Imagicaaworld Entertainment Ltd Management Discussions

*The capex values are industry averages and indicative only and may not , values may differ depending on location and Additionally beexhaustive. offerings.

Source: CRISIL MI&A

Key Growth Drivers of the Indian Amusement and Theme Park Industry

The Indian amusement and theme park industry has witnessed strong growth in recent years, underpinned by several structural and macroeconomic tailwinds. Enhanced infrastructure and improved connectivity catchment areas, making parks more accessible to a broader visitor base. On the demand side, Indias young population an important target demographic continuesto drive steady footfall. Additionally, rising per capita income, growing middle-class households, and increasing discretionary spending are contributing positively to the industry. e, greater government focus on tourism perspectiv apolicy through supportive schemes and incentives further catalyze growth in the sector.

Improved Connectivity and Tourism Growth

Significant progress in transportation infrastructure roads, railways and air travel has enhanced accessibility to parks, expanded catchment areas, and reduced traveltimesfor visitors. This along with a steady rise in domestic tourism, is supporting footfall growth. Domestic tourist visits (DTVs) have grown at a CAGR of ~8.3% from 2012 to 2023 and are projected to continue expanding at 8 10% CAGR through

2030.

Favourable Demographics

Indias young population remains a core demand driver, particularly families with children under 15. With a current median age of ~27 years lowest among major economies India is well-positioned to benefit from a sustained period of demographic advantage, expected to continue through

2030.

Source: United Nations, Department of Economic and Social Affairs, haveexpanded Population Division (2022); WorldPopulation MI&A Prospects 2022, CRISIL

Rising Per Capita Income and Spending Power:

Steady growth in per capita income and discretionary consumption is boosting demand for leisure experiences. From FY2012 to FY2023, Indias per capita income rose at a 4.2% CAGR, while discretionary personal consumption isexpectedto expenditure nearly doubled, growing at 7% CAGR over the same period.

Expanding Middle and High-Income Segments

The industrys core customer base, middle and high-income households, is expanding. This segment accounted for ~86% of the population in FY2021 and is expected to rise to ~95% by FY2031, supported by rising disposable incomes and economic progress.

Government Incentives and Policy Support

State governments are actively promoting tourism through various incentive and subsidy schemes to attract investments and boost state revenues. This policy backing is creating an enabling environment for the expansion of amusement and theme parks across India.

Players focusing on enhancing guest experiences by fostering innovation in product offerings and Enhancing Guest Experience Through Innovation

Indian amusement and theme park operators are focusing on improving guest experience through innovation in both core and allied offerings. Adoption of digital tools such as mobile ticketing, RFID lockers, and online booking systems is streamlining operations and boosting convenience. To increase footfall, players are introducing group discounts, festive events, and themed celebrations, especially during off-peak seasons.

Additionally, hotels, retail outlets, and restaurants are helping create holistic, destination-style experiences. Companies also leveraging customer journey insights to drive repeat visitation.

Leveraging Emerging Technologies

To stay competitive,playersareintegrating edge cutting-technologies like Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI) into attractions, visitors immersive and engaging experiences that enhance park appeal and visitor satisfaction

Rising road infrastructure expected to help in connectivity and could help in increasing catchment areas for theme parks

Road and allied infrastructure play a crucial role in improving accessibility to amusement parks, making proximity to highways, airports, and railway stations vital for success. In recent years, significant particularly through NHAI initiatives has supported alliedareas industry. In FY24, NHAI executed 6,644 km of road projects, averaging 18 km per day, with continued momentum expected in FY25 and beyond. actively Enhanced road connectivity areas, typically within a 100 200 km radius, by reducing travel time and improving overall access. With sustained government focus on infrastructure development, further improvements are expected to strengthen connectivity drive higher footfalls to amusement and theme parks.

COMPANY AND BUSINESS OVERVIEW

Imagicaaworld investments Entertainmentvalue-addedinfrastructurelike Limited has created Indias First & Only InternationalStandard Entertainment Holiday are Destination "Imagicaa", which includes a Theme Park, Water Park, a Snow Park & a Luxury Hotel Novotel Imagicaa Khopoli. In March 2023, the Company had expanded into Gujarat in an existing PPP project and launched Aqua Imagicaa in Surat. This financial four parks under brand name Wetn Joy and Sai Teerth in Lonavala and Shirdi. With these parks, we have added two new brands in our portfolio and increased our stronghold in the State of Maharashtra. These park additionshave doubled our footfall and EBITDA, while revenue have jumped 1.5 times. In March 2025, the Company launched Aqua Imagicaa

Indore in a wholly owned subsidiary Malpani Parks Indore Private Limited ("MPIPL").

Imagicaa The destination

Imagicaa is a magical & fun-filled world of its own, offering entertainment, fun, relaxation, accommodation at a single location.Offering a world class Theme Park, international standard Water largest Snow Park, & first theme park hotel - the luxurious Novotel Imagicaa, Imagicaa is Indias favourite family holiday destination.

Imagicaa is located off the Mumbai- Pune expressway Khopoli; approximately a 90 minute drive from Mumbai & Pune. Due to its proximity, Imagicaa is easily reachable from anywhere in India via air, rail or road. Imagicaa also offers bus and car packages with pick up options from Mumbai and Pune. Spread over 130 acres, this ‘all weather family entertainment destination provides interesting experiences to all its guests, 365 days a year.

