Khyati Multimedia Entertainment Ltd — Board Meeting, 10-06-2026: Board Meeting

REF: KMEL/LIST/BSE/BM-OUTCOME/03-2026

DATE: 28th May 2026.

To

General Manager (Listing Compliance & Regulatory Division)

The B S E Limited

25th Floor, Phiroze Jeejeebhoy Towers, Dalal Street,

Fort, Mumbai: 400 001.

Respected Sir,

Sub: Submission of Outcome of the Board Meeting convened on Thursday the 28th May 2026.

to consider and Approve Audited Financial Results for the 4th Quarter and Year ended 31/03/2026

and other business as per Notice.

Ref: Compliance to the SEBI (LODR) 2015 Listing Agreement.

Our SCRIP Code: KHYATI | 531692 | INE593B01030 |

With reference to the above subject, we write to inform you that pursuant to a Notice dated 20th

May 2026 a Meeting of the Board of Directors was duly convened, held and conducted at the

Registered Office of the Company where proper quorum as per requirement of law was remain

present.

THE MEETING HAD STARTED ON THURSDAY THE 28/05/2026 AT 05.30 P.M. AND HAD CONCLUDED

ON THURSDAY THE 28/05/2026 AT 07.30 P.M.

At this meeting the Board of Directors considered, reviewed and passed various business as under:

(1) Taken note of and recorded the Annual Disclosure of Interest made by directors in form

MBP-1 and DIR-8

(2) Taken note of and recorded the Annual Disclosure/ Declaration made by Independent

Directors as per Section 149 of the Companies Act 2013 AND SEBI (LODR) 2015..

(3) Appointed M/s. Khandar and Co., Chartered Accountants, as Internal Financial Auditors

for the year 2026-27 as per recommendation of the Statutory Auditors and the Audit

Committee.

(4) Taken note of and on record the Certificate of Non-Disqualification of Directors issued by

the Practicing Company Secretaries for the year ended 31/03/2026.

(5) Reviewed, considered and taken on record the Audited Financial Results for the 4th

Quarter and Year ended 31st March 2026 as per and in the format provided in Regulation

33 of the SEBI (LODR) 2015.

(6) Authorized Mr. Kartik J Patel, Chairman and Managing Director to Fix the Record Date/

Book Closure dates, proposed date of Annual General Meeting, Time, Venue etc.

including the Time, dates, day for Evoting for the proposed Annual General Meeting for

the year 31/03/2026.

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(7) Taken note of and on record the Annual Secretarial Compliance Report for the year

ended 31/03/2026 issued by PCS as per requirement of Regulation 24A of the SEBI LODR

2015

(8) Considered and approved Draft of the Secretarial Audit Report issued by PCS In

prescribed form MR-3 and to include the same in Audited Annual Report for the year

31/03/2026 along with clarifications if any of the Board on various observations made by

the PCS Secretarial Auditor.

(9) Authorized Mr. Kartik J Patel to appoint Scrutinizers for Poll and Evoting at ensuing AGM

for the year 31/03/2026

(10) Authorised Mr. Kartik J Patel, CMD, to appoint Depository for providing Evoting facilities

to the shareholdes of the company for voting on various resolutions to be passed at the

ensuing AGM for the year 31/03/2026.

Date: 28th May 2026.

Place: Ahmedabad.

FOR KHYATI MULTIMEDIA ENTERTAINMENT LIMITED,

(KARTIK J PATEL)

CHAIRMAN AND MD.

DIN : 00047862

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BRIEF PROFILE OF INTERNAL FINANCIAL AUDITORS M/S. KHANDAR AND CO., CHARTERED

ACCOUNTANTS.

Sr.No. Particulars Details.

(1) Name of the Internal Auditors Mr. Arpit Khandar

(2) Name of the Internal Auditors Firm M/s. Khandar and Co., Chartered Accountants

(3) Type of firm Proprietorship

(4) Type of Membership of Auditor Member Fellow

(5) ICAI Membership Number 112822

(6) ICAI Firm Registration Number 122897W

(7) Term of Period of Appointment 1 Financial year.

(8) Term of reference (Scope of work) To carry out Internal Audit of All Financial

transactions of the Company including to check

its validity, approvals, internal control

procedures prevailing, comment on its

effectiveness, providing their quarterly report

to the Audit Committee and to co ordinate in

their work assignment with statutory financial

auditors including any further scope as may be

assigned or given by the Audit Committee or

the Board of Directors from time to time.

