.96 103.39
	1,381.56 1,329.33
	20.93 -
	3,527.86 3,127.87
	26.25 26.25 1321.26 1271.86
	, , 1,347.51 1,298.11
	680.48 546.58 64.72 38.00 25.33 - 21.10 24.88 155.75 159.91 69.87 57.58
	1,017.25 826.95
	297.34 343.27 5.51 4.16 10.80 7.40 677.28 521.07 129.05 88.73 26.37 22.60 14.52 13.93 2.23 1.65
	1,163.10 1,002.81
	3,527.86 3,127.87

The accompanying summary of material accounting policies and other explanatory information are an integral part of the consolidated fnancial statements.

This is the consolidated Balance Sheet referred to in our report of even date.

For and on behalf of Board of Directors of Cosmo First Limited (formerly Cosmo Films Limited)

For S.N. Dhawan & CO LLP

Chartered Accountants

Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena Partner Membership No.: 077974

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars Note No.	Year ended 31 March 2024 Year ended 31 March 2023
Income Revenue from operations 29 Other income 30 Total income Expenses Cost of materials consumed Purchase of traded goods Change in inventories of fnished goods and stock in trade 31 Employee benefts expense 32 Finance costs 33 Depreciation, amortisation and impairment expense 34 Allowance for expected credit losses Other expenses 35 Total expenses Proft before tax Tax expense 36 - Current tax - Deferred tax expense/(credit) - Tax adjustment for earlier years Total tax expense Net proft for the year Other comprehensive income 1) Items that will not be reclassifed to proft or loss - Remeasurements of net defned beneft plans - Tax on above items 2) Items that will be reclassifed to proft or loss - Effective portion of gain/(loss) on hedging instrument in cash fow hedge - Net changes in fair value of debt instruments carried at fair value through other comprehensive income - Foreign currency translation reserve - Tax on above items Total other comprehensive income Total comprehensive income Earnings per equity share 37 - Basic (`)<br>- Diluted (`) Summary of material accounting policies 1	2,587.34 3,065.29 67.96 51.95
	2,655.30 3,117.24
	1,725.94 2,024.60 20.69 8.32 3.81 21.16 216.95 217.09 89.36 55.45 89.48 74.96 2.58 (1.00) 434.10 412.77
	2,582.91 2,813.35
	72.39 303.89
	14.60 57.25 (1.37) 9.01 (3.03) (6.36)
	10.20 59.90
	62.19 243.99
	1.00 0.74 (0.34) (0.26) (4.88) (22.71) 1.19 (4.27) (1.98) 19.48 1.61 8.79
	(3.40) 1.77
	58.79 245.75
	23.99 90.86 23.64 89.45

The accompanying summary of material accounting policies and other explanatory information are an integral part of the consolidated financial statements.

This is the consolidated Statement of Profit and Loss referred to in our report of even date.

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited Chartered Accountants (formerly Cosmo Films Limited) Firm Registration No.: 000050N/N500045

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

A. EQUITY SHARE CAPITAL

EQUITY SHARE CAPITAL
Opening balance as at 1 April 2022	18.17
Issue of bonus shares	9.09
Buyback of shares	(1.01)
Closing balance as at 31 March 2023	26.25
Changes during the year	-
Closing balance as at 31 March 2024	26.25

B. OTHER EQUITY

OTHER EQUITY
Particulars	Reserves and surplus							Items of other comprehensive income			Treasury shares	Total
	Retained earnings	Securities premium	Special Economic Zone (SEZ) Re- investment reserve	Share options outstanding account	Capital reserve	General reserve	Capital redemption reserve	Currency translation reserve	Effective portion of cash fow hedges	Debt instruments through other comprehensive income
Balance as at 1 April 2022	926.33	7.42	-	6.60	4.10	218.89	1.27	15.30	5.71	2.94	(16.00)	1,172.56
Proft for theyear	243.99	-	-	-	-	-	-	-	-	-	-	243.99
Other comprehensive income/(expense)	0.48	-	-	-	-	-	-	19.48	(14.77)	(3.42)	-	1.77
Total comprehensive income for theyear	244.47	-	-	-	-	-	-	19.48	(14.77)	(3.42)	-	245.76
Transaction with owners
Buyback of equity share capital including expenses thereto	-	-	-	-	-	(132.77)	-	-	-	-	-	(132.77)
Transfer from general reserve on account of buyback of equity share capital	-	-	-	-	-	(1.01)	1.01	-	-	-	-	-
Issue of bonus shares		(4.50)	-		(3.32)		(1.27)	-	-	-	-	(9.09)
Employee share-based compensation	-	-	-	6.45	-	-	-	-	-	-	-	6.45
Transfer from share options outstanding on exercise and lapse	-	0.54	-	(0.54)	-	-	-	-	-	-	-	-
Acquisition of treasury shares	-	-	-	-	-	-	-	-	-	-	-	-
Movement during theyear	(0.01)	-	-	-	-	-	-	-	-	-	-	(0.01)
Sales / (acquisition) of treasuryShares	-	(2.61)	-	-	-	-	-	-	-	-	(8.43)	(11.04)
Balance as at 31 March 2023	1,170.78	0.85	-	12.51	0.78	85.11	1.01	34.78	(9.06)	(0.48)	(24.43)	1,271.86

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

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----- Start of picture text -----

Particulars Reserves and surplus Items of other comprehensive income Treasury Total
Retained Securities Special Share Capital General Capital Currency Effective Debt shares
earnings premium Economic options reserve reserve redemption translation portion of instruments
Zone outstanding reserve reserve cash flow through other
(SEZ) Re- account hedges comprehensive
investment income
reserve
Balance as at 1 April 2023 1,170.78 0.85 - 12.51 0.78 85.11 1.01 34.78 (9.06) (0.48) (24.43) 1,271.86
Profit for the year 62.19 - - - - - - - - - - 62.19
Other comprehensive 0.66 - - - - - - (1.98) (3.17) 1.09 - (3.40)
(expense)/income
Total comprehensive 62.85 - - - - - - (1.98) (3.17) 1.09 - 58.79
income for the year
Transaction with owners
Equity Dividend (12.97) - - - - - - - - - - (12.97)
Transfer to Special Economic - - 42.70 - - (42.70) - - - - - -
Zone (SEZ) Re-investment
reserve (refer notes 19 (ix))
Employee share-based - - - 6.44 - - - - - - - 6.44
compensation
Transfer from share options - 1.88 - (1.88) - - - - - - - -
outstanding on exercise and
lapse
Movement during the year (0.05) - - - - - - - - - - (0.05)
Sales / (acquisition) of - (2.73) - - - (6.63) - - - - 6.56 (2.80)
treasury Shares
Balance as at 31 March 2024 1,220.61 - 42.70 17.07 0.78 35.78 1.01 32.80 (12.23) 0.61 (17.87) 1,321.26
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Summary of material accounting policies 1 The accompanying summary of material accounting policies and other explanatory information are an integral part of the consolidated financial statements. This is the consolidated Statement of Changes in Equity referred to in our report of even date. For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of Cosmo First Limited Chartered Accountants (formerly Cosmo Films Limited) Firm Registration No.: 000050N/N500045 Rajeev Kumar Saxena Ashok Jaipuria Anil Kumar Jain Partner Chairman & Managing Director Director Corporate Affairs Membership No.: 077974 DIN: 00214707 DIN: 00027911 Place : New Delhi Pankaj Poddar Neeraj Jain Jyoti Dixit Date : 15 May 2024 Chief Executive Officer Chief Financial Officer Company Secretary Membership No.: 096861 Membership No.: 097576 Membership No.: F6229

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CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 March 2024

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(All amounts in ₹ Crores, unless otherwise stated)
Particular	Year ended 31 March 2024 Year ended 31 March 2023
A. Cash fow from operating activities Proft before tax Adjustment for Depreciation, amortisation and impairment expenses Finance costs Interest on fnancial assets carried at amortised cost Gain on investments carried at fair value through proft and loss Loss on investments carried at fair value through other comprehensive income Decrease/(increase) in allowance for expected credit losses Dividend income Interest income Gain on derivatives classifed under other comprehensive income Grant income on export promotion capital goods Liabilities no longer required written back (Gain)/loss on sale of property, plant and equipment Employee share based compensation Unrealised loss/(gain) on exchange fuctuation Unrealised claims recoverable Unrealised sales tax incentives Operating proft before working capital changes Adjustment for Inventories Trade receivables Loans Other fnancial assets Other assets Trade payables Other fnancial liabilities Other liabilities and provisions Cash fow from operating activities post working capital changes Income tax paid (net) Net cash fow from operating activities (A) B. Cash fow from investing activities Purchase of property, plant and equipment, intangible assets and capital work in progress (including capital advances) Sale of property, plant and equipment Sale/(purchase) of investments (net) Interest received Dividend received Investments in / (redemption of) fxed deposits (net) Net cash fow used in investing activities (B) C. Cash fow from fnancing activities Proceeds from long term borrowings Repayment of long term borrowings Repayment of short term borrowings (net) Sale/ (acquisition) of treasury shares (net) Interest paid Dividend paid Buyback of equity shares including expenses and taxes Payment of lease liabilities Net cash fow used in fnancing activities (C) (Decrease)/increase in net cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year (refer note 13) Cash and cash equivalents at the end of the year (refer note 13) Summary of material accounting policies 1	72.39 303.89 89.48 74.96 89.36 55.45 (1.06) (0.32) (27.40) (12.14) 3.13 0.97 2.58 (1.00) (0.60) (0.55) (18.89) (17.53) (3.71) (3.93) (3.60) (3.27) - (6.36) (2.91) 0.52 6.44 6.45 2.18 (2.87) (0.83) (5.93) (18.96) (6.27)
	187.60 382.07 24.47 19.90 (63.43) 23.44 1.77 0.97 (0.24) (3.28) (45.50) (25.63) 157.81 174.49 (4.79) (18.42) 1.84 (15.27)
	259.53 538.27 (14.31) (73.11)
	245.22 465.16
	(297.51) (380.40) 3.51 0.56 37.03 34.96 18.97 17.89 0.60 0.55 2.51 1.85
	(234.89) (324.59)
	306.20 203.42 (151.67) (139.46) (63.86) (16.08) (2.80) (11.06) (87.79) (54.25) (12.97) - - (133.78) (5.63) (2.07)
	(18.52) (153.28)
	(8.19) (12.71) 32.94 45.65
	24.75 32.94

The accompanying summary of material accounting policies and other explanatory information are an integral part of the consolidated financial statements.

This is the consolidated Statement of Cash Flows referred to in our report of even date.

For and on behalf of Board of Directors of Cosmo First Limited

For S.N. Dhawan & CO LLP

(formerly Cosmo Films Limited)

Chartered Accountants Firm Registration No.: 000050N/N500045

Rajeev Kumar Saxena Partner Membership No.: 077974

1) CORPORATE INFORMATION, BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

i) Corporate information

Cosmo First Limited (formerly Cosmo Films Limited) (the ‘Company’), manufacturers of Bi-axially Oriented Polypropylene Films (BOPP) was incorporated in India in 1981, under the Companies Act, 1956. The Holding Company is engaged in the production of flexible packaging films. Company’s products majorly comprise of BOPP Films, Thermal Films and Coated Films. In India, the Holding Company is currently having manufacturing facilities at Aurangabad and Shendra in Maharashtra and at Karjan in Gujarat. It also has its subsidiaries operating in different countries.

Further to it, during the current financial year, the Company invested in Rigid Packaging which includes Rigid sheets, Thermoforming and Injection Moulding. Cosmo Plastech is the end-toend rigid packaging solution that specializes in creating customized packaging solutions for a variety of fast-moving consumer goods (FMCG) products.

ii)

Basis of Preparation

These consolidated financial statements (‘financial statements’) of the Group have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with Companies (Indian Accounting

Standards) Rules, 2015 as amended from time to time.

The consolidated financial statements for the year ended 31 March 2024 were authorized and approved by the Board of Directors on 15 May 2024.

The consolidated financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the consolidated financial statements. The consolidated financial

statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments); and

Defined benefit plans – plan assets measured at fair value.

iii) Basis of consolidation

Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Holding Company has control. The Holding Company controls an entity when the Holding Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. The Holding Company can have power over the investee even if it owns less than majority voting rights i.e. rights arising from other contractual arrangements. Subsidiaries are fully consolidated from the date on which control is transferred to the Holding Company. Statement of profit and loss (including other comprehensive income (‘OCI’)) of subsidiaries acquired or disposed of during the period are recognized from the effective date of acquisition, or up to the effective date of disposal, as applicable.

The consolidated financial statements are presented, to the extent possible, in the same format as that adopted by the parent Company for its separate financial statements.
Intercompany transactions, balances and unrealised gains on transactions between Company and its subsidiaries (jointly referred to as the ‘Group’ herein under) are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Holding Company.

iv) Material Accounting Policies

a) Current versus non-current classification
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:
Expected to be realised or intended to be sold or consumed in normal operating cycle

Held primarily for the purpose of trading

Expected to be realised within twelve months after the reporting period, or

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Subsequent measurement (depreciation and useful lives)

A liability is current when:

It is expected to be settled in normal operating cycle
It is held primarily for the purpose of trading
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

Tangible Assets Building – Factory	Useful Life 30 Years
Building – other than factory	60 Years
Continuous process plant and	25 Years
Machinery
Plant and Machinery used in	40 years
generation, transmission and
distribution of power
Other plant and equipment Furniture and fttings	15 years 10 Years
Vehicles Offce equipment	6-8 Years 3-5 Years

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as

12 months for the purpose of current or non-current classification of assets and liabilities.

Cost of the leasehold land and leasehold improvement are amortized over the period of the lease.

b) Property, plant and equipment

The residual values, useful lives and method of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

Recognition and initial measurement

Property, plant and equipment are stated at their cost of acquisition. The cost comprises the purchase price, borrowing cost (if capitalisation criteria are met) and any attributable costs of bringing the asset to its working condition for its intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Property, plant and equipment acquired in a business combination are recognised at fair value at the acquisition date. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits attributable to such subsequent cost associated with the item will flow to the Group. All other repair and maintenance costs are recognised in statement of profit or loss as incurred.

De-recognition

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognized.

at cost less any accumulated amortisation and accumulated impairment losses, if any. Internally generated intangibles, excluding capitalized development cost, are not capitalized and the related expenditure is reflected in statement of profit and loss in the period in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

c) Investment property

Recognition and initial measurement

Investment properties are measured initially at cost, including transaction costs and where applicable, borrowing costs. Following initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The Group measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.

Subsequent measurement (depreciation and

useful lives)

All intangible assets, including internally developed intangible assets, are accounted for using the cost model whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Residual values and useful lives are reviewed at each reporting date. The following useful lives are applied:

Subsequent measurement (depreciation and useful lives)

Subsequent to initial recognition, an expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Intangible Assets Useful life (in years)

	Software	Amortised over a period
		of 6 years
	Brand name/	Amortised over a period
	trade marks	of 6 years
	Customer	Amortised over a period
	database	of 6 years

Investment properties are depreciated over the useful economic life and assessed for impairment whenever there is an indication that the investment properties may be impaired.

De-recognition

Goodwill is initially recognised based on the accounting policy for business combinations and is tested for impairment annually.

De-recognition

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

d) Intangible assets

Recognition and initial measurement

e) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

date are recognised in statement of profit or loss.

use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest calculated using the effective interest method that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

Exchange differences

As per the generally accepted accounting principles followed by the Group till 31 March 2017, exchange differences arising on translation/ settlement of long‐term foreign currency monetary items pertaining to the acquisition of a depreciable asset were adjusted to the cost of the asset. Exchange differences arising on other long-term foreign currency monetary items existing as on 31 March 2017 are accumulated in the “Foreign Currency Monetary Item Translation Difference Account” and amortised over the remaining life of the concerned monetary item. The Group has elected to continue with the said policy on exchange differences arising on long term foreign currency monetary items existing on 31 March 2017 as allowed under Ind AS 101.

f) Inventory

Inventories are stated at lower of cost or net realisable value. The cost in respect of the various items of inventory is computed as under:
Raw material cost includes direct expenses and is determined on the basis of weighted average method.
Stores and spares cost includes direct expenses and is determined on the basis of weighted average method.
In case of finished goods, cost includes raw material cost plus conversion costs and other overheads incurred to bring the goods to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business less any applicable selling expenses. Provision for obsolescence and slow moving inventory is made based on management’s best estimates of net realisable value of such inventories.

For this purpose, the Group treats a foreign currency monetary item as “long-term foreign currency monetary item”, if it has a term of 12 months or more at the date of its origination.

Foreign operations

In the Group’s financial statements, all assets, liabilities and transactions of the Group entities with functional currency other than the Indian Rupee are translated into Indian

g) Foreign currency translation

Functional and presentation currency

The consolidated financial statements are presented in Indian Rupees (INR or ₹) and are rounded to two decimal places of Crores, which is also the Holding Company’s functional and presentation currency.

Rupee upon consolidation. The functional currency of the entities in the Group has remained unchanged during the reporting period. On consolidation, assets and liabilities have been translated into Indian Rupee at the closing rate at the reporting date and the equity is translated at historical rate. Fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into Indian Rupee at the closing rate. Income and expenses have been translated into Indian Rupee at the average rate over the reporting period.

Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency by applying exchange rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency by applying the exchange rates at the reporting date.

Exchange differences are charged/ credited to other comprehensive income and recognized in the currency translation reserve in equity.

Exchange differences arising on settlement or translation of monetary items as at reporting

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

On disposal of a foreign operation, the related cumulative translation differences recognized in equity are reclassified to the statement of profit or loss and are recognized as part of the gain or loss on disposal.

for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

h) Leases

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

Transition

Effective 1[st] April 2019, the Group adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on 1[st] April 2019 using the modified retrospective method and elected to measure the right-of-use assets at an amount equal to the lease liability adjusted for any prepaid or accrued lease payments that existed at the date of transition.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Group changes its assessment if whether it will exercise an extension or a termination option.

The Group as a lessee

The Group’s leased asset classes primarily consist of leases for land and buildings. The Group assesses whether a contract contains a lease, at inception of a 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 Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset.

The Group as a lessor

Leases for which the Group is a lessor is are classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
At the date of commencement of the lease, the Group recognises 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 Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

Certain lease arrangements includes the

For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

i) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted

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lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period or each case.

presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

Impairment of financial assets

i)

All financial assets except for those at FVTPL and investments in equity instruments measured at FVOCI are subject to review for impairment at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets.

In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets carried at amortised cost.

Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

ECL is the weighted average of difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Group is required to consider –

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Trade receivables

i. For debtors that are not past due – The Group applies approach permitted by Ind AS 109 ‘Financial Instruments’, which requires lifetime expected credit losses to be recognised upon initial recognition of receivables. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

Life time expected credit losses are assessed and accounted based on Group’s historical counter party default rates and forecast of macro-economic factors, by dividing receivables that are not considered to be individually significant by reference to the business segment of the counter party and other shared credit risk characteristics to evaluate the expected credit loss. The expected credit loss estimate is then based on recent historical counter party default rates. The Group defines default as an event when the financial asset is past due for more than 365 days. This definition is based on management’s expectation of the time period beyond which if a receivable is outstanding, it is an objective evidence of impairment.

Income in respect of service contracts, which are generally in the nature of providing job work services, are recognised in statement of profit and loss on completion of performance obligation.

The Group considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. No element of financing is deemed present as the sales are largely made on advance payment terms or with credit term of not more than one year.
ii. For debtors considered past due – any enhancement in the accrual done for expected credit loss on individually significant receivables is made to recognise any additional expected credit loss on amount recoverable. The Group writes off trade receivables when there is no objective evidence that such amounts would not be recovered. Financial assets that are written-off are still subject to enforcement activity by the Group.

The transaction price is allocated by the Group to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods or services to the customer.

For each performance obligation identified, the Group determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. A receivable is recognised when the goods are delivered as this is the case of point in time recognition where consideration is unconditional because only the passage of time is required.

Other financial assets

For recognition of impairment loss on other financial assets and risk exposure, the Group determines whether there has been a significant increase in the credit risk since initial recognition. If the credit risk has not increased significantly since initial recognition, the Group measures the loss allowance at an amount equal to 12 month expected credit losses, else at an amount equal to the lifetime expected credit losses.

  - The Group recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the balance sheet. Similarly, if the Group satisfies a performance obligation before it receives the consideration, the Group recognises either a contract asset or a receivable in its balance sheet, depending on whether something other than the passage of time is required before the consideration is due.

j) Revenue recognition – Sale of products and services
Sales (including scrap sales) are recognised when control of products is transferred to the buyer as per the terms of the contract and are accounted for net of returns and rebates. Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining benefits from goods. Sales, as disclosed, are exclusive of goods and services tax.

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After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest method. Effective interest rate

k) Financial instruments

Financial instruments are recognised when the Group becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value.
(EIR) is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial assets. The future cash flows include all other transaction costs paid or received, premiums or discounts if any, etc.
If the Group determines that the fair value at initial recognition differs from the transaction price, the Group accounts for that instrument at that date as follows:
ii. Investments in equity instruments of subsidiaries - Investments in equity instruments of subsidiaries existing as at 1[st] April 2016, the date of transition to Ind AS, are accounted for at fair value at such date, as per the exemptions available in Ind AS 101. Other investments in equity instruments of subsidiaries are accounted for at their cost.
at the measurement basis mentioned above if that fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a Level 1 input) or based on a valuation technique that uses only data from observable markets. The Group recognises the difference between the fair value at initial recognition and the transaction price as a gain or loss.

iii. Financial assets at fair value

in all other cases, at the measurement basis mentioned above, adjusted to defer the difference between the fair value at initial recognition and the transaction price. After initial recognition, the Group recognises that deferred difference as a gain or loss only to the extent that it arises from a change in a factor (including time) that market participants would take into account when pricing the asset or liability.
Investments in equity instruments other than above – All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are generally classified as at fair value through profit or loss (FVTPL). For all other equity instruments, the Group decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). The Group makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

Subsequent measurement of financial assets and financial liabilities is described below.

Financial assets

Classification and subsequent measurement

If the Group decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the other comprehensive income (OCI). There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Group may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

i. Financial assets at amortised cost – a financial instrument is measured at amortised cost if both the following conditions are met:
The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
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.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the profit or loss.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

Mutual funds – All mutual funds in scope of Ind-AS 109 are measured at fair value through profit or loss (FVTPL).
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The effect of EIR amortisation is included as finance costs in the statement of profit and loss.
Bonds - All bonds are in scope of Ind-AS 109 and measured at fair value. Bonds which are held for the purpose of both collecting contractual cash flows and selling financial assets are classified as at fair value through other comprehensive income (FVOCI). Bonds which are held for the purpose of trading are classified as at fair value through profit and loss (FVTPL).
All derivative liabilities are measured at fair value through profit and loss (FVTPL).

De-recognition of financial liabilities

A financial liability is de-recognised 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 de-recognition 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.
Derivative assets - All derivative assets are measured at fair value through profit and loss (FVTPL).

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Group has transferred its rights to receive cash flows from the asset.

Reclassification of financial assets

Offsetting of financial instruments

The Group determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only

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 realize the assets and settle the liabilities simultaneously.

if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Group’s senior management determines change in the business model as a result of external or internal changes which are significant to the Group’s operations. Such changes are evident to external parties. A change in the business model occurs when the Group either begins or ceases to perform an activity that is significant to its operations. If the Group reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Group does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

Hedge accounting

l)

The Group enters into certain derivative financial instruments to manage its exposure to risk arising from changes in interest rate and foreign exchange rates which are designated as cash flow hedges. Further, the Group has designated certain non-derivative financial instruments in cash flow hedging relationship to manage its exposure to risk arising from changes in foreign exchange rates.

At the inception of a hedge relationship, the Group documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s cash flows attributable to the hedged risk.

Financial liabilities

Subsequent measurement

After initial recognition, the financial liabilities, other than derivative liabilities, are subsequently measured at amortised cost using the effective interest method.

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To qualify for hedge accounting, the hedging relationship must meet all of the following requirements:

At the time the hedged item affects profit or loss, any gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss and presented as a reclassification adjustment within other comprehensive income. However, if a non-financial asset or liability is recognised as a result of the hedged transaction, the gains and losses previously recognised in other comprehensive income are included in the initial measurement of the hedged item.

there is an economic relationship between the hedged item and the hedging instrument
the effect of credit risk does not dominate the value changes that result from that economic relationship
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item.

If a forecast transaction is no longer expected to occur, any related gain or loss recognised in other comprehensive income is transferred immediately to profit or loss. If the hedging relationship ceases to meet the effectiveness conditions, hedge accounting is discontinued and the related gain or loss is held in the cash flow hedge reserve until the forecast transaction occurs.

For the period under audit, the Group has designated certain forward currency contracts, cross currency swaps and foreign currency risk component of borrowings in foreign currencies as hedging instruments in cash flow hedge relationships. The forward currency contracts and cross currency swaps have been entered into to mitigate foreign currency exchange risk arising from financial liabilities denominated in foreign currencies. Further, foreign currency risk component of borrowings in foreign currencies are designated to hedge the foreign currency risk in certain highly probable sales transactions denominated in foreign currency.

m) Post-employment and other employee benefits

Defined Contribution plan

Provident fund

The Group makes contribution to statutory provident fund in accordance with Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

Cash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):

(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and

Superannuation fund

Superannuation is a post-employment benefit defined contribution plan under which the Group pays specified contributions to the insurer. The Group makes specified quarterly contributions to the superannuation fund. The contribution paid or payable is recognized as an expense in the period in which the services are rendered by the employee.

(ii) the cumulative change in fair value (present value) of the hedged item (ie the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge.

All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported subsequently at fair value in the balance sheet. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income. Any ineffectiveness in the hedge relationship is recognised immediately in profit or loss.

Defined benefit plans

The Holding Company operates a defined benefit gratuity plan in India. The cost of providing benefits under the defined benefit plan is determined on the basis of actuarial valuation using the projected unit credit method. Gratuity fund is administered through Life Insurance Corporation of India.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Contingent assets are neither recognized nor disclosed except when realization of income is virtually certain, related asset is disclosed.

Earnings per share

o)
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

Other Employee Benefits

Compensated absences

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations.

Other short term benefits

Expense in respect of other short-term benefits is recognized on the basis of amount paid or payable for the period during which services are rendered by the employees.

p) Taxes

Current income tax

  - Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Group operates and generates taxable income.

n) Provisions, contingent assets and contingent liabilities
Provisions are recognized only when there is a present obligation, as a result of past events and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

Possible obligations which will be confirmed only by future events not wholly within the control of the Group or
Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and

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their carrying amounts for financial reporting purposes at the reporting date.

released to income in equal amounts over the expected useful life of the related asset.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. The carrying amount of deferred tax assets are reviewed at each balance sheet date and derecognized to the extent it is no longer probable that sufficient future taxable profits will be available against which such deferred tax assets can be realized.

r) Non-current assets held for sale

An entity shall classify a non-current asset as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset and its sale is highly probable. Management must be committed to sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets classified as held for sale are presented separately and measured at the lower of their carrying amounts immediately prior to their classification as held for sale and their fair value less costs to sell. However, some held for sale assets such as financial assets, assets arising from employee benefits and deferred tax assets, continue to be measured in accordance with the Group’s relevant accounting policy for those assets. Once classified as held for sale, the assets are not subject to depreciation or amortization.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Minimum Alternate Tax (‘MAT’) credit is recognized as an asset only when and to the extent it is probable that the Group will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the Statement of profit and loss and presented as MAT credit entitlement. The Group reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not probable that the Group will pay normal income tax during the specified period.

Segment reporting

s)

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

Identification of segments:

In accordance with Ind AS 108 – Operating Segment, the operating segments used to present segment information are identified on the basis of information reviewed by the Group’s management to allocate resources to the segments and assess their performance. An operating segment is a component of the Group that engages in business activities from which it earns revenues and incurs expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. Results of the operating segments are reviewed regularly by the Board of Directors which has been identified as the chief operating decision maker (CODM), to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

q) Government grants and subsidies

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

When the grant or subsidy relates to revenue, it is recognised as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is recognised as deferred income and

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to share options outstanding account. Upon exercise of share options, the proceeds received are allocated to share capital up to the par value of the shares issued with any excess being recorded as share premium.

Allocation of common costs:

Common allocable costs are allocated to each segment accordingly to the relative contribution of each segment to the total common costs.

Unallocated items:

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

Segment accounting policies

The Group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Group as a whole.

v) Other Accounting Policies

a) Treasury shares

Treasury shares are presented as a deduction from equity. The original cost of treasury shares and the proceeds of any subsequent sale are presented as movements in equity.

Business combination

t)

Business combinations are accounted for using the acquisition accounting method as at the date of the acquisition, which is the date at which control is transferred to the Company. The consideration transferred in the acquisition and the identifiable assets acquired and liabilities assumed are recognised at fair values on their acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. Transaction costs are expensed in the standalone statement of profit and loss as incurred.

b) Impairment of non-financial assets

For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level
The Group assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of profit and loss. If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists then the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. Impairment losses previously recognised are accordingly reversed in the statement of profit and loss.
u) Cash and cash equivalents Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less.

v) Employee Share based payment

The Group has granted stock options / restricted stock units under Cosmo Films Employees Stock Option Plan 2015 / Share Based Employee Benefit Scheme, 2021 to the employees of the Group and its subsidiaries. The fair value of options granted under Employee Stock Option Plan is recognised as an employee benefits expense with a corresponding increase in share options outstanding account. The total amount to be expensed is determined by

reference to the fair value of the options. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to

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(All amounts in ₹ Crores, unless otherwise stated)

procedures are directly linked to the Group’s latest approved budget, adjusted as necessary to exclude the effects of future re-organisations and asset enhancements. Discount factors are determined individually for each cash-generating unit and reflect current market assessment of the time value of money and asset-specific risk factors.

vi) Significant management judgement in applying accounting policies and estimation uncertainty

The following are the critical judgments and the key estimates concerning the future that management has made in the process of applying the Group’s accounting policies and that may have the significant effect on the amounts recognized in the financial Statements or that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Allowance for expected credit losses – The allowance for doubtful debts reflects management’s estimate of losses inherent in its credit portfolio. This allowance is based on Group’s estimate of the losses to be incurred, which derives from past experience with similar receivables, current and historical past due amounts, write-offs and collections, the careful monitoring of portfolio credit quality and current and projected economic and market conditions. The Group has also taken into account estimates of possible effect from the pandemic relating to COVID-19. Should the present economic and financial situation persist or even worsen, there could be a further deterioration in the financial situation of the Group’s debtors compared to that already taken into consideration in calculating the allowances recognised in the financial statements

Allowance for obsolete and slow-moving inventory - The allowance for obsolete and slow-moving inventory reflects management’s estimate of the expected loss in value, and has been determined on the basis of past experience and historical and expected future trends in the market. A worsening of the economic and financial situation could cause a further deterioration in conditions compared to that taken into consideration in calculating the allowances recognized in the financial statements.

Recognition of deferred tax assets – The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the

future taxable income against which the deferred tax assets can be utilized.

Provisions – At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Group assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Useful lives of depreciable/ amortisable assets

– Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

Contingent liabilities – The Group is the subject of legal proceedings and tax issues covering a range of matters, which are pending in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the final outcome of such matters. The cases and claims against the Group often raise difficult and complex factual and legal issues, which are subject to many uncertainties, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the differences in applicable law. In the normal course of business management consults with legal counsel and certain other experts on matters related to litigation and taxes. The Group accrues a liability when it is determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated.

2 PROPERTY, PLANT AND EQUIPMENT

Particulars	Owned assets	Owned assets	Owned assets	Owned assets	Owned assets	Owned assets	Leased assets	Leased assets	Total
	Freehold land	Buildings	Plant and equipment	Furniture and fxtures	Vehicles	Offce equipment	Leasehold land	Leasehold improvement
Gross carrying value As at 1 April 2022 Additions Disposals Foreign exchange fuctuations	32.02 0.33 - 0.17	205.76 55.10 - 0.19	1,275.36 377.63 (0.72) 5.99	11.49 1.94 (0.18) 0.01	17.10 4.54 (1.49) 0.01	23.59 2.35 (1.52) 0.03	101.00 4.76 - -	1.80 5.52 - -	1,668.12 452.17 (3.91) 6.40
As at 31 March 2023 Additions Acquisition through business combinations (refer note 52) Assets transferred to held for sale Disposals/adjustments Foreign exchange fuctuations	32.52 51.51 - (11.63) - (0.28)	261.05 13.09 - (12.79) (0.63) (0.30)	1,658.26 155.01 0.01 (19.18) (1.35) (0.36)	13.26 2.72 0.06 - (0.05) -	20.16 1.40 - - (0.81) (0.05)	24.45 2.45 0.17 - (0.32) (0.01)	105.76 - - - - -	7.32 2.91 0.01 - (0.52) -	2,122.78 229.09 0.25 (43.60) (3.68) (1.00)
As at 31 March 2024	72.12	260.42	1,792.39	15.99	20.70	26.74	105.76	9.72	2,303.84
Accumulated depreciation As at 1 April 2022 Charge for the year Disposals Foreign exchange fuctuations	- - - -	61.07 6.23 - 0.07	583.39 55.04 (0.20) 0.89	8.82 0.50 (0.01) 0.02	8.65 2.17 (0.91) 0.01	18.81 1.79 (1.41) 0.03	8.14 1.54 - -	0.17 0.69 - -	689.05 67.96 (2.53) 1.02
As at 31 March 2023	-	67.37	639.12	9.33	9.92	19.22	9.68	0.86	755.50
Charge for the year Assets transferred to held for sale Disposals/adjustments Foreign exchange fuctuations	- - - -	7.33 (4.54) (0.64) (0.05)	63.83 (18.13) (1.42) (0.21)	0.57 - (0.04) -	2.08 - (0.26) (0.02)	2.10 - (0.01) (0.40)	1.42 - - -	1.43 - (0.17) -	78.76 (22.67) (2.54) (0.68)
As at 31 March 2024	-	69.47	683.19	9.86	11.72	20.91	11.10	2.12	808.37
Net carrying amount as at 31 March 2023	32.52	193.68	1,019.14	3.93	10.24	5.23	96.08	6.46	1,367.28
Net carrying amount as at 31 March 2024	72.12	190.95	1,109.20	6.13	8.98	5.83	94.66	7.60	1,495.47

Note:

a) Additions include ₹ 0.37 Crores (31 March 2023: ₹ 0.56 Crores) towards assets located at research and development facilities. b) Contractual obligation
Refer note 38 (B) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
c) Property, plant and equipment pledged as security
Refer note 20 and 24 for information on property, plant and equipment pledged as security by the Group.
d) Depreciation for the year has been included in "depreciation, amortisation and impairment expense" line item in statement of profit and loss.
e) During the current year, Group has executed an agreement for sale of freehold land, building and certain plant and equipment pertaining to Korean subsidiary for a consideration of ₹ 42.04 Crores. The said sale is expected to be completed within 6 months from the balance sheet date. The aforementioned assets have been classified as asset held for sale. The fair value of the assets were determined using the agreed sale consideration which is a Level 2 measurement as per the fair value hierarchy.

Assets classified under assets held for sale includes:

Assets classifed under assets held for sale includes:
Particulars	Amount
Freehold land Building Plant and equipment	11.63 8.25 1.05
	20.93

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

3	CAPITAL WORK-IN-PROGRESS (₹ in Crores)
	Particulars Amount
	As at 1 April 2022 270.29 Add: Additions during the year 362.27 Less: Capitalisation during the year (447.08)
	As at 31 March 2023 185.48
	Add: Additions during the year 349.30 Less: Capitalisation during the year (177.58)
	As at 31 March 2024 357.20

(a) Ageing schedule of Capital-work-in progress

As at 31 March 2024	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of	Amount in Capital-work-in progress for a period of
	<1 Year	1-2 Years	2-3 Years		More than 3 Years		Total
i) Project in progress ii) Projects temporarily suspended	264.74	92.16	0.30		-		357.20
	-	-	-		-		-

As at 31 March 2023	Amount in Capital-work-in progress for a period of
	<1 Year	1-2 Years		2-3 Years		More than 3 Years		Total
i) Project in progress ii) Projects temporarily suspended	182.70 -	2.78 -		- -		- -		185.48 -

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Building	Total
As at 31 March 2024 Net carrying amount as at 31 March 2023	23.10	23.10
	12.70	12.70
Net carrying amount as at 31 March 2024	11.47	11.47

(i) Amount recognised in Statement of Profit and loss for investment properties

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Rental income Impairment losses Proft from investment properties before depreciation Depreciation Loss from investment property	- - - (0.96) - - (0.57) (0.59)
	(0.57) (1.55)

The Group's investment property consists real estate property in Thailand. The Group is holding the property for the purpose of capital appreciation.

During the prior years, there were certain amendments to existing local laws and regulations governing real estate properties in Thailand which imposed certain restrictions on usage of such properties resulting in a decline in fair value of investment properties.

