5 Fair value hierarchy and valuation technique

(a) The Company's investment property consist of one class of assets i.e. Commercial property in India.The Company has no restrictions on the realisability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements.

(b) As at March 31, 2026, the fair value of the property is H 216 million (March 31, 2025: H 200 millions). The valuation is based on valuation performed by an accredited independent valuer who is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied.

(c) The fair value measurements are categorised as level 3 in the fair value hierarchy. The valuation has been considered using sales comparable method.

Impairment testing of Goodwill:

Goodwill represents excess of consideration paid over the net assets acquired in the business combinations. This is monitored by the management at the level of cash generating unit (CGU) and is tested annually for impairment. Entities acquired/merged during the earlier years now completely integrated with the existing cinema business of the Company and accordingly is monitored together as one CGU. The Company tested goodwill for impairment to ascertain the recoverable amount of CGU based on value in use, using a post-tax discounted cash flow (5 years projection) methodology, risk-adjusted weighted average cost of capital of 10.33% p.a. (March 31, 2025: 12.08% p.a.) and terminal growth rate of 4% - 5% (March 31, 2025: 4% - 5%). This long-term growth rate takes into consideration external macroeconomic sources of data. Such long-term growth rate considered does not exceed that of the relevant business and industry sector. The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit.

No impairment of goodwill was identified as of March 31, 2026 and March 31, 2025

b Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. Dividend is proposed by Board of directors and subject to approval of shareholders in the ensuing AGM. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(i) Term loan from banks are secured by first pari passu charge over all movable (both present and future) properties, plant and equipment, capital work-in-progress, other intangible assets, loans and advances, security deposit, inventories, trade receivables, & capital advances of the Company excluding immovable properties and assets on which specific security / lien exists or is created in favour of any statutory / regulatory body.

The above includes Nil (March 31, 2025 : H1,235 millions) of term loans provided by banks under Emergency Credit Line Guarantee Scheme 3.0 as they are secured by sovereign guarantee of the Government of India and second ranking pari-passu charge on the movable properties (both present and future), plant and equipment, capital work-in-progress, other intangible assets, loans and advances, security deposit, inventories, trade receivables, & capital advances of the Company excluding immovable properties and assets on which specific security / lien exists or is created in favour of any statutory / regulatory body. The loans are also secured by a second charge over the entire current assets of the company, including stocks and book debts, both present and future.

The Company has taken various premises on lease for running its movie exhibition business. The leases are typically with a non-cancellable lease term of 5-7 years, with an option to Company to extend the lease term till 10-15 years. The Company exercise right of extension/termination basis economic viability of the property. After non-cancellable period, the Company can exit from the property without any material financial obligations towards the developers/lessors. Further, there are no significant restrictions / covenants imposed by such leases.

(i) On November 21, 2025, the Government of India notified the four new Labour Codes (the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020) consolidating 29 existing labour laws. The Company has assessed and accounted for the incremental impact of these changes amounting to H392 million with the best information available and guidance provided by the Institute of Chartered Accountants of India. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect as and when such clarifications are issued/rules are notified.

(ii) The Company disposed of its entire shareholding of 93.27% of the paid-up equity share capital of its subsidiary "Zea Maize Private Limited” for a consideration of H2,221 million (net of expenses) and consequently "Zea Maize Private Limited” has ceased to be a subsidiary of the Company with effect from January 29, 2026. The carrying value of such investment as on date of sale was H951 million.

(iii) During the year, capital work in progress amounting to H78 million relating to a property under development has been impaired on account of dispute arising with the landlord.

33 Gratuity plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure @15 days last drawn salary for each completed year of service, in terms of code on social security, 2020/ Payment of Gratuity Act, 1972. The scheme is funded with four insurance companies in the form of a qualifying insurance policies. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees is responsible for the administration of the plan assets. Each year, the Board of Trustees reviews the level of funding in the India gratuity plan. This includes employing the use of annuities and longevity swaps to manage the risks. The Board of Trustees decides its contribution based on the results of this annual review. Generally, it aims to have a portfolio mix of equity instruments and debt instruments. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

As the plan assets include investments in quoted mutual funds, the Company has diversified the market risk.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

Cash settled Stock Incentive Plan:

During the current year, the Company's key personnel above specific grade are granted stock units which are to be settled in cash. The units vest when a 4-week volume weighted average price is equal to or above Target Price of the respective tranche by March 2027 and the employee continues to be employed by the Company at the vesting date. The liability for the units is measured, initially and at the end of each reporting period until settled, at the fair value of the units by applying a Monte Carlo Simulation model, taking into account the terms and conditions on which the units were granted.