(9) Remuneration if any As may be decided by Board of Directors in

consultation with Audit Committee and

reimbursement of all out-of-pocket expenses.

(10) Experience/ Brief Profile of Audit firm M/s. Khandar and Co., is Chartered

Accountants qualified firm headed by Mr. Arpit

Khandar as its Proprietor. The Firm is in

practice of Corporate and other Taxation

Audit, statutory audit, preparation and filing of

various direct and indirect tax returns, financial

advisory to corporates and such other

accounting, auditing and financial

management activities.

FOR KHYATI MULTIMEDIA ENTERTAINMENT LIMITED,

(KARTIK J PATEL)

CHAIRMAN AND MD.

DIN : 00047862

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OUR COMPANY CIN: L92199GJ1995PLC024284

KMEL/LIST/BSEL/CL-33/RESULT/03-2026

DATED: 29th May 2026

To

Deputy General Manager,

Department Corporate Services,

B S E Limited,

Phiroze Jeejeebhoy Towers,

Dalal Street, Fort,

Mumbai: 400 001.

Respected Sirs,

Sub; Submission of Audited Financial Result of the Company for the 4th Quarter and Year

ended on 31st March 2026 of the F Y 2024-25 along with Review Report of Auditors

Ref: Our Scrip Code: (KHYATI | 531692 | INE593B01030)

Compliance to Regulation No. 33 of the SEBI (LODR) 2015.

With reference to above subject, please find here with following documents for filing and uploading

on Stock Exchange Website through Listing Centre, and for official records of the Exchange in

compliance to Regulation 33 of the SEBI (LODR) 2015.

(1) Audited Financial Result along with statement of Assets and Liability and Cash Flow

Statement and Notes on such Audited Financial Results, in prescribed format for the 4th

Quarter and year ended on 31st March 2026 of the F Y 2025-26 prepared on IND AS

Compliant Standalone Basis.

(2) Review Report of the Auditors on Audited Standalone, IND AS Compliant Financial Results

for the 4th Quarter and year ended on 31st March 2026.

(3) Please note that the Company operates only in one segment hence no separate segment

wise reporting is applicable and give here with.

THE MEETING WAS STARTED AT 5.30 P.M. ON THURSDAY THE 28/05/2026 AND HAS

CONCLUDED AT 7.30 P.M ON THURSDAY 28/05/2026.

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The Draft of the Auditors Report (LRR) was approved by the Board a the Meeting. However, the

company received signed Report with UDIN by Auditors only on 29/05/2026.

Kindly acknowledge receipt of the above documents.

Thanking you, we remain,

Yours faithfully,

FOR, KHYATI MULTIMEDIA- ENTERTAINMENT LTD,

KARTIK J PATEL

MANAGING DIRECTOR

DIN: 00047862

Enclosure: Audited Financial Results for quarter and year ended 31/03/2025 and Review Report of

Auditors along with Annexure-B Statement on Impact of Audit Qualifications (for Audit Report with

Modified Opinion).

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Khyati. Multimedia Entertainment Limited

CfN: L92199a31999PL1%024UQQ

Address: Reg. Oft%: 100, CHINUBMI TWERS, 15T FWR, OPP; HANDLOOM HOUSE, ASHRAM ROAQ, NAVRANGPURA, AHMEDABAD OWRAT 3(10009 INDIA Auditcad Financial Result fur the Quarter and Year ended on 31-03-2026

Rs. in Lakhs

Punheses of StodcihTrade Employee bemflts expense

TOW Tax expense (VI)

PaM-Up Equity Share Cbpltal FKO Value of Equity Sham Capital (Per Vaiue)

NOTE%

This Statement has been prepared in accordance with companies ( Indian accounting standards) Rules, 2015 (Ind AS) prescribed under section 133 of the

Companles Act,2013 and other recognised accounting practice and polkies to the extent applicable.

The above Financial Results have been reviewed by the Audit Committee in its meeting held on 28/05/2026 and the same were adopted by the Board of

Directors in their meeting held on the same date. These results are subjected to Limited Review by Statutory Auditors The Management has exercised

necessary deligence to ensure that the financial results provide a true and fair view of the company's affairs.

3 The Company Operates only In One Segment, hence separate Segment wise reporting is not applicable and not given here with.

4 Figures for the previous period have been regrouped/ rearranged/ reclassfled wherever considered necessary to correspond with the current period's classifkation/group's disclosure.