The management of the Group compared the carrying amount of ₹ 11.47 Crores (31 March 2023: ₹ 13.66 Crores) of investment property with the recoverable amount of ₹ 11.47 Crore (31 March 2023: ₹ 12.70 Crore) (i.e. the fair value less cost of disposal) and accordingly, recorded an impairment loss of ₹ Nil (31 March 2023: ₹ 0.96 Crores) on account of permanent diminution in the value of investment property.

(b) Capital-work-in progress whose completion is overdue

As at 31 March 2024	To be completed in	To be completed in	To be completed in	To be completed in
	<1 year	1-2 years	2-3 years	More than 3 years
i) Project in progress	-	58.39	-	-

4 INVESTMENT PROPERTY

INVESTMENT PROPERTY
Particulars	Building	Total
Gross carrying value As at 1 April 2022 Foreign exchange fuctuations As at 31 March 2023 Foreign exchange fuctuations	34.06 2.48 36.54 (1.97)	34.06 2.48 36.54 (1.97)
As at 31 March 2024	34.57	34.57
Accumulated depreciation and impairment As at 1 April 2022 Charge for the year Impairment losses Foreign exchange fuctuations As at 31 March 2023 Charge for the year Impairment losses Foreign exchange fuctuations	20.54 0.59 0.96 1.75	20.54 0.59 0.96 1.75
	23.84	23.84
	0.57 - (1.31)	0.57 - (1.31)

Impairment loss has been included under 'depreciation, amortisation and impairment expense' under Statement of Profit and Loss.

(i) Fair value

Particulars			As at	As at
	31	March	2024	31 March 2023
Investment property			11.47	12.70

Estimation of fair value

The fair value of investment property has been determined by an accredited independent property valuer, having appropriate recognized professional qualification and recent experience in the location and category of the property being valued. They are also a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair valuation approach used by the independent valuer is market approach. The best evidence for fair value is current prices in an active market for similar properties. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied.

The Group obtains independent valuations for its investment property and fair value measurement in its entirety has been categorised as Level 3 of the fair value hierarchy.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(iii) Description of key inputs to valuation on investment properties

The main inputs used for determination of fair valuation of investment properties are mentioned below.

Particulars	31 March 2024	31 March 2023
Average comparable prices of the properties (refer note a)	THB 93,665 per	THB 93,288 per
	sq. mt.	sq. mt.
Discounts rates based on comparable transactions	43%	40%

Note (a): comparable prices of the properties represents price adjusted pre adjustment of discount rate.

Under market approach, fair value is estimated based on the comparable prices after applying appropriate discounts rates based on comparable transactions.

5 INTANGIBLE ASSETS

INTANGIBLE ASSETS
Particulars	Software Brand Name & Trademark Customer database Goodwill Total
Gross carrying value As at 1 April 2022 Additions Disposals/adjustment	12.77 - - - 12.77 4.91 - - - 4.91 - - - - -
As at 31 March 2023	17.68 - - - 17.68
Additions Acquisitions through business combination (refer note 52) Disposals/adjustment	5.41 - - - 5.41 0.16 4.43 0.52 0.10 5.21 - - - - -
As at 31 March 2024	23.25 4.43 0.52 0.10 28.30
Accumulated amortisation As at 1 April 2022 Charge for the year Disposals/adjustment As at 31 March 2023 Charge for the year Disposals/adjustment	10.15 - - - 10.15 1.15 - - - 1.15 - - - - -
	11.30 - - - 11.30
	1.97 0.55 0.07 - 2.58 - - - - -
As at 31 March 2024	13.27 0.55 0.07 - 13.88
Net carrying amount as at 31 March 2023 6.38 - - - 6.38
Net carrying amount as at 31 March 2024 9.99 3.88 0.46 0.10 14.42

5A Right of use assets- land and building

Particulars	Total
Gross carrying value
As at 1 April 2022	8.73
Add: Addition during the year	37.17
As at 31 March 2023	45.90
Add: Addition during the year	35.00
As at 31 March 2024	80.90
Accumulated amortisation
As at 1 April 2022	1.07
Add: Charge for the year	4.29

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Total
As at 31 March 2023	5.36
Add: Charge for the year	7.90
As at 31 March 2024	13.26
Net carrying amount as at 31 March 2023	40.54
Net carrying amount as at 31 March 2024	67.64

6 NON-CURRENT INVESTMENTS

NON-CURRENT INVESTMENTS
Particulars	As at 31 March 2024 As at 31 March 2023
Carried at fair value through proft and loss Investments in equity instruments Others (unquoted): 2,615,000 (31 March 2023: 2,615,000) equity shares of ₹ 0.19 each fully paid up in OPGS Power Gujarat Private Limited 757,000 (31 March 2023: 757,000) equity shares of ₹ 0.19 each fully paid up in Bhadreshwar Vidyut Private Limited 6,445 (31 March 2023: 6,445) equity shares of THB 100 each fully paid up in Naithon Beach Limited 6,225,333 (31 March 2023: 6,225,333) equity shares of ₹ 10 each fully paid up in Renew Green (GJS One) Private Limited 1,606,500 (31 March 2023: Nil) equity shares of ₹ 10 each fully paid up in O2 Renewable Energy XV Private Limited 1,44,630 (31 March 2023: Nil) compulsorily convertible debenture of ₹ 1000 each fully paid up in O2 Renewable Energy XV Private Limited Aggregate amount of unquoted investments	0.05 0.05 0.01 0.01 0.15 0.15 7.49 7.49 1.61 - 14.46 -
	23.77 7.70
	23.77 7.70

7 NON-CURRENT LOANS

NON-CURRENT LOANS
Particulars	As at 31 March 2024 As at 31 March 2023
Loans considered good - secured* - Loans to offcer Loans considered good - unsecured - Loans to employees	2.98 4.56 1.70 1.03
	4.68 5.59

*Loans to officer as mentioned above are secured by equitable mortgage, being first charge on property. There were no significant changes in the quality of the collateral

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

8 OTHER NON-CURRENT FINANCIAL ASSETS

OTHER NON-CURRENT FINANCIAL ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Deposit with banks (with remaining maturity more than 12 months) Security deposits	0.05 0.05 4.91 3.65
	4.96 3.70

Note: The carrying amounts of these financial instruments are reasonable approximation of their fair values.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

9 OTHER NON-CURRENT ASSETS

OTHER NON-CURRENT ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Unsecured, considered good Capital advances Recoverable from statutory authorities Prepaid expenses	51.25 75.36 33.85 39.32 9.76 1.72
	94.86 116.40

10 INVENTORIES

(At lower of cost and net realisable value)

Particulars	As at 31 March 2024 As at 31 March 2023
Raw material (refer note a below) Finished goods (refer note b below) Stock in trade Stores and spares (refer note c below)	184.21 207.84 286.40 294.00 8.01 4.21 31.75 28.88
	510.37 534.93

Note:

a) including goods in transit ₹ 37.84 Crores (31 March 2023: ₹ 32.52 Crores)
b) including goods in transit ₹ 96.62 Crores (31 March 2023: ₹ 52.30 Crores)
c) including goods in transit ₹ Nil Crores (31 March 2023: ₹ 1.59 Crores)
d) refer note 20 and 24 for inventories pledged as security for liabilities
e) During the year ended 31 March 2024, ₹ 0.32 Crores (31 March 2023 : ₹ 1.13 Crores) was charged to statement of profit and loss for slow moving and obsolete inventories.

11 CURRENT INVESTMENTS

CURRENT INVESTMENTS
Particulars	As at 31 March 2024 As at 31 March 2023
Investments carried at fair value through proft and loss Investments in mutual funds (quoted) Investments in equity instruments (quoted) Investments in infrastructure investment trust (quoted) Investment in alternative investment funds (unquoted) Investments in market linked debentures (quoted) Investments in zero coupon bonds (quoted) Investments in equity instruments (unquoted) Investments in preference shares (unquoted) Investment carried at fair value through other comprehensive income Investments in perpetual bonds and corporate bonds (quoted) a) Aggregate book value of quoted investments Aggregate market value of quoted investments Aggregate book value of unquoted investments Aggergate amount of impairment in value of investments	24.15 5.01 15.65 1.08 7.95 9.16 26.22 17.05 103.34 187.22 9.04 - 32.95 13.41 3.25 5.67 159.30 171.43
	381.85 410.03
	306.15 370.81 319.43 373.90 46.79 30.19 - -

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

12 TRADE RECEIVABLES

TRADE RECEIVABLES
Particulars	As at 31 March 2024 As at 31 March 2023
Trade receivables considered good- unsecured Trade receivables- credit impaired Less: Allowance for expected credit losses	261.48 199.56 5.73 3.87
	267.21 203.43 (5.73) (3.87)
	261.48 199.56

Note:

a) The carrying amounts of these financial instruments are reasonable approximation of their fair values. b) Refer note 20 and 24 for trade receivables pledged as security for liabilities
c) Ageing schedule of trade receivables:

As at 31 March 2024	As at 31 March 2024	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
		Unbilled		Not due		<6 months		6 months- 1 Years		1-2 Years		2-3 Years	More than 3 Years	Total
i) Undisputed trade receivables- considered good		-		178.96		80.64		1.14		0.60		-	0.14	261.48
ii) Undisputed trade receivables- which have signifcant increase in credit risk		-		-		-		-		-		-	-	-
iii) Undisputed trade receivables- Credit impaired		-		-		0.03		-		-		-	-	0.03
iv) Disputed trade receivables- considered good		-		-		-		-		-		-	-	-
v) Disputed trade receivables- which have signifcant increase in credit risk		-		-		-		-		-		-	-	-
vi) Disputed trade receivables- Credit impaired		-		0.30		0.06		1.85		0.57		0.05	2.87	5.70

As at 31 March 2023	Outstanding for following periods from due date of payment
	Unbilled		Not due		<6 months		6 months- 1 Years		1-2 Years		2-3 Years		More than 3 Years	Total
i) Undisputed trade receivables- considered good ii) Undisputed trade receivables- which have signifcant increase in credit risk iii) Undisputed trade receivables- Credit impaired iv) Disputed trade receivables- considered good	- - - -		125.07 - - -		68.11 - 0.30 -		1.29 - - -		4.40 - - -		0.09 - - -		0.60 - - -	199.56 - 0.30 -

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

As at 31 March 2023	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment	Outstanding for following periods from due date of payment
	Unbilled	Not due	<6 months	6 months- 1 Years	1-2 Years	2-3 Years	More than 3 Years	Total
v) Disputed trade receivables- which have signifcant increase in credit risk vi) Disputed trade receivables- Credit impaired	- -	- -	- 0.06	- 0.49	- 0.27	- 0.27	- 2.48	- 3.57

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

16 OTHER CURRENT FINANCIAL ASSETS

OTHER CURRENT FINANCIAL ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Discount recoverable Export beneft recoverable Derivative assets Security deposits Others	14.02 12.56 1.66 9.34 0.70 8.29 2.82 0.04 4.67 2.62
	23.87 32.85

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

13 CASH AND BANK BALANCES

CASH AND BANK BALANCES
Particulars	As at 31 March 2024 As at 31 March 2023
Balances with banks - in current accounts Cheques in hand Cash on hand	24.63 32.88 - 0.01 0.12 0.05
	24.75 32.94

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

17 OTHER CURRENT ASSETS

OTHER CURRENT ASSETS
Particulars	As at 31 March 2024 As at 31 March 2023
Advance to suppliers Balances with statutory authorities Prepaid expenses Claims recoverable Others	8.73 11.83 127.37 71.87 8.53 9.59 19.18 8.28 2.15 1.82
	165.96 103.39

14 OTHER BANK BALANCES

OTHER BANK BALANCES
Particulars	As at 31 March 2024 As at 31 March 2023
Earmarked balances with banks in current accounts - Unclaimed dividend account Pledged bank deposits (refer note a and b below)	1.84 1.88 8.73 11.24
	10.57 13.12

Note:

a) Pledged deposits include deposits amounting to ₹ 8.73 Crores (31 March 2023: ₹ 6.24 Crores) pledged as margin money for issue of letter of credit and bank guarantees.
b) The deposit of ₹ Nil (31 March 2023: ₹ 5.00 Crores) are pledged against borrowing facility.
c) The carrying amounts of these financial instruments are reasonable approximation of their fair values.

15 CURRENT LOANS

CURRENT LOANS
Particulars	As at 31 March 2024 As at 31 March 2023
Loans to offcer considered good- secured* Loans considered good- unsecured - Loans to employees - Others	0.96 0.96 1.03 0.51 0.72 1.04
	2.71 2.51

Loans to officer as mentioned above are secured by equitable mortgage, being first charge on property. There were no significant changes in the quality of the collateral

18 SHARE CAPITAL

SHARE CAPITAL
Particulars	As at 31 March 2024 As at 31 March 2023
Authorised 60,000,000 equity shares of ₹ 10 each (31 March 2023 : 60,000,000 equity shares of ₹ 10 each) Issued, subscribed and fully paid up 26,249,727 equity shares of ₹ 10 each (31 March 2023 : 26,249,727 equity shares of ₹ 10 each)	60.00 60.00 26.25 26.25
	26.25 26.25

(a) Reconciliation of number of shares

Reconciliation of number of shares
Particulars	As at 31 March 2024 As at 31 March 2023
	No of shares Amount No of shares Amount
Equity shares at the beginning of the year Issue of bonus shares Buyback of shares Equity shares at the end of the year	2,62,49,727 26.25 1,81,72,715 18.17 - - 90,86,357 9.09 - - (10,09,345) (1.01)
	2,62,49,727 26.25 2,62,49,727 26.25

(i) Of the above 242,051 shares have been allotted to erstwhile shareholders of Gujarat Propack Limited on amalgamation in the financial year 2002-03. No shares have been issued for consideration other than cash in the current reporting year and in last five years immediately preceding the current reporting year.

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(ii) a) Of the above 8,486,705 shares have been allotted as fully paid bonus shares by capitalisation of capital reserves and share premium account in the financial year 2002-03.
b) The Company has also allotted 90,86,357 bonus equity shares of ₹ 10.00 each in ratio of 1 (one) equity share for 2 (two) equity share held to the equity shareholder(s) whose name appeared in the register of members on 17 June 2022 i.e. the “Record Date” by capitalisation of capital reserve, securities premium account and capital redemption reserves.
(iii) The Board of Directors of the Company at their meeting held on 01 December 2022 had approved Buyback of 1,009,345 equity shares (3.70% of equity capital) of the Company, through the "Tender Offer" route for an aggregate amount of upto ` 108.00 Crores at a price of ₹ 1070 per equity share. The said equity shares bought back were extinguished on 22 February 2022. An amount of ₹ 138.55 Crores (including income tax and direct buyback costs) had been utilized from the other equity for the aforesaid buyback including creation of capital redemption reserve account of ₹ 1.01 Crores (representing the nominal value of the equity shares bought back).
(iv) During the year, the Board of Directors has recommended final dividend of ₹ 3 per equity share (31 March 2023: ₹ 5 per equity shares) subject to approval of shareholders in annual general meeting.
During the year ended 31 March 2024 the amount of per share dividend recognised as distributions to equity shareholders was ₹ 5 per share (31 March 2023: ₹ Nil).

(v) Terms and rights attached to equity shares:

The Company has only one class of equity shares having the par value of ₹10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors, if any, is subject to approval of shareholders in Annual General Meeting except in case of interim dividend.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	As at 31 March 2024	As at 31 March 2024	As at 31 March 2024	As at 31 March 2023	As at 31 March 2023
	No of shares	% holding	% age change	No of shares	% holding
Mr. Ashok Jaipuria -RegisteredOwner C/o Gayatri & Annapurana - Benefcial Owner Fawkes Management Pvt Ltd - Registered Owner C/o Ashok Jaipuria Private Trust - Benefcial Owner Fawkes Management Pvt Ltd.-Registered Owner C/o Ashok Jaipuria Family Trust -Benefcial Owner	1,02,86,050	39.19%	0.38%	1,01,86,050 150 2,75,900	38.81% 0.00% 1.05%
	150	0.00%	-
	2,75,900	1.05%	-
	1,18,21,616	45.03%		1,16,54,448	44.40%

(viii) Shares reserved for issue under options

Particulars	As at 31 March 2024 As at 31 March 2023
	No. of shares No. of shares
Under the Cosmo Films Employees Stock Option Plan 2015 (CF ESOP 2015), equity share of ₹ 10 each, at an exercise price as decided by management on case to case basis 3,55,322 3,72,822

These shares are held as treasury shares under other equity (refer note 19)

For terms and details refer note 40

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(vi) Details of shareholders holding more than 5% shares in the company

Particulars	As at 31 March 2024 As at 31 March 2023
	No of shares % holding No of shares % holding
Mr. Ashok Jaipuria*	1,08,29,304 41.30% 1,06,29,304 40.50%

it includes 10,286,050 shares (31 March 2023: 10,186,050) registered under name of Mr. Ashok Jaipuria where beneficial owner is Gayatri and Annapurna (partnership firm).

(vii) Details of shareholders holding more than 5% shares in the company

Particulars	As at 31 March 2024	As at 31 March 2024	As at 31 March 2024	As at 31 March 2023	As at 31 March 2023
	No of shares	% holding	% age change	No of shares	% holding
Ashok Jaipuria Aanchal Jaipuria Bhandari Ambrish Jaipuria Abha Jaipuria Yamini Kumar Pravasi Enterprises Ltd Andheri Properties and Developers Pvt Ltd	5,43,254	2.07%	0.38%	4,43,254 1,24,433 4,78,628 32,832 1,05,402 6,866 933	1.69% 0.47% 1.82% 0.13% 0.40% 0.03% 0.00%
	1,24,433	0.47%	-
	4,78,628	1.82%	-
	-	-	(0.13%)
	1,05,402	0.40%	-
	6,866	0.03%	-
	933	0.00%	-

19 OTHER EQUITY

OTHER EQUITY
Particulars	As at 31 March 2024 As at 31 March 2023
Retained earnings As per last balance sheet Proft/(loss) for the year Other comprehensive income/(loss) Dividend paid Others General reserve As per last balance sheet Buyback of shares Deletion during the year Capital reserve As per last balance sheet Addition during the year Deletion during the year	1,170.78 926.33 62.19 243.99 0.66 0.48 (12.97) - - (0.01)
	1,220.62 1,170.78
	85.11 218.89 - (133.78) (49.34) -
	35.77 85.11
	0.78 4.10 - - - (3.32)
	0.78 0.78

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	As at 31 March 2024 As at 31 March 2023
Securities premium As per last balance sheet Addition during the year Deletion during the year Effective portion of cash fow hedges As per last balance sheet Addition during the year Deletion during the year Currency translation reserve As per last balance sheet Addition during the year Deletion during the year Shares options outstanding account As per last balance sheet Addition during the year Deletion during the year Treasury shares As per last balance sheet Addition during the year Deletion during the year Debt instruments through other comprehensive income As per last balance sheet Addition during the year Deletion during the year Special Economic Zone (SEZ) Re-investment reserve As per last balance sheet Addition during the year Deletion during the year Capital redemption reserve As per last balance sheet Addition during the year Deletion during the year Total other equity	0.85 7.42 1.88 0.54 (2.73) (7.11)
	- 0.85
	(9.06) 5.71 - - (3.17) (14.77)
	(12.23) (9.06)
	34.78 15.30 - 19.48 (1.98) -
	32.80 34.78
	12.51 6.60 6.44 6.45 (1.88) (0.54)
	17.07 12.51
	(24.43) (16.00) 6.56 - - (8.43)
	(17.87) (24.43)
	(0.48) 2.94 1.09 - - (3.42)
	0.61 (0.48)
	- - 42.70 - - -
	42.70 -
	1.01 1.27 - 1.01 - (1.27)
	1.01 1.01
	1,321.26 1,271.86

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Nature and purpose of reserves

(i) General reserve

The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant to the earlier provision of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.