The carrying amount of the liability relating to the units at March 31, 2026 was Rs. Nil. No units had vested at March 31, 2026.

38 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961. Since the law requires such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation of international transactions with the associated enterprises during the financial year and expects such records to be in existence latest by the due date of filing the return of income. The management is of the opinion that its transactions with the associated enterprises are at arm's length so that the aforesaid legislation will not have any impact on these standalone financial statements, particularly on the amount of tax expense and that of provision for taxation.

39 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a Company meeting the applicability threshold, is required to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, care for destitute women and rehabilitation of under privileged person, environment sustainability and disaster relief. A CSR committee has been formed by the Company as per the Companies Act, 2014.

The management assessed that cash and cash equivalents, bank balances, loans, trade receivables, trade payables, bank overdrafts and other current financial liabilities and assets approximate their 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.

Long-term receivables/deposit are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables/deposits.

The fair value of unquoted instruments, loans from banks and other financial assets and liabilities, obligations under leases, as well as other noncurrent financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

The deferred consideration is based on the present value of the expected cash outflows discounted using risk adjusted discount rate i.e 9.50% p.a. The estimated fair value of deferred consideration would increase/decrease if the expected cash outflows were higher/lower or the risk adjusted discount rate was higher/lower.

43 Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Managing Director of the Company has been identified as being the chief operating decision maker to assess the financial performance and position of the Company and make strategic decisions. The Company is engaged primarily in the business of theatrical exhibition and allied activities under the brand "PVR INOX”. Accordingly, in the context of Indian Accounting Standard 108 - Operating Segments, it is considered to constitute single reportable segment.

(a) The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

(b) The financial figures in above note exclude expenses reimbursed to/by related parties.

(c) The financial figures in above note excludes GST/Sales tax/Local body taxes as applicable.

(d) For PVR INOX Pictures Limited, Devyani PVR INOX Private Limited and Zea Maize Private Limited (subsidiary till Jan 29, 2026), share capital movement refer note 5A.

(e) Corporate Guarantee given to bank against credit facility availed by Zea Maize Private Limited amounting to Nil (March 31, 2025 H50 millions).

(f) All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and within the ordinary course of business. Outstanding balances at the year end are unsecured and settlement occurs in cash. Transactions relating to dividend, subscriptions for new equity shares are on the same terms and conditions that are offered to other shareholders.

(g) Amount represent foreign fluctuation gain.

(h) Also refer note 33 for closing balance of fair value of plan asset.

45 Financial Risk Management objective and policies

The Company's principal financial liabilities comprise of borrowings, lease liabilities, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk, legal, taxation and accounting risk and liquidity risk. The Company's treasury team overseas the management of these risks supported by senior management.

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and receivables and payables.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the long-term debt obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and borrowings. With all other variables held constant, the Company's Profit/(loss) before tax is affected through the impact on floating rate borrowings, as follows:

(ii) Currency risk

Currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of the change in foreign currency exchange rates.

The majority of the Company's revenue and expenses are in Indian Rupees, with the remainder denominated in US Dollars. Management considers currency risk to be low and does not hedge its currency risk (refer note 37). As variations in foreign currency exchange rates are not expected to have a significant impact on the results of operations, a sensitivity analysis is not presented.

(b) Legal, taxation and accounting risk

The Company is presently involved into various judicial, administrative, regulatory and litigation proceedings concerning matters arising in the ordinary course of business operations including but not limited to landlord-tenant disputes, commercials disputes, tax disputes (including entertainment tax subsidy and other direct and indirect tax matters like GST, Service tax, Sales tax etc.) and other contractual disputes. Many of these proceedings seek an indeterminate amount of damages. In situations where management believes that a loss arising from a proceeding is probable and can reasonably be estimated, the Company records the amount of the probable loss. As additional information becomes available, any potential liability related to these proceedings is assessed and the estimates are revised, if necessary.