BY ORDER OF THE BOARD OF DIRECTORS OF KHYAY MULTIMEDIA ENTERTAINMENT LIMITED

DATE: 28/05/2026 PUCE: AHMEDABAO.

(KARTIK JASUBHAI PATEL) CHAIRMAN AND MANAGING DIRECTOR

DIN: 00047862

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BY ORDER OF THE BOARD OF DIRECTORS OF

KHYATI MULTIMEDIA ENTERTAINMENT LIMITED

Khyati Multimedia Entertainment Limited

CIN: L92199GJ1995PLCQ24284

Address: Reg. OPic.: ZOO, CHINUBHAII TOWERS, 1ST FLOOR, OPP: HANDLOOM HOUSE, ASHRAN ROAD,

NAVRANGBURA, AHMEDABAD WARAT 380009 MDEA

DATE: 28/05/2026

PLACE; AHMEDABAD.

Audited Financial Resuft for the Quarter

-

Particulars

ASSETS

Nan-current assets

Property, Plant and Equipment

Financial Assets

Investments

Other financial assets

Deferred tax assets, net

Other non current assets

Total Non-current Assets

Current assets

Inventories

Financial Assets

Investments

Trade receivables

Cash and cash equivalents

Loans

Other financial assets

Other current assets

Total Current Assets

Total Assets

EQUITY and LiABILIYlES

Equity Share Capital

Other Equity

Total Equlty

Non-current liabilities

Financial Liabilitles

Borrowings

Total Non-current liabilities

Current liabilities

Borrowings

Lease liabilities

Trade Payables

-total outstanding dues of micro enterprises and small ente

-total outstanding dues of others

Other financial liabilities

Other current liabilities

Provisions -current

Current Tax Liabilities, net

Total Current liabilities

Total liabilities

total Equity and Liabilities

(KARTIK JASUBHAI PATEL) (KARTIK JASUBHAI PATEL)

CHAIRMAN AND MANAGING DIRECTOR

DIN: 00047862

a& Year ended m31-03-2026

As at

31 March 2026

AUDITED

0.09

36.40

40.37

208.75

285.61

59.16

0.46

-

4.24

63.86

349.47

1,080.02

(951.11)

128.91

132.07

10.00

3.39

0.10

85.00

88.49

98.49

227.40

Rs. in Lakhs

As at

31 March 2025

AUDITED

0.29

36.40

51.26

208.75

296.70

2.50

22.55

25.05

321.75

1,080.02

(969.93:

110.09

155.37

10.00

2.73

53.56

0.004

56.29

66.29

176.38

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Khyati MuCtimdis EnWrZainmenf: Limited a:

LSI~W~ISISSPLCO554ir84

Wmm aeg. m. 1M, WXIWBHAS TQWIitS, EST PL6a61, ~JMAIOM.OON HQWE, ASHRkM w,

NAVRA- WMWAElaFt 6.UJARAT 48Oo(F9 XNDU

AM$& Cagh Ffow ~~tfbr tM, War em%& on 32-03-2026

&s. m Lakhs

Adlustmen% for:

Depreciation and amortisation

fGain)/t.oss on disposal cf property, plant and equipment

(Gain)/Lass on dkpmal of Investments

(Gain)/Loss on Investments measured at fair vat& th~oueh profit and loss

Provision for Income tax

Adjustment for (increase) / decrease in operating assets

Trade receivables

Adjustment for (Increase) / decrease in operating liabilities

Employee benefii oblrgatian

&her Rmnoiat liabilities

ash generated fremet@et&bns

income tax paid (net3

lust cash gemrated brg operating atmtitias

W5H FmWS FRBM INVESfdNG igCflVJ7i;Ef)

Purchase of property, plant and equipment

Wt cesh (used in) 1 generated by investing actlriles

OX!# FtOWS FRSIM FlNANCIffi AfliVmS

Proceeds from long term bo~rowing

Net ah used in fi~anchg at%&ies

Particuiars

Reconciliation of Cash and Cash Equivalents with Balance Sheet:

Cash and cash equivalents includes

Cash on hand

Balances with Banks

March 2026 March 2025

BY ORDER OFTHE BOARD OF DIRECTORS OF

KHYATI MULTIMEDIA ENTERTAINMENT LIMtTED

DATE: 28/05/2026

PLACE: AHMEDABAD.