(ii) Capital reserve

Capital reserve was created under financial statements prepared in accordance with accounting standards notified under the section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘previous GAAP’) out of the profit earned from a specific transaction of capital nature.

(iii) Securities premium account

Securities premium account represents premium received on issue of shares. The account is utilised in accordance with the provisions of the Companies Act 2013.

(iv) Effective portion of cash flow hedges

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged transaction occurs.

v) Currency translation reserve

The Group recognised exchange differences on translation of the foreign operations in other comprehensive income and accumulated in foreign currency translation reserve in other equity.

(vi) Share options outstanding account

The account is used to recognize the grant date fair value of the options issued to employees under Company’s Employee stock option plan.

(vii) Treasury shares

Treasury shares represent Company's own equity shares held by the Cosmo Films ESOP 2015 Trust which is created under the Employee Stock Option Plan.

(viii) Debt instruments through other comprehensive income

The Company has classified investments in perpetual bonds as at fair value through other comprehensive income (FVOCI) since:
(a) perpetual bonds are held within a business model whose objective is achieved by both collecting contractual cash flows and selling those bonds; and
(b) the contractual terms of perpetual bonds give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ix) Special Economic Zone (SEZ) Re-investment resreve

The Special Economic Zone (SEZ) Re-investment reserve has been created out of the profit of eligible SEZ units in terms of the provisions of Sec 10AA(1)(ii) of Income Tax Act, 1961. The reserve should be utilised by the company for acquiring plant and machinery for the purpose of its business in the terms of the Sec 10AA(2) of the Income Tax Act, 1961.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(x) Capital redemption reserve

This reserve represents a statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares.

20 NON-CURRENT BORROWINGS (SECURED)

NON-CURRENT BORROWINGS (SECURED)
Particulars	As at 31 March 2024 As at 31 March 2023
Foreign currency term loans (refer note A below)* - from banks - from others Rupee term loans (refer note B below) - from banks - from others Vehicle loans (refer note C below) Less:- Current maturities disclosed under current borrowings (refer note 24)	315.66 338.88 30.71 50.29 500.19 301.97 - 2.67 6.25 6.79
	852.81 700.60 172.33 154.02
	680.48 546.58

*include hedged foreign currency borrowings of ₹ 229.34 Crores (31 March 2023: ₹ 324.53 Crores)

Particulars	Particulars	As at	As at
		31 March 2024	31 March 2023
(A)	Foreign currency term loans comprises of :
(i)	Loan of USD 9,729,936 taken from Export-Import Bank (EXIM)	3.38	16.79
	of India during the fnancial year 2015-16, 2016-17 and 2017-
	18 and carries interest rate based upon SOFR plus 275 bps per
	annum. The loan is repayable in 24 equal quarterly instalments
	commencing after a moratorium of 18 months from scheduled
	commercial operation date or actual commercial operation date
	whichever is earlier.
	Security
	The above loan is secured against (i) frst pari passu charge over the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second
	pari passu charge on current assets of the company both present
	and future.
(ii)	Loan of EUR 14,614,201 taken from Landesbank Baden	46.17	58.96
	Wurttemberg Bank (LBBW) during the fnancial year 2015-16,
	2016-17 and 2017-18 and carries interest rate based upon Euribor
	plus 60 bps per annum. The loan is repayable in 20 equal semi-
	annual instalments from the date of 28 February 2018.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at
	Karjan, Vadodara.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Particulars	As at	As at
		31 March 2024	31 March 2023
(iii)	Loan of USD 4,900,000 (₹ 40 Crores)taken from Export-Import	27.46	33.70
	Bank (EXIM) of India during the fnancial year and carries
	interest rate based upon USD 6 month SOFR plus 325 bps per
	annum. The loan is repayable in 24 equal quarterly instalments
	commencing after a moratorium of 24 months from the date of
	frst disbursement.
	Security
	The above loan is secured against (i) frst pari passu charge over the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second
	pari passu charge on current assets of the company both present
	and future.
(iv)	Loan of EUR 19,371,000 taken from Landesbank Baden	166.09	173.65
	Wurttemberg Bank (LBBW) during the fnancial year 2021-22 and 2022-23 and carries interest rate fxed at 44 bps per annum. The
	loan is repayable in 20 equal semi-annual instalments starting from
	November 2023.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at
	Waluj, Aurangabad.
(v)	Loan of EURO 12,144,766 (₹ 100 Crores) taken from Bank of	50.77	108.87
	Baroda during the fnancial year 2021-22and carries interest rate
	based upon 6 month EURIBOR plus 2.25% per annum. The loan is
	repayable in 3 half yearly instalments starting from April 2023.
	Security
	The above loan is secured against (i) First pari passu charge over
	the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii)
	Second pari passu charge on current assets of the company both
	present and future.
(vi)	Loan of EUR 5,685,512 taken from Landesbank Baden	51.32	-
	Wurttemberg Bank (LBBW) during the fnancial year 2023-24,
	carries interest rate based upon Euribor plus 65 bps per annum.
	The loan is repayable in 20 equal semi-annual instalments starting
	from 30 December 2024.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at
	Waluj, Aurangabad.
(vii)	Loan of EUR 369,429 taken from Landesbank Baden Wurttemberg	3.33	-
	Bank (LBBW) during the fnancial year 2023-24 and carries
	interest rate based upon Euribor plus 65 bps per annum. The loan
	is repayable in 20 equal semi-annual instalments starting from 20
	June 2026.
	Security
	The above loan is secured against hypothecation of machinery
	fnanced out of the loan amount at the Company’s plant at
	Waluj, Aurangabad.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Particulars	As at	As at
		31 March 2024	31 March 2023
B	Rupee term loans comprises of :
(i)	Loan of ₹ 50 Crores taken from Shyam Rao Vithal Co-operative	32.41	42.49
	Bank Limited during the fnancial year 2020-21 and carries interest
	rate PLR less 5 bps per annum. The loan is repayable in 84 months
	inclusive of 24 months moratorium period.
	Security
	The above loan is secured against (i) frst paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) second pari-
	passu charge on current assets of the company both present and
	future.
(ii) (iii)	Loan of ₹40 Crores taken from Bajaj Finance Limited during the fnancial year 2017-18 and carries interest rate linked to SBI’s one year MCLR to be reset quarterly. The loan is repayable in 60 equal monthly instalments after moratorium of 12 months from the date of disbursement. Security The above loan is secured against (i) frst paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) second pari-passu charge on current assets of the company both present and future. Loan of ₹60 Crores taken from IndusInd Bank during the fnancial	- 10.91	2.67 21.82
	year 2018-19 and carries interest rate based upon Mibor plus
	250 bps per annum.The loan is repayable in 22 equal quarterly
	instalments after moratorium of 6 months from the frst date of
	disbursement.
	Security
	The above loan is secured against (i) frst pari-passu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii)
	second pari-passu charge on current assets of the company both
	present and future.
(iv)	Loan of ₹ 100 Crores taken from State Bank of India during the	64.40	85.53
	fnancial year 2020-21, 2021-22 & 2022-23 and carries interest
	rate based on 6 months MCLR plus 100 bps per annum. The loan
	is repayable in 14 half yearly installment after a moratorium of one
	year from the date of frst disbursement.
	Security
	The above loan is secured against (i) frst paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) second pari-
	passu charge on current assets of the company both present and
	future.
(v)	Loan of ₹ 100 Crores taken from ICICI Bank Limited during the	96.25	65.00
	fnancial year 2022-23 and carries interest rate based on 12
	months MCLR per annum plus applicable spread, if any. The loan is
	repayable in 12 quarterly structured installment after a moratorium
	of three fnancial quarters from the date of frst disbursement.
	Security
	The above loan is secured against (i) frst paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii)
	second pari-passu charge on current assets of the company both
	present and future.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Particulars	As at	As at
		31 March 2024	31 March 2023
(vi)	Loan of ₹ 100 Crores taken from IndusInd Bank Limited during the	96.43	75.00
	fnancial year 2022-23 and carries interest rate based on 91 days
	T-bill plus 155 bps per annum. The loan is repayable in 28 quarterly
	installment after a moratorium of one year from the date of frst
	disbursement.
	Security
	The above loan is secured against (i) frst paripassu charge over movable and immovable fxed assets of the Company both present and future, other than assets specifcally carved out. (ii) second pari-passu charge on current
	assets of the companybothpresent and future.
(vii)	Loan of ₹50 Crores taken from ICICI Bank Limited (ICICI) during the	-	12.34
	fnancial year 2018-19 and carries interest rate based upon Euribor
	plus 4.113% per annum. The loan is repayable in 18 quarterly
	instalments starting from 31 December 2018.
	Security
	The above loan is secured against (i) frst pari passu charge over the movable and immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second pari passu
	charge on current assets of the companybothpresent and future.
(viii)	Loan of ₹100 Crores taken from Bank of Baroda during the	99.98	-
	fnancial year 2023-24 and carries interest rate based upon MCLR
	plus 8.05% per annum. The loan is repayable in 28 equal quarterly
	instalments after a moratorium period of 12 months from the
	month of frst disbursement.
	Security
	The above loan is secured against (i) frst pari passu charge by way of
	Hypothecation on Moveble and by way of equitable mortgage over all
	immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second pari passu charge on
	current assets of the companybothpresent and future.
(ix)	Loan of ₹100 Crores taken from Axis Bank Limited during the	100.00	-
	fnancial year 2023-24 and carries interest rate based upon Repo
	Rate plus 1.75% per annum. The loan is repayable in 24 quarterly
	instalments starting from 30 November 2025.
	Security
	The above loan is secured against (i) frst pari passu charge by way
	of Hypothecation on Moveble and by way of mortgage over all
	immovable fxed assets of the company both present and future, other than assets specifcally carved out. (ii) second pari passu
	charge on current assets of the companybothpresent and future.
C	Vehicle loans taken from Union Bank of India carries interest @	6.25	6.79
	8% - 9% per annum. This loan is repayable in 3 years
	Security
	Vehicle loans from Union Bank of India are secured against
	hypothecation of respective vehicles.
	Less: Adjustment for processing fees on long term loans recognised	(2.34)	(3.01)
	usingeffective interest rate
		852.81	700.60

Note:

Refer note 24 - current maturities of long term borrowings are disclosed under the head other current financial liabilities. Refer note 45 and 46 for disclosure of fair values in respect financial liabilities measured at amortised cost and analysis of maturity profile.

Refer note 51 for reconciliation of liabilities arising from financing activities.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

21 PROVISIONS

PROVISIONS
Particulars	As at 31 March 2024 As at 31 March 2023
Provision for retirement benefts Provision for gratuity (refer note 41)	1.36 6.76 19.74 18.12
	21.10 24.88

22 DEFERRED TAX LIABILITIES (NET)#

DEFERRED TAX LIABILITIES (NET)#
Particulars	As at	As at
	31 March 2024	31 March 2023
On temporary difference between the book base & tax base
Deferred tax liabilities
Property, plant and equipment and other intangible assets -depreciation,	227.93	202.05
amortisation and impairment
Gross deferred tax liabilities	227.93	202.05
Deferred tax assets
Cash fow hedge reserve	6.61	4.82
Unabsorbed business losses	42.28	25.57
Expenses deductible in future years under Income tax Act, 1961	2.17	1.02
Minimum alternative tax credit entitlement	36.67	28.50
Gross deferred tax assets	87.73	59.91
Deferred tax liabilities(net)	140.20	142.14

Deferred tax assets and liabilities have been offset where they arise in the same legal entity and taxing jurisdiction but not otherwise. Accordingly the net deferred tax (assets) / liability has been disclosed in the Balance Sheet as follows :

Particulars	As at 31 March 2024 As at 31 March 2023
Deferred tax assets Deferred tax liabilities Deferred tax liabilities(net)	15.55 17.77 155.75 159.91
	140.20 142.14

Refer note 36 for movement in deferred tax balances

23 OTHER NON-CURRENT LIABILITIES

OTHER NON-CURRENT LIABILITIES
Particulars	As at 31 March 2024 As at 31 March 2023
Deferred income on export promotion capital goods	69.87 57.58
	69.87 57.58

24 CURRENT BORROWINGS (SECURED)

CURRENT BORROWINGS (SECURED)
Particulars	As at 31 March 2024 As at 31 March 2023
Cash credit and other working capital facilities Current maturities of long term borrowings (refer note 20)	125.01 189.25 172.33 154.02
	297.34 343.27

Notes:

(a) Cash credits and other working capital facilities are secured by first pari passu charge on entire current assets of the company and second pari passu charge on entire fixed assets secured to financial institutions except assets exclusively carved out.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

25 TRADE PAYABLES

TRADE PAYABLES
Particulars	As at 31 March 2024 As at 31 March 2023
Trade payables - total outstanding dues to micro and small enterprises - total outstanding dues to creditors other than micro and small enterprises Acceptances Total	10.80 7.40 192.68 194.84 484.60 326.23
	688.08 528.47

The	above disclosure has been determined to the extent such parties	have been identifed on the basis of	have been identifed on the basis of
information available with the Company.
Particulars		31 March 2024	31 March 2023
i	the principal amount and the interest due thereon remaining	10.80	7.40
	unpaid to any supplier as at the end of each accounting year;
ii	the amount of interest paid by the buyer in terms of section 16,	0.19	1.31
	along with the amounts of the payment made to the supplier
	beyond the appointed day during each accounting year;
iii	the amount of interest due and payable for the period of delay in	-	-
	making payment (which have been paid but beyond the appointed
	day during the year) but without adding the interest specifed
	under this Act;
iv	the amount of interest accrued and remaining unpaid at the end of	0.02	0.03
	each accounting year; and
v	the amount of further interest remaining due and payable even	0.43	0.41
	in the succeeding years, until such date when the interest dues as
	above are actually paid to the small enterprise, for the purpose of
	disallowance as a deductible expenditure under section 23.

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

Ageing schedule of trade payables:

As at 31 March 2024	Outstanding for following periods from due date of payment
	Not due <1 year 1 year-2 Years 2 year-3 Years More than 3 Years Total
i) MSME	10.04 0.06 - - - 10.10
ii) Others	606.39 62.00 5.11 0.06 2.38 675.95
iii) Disputed dues- MSME	- 0.67 0.03 - - 0.70
iv) Disputed dues- Others	- - - 1.33 1.33

As at 31 March 2023	Outstanding for following periods from due date of payment
	Not due <1 year 1 year-2 Years 2 year-3 Years More than 3 Years Total
i) MSME ii) Others iii) Disputed dues- MSME iv) Disputed dues- Others	4.65 - - - - 4.65 467.34 51.35 - - - 518.69 - 2.74 0.01 - - 2.75 - - 0.73 0.33 1.32 2.38

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

26 OTHER CURRENT FINANCIAL LIABILITIES

OTHER CURRENT FINANCIAL LIABILITIES
Particulars	As at 31 March 2024 As at 31 March 2023
Current Interest accrued and but not due on borrowings Security deposits Unpaid dividend Payable for capital goods Employee related payables Other accrued liabilities Derivative liabilities Non-current Payable for capital goods	2.54 1.72 0.49 0.34 1.84 1.88 64.46 20.02 21.65 26.96 37.87 37.49 0.20 0.32
	129.05 88.73
	25.33 -
	25.33 -

The carrying amounts of these financial instruments are reasonable approximation of their fair values.

27 OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES
Particulars	As at 31 March 2024 As at 31 March 2023
Statutory dues Advance received from customers Deferred income on export promotion capital goods scheme	7.59 4.99 15.16 14.03 3.62 3.58
	26.37 22.60

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Note:

a) Company applies Indian Accounting Standard 115 'Revenue from Contracts with Customers' (“Ind AS 115”). Under Ind AS 115, revenue is recognised through a 5-step approach:
(i) Identify the contracts with customer;
(ii) Identify separate performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations; and
(v) Recognise revenue when a performance obligation is satisfied."
(i) Disaggregation of revenue
The Group has performed a disaggregated analysis of revenues considering the nature, amount, timing and uncertainty of revenues. This includes disclosure of revenues by geography and timing of recognition.