To mitigate these risks, the Company employs in-house counsel and uses third party tax & legal experts to assist in structuring significant transactions and contracts. PVR INOX Limited also has systems and controls that ensure the timely delivery of financial information in order to meet contractual and regulatory requirements and has implemented disclosure controls and internal controls over financial reporting which are tested for effectiveness on an ongoing basis.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

Credit risk on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies. Other financials assets primarily represents security deposits given to Mall Developers/ lessors. Such deposit will be returned to the Company on expiry of lease entered with Mall developers/ lessors. The Company continuously monitors such deposits and compute the expected credit loss allowance for such deposits based on internal risk assessment of such developers/ lessors on 12 months expected credit loss.

The Company invests after considering counterparty risks based on multiple criteria including Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and deposit base of banks and financial institutions.

Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Trade receivables also includes receivables from Debit/credit card companies and online movie ticketing partners which are realisable within a period 1 to 3 working days. The Company monitors the economic environment in which it operates. The Company manages its credit risk through establishing credit limits and continuously monitoring credit worthiness of customers to which the Company grants credit terms in the normal course of business.

The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available internal credit risk factors as the Company's historical experience for customer. Accordingly, based on the business environment in which the Company operates, management considers that the trade receivables (other than Government dues) are in default/doubtful if the payment is outstanding for more than 270 days and more than 365 days in case of government dues. Basis above, as at March 31, 2026, Company has impaired Trade receivables of H343 millions (March 31, 2025: H402 millions). Further, the management believes that the unimpaired amounts that are past due by more than 270 days continue to be collectible in full, based on historical payment behaviour and analysis of customer credit risk.

Majority of trade receivables are from domestic customers, which are fragmented and are not concentrated to individual customers.

(d) 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 assets. The Company's approach to manage liquidity is to have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, lease liabilities and advance payment.

The Company's liquidity management process as monitored by management, includes the following:

- Day to Day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows.

The Company has complied with debt convenants including consideration to waivers obtained during previous year from respective bank wherever necessary.

The Company has also significant contractual obligations in the form of lease liabilities (Note 17) and capital & other commitments (Note 35).

46 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return on capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is long term debts plus amount payable for purchase of property plant and equipment divided by total equity.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

49 The managerial remuneration of Mr. Ajay Kumar Bijli, Managing Director, and Mr. Sanjeev Kumar, Executive Director, for the financial year ended March 31, 2026, is in accordance with the provisions of Section 197 read with Schedule V of the Companies Act, 2013. The said remuneration was duly approved by the Nomination and Remuneration Committee, the Board of Directors at their respective meetings, and the shareholders vide resolutions approved on June 09, 2023 (valid upto February 05, 2026) and March 14, 2026 (for the period commencing from February 06, 2026 to February 05, 2028) respectively.

50 The Company has used 2 accounting softwares for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail feature is not enabled for direct changes to data when using certain access rights and also for certain changes made using privileged/ administrative access rights. Further, no instance of audit trail feature being tampered with was noted in respect of the softwares where the audit trail has been enabled. Additionally, in respect of one software, the audit trail has been preserved by the company as per the statutory requirements for record retention to the extent it was enabled and recorded in respect of those years. In respect of other software for the financial year ended March 31, 2025, the audit trail has been preserved by the company as per the statutory requirements for record retention to the extent it was enabled and recorded in respective year, however, for the financial year ended March 31, 2024, in the absence of Service Organisation Controls report, we are unable to assess whether the audit trail has been preserved as per the statutory requirements for record retention.

52 Other statutory information :

(i) The Company do not have any transactions and balances with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

(ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(iv) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohobition) Act, 1988 and rules thereunder.

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

(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall :

(a) . d irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company

(Ultimate Beneficiaries) or

(b) . provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) . d irectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party

(Ultimate Beneficiaries) or

(b) . provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(ix) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.