(KARTIK JASUBHAI PATEL)

CHAIRMAN AND MANAGING DIRECTOR

DIN No : 00047862

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& ASSOCIATES

Chartered Accountants

INDEPENDENT AUDITORS' REPORT on Audited Standalone Quarterly financial Result

and Year to Date Results KHYATI MULTIMEDIA ENTERTAINMENT LIMITED Pursuant to

the Regulation 33 of SEBl (Listing Obligations and Disclosure Requirements)

Regulations, 2015 (as amended)

TOTHE BOARD OF DIRECTORS OF KHYATI MULTIMEDIA ENTERTAINMENT LIMITED

Qualified Opinion

We have audited the accompanying standalone annual financial results of Khyati Multimedia

Entertainment Umlted ("the Company"), for the quarter ended 3lSt March, 2026 and the year

to date results for the period from 1" April ,2025 to 3lSt March, 2026, attached herewith, being

submitted by the Company pursuant to the requirements of Regulation 33 of the SEBl (Listing

Obligations and Disclosure Requirements) Regulations, 2015 (as amended) ('Listing

Regulations') including relevant circulars issued by the Securities and Exchange Board of India

(SEBI) from time to time.

In oiir opinion and to the best of our information and according to the explanations given to us,

esceptJor the matters stated in paragraph basir of qualified opinion the statement:

I. is presented in gccordance with the requirements of Regulation 33 of the SEBl

(Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard;

and

Gives a true and fair view in conformity with the accounting principles generally accepted in

India of the state of affairs of the Company as at 31" March 2026 its Profit (including other

comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis of Qualified Opinion

We conducted our audit of the standalone lnd AS financial statements in accordance with the

Standards on Auditing specified under Section 143(10) of the Act. Our responsibility under

those Standards are further described in Auditor's Responsibility for the Audit of the standalone

financial statements section of our report. We are independent of the company in accordance

of with code of ethics issued by ICAl together with the independence requirement

relevant to our audit of standalone financial statement under the provisions of the A

' ,.,., ,,..

mi- 684, ktnanjali Sqare, Nr. Olda Restaurant Prematirth Derasar Road, Prahlad Nagar,Ahmedabad - 380015.

: ww.maakadvisors.com : 079-4032-3758 : info@maakadvisors.com

----------------Page (8) Break----------------

rule made there under, and we have fulfilled our other ethical responsibilities in accordance

with these requirements and the ICAl's Code of Ethics. We believe that the audit evidence we

have obtained is su@iiient and uppropriare to provide a basis for our audit opinion on the

stand-alone furancia1 statement exsepi for the folowing matter:

A. Advance agoinst Land (Unsecured, considered good) amounting to Rs 2,08,75,000 has

been paid to certain parties os advance against land over the years but the land

registration has not yet been completed. We have also not been provided with the

registered agreements or party confirmations for the said advances.

8. The Company is primarily engaged in the business of advertising, as outlined in its

Memomndum of Association (MoA). During the previous year 2024-25, the Company

had organized a Polo championship event, structured in a league-based format similar

to prominent commercial sporting leagues. While the related income has been duly

accounted for in the books of account, we have been informed that the Company has

not amended its MoA to specifically indude such event management or sports-related

activities. In the ubsence of the necessary appmvols or amendments to the charter

documents, we are unable to comment on the compliance of these activities with the

Company's stated objects. Also, the relevant expenses have been incurred in current

period, which are shown under prepaid expenses.

C. The revenue recognized from the aforementioned event during the years Finonciol

Year 2024-25 ond 2025-26 lacks alignment with the requirements of Ind AS 115 -

Revenue from Contracts with Customers, particularly in relation to the identifiation of

enforceable rights and obiigatlons, timing of performance obligations, and allocation

of tmnsaction prices. Furthermore, we were not provided with sufficient appropriate

audit evidence in the form of agreements or contracts with sponsors, fmnchlsees,

broadcasters, or other key stakeholders. Consequently, we are unable to ascertain

whether the revenue has been recognized accurately and in the correct reporting

period.

D. Awarding to the lnformatlon curd explanations given to us and based on our

examinotion of the records of the Company, certaln advances from Customers received

by the tompany have remained outstanding for more than 365 days and hove not

been adjusted/rejiinded within the period prescribed under the Companies

(Acceptonce of Deposits) Rules, 2014. Accordingly, such amounts are deemed to be

deposits in terms of the provisions of Sections 73 to 76 of the Companies Act, 2013 and

the Rules mode thereunder.