Year ended 31 March 2024

==> picture [455 x 139] intentionally omitted <==

----- Start of picture text -----

Revenue from operations Goods and Other operating Total
services revenue
Revenue by geography
Domestic 1,365.42 8.81 1,374.23
Export 1,170.85 - 1,170.85
Total 2,536.27 8.81 2,545.08
Revenue by time
Revenue recognised at point in time 2,545.08
Revenue recognised over time -
Total 2,545.08
----- End of picture text -----*

excludes export benefit income of ₹ 23.30 Crores and sales tax incentive of ₹ 18.96 Crores

Year ended 31 March 2023

28 PROVISIONS

Particulars	As at 31 March 2024 As at 31 March 2023
Provision for gratuity (refer note 41) Provision for compensated absences	4.25 3.91 10.27 10.02
	14.52 13.93

29 REVENUE FROM OPERATIONS

REVENUE FROM OPERATIONS
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Operating revenue (refer note a below) Sale of products-domestic Sale of products-export Sale of Services-domestic Other operating revenue Export beneft income Sales tax incentive Job work charges Scrap sales Others Revenue from operations	1,360.08 1,558.22 1,170.85 1,464.10 5.34 2.91
	2,536.27 3,025.23 23.30 25.80 18.96 6.27 - 0.07 8.27 7.64 0.54 0.28
	2,587.34 3,065.29

Year ended 31 March 2023
Revenue from operations	Goods and services Other operating revenue Total*
Revenue by geography Domestic Export Total Revenue by time Revenue recognised at point in time Revenue recognised over time Total	1,561.13 7.99 1,569.12 1,464.10 - 1,464.10
	3,025.23 7.99 3,033.22
	3,033.22 -
	3,033.22

excludes export benefit income of ₹ 25.80 Crores and sales tax incentive of ₹ 6.27 Crores

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(ii) Revenue recognised in relation to contract liabilities

Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Revenue recognised in the reporting period that was included in the	11.55	26.88
contract liability balance at the beginning of the period
Revenue recognised in the reporting period from performance	-	-
obligations satisfed (or partially satisfed) in previous periods

(iii) Assets and liabilities related to contracts with customers

Assets and liabilities related to contracts with customers
Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Contract liabilities related to sale of goods
Advance from customers	15.16	14.03

(iv) Reconciliation of revenue recognised in Statement of Profit and Loss with Contract price

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Contract price Less: Discount, rebates, credits etc. Revenue from operations as per Statement of Proft and Loss*	2,626.14 3,101.72 81.06 68.50
	2,545.08 3,033.22

excludes export benefit income of ₹ 23.30 Crores (31 March 2023: ₹ 25.80 Crores) and sales tax incentive of ₹ 18.96 Crores (31 March 2023: ₹ 6.27 Crores)

b) Details of products sold/services

Details of products sold/services
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Manufactured goods- Packaging flms Manufactured goods-Speciality Chemicals Sale of services Traded goods Others Total	2,506.96 3,014.89 19.53 42.56 5.34 2.91 22.41 6.23 1.56 1.20
	2,536.27 3,025.23

30 OTHER INCOME

OTHER INCOME
Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Interest Income from:
- Fixed deposit with banks	0.74	0.70
- Other fnancial assets carried at amortised cost	1.06	0.32
- Investments in perpetual bonds carried at fair value through other	14.74	15.61
comprehensive income - Others	1.16	1.35
Gain on Investments carried at fair value through proft & loss	27.40	12.14
Gain/(loss) on investments carried at fair value through other	1.38	(0.97)
comprehensive income

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Insurance and other claims Grant income on export promotion capital goods Liabilities no longer required written back Proft on sale of property, plant and equipment Foreign exchange gain (net) Dividend income Miscellaneous income	0.93 2.02 3.60 3.27 - 6.36 2.91 - 13.19 10.27 0.60 0.55 0.25 0.32
	67.96 51.95

31 CHANGE IN INVENTORIES OF FINISHED GOODS AND STOCK IN TRADE

CHANGE IN INVENTORIES OF FINISHED GOODS AND STOCK IN	TRADE
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Opening inventories Finished goods Stock in trade Closing inventories Finished goods Stock in trade Decrease/(increase) in inventories of fnishedgoods and stock in trade	294.01 318.42 4.21 0.96
	298.22 319.38
	286.40 294.01 8.01 4.21
	294.41 298.22
	3.81 21.16

32 EMPLOYEE BENEFITS EXPENSE

EMPLOYEE BENEFITS EXPENSE
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Salaries, wages, allowances and bonus Employee stock option expense Contribution to provident and other funds (refer note 41) Staff welfare expenses	190.82 193.02 6.44 6.45 12.64 12.14 7.05 5.48
	216.95 217.09

33 FINANCE COSTS

FINANCE COSTS
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Interest: - Term loans - Cash credit and short term loans - Others Foreign exchange fuctuation to the extent regarded as an adjustment to borrowing costs Interest on lease liabilities Other borrowings costs	30.15 11.52 47.50 24.87 1.61 0.71 1.16 11.19 4.10 2.21 4.84 4.95
	89.36 55.45

The finance costs shown above is net of borrowing costs capitalised during the year ended 31 March 2024 of ₹ 16.18 Crores at 7.84% (31 March 2023: ₹ 11.68 Crores at 6.59%).

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

34 DEPRECIATION, AMORTISATION AND IMPAIRMENT EXPENSE

DEPRECIATION, AMORTISATION AND IMPAIRMENT EXPENSE
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Depreciation on property, plant and equipment and investment property Amortisation of intangible assets Depreciation on right-of-use assets Less: Transferred to capital work in progress Impairment loss on investment property	79.33 68.56
	2.58 1.15
	7.90 4.29
	(0.33) -
	- 0.96
	89.48 74.96

35 OTHER EXPENSES

OTHER EXPENSES
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Rent Rates and taxes Stores, spare parts and packing materials consumed Insurance Repairs and maintenance Building Machinery Others Power and fuel Other manufacturing expenses Printing and stationery Training and recruitment expenses Travelling and conveyance Vehicle running and maintenance Communication expenses Legal and professional charges Corporate social responsibility (CSR) expenditure (refer note b below) Freight and forwarding Other selling expenses Payment to auditors (refer note a below) Loss on sale of property, plant and equipment Miscellaneous expenses	15.11 15.68 2.32 1.96 107.87 112.06 7.22 7.29 1.31 1.68 20.93 19.23 3.95 5.48 184.33 173.29 1.27 0.55 1.19 1.20 2.53 2.48 15.75 12.16 10.11 9.47 1.85 1.74 20.88 18.09 7.12 5.95 4.05 3.61 15.87 11.51 0.87 0.96 - 0.52 9.57 7.87
	434.10 412.77

Note: Other expenses includes research and development expenses (refer note 40)

a) Payment to auditors (exclusive of goods and services tax)

e:Other expenses includes research and development expenses (re Payment to auditors (exclusive of goods and services tax)	fer note 40)
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
As auditor - Audit fee - Tax audit fee In other capacity - Certifcation and other matters - Reimbursement of out of pocket expenses Total	0.76 0.90 0.05 0.04 0.05 0.01 0.01 0.01
	0.87 0.96

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

b) Details of corporate social responsibility expenditure

Details of corporate social responsibility expenditure
Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
(a) Gross amount required to be spent by the group during the year	6.68	5.95
(b) Amount of expenditure incurred during the year
(i) Construction or acquisition of any asset	-	-
(ii) On purposes other than (i) above	6.03	5.25
(c) Shortfall at the end of the year out of the amount required to be	0.65	0.70
spent by the group during the year;
(d) Total of previous years shortfall	-	0.33
(e) Reason for shortfall	N.A.	Due to ongoing
		projects to be
		completed in 3
		years
(f) Nature of CSR activities	Promoting	Promoting
	Education,	Education,
	Preventive	Hygiene
	Healthcare and	COVID-19,
	Environment	Preventive
	Sustainability	Healthcare and
		Environment
(g) Details of related party transactions:		Sustainability
Contribution to Cosmo Foundation	3.53	3.75
Contribution to Sitaram Jaipuria Foundation	2.50	1.50

*Deposited in CSR unspent account on 24 April 2024 (31 March 2023: 19 April 2023)

36 INCOME TAX

INCOME TAX
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
The income tax expense consists of the following : Current tax expense Deferred tax expense/(credit) Tax adjustment for earlier years: - Current tax - Deferred tax Total income tax The reconciliation of the estimated tax expense at statutory income tax rate to income tax expense reported in the statement of proft and loss is as follows: Proft before tax At India’s statutory income tax rate of 34.94 % (31 March 2023: 34.94%,) Adjustments in respect of current income tax Income exempted from Income taxes Tax adjustment for earlier years Effect of different tax rate Others adjustments Total income tax expense	14.60 57.25 (1.37) 9.01 (2.94) (11.93) (0.09) 5.57
	10.20 59.90
	72.39 303.89 25.30 106.19 (12.84) (25.93) (3.03) (6.36) (1.44) (11.69) 2.21 (2.31)
	10.20 59.90

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Movement of net deferred tax assets and liabilities for the year ended 31 March 2024 is as follows:

Deferred tax liabilities (net)	Opening balance	Recognised/ Reversed through Proft and Loss	Recognised/ Reversed through Other Comprehensive Income	Closing balance
Deferred tax assets arising on account of : Cash fow hedge reserve Expenses deductible under Income tax Act Minimum alternative tax credit entitlement Unabsorbed business losses Deferred tax liabilities in relation to Property, plant and equipment and other intangible assets -depreciation, amortisation and impairment Adjustment due to foreign exchange fuctuation Net deferred tax liabilities
	4.82	0.09	1.70	6.61
	1.02	1.58	(0.43)	2.17
	28.50	8.17	-	36.67
	25.57	16.71	-	42.28
	59.91	26.55	1.27	87.73

	202.05	25.88	-	227.93
	-	(0.79)	-	-
	202.05	25.09	-	227.93
	142.14	(1.46)	(1.27)	140.20

Movement of net deferred tax assets and liabilities for the year ended 31 March 2023 is as follows:

Deferred tax liabilities (net)	Opening balance	Recognised/ Reversed through Proft and Loss	Recognised/ Reversed through Other Comprehensive Income	Closing balance
Deferred tax assets arising on account of : Cash fow hedge reserve Expenses deductible under Income tax Act Minimum alternative tax credit entitlement Unabsorbed business losses Deferred tax liabilities in relation to : Property, plant and equipment and other intangible assets -depreciation and amortisation Cash fow hedge reserve Adjustment due to foreign exchange fuctuation Net deferred tax liabilities	- 13.46 5.89 4.75	- (13.03) 22.61 20.82	4.82 0.59 - -	4.82 1.02 28.50 25.57
	24.10	30.40	5.41	59.91
	157.38 3.12 -	44.67 - 0.31	- (3.12) -	202.05 - -
	160.50	44.98	(3.12)	202.05
	136.40	14.58	(8.53)	142.14

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Tax losses

No deferred tax asset has been recognised on these unutilized tax losses as there is no evidence that sufficient taxable profit will be available in future against which they can be utilised by the respective entities

Loss pertains to the year	Expiry year	Unused tax losses for which no	Potential tax
		deferred tax has been recognised	beneft
31 March 2019	31 March 2029	1.71	0.38
31 March 2020	31 March 2030	1.43	0.31

Deferred tax assets in the Group have been recognised to the extent there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity which are expected to reverse.

37 EARNINGS PER SHARE

EARNINGS PER SHARE
Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Proft for the year (₹ in Crores)	62.19	243.99
Weighted average number of equity shares outstanding for the	2,59,28,979	2,68,50,902
purpose of basic earnings per share Effect of potential ordinary shares on share options outstanding	3,77,650	4,22,963
Weighted average number of equity shares outstanding for the	2,63,06,629	2,72,73,865
purpose of diluted earnings per share Earnings per equity share (face value ₹ 10.00 per share) Basic (`)	23.99	90.86
Diluted (`)	23.64	89.45

38 CONTINGENCIES AND COMMITMENTS

CONTINGENCIES AND COMMITMENTS	CONTINGENCIES AND COMMITMENTS
Particulars		As at	As at
		31 March 2024	31 March 2023
(A)	Contingent liabilities
I	Claims against the Company not acknowledged as debt	3.70	2.14
II	Disputed demand for Income tax (refer note (a) below)	8.23	8.23
III	Pending duty obligation under Export Promotion Capital Goods	57.09	16.25
IV	licenses Disputed demand for Excise duty and Service tax	17.19	17.05
V	Disputed demands for labour/employee dispute	0.48	0.48
VI	Bank guarantees issued in favour of third parties	49.30	27.15

Note :

a) Disputed demand for income tax includes a dispute of ₹ 4.71 Crores (31 March 2023: ₹ 4.71 Crores) between the Company and income tax department over computation of deduction under section 80HHC of the Income Tax Act, 1961. The Company has filed a special leave petition against the order of Hon'ble Delhi High Court which has been accepted by Hon'ble Supreme Court and is pending. Based on the legal opinion taken from an independent expert, the management is of the view that it is more likely than not that matter will be decided in favour of the Company.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(B) Commitments

Particulars	Particulars	As at	As at
		31 March 2024	31 March 2023
a)	Capital commitments Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	278.97	350.69
b)	Others
	Letter of credit opened for which the material has not been	26.67	61.52
	shipped as on the date of the balance sheet.
	Uncalled funding commitment pertaining to investments	17.18	20.47

39 RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditures incurred by the Company during the financial year are mentioned below:

Particulars	For the year ended
	31 March 2024 31 March 2023
Research and development capital expenditure (gross) Research and development revenue expenditure Material and consumables Employee benefts expense Other expenses Sales for the year Total research and development expenditure/sales	0.37 0.56 3.46 7.42 4.53 4.81 0.23 0.23
	8.59 13.02
	2,536.27 3,025.23
	0.34% 0.43%

Assets purchased/capitalised for research and development centres

Assets purchased/capitalised for research and development centres
Particulars	Amount
Gross carrying value
As at 31 March 2022	11.09
Additions	0.56
As at 31 March 2023	11.65
Additions	0.37
As at 31 March 2024	12.02
Accumulated depreciation As at 31 March 2022 Depreciation for the year	4.33 0.90
As at 31 March 2023	5.23
Depreciation for the year	0.89
As at 31 March 2024	6.12
Net carrying amount as at 31 March 2023	6.42
Net carrying amount as at 31 March 2024	5.90

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

40 1. EMPLOYEE STOCK OPTION PLAN

Pursuant to the approval of the shareholders, the Company has introduced Cosmo Films Share Based Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) which supersedes earlier Cosmo Films Employees Stock Option Plan 2015 (CF ESOP 2015) to provide share based incentive to the eligible employees of the Company and its subsidiaries. However, Options already granted under CF ESOP 2015 will continue to be governed in accordance with the said Plan. The plan is implemented via trust route which will acquire the equity shares of the Company by secondary market acquisition, however, in case of any shortfall the Company will issue new shares as required. When exercisable, each option is convertible into one equity share.

A) Details of options granted under the CF ESOP 2015 are as below:

Scheme	Date of grant	Number of options granted	Vesting condition	Exercise period	Exercise price per share	Exercise price per share post bonus issue
CF Employees Stock Option Scheme 2015:
Option I Option II Option III Option IV	13-Jan-16 13-Jul-16 07-Jul-17 02-Jun-18	1,93,000 2,50,000 2,00,000 2,25,000	On completion of 3 year of service from the date of grant On completion of 3 year of service from the date of grant On completion of 3 year of service from the date of grant On completion of 3 year of service from the date of grant	10 years from the date of vesting 10 years from the date of vesting 10 years from the date of vesting 10 years from the date of vesting	₹ 300.05 ₹ 351.40 ₹ 433.20 ₹ 237.70	₹ 200.03 ₹ 234.27 ₹ 288.80 ₹ 158.47

B) Movement of options granted

Movement of options granted
Particulars	Year ended 31 March 2024	Weighted average exercise price	Year ended 31 March 2023	Weighted average exercise price
Options outstanding at the beginning of the year Increase on account of bonus issue Options exercised during the year Options cancelled during the year Options outstanding at the end of the year	1,95,000	251.18	1,80,915 82,007 (67,922) -	363.64 246.95 222.77 -
	-	-
	(75,000)	240.53
	-	-
	1,20,000	257.83	1,95,000	251.18

The weighted average remaining contractual life outstanding as at 31 March 2024 was 5.99 years (31 March 2023: 7.02 years). The weighted average exercise price of options outstanding as at 31 March 2024 was ₹ 257.83 (31 March 2023: ₹ 251.18).

C) The fair value of options used to compute proforma net income and earning per equity share has been done on the date of grant using Black-Scholes Model.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

The key assumption in Black-Scholes Model for calculating fair value on grant are as under:

Particulars	Option-I	Option-II	Option-III	Option-IV
Grant Date Market Price (₹) Exercise Price (₹) Expected Volatility (%) $ Expected forfeiture on each vesting date (%) Expected life (years)* Dividend yield (%) Risk free interest rate (%) Fair value on grant date (₹)	13-Jan-16 300.05 300.05 57.70 Nil 3 1.17 7.59 128.25	13-Jul-16 351.40 351.40 39.55 Nil 3 2.85 7.50 103.45	07-Jul-17 433.20 433.20 27.70 Nil 3 2.31 6.54 98.60	02-Jun-18 237.70 237.70 31.91 Nil 3 2.52 7.83 62.46

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

B) Movement of RSU granted

Movement of RSU granted
Particulars	Year ended 31 March 2024	Weighted average exercise price	Year ended 31 March 2023	Weighted average exercise price
Outstanding at the beginning of the year Exercised during the year Increase on account of bonus issue Outstanding at the end of the year	6,00,000	10.00	4,00,000 - 2,00,000	10.00 - 10.00
	(37,500)	10.00
	-	-
	5,62,500	10.00	6,00,000	10.00

The weighted average remaining contractual life outstanding as of 31 March 2024 was 3.42 years (31 March 2023: 4.41 years). The weighted average exercise price of options outstanding as of 31 March 2024 was ₹ 10.00 (31 March 2023: ₹ 10.00).

$ The expected volatility was determined based on historical volatility data.

*Options life is considered on the basis of earliest possible exercise after vesting

2. Restricted Stock Units (RSUs):

A) Details of options granted under Cosmo Films Share Based Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) are as below:

Scheme	Date of grant	Number of options granted	Number of options post bonus	Vesting condition	Exercise period	Exercise price per share
Cosmo Films Share Based Employee Beneft Scheme 2021:
RSU I RSU II RSU III RSU IV RSU V RSU VI RSU VII RSU VIII RSU IX	09-Mar-21 09-Mar-21 09-Mar-21 09-Mar-21 27-May-21 16-Sep-21 16-Sep-21 27-Jan-22 27-Jan-22	25,000 1,05,000 25,000 1,05,000 25,000 50,000 50,000 7,500 7,500	37,500 1,57,500 37,500 1,57,500 37,500 75,000 75,000 11,250 11,250	On completion of 3 year of service from the date of grant On completion of 4 year of service from the date of grant On completion of 5 year of service from the date of grant On completion of 7 year of service from the date of grant On completion of 5.25 year of service from the date of grant On completion of 4 year of service from the date of grant On completion of 7 year of service from the date of grant On completion of 4 year of service from the date of grant On completion of 7 year of service from the date of grant	One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting One years from the date of vesting	₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00 ₹ 10.00

C) The fair value of RSUs used to compute proforma net income and earning per equity share has been done on the date of grant using Black-Scholes Model.
The key assumption in Black-Scholes Model for calculating fair value on grant are as under:

Particulars	RSU-I	RSU-II	RSU-III	RSU-IV	RSU-V	RSU-VI	RSU-VII	RSU-VIII	RSU-IX
Grant Date Market Price (₹) Exercise Price (₹) Expected Volatility (%) $ Expectedforfeiture on each vesting date (%) Expected life (years)* Dividend yield (%) Risk free interest rate (%) Fair value on grant date (₹)	09-Mar-21 643.25 10.00 59.23 Nil 3 years 3.89 6.22 564.10	09-Mar-21 643.25 10.00 59.23 Nil 4 years 3.89 6.22 542.76	09-Mar-21 643.25 10.00 59.23 Nil 5 years 3.89 6.22 522.24	09-Mar-21 643.25 10.00 59.23 Nil 7 years 3.89 6.22 483.51	27-May-21 786.65 10.00 59.61 Nil 5.25 years 3.18 5.97 658.41	16-Sep-21 1535.85 10.00 63.43 Nil 4 years 1.63 6.2 1431.10	16-Sep-21 1535.85 10.00 63.43 Nil 7 years 1.63 6.2 1363.78	27-Jan-22 1798.85 10.00 61.33 Nil 4 years 1.39 6.66 1693.59	27-Jan-22 1798.85 10.00 61.33 Nil 7 years 1.39 6.66 1625.35

$ The expected volatility was determined based on historical volatility data.