The Company has not complied with the relevant provisions relating to acceptance of

deposits, indudlng compliance and reporting requirements prescribed under the

aforesaid provisions. The impact of the same on the finondol statements and liabilities

arising therefrom has not been determined by the management.

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Emphasis of Matters

The company has made investment in the shares of Khyati Retail & Eatery Pvt Itd. The value of

the same is reported at book value. We have not been provided with any evidence to confirm

that the fair value of the investment has matched the book value.

Management's and Those Charged with Governance Responsibilltles for the

Statement

This Statement has been prepared on the basis of the standalone annual financial statements.

The Company's Board of Directors is responsible for the preparation and presentation of the

Statement that gives a true and fair view of the net proft / loss and other comprehensive

income and other financial information of the Company in accordance with the accounting

principles generally accepted in lndia, including lnd AS prescribed under Section 133 of the Act,

read with relevant rules issued thereunder and other accounting principles generally accepted

in lndia, and in compliance with Regulation 33 of the Listing Regulations including SEBl Circular.

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 Statement that gives a true and fair view

and is free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors is responsible for assessing the Company's

ability to continue as a going concern, disclosing, as applicable, matters related to going

concern, and using the going concern basis of accounting unless the Board of Directors either

intends to liquidate the Company or to cease operations, or has no realistic alternative but to

do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting

process.

Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether 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 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 aggregate, they could reasonably be expected to

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influence the economic decision of users taken on the basis of these standalone financial

statements.

As a 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 risk of material misstatement of the standalone financial

statements, weather due to fraud or error, design and perform audit procedure

responsive to those risk, and obtain evidence that us sufficient dnd appropriate to

provide a basis for our opinion. The risk of not detecting a material misstatement

resulting from fraud for one resultingfrom error, as fraud may involve collusion, forgery,

intentional, omission, misrepresentation, or the override of internal control.

Obtain an understanding of internal financial control relevant to the audit in order to

design audit procedure 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 control system in place and the operating

effectiveness of such controls.

Ewluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the 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 Company's

ability to continue as a going concern. If we condude that a materiat uncertainty exists,

we are required to draw attention in our auditofs 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 agoing 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.

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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.

Other Matters

The Statement inctuding the financial results for the quarter ended 31st March 2026, being the

balancing figures between the audited figures in respect of the full financials year and the

published audited year-to-date figures up to the third quarter of the current financial year

which were subject to limited review by us, as required under the Listing Regulations.

For M/s. MAAK & Associates,

[Firm Registration no. 135024W]

Chartered Accountants

n

CA Marmik Shah

Partner

Mem no.: 133926

UDIN: 26133926EOUCC5493

Place: Ahmedabad

Date: 29/05/2026

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ANNEXURE B

Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted

along-with Annual Audited Financial Results - (Standalone)

Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2026

[See Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]

I.

Sl.

No. Particulars

Audited Figures

(As reported before

adjusting for

qualifications)

(Amount Rs. In Lakhs)

Adjusted Figures

(Audited figures after

adjusting for qualifications)

Amount Rupees in

Lakhs)

1 Turnover / Total income 51.61 51.61

2 Total Expenditure 21.84 21.84

3 Net Profit/(Loss) 18.82 18.82

4 Earnings Per Share (In Rupees) 0.37 0.37

5 Total Assets 349.47 349.47

6 Total Liabilities 349.47 349.47

7 Net Worth 128.91 128.91

8 Any other financial item(s) (as felt

appropriate by the management)

NA MA

II.

(a)

(b)

(c)

Audit Qualification (each audit qualification separately):

The Company is primarily engaged in the business of advertising, as outlined in its Memorandum of

Association (MoA). During the year, the Company organized a Polo Championship event, structured in a

league-based format similar to prominent commercial sporting leagues. While the related income has

been duly accounted for in the books of account, we have been informed that the Company has not

amended its MoA to specifically to include such event management or sports-related activities. In the

absence of the necessary approvals or amendments to the charter documents, we are unable to

comment on the compliance of these activities with the Company’s stated objects

The revenue recognized from the aforementioned event during the financial years 2024-25 and 2025-26

lacks alignment with the requirements of Ind AS 115 – Revenue from Contracts with Customers,

particularly in relation to the identification of enforceable rights and obligations, timing of performance

obligations, and allocation of transaction prices. Furthermore, we were not provided with sufficient

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(d)

appropriate audit evidence in the form of agreements or contracts with sponsors, franchisees,

broadcasters, or other key stakeholders. Consequently, we are unable to ascertain whether the revenue

has been recognized accurately and in the correct reporting period.

According to information and explanation given to us and based on our examination of the records of

the Company, certain advances from customers received by the Company have remained outstanding

for more than 365 days and have not been adjusted/ refunded within the period prescribed under the

Companies (Acceptance of deposits) Rules, 2014. Accordingly, such amounts are deemed to be deposits

in terms of the provisions of Section 73 to 76 of the Companies Act 2013 and the Rules made

thereunder. The Company has not complied with the relevant provisions relating to acceptance of

deposits including compliance and reporting requirements prescribed under the aforesaid provisions.

The impact of the same on the Financial Statements and liabilities arising therefrom has not been

determined by the management.

1. Type of Audit Qualification:

Qualified Opinion / Disclaimer of Opinion / Adverse Opinion

a. Frequency of qualification:

Observation a, b c appeared repetitive.

Observation No.d appeared for the First Time.

b. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views:

(1) Qualification No.1 The Audit qualification is self-explanatory and quantified and has no

financial impact on profitability/ loss of the Company, as advances are still recoverable, as

the party to whom these advances are given are available and approachable.

(2) The Company had done business of POLO Championship Event. This is a Sports

Entertainment business covered by Main Object clause no. 1 and 4 of the Memorandum of

Association (MOA). The doing of sports entertainment business through Franchisee

model-based event management is a MODE of doing business of sports entertainment in a

broader seance and is not the business outside the scope of Object Clause of MOA.

(3) Qualification No.3 is based on Opinion of the Auditors. In absence of any written

Franchisee agreement for POLO Championship Event, the rights and obligations are not

yet identified and defined between the parties and the Company. In the circumstances,

the revenue is recognized on the basis of cash receipt and expenses. As this Is the First

such event for the company and there is no assurance of such event to occur every year,

the terms with the parties of franchisee are yet not finalized and reduced to writing.

(4) The Company had received an Advance from some parties against sale of Services in the

year January 2025. (F.Y. 2024-25). The 365 days for such advances have completed in the

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January 2026 (F.Y 2025-26). The intention of the Company at the time of acceptance of

such money was purely advance against supply of services in the form of Advertisement,

Media coverage and Polo event Management work. This business activities was an

ongoing business during the F Y 2024-25 and 2025-26. The Company was providing

options of selecting events / occasion of media coverage to such parties to avail such

services and their advances could have been adjusted by raising invoices if the parties

agree to such options. However, due to lack of acceptance of options by the parties, the

company could not raise their invoices and adjust their advances against sale of services/

revenue recognition. The Management has now decided to refund their advance money as

soon as the financials of the company permit such refund.

MANAGEMENT VIEWS:

The Company is pursuing the matter with the party to whom advances were given for its

recovery. It is also sending reminders time and again for repayment thereof. If the company

could not recover this amount, the Loans and Advances given shall become doubtful of

recovery and will have to be written off/ adjusted. If it is written off/ adjusted the financial loss

for the Company will increase to the extent of amount written off and the debit balance of

profit and loss account will stand increased in the Balance sheet accordingly.

FOR AUDIT QUALIFICATION(S) WHERE THE IMPACT IS NOT QUANTIFIED BY THE AUDITOR:

(i) Management's estimation on the impact of audit qualification:

As audit Qualification is self-explanatory and quantified by the auditors for Item No.1

observation. For Item No. 2 it is an opinion of the Auditors based on their personal

interpretation of Object clause of MOA. For Item No. 3, the Audit qualification by auditors

is not quantified in absence of any written terms and conditions between parties to the

event. Item No.4 observation is Interpretation of Law and Rules by Auditors. In fact, at the

time acceptance of such amount the intention of the company was to accept the amount

as advance from customer against sale of services/ goods. However, due to non-

acceptance of services models (media release and advertisements options by the

Company) the advances of the customers could not be adjusted against the sales/ revenue

recognition. However, the company management has now decided to refund the same to

the respective parties as soon as possible subject to availability of funds. In absence of any

legal notices/ steps from regulators, the amount has not been quantified.

(ii) If management is unable to estimate the impact, reasons for the same:

As per reply in para 1(b) above.

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