*Options life is considered on the basis of earliest possible exercise after vesting

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

3. Stock Appreciation Rights (SARs):

A) Details of SARs under Cosmo Films Share Based Employee Benefit Scheme 2021 (CF SBEB Scheme, 2021) are as below:

2021) are	as below:
Scheme	Date of grant	Number of options granted	Number of options post bonus	Vesting condition	Exercise period	Exercise price per share	Exercise price per share post bonus issue
Cosmo Films Share Based Employee Beneft Scheme 2021:
Option I	03-Feb-22	31,650	47,475	On completion of 3 year of service from the date of grant	On completion of 3 year of service from the date of grant	₹ 1,800.00	₹ 1,200.00
Option II	03-Feb-22	31,650	47,475	On completion of 5 year of service from the date of grant	On completion of 5 year of service from the date of grant	₹ 1,800.00	₹ 1,200.00

B) Movement of SARs granted

Movement of SARs granted
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Outstanding at the beginning of the year Granted during the year Increase on account of bonus issue Outstanding at the end of the year	94,950 63,300 - - - 31,650
	94,950 94,950

C) Market value of SARs as at the reporting date is used to determine the fair value amortised in the statement of profit and loss.

41 EMPLOYEE BENEFIT OBLIGATIONS

1) Gratuity

The Group makes contribution towards gratuity to a defined retirement benefits plan for qualifying employees. The Group has taken policy with Life Insurance Corporation of India to provide for payment of retirement benefits to vested employees. The present value of obligation is determined based on actuarial valuation. The expected contribution to the plan for next annual reporting period amounts to ₹ 4.26 Crores (31 March 2023: ₹ 3.91 Crores).

The weighted average duration of the defined benefit obligation as at 31 March 2024 is 4 years (31 March 2023: 4 years).

The amounts recognised in the Balance Sheet and the movements in the net defined benefit obligation over the year are as follows:

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

a. Reconciliation of present value of defined benefit obligation and the fair value of plan assets

Reconciliation of present value of defned beneft obligation	and the fair value of plan assets
Particulars	As at 31 March 2024 As at 31 March 2023
Present value obligation as at the end of the year Fair value of plan assets as at the end of the year Net liability /(assets) recognised in Balance Sheet	33.66 33.62 (9.67) (11.59)
	23.99 22.03
Changes in defned beneft obligatio
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Present value obligation as at the start of the year Interest cost Current service cost Past service cost Benefts paid Actuarial loss on obligations Present value obligation as at the end of the year	33.62 31.65 2.61 2.28 1.61 1.30 - - (3.16) (1.07) (1.02) (0.54)
	33.66 33.62

b. Changes in defined benefit obligatio

c. Table showing changes in the fair value of plan assets

Table showing changes in the fair value of plan assets
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Fair value of plan assets at beginning of year Interest income on plan assets Return on plan assets excluding interest income Contributions Benefts paid Fair value of plan assets at the end of year	11.59 11.54 1.01 0.83 (0.02) 0.20 0.25 0.00 (3.16) (0.98)
	9.67 11.59

d. Amount recognised in the Statement of Profit and Loss

Amount recognised in the Statement of Proft and Loss
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Current service cost Past service cost Interest cost Expected return on plan asset Amount recognised in the Statement of Proft and Loss	1.61 1.30 - - 1.74 1.45 - -
	3.35 2.75
Other Comprehensive Income
Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Actuarial loss on arising from change in demographic assumption Actuarial (gain)/loss on arising from change in fnancial assumption Actuarial loss/(gain) on arising from experience adjustment Return on plan assets excluding interest income Unrecognised actuarial loss at the end of the year	- 0.00 0.29 (0.28) (1.31) (0.26) 0.02 (0.20)
	(1.00) (0.74)

e. Other Comprehensive Income

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

f. Actuarial assumptions

Particulars	As at	As at
	31 March 2024	31 March 2023
Discount rate	7.23%	7.50%
Future salary increase	7.00%	7.00%

g. Demographic assumptions

Demographic assumptions
Particulars	As at	As at
	31 March 2024	31 March 2023
Retirement age (Years)	58	58
Mortality rates inclusive of provision for disability	Indian Assured	Indian Assured
	Lives Mortality	Lives Mortality
	(2012-14)	(2012-14)

h. Sensitivity analysis for gratuity liability

Particulars	As at	As at
	31 March 2024	31 March 2023
Impact of the change in discount rate
Present value of obligation at the end of the year	33.60	33.70
a) Impact due to increase of 0.50%	(0.53)	(0.51)
b) Impact due to decrease of 0.50%	0.58	0.54
Impact of the change in salary increase
Present value of obligation at the end of the year	33.60	33.70
a) Impact due to increase of 0.50%	0.58	0.54
b) Impact due to decrease of 0.50%	(0.54)	(0.51)

i. Maturity profile of defined benefit obligation

Particulars	As at	As at
	31 March 2024	31 March 2023
April 2023 to March 2024	19.60	19.69
April 2024 to March 2025	1.21	1.72
April 2025 to March 2026	2.10	1.52
April 2026 to March 2027	1.77	2.17
April 2027 onwards	23.50	22.79

j. Investment details

Investment details
Particulars	As at 31 March 2024 As at 31 March 2023
	(₹ in Crore) % invested (₹ in Crore) % invested
Insurance funds	9.67 100 11.59 100

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Year ended	Year ended
	31 March 2024	31 March 2023
Employer’s contribution to Provident Fund	6.32	5.94
Employer’s contribution to Superannuation Fund	1.68	1.72
Employer’s contribution to labour welfare fund and employee state	0.17	0.21
insurance
Employer’s contribution to other funds	0.62	0.60

3) The Group has granted non-recurring long term incentives to select employees which is linked with valuations of specified businesses of a future date. In view of the management, projections of future valuations of specified businesses as at the current reporting date is not feasible. Accordingly, the Group has not recognized any expense on this account for the year ended 31 March 2024

42 LEASES

A The Group has taken residential/commercial premises on lease. There are no restrictions placed upon the Group by entering into these leases and there are no subleases. The Group is prohibited from selling or pledging the underlying leased assets as security. The Group also has certain leases of various assets with lease terms of 12 months or less. The Group applies the ‘short-term lease’ recognition exemptions for these leases

B. Lease liabilities are presented in the statement of financial position as follows:

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Non-current	64.72 38.00 5.51 4.16
Current Total
	70.23 42.16

C. Lease payments not included in measurement of lease liability
The expense relating to payments not included in the measurement of the lease liability is as follows:

Particulars	Year ended 31 March 2024 Year ended 31 March 2023
Short-term leases	15.11 15.68 - -
Leases of low value assets Total
	15.11 15.68

D The maturity analysis of lease liabilities are disclosed in Note no. 46
E Total cash outflow for leases for the year ended 31 March 2024 was ₹ 24.50 Crores (31 March 2023: ₹ 19.97 Crores).

2) Defined contribution plans

The Group also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligations of the Group is limited to the amount contributed and it has no further contractual nor any constructive obligation.

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Statutory Reports

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

43 RELATED PARTY DISCLOSURES

List of related parties and relationships:

A. Key management personnel

a) Mr. Ashok Jaipuria, Chairman and Managing Director of Company
b) Mr. Anil Kumar Jain, Director of corporate affairs
c) Mr. H. K. Agrawal, Independent Director
d) Mrs Alpana Parida, Independent Director
e) Mr. Rakesh Nangia, Independent Director
f) Mr. Pratip Chaudhuri, Non-Independent Director
g) Mr. H. N. Sinor, Independent Director
h) Mr. Anil Wadhwa, Independent Director
i) Mr. Arjun Singh, Independent Director
j) Mr. Yash Pal Syngal, Independent Director (joined w.e.f. 8 November 2023)
k) Mr. Pankaj Poddar, Chief Executive Officer
l) Mr. Neeraj Jain, Chief Financial Officer
n) Mrs. Jyoti Dixit, Company Secretary

B. Enterprises over which Key managerial personnel of the Company and their relatives have significant influence:

a) Sunrise Manufacturing Company Limited
b) Pravasi Enterprises Limited
c) Cosmo Foundation
d) Gayatri & Annapurana (Partnership firm)
e) Nangia & Company LLP
f) Fawkes Management Private Ltd
g) Cosmo Ferrites Limited
h) Nangia Andersen LLP
i) Zigly Foundation (formerly Petsfamilia Foundation)
j) Sitaram Jaipuria Foundation

C. Relative of Key managerial personnel of the Company

a) Mrs. Yamini Kumar
b) Mrs. Aanchal Jaipuria Bhandari
c) Mr. Ambrish Jaipuria
d) Mrs. Devyani Jaipuria
e) Ms. Rachna Morarka
f) Ms Poonam Poddar
g) Ms Jhanvi Poddar

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Key management personnel and their relatives	Key management personnel and their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Total	Total
	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023
Transactions with related Parties 1 Sales Sales from pet care vertical 2 Rent received Pravasi Enterprises Limited 3 Professional fees paid/ (received) Mrs. Yamini Kumar Nangia & Company LLP Nangia Andersen LLP Cosmo Ferrites Limited 4 Short term employee benefts 5 Post employment benefts 6 Share based payments 7 Buyback of shares Mr. Ashok Jaipuria Mr. Anil Kumar Jain Mr. Rakesh Nangia Mr. Pankaj Poddar Mr. Ambrish Jaipuria Mrs. Aanchal Jaipuria Bhandari Mrs. Yamini Kumar Mrs Abha Jaipuria Gayatri & Annapurana Fawkes Management Private Ltd Pravasi Enterprises Limited Mr. Neeraj Jain Mrs. Jyoti Dixit 8 Sitting fee/commission paid Mr. H. K. Agrawal Mrs. Alpana Parida Mr. Pratip Chaudhuri Mr. H. N. Sinor Mr. Anil Wadhwa Mr. Rakesh Nangia Mr. Arjun Singh Mr. Yashpal Syngal 9 Loan (repayment) received Mr. Pankaj Poddar 10 Interest income on loan given* Mr. Pankaj Poddar						0.05 0.02 2.04 0.07 0.03 (0.45) 41.86 2.29 5.29 1.69 0.13 0.12 1.06 1.82 0.47 0.40 0.12 38.78 1.05 0.03 0.20 0.00 0.34 0.33 0.35 0.34 0.34 0.34 0.16 - (1.38) 0.25

	0.04	0.05	-	-	0.04

	-	-	0.02	0.02	0.02

	2.10	2.04	-	-	2.10
	-	-	0.32	0.07	0.32
	-	-	0.22	0.03	0.22
	-	-	(0.45)	(0.45)	(0.45)
	21.26	41.86	-	-	21.26
	2.24	2.29	-	-	2.24
	5.27	5.29	-	-	5.27

	-	1.69	-	-	-
	-	0.13	-	-	-
	-	0.12	-	-	-
	-	1.06	-	-	-
	-	1.82	-	-	-
	-	0.47	-	-	-
	-	0.40	-	-	-
	-	0.12	-	-	-
	-	-	-	38.78	-
	-	-	-	1.05	-
	-	-	-	0.03	-
	-	0.20	-	-	-
	-	0.00	-	-	-

	0.13	0.34	-	-	0.13
	0.15	0.33	-	-	0.15
	0.15	0.35	-	-	0.15
	0.16	0.34	-	-	0.16
	0.15	0.34	-	-	0.15
	0.16	0.34	-	-	0.16
	0.14	0.16	-	-	0.14
	0.05	-	-	-	0.05

	(1.37)	(1.38)	-	-	(1.37)

	0.20	0.25	-	-	0.20

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Corporate Overview

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Key management personnel and their relatives	Key management personnel and their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Total	Total
	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023	Year ended 31 March 2024	Year ended 31 March 2023
11 Corporate social responsibility expenditure Contribution to Cosmo Foundation Contribution to Zigly Foundation Contribution to Sitaram Jaipuria Foundation						4.44 0.20 1.50
	-	-	4.19	4.44	4.19
	-	-	0.42	0.20	0.42
	-	-	2.50	1.50	2.50

Does not include the provision made for gratuity and compensated absences, as they are determined on an actuarial basis for all the employees together.

Particulars	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Enterprises owned or signifcantly infuenced by key management personnel or their relatives	Key management personnel and their relatives	Key management personnel and their relatives	Total	Total
	As at 31 March 2024	As at 31 March 2023	As at 31 March 2024	As at 31 March 2023	As at 31 March 2024	As at 31 March 2023
Outstanding balances 1 Remuneration/ commission payable 2 Loan outstanding Mr. Pankaj Poddar						20.82 5.86
	-	-	5.98	20.82	5.98

	-	-	4.48	5.86	4.48

44 SEGMENT REPORTING

In accordance with Ind AS 108, the Board of directors being the Chief operating decision maker of the Group has determined its only one reportable business segment of packaging films. Further, in terms of Paragraph 4 and 31 of Ind AS 108 ‘Operating Segments’, entity wide disclosures have been presented below:

In addition, one minor operating segments is shown under other segments. The main sources of revenue for this segment is the sale of equipments, related parts and services and revenue from pet care business

Business segment

Year ended 31 March 2024

Particulars	Packaging Films Speciality Chemicals Others Total
Revenue Segment revenue Less: Inter segment revenue Revenue from external customers Results Segment result Unallocated corporate expenses Operating proft Finance costs Proft before tax Income taxes Proft for the year
	2,538.50 142.66 29.31 2,710.47
	- - - (123.13)
	2,538.50 142.66 29.31 2,587.34

	225.24 4.25 (34.92) 194.57
	- - - (32.82)
	225.24 4.25 (34.92) 161.75
	- - - 89.36
	225.24 4.25 (34.92) 72.39
	- - - (10.20)
	225.24 4.25 (34.92) 62.19

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Packaging Films Speciality Chemicals Others Total
Other information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Capital expenditure Depreciation, amortisation and impairment expense
	2,903.28 66.91 87.69 3,057.88
	- - - 469.98
	2,903.28 66.91 87.69 3,527.86
	963.09 15.58 57.33 1,036.00
	- - - 1,144.35
	963.09 15.58 57.33 2,180.35
	283.32 (1.71) 15.90 297.51
	76.68 2.26 10.54 89.48
Year ended 31 March 2023
Particulars	Packaging Films Speciality Chemicals Others Total
Revenue Segment revenue Less: Inter segment revenue Revenue from external customers Results Segment result Unallocated corporate expenses Operating proft Finance costs Proft before tax Income taxes Proft for the year Other information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Capital expenditure Depreciation, amortisation and impairment expense	3,012.39 158.94 10.34 3,181.67 - - - (116.38)
	3,012.39 158.94 10.34 3,065.29
	429.75 0.68 (20.17) 410.27 - - - (50.93)
	429.75 0.68 (20.17) 359.34
	- - - 55.45
	429.75 0.68 (20.17) 303.89
	- - - (59.90)
	429.75 0.68 (20.17) 243.99
	2,459.88 104.68 59.53 2,624.09 - - - 503.78
	2,459.88 104.68 59.53 3,127.87
	699.36 15.15 41.51 756.02 - - - 1,073.74
	699.36 15.15 41.51 1,829.76
	361.25 7.08 12.07 380.40 67.36 2.10 5.50 74.96

Geographical segment

Year ended 31 March 2024

Segment assets are allocated based on their physical location. Revenues from external customers have been identified on the basis of the customer’s geographical location and are disclosed below.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Revenue Segment assets Capital expenditure
In India Outside India Total	1,416.49 3,254.23 297.51
	1,170.85 273.63 -
	2,587.34 3,527.86 297.51

Revenue as per Customers (more than 10% of revenue):

There is no single external customer who has contributed of 10% or more to the Group's revenue.

Year ended 31 March 2023

Segment assets are allocated based on their physical location. Revenues from external customers have been identified on the basis of the customer’s geographical location and are disclosed below.

Particulars	Revenue Segment assets Capital expenditure
In India Outside India Total	1,501.03 2,810.74 380.40 1,564.26 317.13 -
	3,065.29 3,127.87 380.40

Revenue as per Customers (more than 10% of revenue):

There are no single external customer which has contributed of 10% or more in the Group's revenue.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

As at 31 March 2023	Fair value through proft or loss	Fair value through other comprehensive income	Amortised cost
Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Other bank balances (v) Loans (vi) Derivative assets (vii) Others fnancial assets Total Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (iv) Derivative liabilities (v) Other fnancial liabilities Total	246.30 - - - - 7.33 -	171.43 - - - - 0.96 -	- 199.56 32.94 13.12 8.10 - 28.26
	253.63	172.39	281.98
	- - - 0.32 -	- - - - -	889.85 42.16 528.47 - 88.41
	0.32	-	1,548.89

B) Fair value hierarchy

45 FAIR VALUE MEASUREMENTS

A) Financial assets and liabilities

The accounting classification of each category of financial instruments, and their carrying amounts, are set out below:

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----- Start of picture text -----

As at 31 March 2024 Fair value Fair value through Amortised
through profit other comprehensive cost
or loss income
Financial assets
(i) Investments 246.32 159.30 -
(ii) Trade receivables - - 261.48
(iii) Cash and cash equivalents - - 24.75
(iv) Other bank balances - - 10.57
(v) Loans - - 7.39
(vi) Derivative assets 0.70 - -
(vii) Others financial assets - - 28.13
Total 247.02 159.30 332.32
Financial liabilities
(i) Borrowings - - 977.82
(ii) Lease liabilities - - 70.23
(iii) Trade payables - - 688.08
(iv) Derivative liabilities 0.20 - -
(v) Other financial liabilities - - 154.18
Total 0.20 - 1,890.31
----- End of picture text -----

The different levels of fair value have been defined below:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

B) (i) Financial assets and liabilities measured at fair value - recurring fair value measurements

As at 31 March 2024	Note	Level 1	Level 2	Level 3
Financial assets
(i) Investments	6 and 11	216.09	129.56	59.97
(ii) Derivative assets	16	-	0.70	-
Total Financial assets		216.09	130.26	59.97
Financial liabilities
(i) Derivative liabilities	26	-	0.20	-
Total Financial liabilities		-	0.20	-

As at 31 March 2023	Note	Level 1	Level 2	Level 3
Financial assets (i) Investments (ii) Derivative assets Total Financial assets As at 31 March 2023 (i) Derivative liabilities Total Financial liabilities	6 and 11 16	186.68 -	204.27 8.29	26.78 -
		186.68	212.56	26.78
	26	-	0.32	-
		-	0.32	-

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Valuation process and technique used to determine fair values

(i) All financial instruments are initially recognised at cost and subsequently re-measured at fair value as described below:
a) The fair value of investment in quoted Equity Shares is measured at quoted price as at reporting date.
b) The fair value of investment in quoted Bonds and Debentures is measured based on the last traded price on stock exchange as at the reporting date.
c) The fair value of investments in Alternative Investment Funds and Mutual Funds is based on the net asset value (NAV) as stated by the issuers of these funds in the published statements as at the balance sheet date.
d) The fair value for unquoted instruments where Level 1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques used in determining the fair value of various assets is as follows:
- i. Asset Approach: Net Assets Value Method
- ii. Income Approach:Discounted Cash Flows Method
- iii. Market Approach: Comparable Companies Multiples Method
(ii) Fair value for derivatives contracts is determined using observable forward and option exchange rates and yield curves as at the balance sheet date.

B) (ii) Fair value of financial assets and liabilities measured at amortised cost

Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows, these fair values are calculated using Level 3 inputs:

The fair values of loans are not materially different from the amortised cost thereof. Further, the management assessed that fair values of trade receivables, cash and cash equivalents, other bank balances, other current financial assets (excluding derivative assets), current borrowings, trade payables and other current financial liabilities (excluding derivative liabilities) approximate their respective carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All the long term borrowing facilities availed by the Group are variable rate facilities which are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Group’s creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Group. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

The fair value measurements disclosed in respect of financial assets and liabilities measured at amortised cost fall within Level 3 of fair value hierarchy.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

46 RISK MANAGEMENT

The group's activities expose it to market risk, liquidity risk and credit risk. The management has the overall responsibility for the establishment and oversight of the group's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

Risk	Exposure arising from	Measurement	Management
Credit risk Liquidity risk Market risk - foreign exchange Market risk - interest rate Market risk - security price	Cash and cash equivalents, other bank balances, loans, trade receivables, other fnancial assets and investments Borrowings and other liabilities Recognised fnancial assets and liabilities not denominated in Indian rupee (INR) Long-term borrowings at variable rates Investments in mutual funds and debt securities	Ageing analysis Credit ratings Rolling cash fow forecasts Cash fow forecasting Sensitivity analysis Sensitivity analysis	Diversifcation of bank deposits, collateral credit limits and letter of credit Investment guidelines for debt investments Availability of committed credit lines and borrowing facilities Foreign currency forwards Foreign currency options Cross currency swaps Interest rate swaps Diversifcation of portfolio, with focus on strategic investments

A. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Group. The Group's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other financial assets measured at amortised cost. The Group continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Credit risk management

Credit risk rating

The Group assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date
B: Moderate credit risk
C: High credit risk

The Group Provides for expected credit loss on Financial assets other than trade receivables based on following

following
Basis of categorisation	Asset class exposed to credit risk	Provision for expected credit loss
Low credit risk Moderate credit risk High credit risk	Cash and cash equivalents, other bank balances, loans, trade receivables, other fnancial assets and investments Other fnancial assets Other fnancial assets	12 month expected credit loss 12 month expected credit loss unless credit risk has increased signifcantly since initial recognition, in which case allowance is measured at lifetime expected credit loss. Life time expected credit loss or fully provided for

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

As the group's trade receivables do not contain a significant financing component, it measures the loss allowance in respect thereof at an amount equal to lifetime expected credit losses.

Based on business environment in which the Group operates, a default on a financial asset is considered when the counter party fails to make payments within a reasonable time after the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Group or debtor declaring bankruptcy or a litigation decided against the Group. The Group continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.

Credit risk exposure

Credit risk exposure
Credit rating	Particulars	As at 31 March 2024	As at 31 March 2023
A: Low credit risk B: Medium credit risk C: High credit risk	Cash and cash equivalents	24.75	32.94 13.12 8.10 36.55 199.56 417.73 - -
	Other bank balances	10.57
	Loans	7.39
	Other fnancial assets	28.83
	Trade receivables	261.48
	Investments	405.62
	-	-
	-	-

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees/letter of credit, from customers where credit risk is high. The Group closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Group assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become one year past due. All debtors are covered under credit insurance policy.

Investments

This risk refers to a situation where a particular bond issuer is unable to make the expected principal payments, interest rate payments, or both.

The Company's deployment in debt instruments are primarily in bonds and debentures issued by highly rated banks, financial institutions and public sector undertakings. With respect to the Company’s investing activities, counter parties are shortlisted and exposure limits are determined on the basis of their credit rating (by independent agencies), financial statements and other relevant information. As these counter parties are Banks/Financial Institutions /public sector undertakings with investment grade credit ratings and taking into account the experience of the Company over time, the counter party risk attached to such assets is considered to be insignificant.

Furthermore, with respect to the company's investments in Equity and Preference instruments, Mutual Funds and AIF's, since these investments are not exposed to counterparty risks, therefore they have been considered under low credit risk instruments.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Derivative instruments

Credit risk related to derivative instruments is managed by the Group by doing transactions with highly rated banks. Further, management has established limits for use of derivative instruments to minimize the concentration of risks and therefore mitigate financial loss through counterparties potential failure to make payments.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

The Group provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses. Since, the group deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low. In respect of loans, comprising of security deposits, credit risk is considered low because the group is in possession of the underlying asset. In respect of other financial assets, credit risk is evaluated based on group’s knowledge of the credit worthiness of those parties.

The group does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

b) Expected credit loss for financial assets under simplified approach

The Group recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Group has defined percentage of provision by analysing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Customer advances amounting to ₹ 15.16 Crores (31 March 2023 : ₹ 14.03 Crores) were not considered for the purpose of computation of expected credit losses under simplified approach. Based on such simplified approach, an allowance of ₹ 5.73 Crores and ₹ 3.87 Crores as at 31 March 2024 and 31 March 2023 respectively has been recognised.

Age of receivables	As at 31 March 2024 As at 31 March 2023
Not Due 0-180 days past due 181-360 days past due More than 360 days past due Total	179.26 125.07 80.73 68.47 2.99 1.78 4.23 8.11
	267.21 203.43
Reconciliation of loss provision-lifetime expected credit losses

	Reconciliation of loss allowance	Amount
	Loss allowance as at 1 April 2022	7.52
	Expected credit loss recognised during the year	(1.00)
	Amounts written off	(2.65)
	Loss allowance as at 31 March 2023	3.87
	Expected credit loss recognised during the year	2.58
	Amounts written off	(0.72)
	Loss allowance as at 31 March 2024	5.73

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

B. Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group'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.

Management monitors rolling forecasts of the liquidity position and cash and cash equivalents on the basis of expected cash flows. The Group takes into account the liquidity of the market in which the entity operates.

Financing arrangements

The group has access to the following undrawn borrowing facilities at the end of reporting period:

Floating rate	As at 31 March 2024 As at 31 March 2023
Expiring within one year (cash credit and other facilities) Expiring beyond one year (bank loans - foating rate) Total	687.27 855.61 206.67 -
	893.94 855.61

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

C. Market Risk

(i) Interest Rate risk

The group’s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31 March 2023, the group is exposed to changes in market interest rates through bank borrowings at variable interest rates. Other borrowings are at fixed interest rates.

Group's exposure to interest rate risk on borrowings is as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
Variable rate Fixed rate Total	811.73 716.19 166.09 173.65
	977.82 889.85

The following table illustrates the sensitivity of profit and equity to a possible change in interest rates of +/- 1% (31 March 2023: +/- 1%). These changes are considered to be reasonably possible based on observation of current market conditions. The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant.

Contractual Maturities of financial liabilities

The tables below analyse the financial liabilities into relevant maturity groupings based on their contractual maturities.

31 March 2024	Less than 1 year 1 - 2 years 2 - 5 years More than 5 years Total
(i) Borrowings	297.34 139.69 316.92 223.87 977.82
(ii) Lease liabilities	5.51 7.66 26.73 30.33 70.23
(iii) Trade payables	688.08 - - - 688.08
(iv) Other fnancial liabilities	128.85 12.67 12.67 - 154.19
(iv) Derivative liabilities	0.20 - - - 0.20
Total	1,119.98 160.02 356.32 254.20 1,890.52

31 March 2023	Less than 1 year 1 - 2 years 2 - 5 years More than 5 years Total
(i) Borrowings (ii) Lease liabilities (iii) Trade payables (iv) Other fnancial liabilities (iv) Derivative liabilities Total	343.27 155.32 242.23 149.03 889.85 4.16 4.92 17.23 15.85 42.16 528.47 - - - 528.47 88.41 - - - 88.41 0.32 - - - 0.32
	964.63 160.24 259.46 164.88 1,549.21

	Proft for the year +1%	Proft for the year -1%
As at 31 March 2024 As at 31 March 2023	(5.28) (4.66)	5.28 4.66

(ii) Foreign currency risk

The Group is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, GBP, Euro and JPY. Fluctuations in foreign currency exchange rates may have an impact on profit or loss and the statement of change in equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Group.

Exposures on foreign currency loans are managed through a hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Group's policy is to hedge material foreign exchange risk associated with borrowings, highly probable forecast sales and purchases transactions denominated in foreign currencies. The Group strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged.

The Group uses forward exchange contracts, currency swaps, other derivatives and non-derivative instruments to hedge the effects of movements in exchange rates on foreign currency denominated assets, liabilities and highly probable forecast transactions. The sources of foreign exchange risk are outstanding amounts payable for imported raw materials, capital goods and other supplies and as well as financing transactions and loans denominated in foreign currencies. The Group is also exposed to foreign exchange risk on its highly probable forecasted sales and purchases. The policy of the Group is to determine on a regular basis what portion of the foreign exchange risk on financing transactions and loans are to be hedged through forward exchange contracts and other instruments. Short-term net exposures are hedged progressively based on their maturity. The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency exchange rates is appropriately managed. The following analysis is based on the gross exposure as at the reporting date which could affect the profit or loss or other comprehensive income. Instruments designated in hedging relationship and hedge accounting disclosures are include in section “Derivative financial instruments and hedge accounting.

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Corporate Overview

Statutory Reports

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Forex Exposure	As at 31 March 2024 As at 31 March 2023
	Foreign Currency INR in Crores Foreign Currency INR in Crores
Financial assets USD GBP EUR CAD Financial liabilities USD GBP EUR JPY CAD CHF Derivative Contracts USD EUR	1,61,60,727 134.76 10,02,243 8.30 3,10,309 3.27 4,71,207 4.80 35,50,175 32.04 22,65,537 20.31 4,66,517 2.87 5,81,086 3.53 1,94,64,973 162.32 2,23,40,703 185.07 685 0.01 7,329 0.07 4,16,76,868 376.18 3,97,48,281 356.34 3,27,340 0.02 52,109 0.32 41,973 0.26 9,845 0.09 - - (91,44,618) (76.26) (1,49,47,227) (123.82) (2,54,88,076) (230.06) (3,22,46,476) (289.09)

The following significant exchange rates have been applied:

Particulars	Year end spot rate
	As at 31 March 2024 As at 31 March 2023
USD GBP EUR JPY CHF CAD	83.39 82.84 105.33 101.91 90.26 89.65 0.55 0.62 92.41 89.83 61.57 60.81

Sensitivity Analysis

Particulars	Impact on proft after tax Impact on other components of equity
	31 March 2024 31 March 2023 31 March 2024 31 March 2023
USD sensitivity INR/USD increase by 5.00% (31 March 2023- 5.00%) (0.90) (5.75) - - INR/USD decrease by 5.00% (31 March 2023- 5.00%) 0.90 5.75 - - GBP sensitivity INR/GBP increase by 5.00% (31 March 2023- 5.00%) 0.11 0.15 - - INR/GBP decrease by 5.00% (31 March 2023- 5.00%) (0.11) (0.15) - - EUR sensitivity

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars

Impact on proft after
tax
Impact on other
components of equity

31 March
2024
31 March
2023
31 March
2024
31 March
2023

INR/EUR increase by 5.00% (31 March 2023- 5.00%)
(5.79)
(5.28)
(5.40)
(5.65)
INR/EUR decrease by 5.00% (31 March 2023- 5.00%)
5.79
5.28
5.40
5.65
CHF sensitivity
INR/CHF increase by 5.00% (31 March 2023- 5.00%)
(0.00)
-
-
-
INR/CHF decrease by 5.00% (31 March 2023- 5.00%)
0.00
-
-
-
JPY sensitivity
INR/JPY increase by 5.00% (31 March 2023- 5.00%)
(0.00)
-
-
-
INR/JPY decrease by 5.00% (31 March 2023- 5.00%)
0.00
-
-
-
CAD sensitivity
INR/CAD increase by 5.00% (31 March 2023- 5.00%)
0.08
0.11
-
-
INR/CAD decrease by 5.00% (31 March 2023- 5.00%)
(0.08)
(0.11)
-
-

Derivative financial instruments and hedge accounting

A) The fair value of the Group’s open derivative positions recorded within financial instruments (derivative) is as follows:

Particulars	As at 31 March 2024 As at 31 March 2023
	Liability Assets Liability Assets
Non-current Cash fow hedges - Forward foreign currency contracts - Options - Interest rate swaps Total	0.11 0.27 0.23 0.96 - 0.43 - 7.33 - - 0.09 -
	0.11 0.70 0.32 8.29

*Refer statement of profit and loss and statements of change in equity for the change in the fair value of cash flow hedges.

The Group uses foreign currency forward contracts, foreign currency options contracts and non-derivative financial instruments (i.e. foreign currency borrowings) to mitigate exchange rate exposure arising from forecast sales and purchase in USD, EUR and GBP. Also, the Group uses foreign currency options contracts, cross currency swap contracts and interest rate swap contracts to mitigate exchange rate exposure and interest rate exposure arising from foreign currency borrowings.

Hedge ineffectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument.

All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported subsequently at fair value in the balance sheet

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Other derivatives, which have not been designated in hedging relationship, are considered by management to be part of economic hedge arrangements but have not been formally designated since the relationship between hedged item and hedging instrument is considered to be ineffective.

Disclosure of effects of hedge accounting on financial position

Type of hedge and risks	Nominal Value	Carrying amount of hedging instrument	Carrying amount of hedging instrument	Maturity date	Hedge ratio	Average strike price	Changes in fair value of the hedging instrument	Change in the fair value of hedged item used as the basis for recognizing hedge effectiveness
		Assets	Liabilities
As at 31 March 2024
Cash fow hedge
Derivative instruments
(i) Foreign exchange forward contracts (including options, currency swaps)	USD 9,406,185	-	0.11	April 2024- September 2024	1:1	USD/INR- 83.96	(0.11)	0.11
	EUR 7,007,022	0.43	-	April 2024- February 2025	1:1	EUR/INR- 90.48	0.43	(0.43)
	EUR 1,937,100	0.27	-	April 2024- November 2024	1:1	EUR/USD- 1.057	0.27	(0.27)
Non-derivative instruments
(i) Foreign currency borrowings*	EUR 18,402,450	-	166.09	November 2023- May 2033	1:1	-	-	-
As at 31 March 2023 Cash Flow hedge Derivative instruments (i) Foreign exchange forward contracts (including options, currency swaps) Non-derivative instruments (i) Foreign currency borrowings*	USD 14,947,267 EUR 12,875,476 EUR 19,371,000	0.21 7.12 -	0.32 - 173.65	April 2023- September 2023 April 2023- August 2023 November 2023- May 2033	1:1 1:1 1:1	USD/INR- 82.46 EUR/INR- 82.30 -	(0.11) 7.12 -	0.11 (7.12) -

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Disclosure of effects of hedge accounting on financial performance For the year ended 31 March 2024

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----- Start of picture text -----

Type of hedge and risks Change in Hedge Amount Line item affected
the value ineffectiveness reclassified in statement
of hedging recognised in from cash of profit and
instrument profit or loss flow hedging loss because of
in other reserve to reclassification
comprehensive profit or loss and hedge
income ineffectiveness
Cash flow hedge
Foreign currency and
interest rate risk
(i) Foreign exchange (4.68) - 4.68 Finance cost and
forward contracts other expenses/
income
(ii) Foreign currency (1.19) - (1.00) Finance cost and
borrowings other expenses/
income
----- End of picture text -----

For the year ended 31 March 2023

Type of hedge and risks	Change in the value of hedging instrument in other comprehensive income	Hedge ineffectiveness recognised in proft or loss	Amount reclassifed from cash fow hedging reserve to proft or loss	Line item affected in statement of proft and loss because of reclassifcation and hedge ineffectiveness
Cash fow hedge Foreign currency and interest rate risk (i) Foreign exchange forward contracts (iii) Foreign currency borrowings	0.67 (18.54)	- -	5.93 (1.09)	Finance cost and other expenses/ income Finance cost and other expenses/ income

(iii) Price risk

Exposure

The Group’s exposure to price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Group diversifies its portfolio of assets.

Sensitivity

The table below summarises the impact of increases/decreases of the index on the Group’s equity and profit for the period :

represents outstanding balance of loans designated under natural hedge

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Impact on profit after tax

Impact on proft after tax
Particulars	Impact on proft after tax Impact on other components of equity
	As at 31 March 2024 As at 31 March 2023 As at 31 March 2024 As at 31 March 2023
Investments Net asset value - increase by 1% Net asset value - decrease by 1%	1.45 1.55 1.04 1.12 (1.45) (1.55) (1.04) (1.12)

47 CAPITAL MANAGEMENT POLICIES

The Company’s capital management objectives are to ensure the Company’s ability to continue as a going concern as well as to provide a an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Group monitors capital on the basis of the carrying amount of equity plus its subordinated loan, less cash and cash equivalents as presented on the face of the statement of financial position and cash flow hedges recognised in other comprehensive income.

The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares. The amounts managed as capital by the group are summarised as follows:

The Group monitors capital on the basis of its gearing ratio, debt equity ratio and ratio of net debts to its earnings before interest, tax, depreciation and amortisation (EBITDA).

Debt equity ratio

Debt equity ratio
Particulars	As at 31 March 2024 As at 31 March 2023
Total borrowings (including current maturities of long term debt) Less: Investments Less: Cash and cash equivalents Less: Pledged bank deposits Less: Deposits with bank	977.82 889.85 (381.85) (410.03) (24.75) (32.94) (8.73) (11.24) (0.05) (0.05)
Net debt Total equity Net debt to equity ratio (%)	562.44 435.59 1,347.51 1,298.11
	41.74% 33.56%

Ratio of net debt to EBIDTA

Ratio of net debt to EBIDTA
Particulars	As at 31 March 2024 As at 31 March 2023
Proft before exceptional items and tax* Add: Depreciation and amortisation and impairment expenses Add: Finance costs	72.39 303.89 89.48 74.96 89.36 55.45
EBIDTA Net debt Ratio of net debt to EBIDTA (times)	251.23 434.30 562.44 435.59
	2.24 1.00

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Gearing Ratio (%)

Gearing Ratio (%)
Particulars	As at 31 March 2024 As at 31 March 2023
Net debt Total equity Equity and net debt Gearing Ratio (%)	562.44 435.59 1,347.51 1,298.11 1,909.95 1,733.69
	29.45% 25.12%

Dividend paid during the year	As at 31 March 2024 As at 31 March 2023
Equity shares Final dividend for the year ended 31 March 2023 of ₹ 5 per share (31 March 2022:₹ Nil per share)	12.97 -

48 GROUP INFORMATION

Information about subsidiaries consolidated

The Consolidated Financial statements of the Group include entity listed in the table below:

S.
no.
Name of Entity
Country of
Incorporation

Proportion (%) of equity interest

Year Ended
31 March 2024
Year Ended
31 March 2023

A.
Subsidiaries of Cosmo First Limited
1
Cosmo Films Inc., USA
USA
2
CF (Netherlands) Holdings Limited BV.,
Netherlands
Netherlands
3
Cosmo Films Japan (GK)
Japan
4
Cosmo Films Korea Limited, Korea
Korea
5
CF Investment Holding Private (Thailand) Co., Ltd
Thailand
6
Cosmo Films Poland S.P. Z.O.O.
Poland
7
Cosmo Films (Singapore) Pte. Limited
Singapore
8
Cosmo Speciality Chemicals Private Limited
India
9
Cosmo Speciality Polymers Private Limited
India
10
Cosmo Global Films Private Limited*
India

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

B. Associates:*

1	OPGS Power Gujarat Private Limited	India
2	Bhadreshwar Vidyut Private Limited	India
3	Renew Green (GJS One) Private Limited	India
4	O2 Renewable Energy XV Private Limited	India

Liquidated on 13 September 2023

**incorporated on 9 January 2023

***investment in captive power companies are held by the company as a consumer in accordance with the requirements of the Electricity Act, 2005. The company does not exercise significant influence as defined under IND AS over these companies and therefore their annual accounts are not considated with the annual accounts of the company.

*includes other income

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

49 ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III OF THE COMPANIES ACT, 2013, OF THE ENTERPRISES CONSOLIDATED AS SUBSIDIARIES:

Name of Entity	Net assets (total assets	Net assets (total assets	Share in proft	or (Loss)	Share in other	Share in other	Share in total	Share in total
	minus total	liabilities			comprehensive	income	comprehensive	income
	As % of	Amount	As % of	Amount	As % of	Amount	As % of	Amount
	consolidated	(in	consolidated	(in	consolidated	(in	consolidated	(in
	net assets	Rupees)	proft or loss	Rupees)	other	Rupees)	total	Rupees)
					comprehensive		comprehensive
					income		income
Parent
Cosmo First Limited	87.2%	1,174.36	62.3%	38.77	70.0%	(2.38)	61.9%	36.39
(Formerly Cosmo
Films Limited)
Subsidiary
Cosmo Films Inc.,	17.5%	236.11	36.8%	22.91	-72.9%	2.48	43.2%	25.39
USA
CF (Netherlands)	19.6%	264.37	-4.7%	(2.95)	-2.4%	0.08	-4.9%	(2.87)
Holdings Limited
BV., Netherlands
Cosmo Films Japan	4.2%	56.44	7.3%	4.54	192.1%	(6.53)	-3.4%	(1.99)
(GK)
Cosmo Films Korea	1.4%	19.17	-14.7%	(9.14)	-18.8%	0.64	-14.5%	(8.50)
Limited, Korea
CF Investment	1.3%	17.72	0.0%	0.02	29.7%	(1.01)	-1.7%	(0.99)
Holding Private
(Thailand) Co., Ltd
Cosmo Films	0.0%	0.08	-0.1%	(0.09)	0.0%	-	-0.2%	(0.09)
(Singapore) Pte.
Limited
Cosmo Films Poland	0.0%	-	0.0%	(0.01)	0.0%	-	0.0%	(0.01)
S.P. Z.O.O.
Cosmo Speciality	5.5%	74.19	3.7%	2.28	-	0.03	3.9%	2.31
Chemicals Private
Limited
Cosmo Speciality	1.7%	22.80	-0.1%	(0.04)	-	-	-0.1%	(0.04)
Polymers Private
Limited
Cosmo Global Films	0.0%	(0.07)	0.0%	(0.07)		-		-
Private Limited
Adjustment arising	-38.3%	(517.73)	9.4%	5.90	-96.8%	3.29	15.6%	9.19
out of consolidation
Total	100.0%	1,347.51	100.0%	62.19	100.0%	(3.40)	100.0%	58.79

50 KEY FINANCIAL RATIOS:

Ratio	Measurement unit	Numerator	Denominator	31 March 2024	31 March 2023	Changes	Remarks
a) Current Ratio b) Total debt to equity ratio c) Net debt to equity ratio c) Debt service coverage ratio d) Return on equity ratio	Times	Current Assets	Current Liabilities	1.19	1.33 68.55% 33.56% 1.92 18.80%	-10.39% 5.86% 24.39% -47.94% -75.45%	Refer note 1 below Refer note 1 below Refer note 1 below Refer note 2 below Refer note 2 below
	Percentage	Total Debt	Shareholder's Equity	72.56%
	Percentage	Net Debt	Shareholder's Equity	41.74%
	Times	Earnings available for debt service	Debt Service	1.00
	Percentage	Net proft after tax	Shareholder's Equity	4.62%

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Ratio	Measurement unit	Numerator	Denominator	31 March 2024	31 March 2023	Changes	Remarks
e) Inventory turnover ratio f) Trade receivable turnover ratio g) Trade payable turnover ratio h) Net working capital turnover ratio i) Net proft ratio	Times	Purchase of goods	Average Inventory	3.30	3.74 14.61 4.56 9.39 7.96%	-11.64% -23.19% -37.73% 26.16% -69.80%	Refer note 1 below Refer note 1 below Primarily improved due to increase in number of payable days outstanding Primarily improved due to decrease in net working capital in business caused by high trade payable and customer advances Refer note 2 below
	Times	Revenue from operations	Average trade receivable	11.22
	Times	Purchase of goods	Average trade payables	2.84
	Times	Revenue from operations	Working Capital	11.84
	Percentage	Net proft after tax	Revenue from operations	2.40%
j) Return on capital employed k) Return on investment (Equity instruments) l) Return on investment (Debt instruments)	Percentage	Earning before interest and tax (EBIT)	Average capital employed	6.75%	16.09% 2.53% 6.64%	-58.07% 653.36% 40.72%	Refer note 2 below Return improved in Financial year 2023-24 due to better market performance. Return improved in Financial year 2023-24 due to better market performance.
	Percentage	Net fair value change (including dividend income)	Weighted average cost of instrument during the year	19.08%
	Percentage	Net fair value change (including interest income)	Weighted average cost of instrument during the year	9.35%

Notes:

Since the change in ratio is less than 25%, no explanation is required to be furnished.
Primarily lower due to decrease in operating income caused by margin pressure due to significant capacity addition in the domestic industry. The company could outperformed the industry at large due to higher sale of speciality film.

51 RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

The changes in the Group’s liabilities arising from financing activities can be classified as follows:

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----- Start of picture text -----

Particulars Long-term Short-term Total
borrowings borrowings
Debt as at 1 April 2023 700.60 189.25 889.85
Cash flow:
- Proceeds 306.28 - 306.28
- Repayment (151.67) (63.86) (215.53)
- Finance cost adjustment for effective interest rate 0.75 - 0.75
- Foreign exchange difference (3.15) (0.38) (3.53)
Net debt as at 31 March 2024 852.81 125.01 977.82
----- End of picture text -----

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

Particulars	Long-term borrowings Short-term borrowings Total
Debt as at 1 April 2022 Cash fow: - Proceeds - Repayment - Finance cost adjustment for effective interest rate - Foreign exchange difference Net debt as at 31 March 2023	604.80 205.26 810.06 203.42 - 203.42 (139.46) (16.08) (155.54) 0.37 - 0.37 31.47 0.07 31.54
	700.60 189.25 889.84

52 ACQUISITION OF PETSY STORES PRIVATE LIMITED

On 1 July 2023, the Group acquired the business of online sales of Petcare products as a going concern by way of a slump sale from Petsy Stores Private Limited, an unlisted company incorporated in India and engaged in the business of Petcare products under the brand name of "Petsy". The deal comprised of online platform/website, brand name and logo, social media handles, tangible assets, customer database and other intangible assets. The acquisition is in line with the Company's strategy to expand it's Petcare Business.

(A) Purchase consideration transferred

The amount of consideration transferred on acquisition is ` 6.33 Crores in cash.

(B) Assets acquired, and liabilities assumed is as under:

Assets acquired, and liabilities assumed is as under:
Identifable tangible assets	Amount
Property, plant and equipment Identifable intangible assets Brand/trademark Software/Platform Customer database Goodwill Other assets Trade receivables Inventories Other assets Total identifable assets (A) Identifable liabilities Trade payables Other liabilities Total identifable liabilities (B) Total identifable net assets acquired (A)-(B)*	0.25 4.43 0.16 0.52 0.10 0.05 0.94 0.67
	7.12
	0.67 0.12
	0.79
	6.33

Goodwill of ` 0.10 Crores is recognised as 'Intangible Assets' on account of synergies expected from acquisition of Petsy.

The gross contractual value and fair value of trade receivables as at the date of acquisition, is expected to be fully recoverable.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(C) Acquisition of brand 'Petsy'

The Company has also acquired the 'Petsy' brand, as part of the acquisition deal. The brand has been valued at ` 4.43 Crores as per the report of independent valuer.

(D) Contingent liabilities

There are no contingent liabilities as on 1 July 2023 pertaining to Petsy.

(E) Analysis on cash flows of acquisition

Analysis on cash fows of acquisition
	Amount
Cash paid on business acquisition Cash and cash equivalent acquired from Petsy Net cash paid	6.33 -
	6.33

Purchase consideration of Petsy amounting to 6.33 Crores are included under Cash flow from investing activities. Acquisition-related expenses of 0.09 Crore have been recognised under 'Other expense' head in the statement of profit and loss.

(G) Impact of acquisition on results

During the year, the acquired business Petsy contributed 4.57 Crores towards Revenue from operations and made a loss of 3.16 Crores.

If the business combination had taken place at the beginning of the year i.e. on 1 April 2023, Petsy would have contributed 6.4 Crores towards Revenue from operations and would have made a loss of 4 Crores.

53 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013

(i) Details of benami property held

No proceedings have been initiated on or are pending against the Group for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Valuation of property, plant and equipment and intangible assets

The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(iii) Details of crypto currency or virtual currency

The Group has not traded or invested in crypto currency or virtual currency during the current or previous year.

(iv) Wilful defaulter

The Group has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

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SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

(v) Relationship with struck off companies

The Group does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, during the current year and in the previous year.

(vi) Compliance with number of layers of companies

The Group has complied with the number of layers prescribed under the Companies Act, 2013.

(vii) Compliance with approved scheme(s) of arrangements

The Group has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(viii) Registration of charges or satisfaction with registrar of companies

There are no changes or satisfaction which are yet to be registered with the registrar of companies beyond the statutory period.

SUMMARY OF MATERIAL ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION

for the year ended 31 March 2024

(All amounts in ₹ Crores, unless otherwise stated)

55 Per transfer pricing legislation under Sections 92-92F of the Income tax Act, 1961, the Holding Company is required to use certain specific methods in computing arm’s length prices of international transactions with associated enterprises and maintain adequate documentation in this respect. Since law requires existence of such information and documentation to be contemporaneous in nature, the Holding Company has appointed independent consultants for conducting a Transfer Pricing Study (the ‘Study’) to determine whether the transactions with associate enterprises undertaken during the financial year are on an “arms length basis”. Management is of the opinion that the Holding Company’s international transactions are at arm’s length and that the results of the on-going study will not have any impact on the financial statements and the independent consultants appointed have also preliminarily confirmed that they do not expect any transfer pricing adjustments.
56 There has been no subsequent events which required any adjustment for the financial year ending 31 March 2024.
57 Previous year numbers have been regrouped wherever considered necessary to confirm to current year classifications.

(ix) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(x) Fund received / loaned

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Group to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xi) No funds have been received by the Group from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Group shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

For and on behalf of Board of Directors of Cosmo First Limited (formerly Cosmo Films Limited)

For S.N. Dhawan & CO LLP Chartered Accountants Firm Registration No.: 000050N/N500045

(xii) The Companies included in the Group (which are companies incorporate in India) have been sanctioned working capital limits from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the respective companies with such banks or financial institutions on aggregate basis, are in agreement with the unaudited books of account of the respective companies, for the respective quarters, except for some differences due to reporting of advances received from customers primarily comprising of subsidiaries, and other differences due to filing of quarterly returns or statements with banks based on the provisional financial statements and subsequent corrections being carried out in the financials statements during limited reviews of respective quarters/ year end audit.
54 During the financial year 2023-24, fraudulent transfers aggregating to Euro 1.065 million had taken place from the bank account of the Company's subsidiary in the Netherlands. The matter is currently under investigation by the Netherlands police. An insurance claim has also been filed and is in process. Accordingly, at this stage no provision is made for the ultimate loss, if any.

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Annual Report 2023-24

Notes

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% of Share Holding		100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Proposed Dividend		- - - - - - - - - -
Proft/ (loss) after tax		(2.95) 4.54 (0.09) (9.14) 22.91 0.02 (0.01) 2.28 (0.04) (0.07)
Provision for Tax		(0.52) 2.39 - (2.58) 5.90 - - 0.48 - (0.03)
Proft/ (loss) before tax		(3.47) 6.93 (0.09) (11.71) 28.81 0.02 (0.01) 2.76 (0.04) (0.10)
Turnover		43.09 63.84 - 52.78 323.57 - - 142.66 0.14 0.17
Investments		- - - - 12.64 11.61 - - - -
Total Liabilities		23.08 15.12 0.08 30.88 16.78 0.04 - 20.51 43.17 100.48
Total Assets		287.46 71.56 0.16 50.05 252.90 17.76 - 94.70 65.97 100.41
Reserve and Surplus		42.83 11.71 (0.56) 9.47 58.58 (10.18) - 2.17 (0.51) (0.08)
Share Capital		221.54 44.73 0.64 9.71 177.54 27.90 - 72.02 23.31 0.01
Reporting Currency and Exchange rate as on the last date of the relevant Financial Year in the case of foreign subsidiaries	Exchange rate as on March 31, 2024	90.22 0.55 61.80 0.06 83.37 2.29 20.95 1.00 1.00 1.00
	Currency	EURO JPY SGD KRW USD THB PLN INR INR INR
Reporting Period		1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024 1 April 2023 - 31 March 2024
Name of the Subsidiary		CF ( Netherlands) Holdings Limited B.V Cosmo Films (Japan) GK Cosmo Films (Singapore) Pte Ltd. Cosmo Films Korea Ltd. Cosmo Films Inc CF Investment Holding Private (Thailand) Co. Ltd. Cosmo Films Poland S.P. Z.O.O Cosmo Speciality Chemicals Private Limited Cosmo Speciality Polymers Private Limited Cosmo Global Films Private Limited*

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296

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REGISTERED OFFICE

1[st] Floor, Uppal Plaza, M-6, Jasola District Centre, New Delhi – 1100 25

Tel: +91 11 49 49 49 49; Fax: +91 11 49 49 49 50 Website: www.cosmofirst.com

AI assistant

Cosmo First Limited — Annual Report 2024

62162_rns_2024-07-09_aac71bf2-c00c-4fa5-9fe2-dd72d4e61d1f.pdf

Subject: Submission of Annual Report

Encl.: as above

CORPORATE INFORMATION

BOARD OF DIRECTORS

BUSINESS HEADS

Mr. Raj Sharma

BANKERS

REGISTRAR & SHARE TRANSFER AGENTS

REGISTERED OFFICE

PLANTS

MAHARASHTRA

GUJARAT

RESILIENT STRATEGIES, EXPANDING OPPORTUNITIES

CORPORATE OVERVIEW

REDEFINING EXCELLENCE IN PACKAGING SOLUTIONS

Vision

Mission

Core Values

PRESENCE

CRAFTING PROGRESSIVE FOOTPRINTS

SUBSIDIARIES

TOTAL INSTALLED CAPACITIES

MANUFACTURING FOOTPRINTS

Flexible Packaging

Waluj, Aurangabad, Karjan Vadodara, India India

BUSINESS OVERVIEW

SPEARHEADING PROGRESS ACROSS VARIED VERTICALS

KEY HIGHLIGHTS

Verticals:

PRODUCT PORTFOLIO

Flexible Packaging Films

Printing & Pouching Films

Barrier Films

Overwrap Films

Lamination Films

Lamination Films- Standard Range

Laminating films – Special applications

Premium Lamination Films

In Mould Label (IML) Films

Label Films

Pressure Sensitive Label Stock Films

Wrap-Around Label Films

Label over lamination films

Direct Thermal Printable (DTP) Films

Industrial Films

Adhesive Tape Films

Textile Bag Films

Release Film

Synthetic Paper

COSMO PLASTECH

Product Portfolio

Rigid Sheets

Thermoformed Containers

Injection Moulded Containers

COSMO SPECIALITY CHEMICALS

Product Portfolio

Coating Chemicals

Masterbatch

Adhesives

COSMO SUNSHIELD

Product Portfolio

Privacy Films

Sun Protection Films

Safety Films

ZIGLY PET CARE

Product Portfolio

Vet Care Practices

KEY HIGHLIGHTS

4.5 Cr

39K+ with 6K+

150K+

Pet Spa & Grooming

Premium Pet Products

GOVERNANCE

SHAPING THE STORY OF SUCCESS THROUGH VISIONARY LEADERSHIP

Board of Directors

Mr. Ashok Jaipuria

Cosmo First Limited Annual Report 2024