Wetn Joy Lonavala Water & Amusement parks

WetnJoy Lonavala, located in the lush Western Ghats, on 47 development acres of land, with the amusement park located on 33 acres and the water park located on 14 acres. The water park has 25+ international rides, including Indias largest wave pool at 60,000 square feet, 6 restaurants and other merchandise and F&B attractions. The amusement park comprises of 29+ rides and attractions. hasexpanded primary catchment

Shirdi Parks Wetn Joy and Sai Teerth

The WetnJoy water park is conveniently located near the famous Sai Baba Temple at Shirdi and adjacent to the and water park is Sai Teerth. More than 70,000 pilgrims come to Shirdi every day to visit the Sai Baba temple. Recently, the Vande Bharat Express has also scheduled a halt at Shirdi railway station, making the location more accessible by public transport. Distance from major cities like Mumbai is approximately 240-250 km, Pune approximately 180-190 km and Nashik approximately 85-90 km. dining, shopping and Park, Indias The WetnJoy water park at Shirdi is constructed on 8.5 acres of land, with 25 water based attractions and other allied facilities and is a popular landmarkinthetown.

Sai Teerth is Indias first devotional theme park which offers guests a blend of faith, innovation, technology and entertainment. With 6+ marquee attractions and experiences, it is fast becoming a must-visit place for visitors to Shirdi.

Aqua Imagicaa - Surat

Aqua Imagicaa Water Park - Surat is located in the city municipal limits and is around a 10-minute drive from the

Surat RailwayStationand about 30 minutes from the Surat Airport. Aqua Imagicaa is constructed on 4 acres of land, with the entire land currently being occupied for water based attractions& other allied facilities. The Park has attractions, with 16 imported rides and attractions

Aqua Imagicaa - Indore

Aqua Imagicaa Water Park Indore - is located just 20 mins from two major cities Ujjain and Indore and marks the beginning of the Company presence in Central India. Spread over 18 acres, the park offers 20 rides covering thrilling, family-friendly destination featuring an array of water slides, attractions and unique experiences designed to delight guests of all ages.

Business Review

The summary of performance for the Company for the year ended March 31, 2025 is as follows:

Average Realization and Operating Costs

Average realisation per visitor Theme Park & Water Park put together) for FY 2024-25 was

1,313/-, as compared to 1,579/- for FY 2023-24. The break-up of the realisation is as follows:

The outstanding bank loan as on March 31, 2025 is

14,849.02 Lakhs.

The weighted average rate of interest is 9.50% p.a. Till date nearly 18.8mn people have visited Imagicaaworld parks. While these numbers and guest feedbacks give us a good idea of their expectation and appreciation of product, we have a long way to go in making this project every Indians ‘must-visit holiday destination. Novotel Imagicaa Khopoli comprises of 287 rooms, which is the highest room inventory of a hotel near Greater Mumbai. The hotel has been consistently receiving excellent reviews and feedbacks. The ARR (including Room, F&B and Others) of the hotel was over 10,057/- in for FY 2024-25. Novotel Imagicaa in a short period of operations firmly establish its niche in the leisure and social segments and has firmly established Imagicaas position as complete family holiday destination.

KEY STRENGTHS OF THE COMPANY

The Companys primary competitive strengths are set out (weighted average for below:

The Company is uniquely positioned to capitalise on the increasing propensity of Indians to spend on entertainment

The Indian amusement and theme park industry is valued between 108-114 billion (Source: CRISIL

Report). Led by rapid urbanization, low penetration and rising disposable income, the industry is expected to grow at a CAGR of 9% to 11% by 2027 (Source: CRISIL Report). The following factors are expected to lead to strong growth for our Company in years to come: Urbanization trend to rise in India: Amusement park is form of urban entertainment. In 2000, 28% of the population of India resided in urban areas. The share of urban mix increased to 35% in 2020 and is expected to increase to 41% by 2030. Rapid urbanization is likely to lay a strong foundation for the amusement park industry growth.

Favorable population demographics: Amusement parks typically attract younger audiences. Given 55% of the population in India falls into the 15-60 age group, the opportunity landscape is huge Discretionary spends to rise: Per capita GDP of India is set to rise from US$2,379 in 2022 to US$3,011 in 2025 (Source: CRISIL Report). Further, the share of the upper middle household segment is expected to increase from 21% in 2018 to 44% by 2030. Rising per capita income and increasing share of upper middle-income households bodes well for high spending on leisure and travel activities.hasbeen able to Rise in domestic tourism due to increased connectivity: Robust growth in Domestic Tourist Visits ("DTV") is aiding the tourism allied sectors like hotels and amusement parks. Additionally, state-level policy initiatives aimed at promoting tourism have also played a crucial role in driving up DTV. Domestic tourism is expected to rise at a CAGR of 9% between 2022 to 2030. Support of the state governments: Various policies including the Maharashtra Tourism Policy of 2016, Gujarat Tourism Policy 2021-2025, Madhya Pradesh Tourism Policy 2016, through their provisions of incentives, have aided the growth of hotels, water sports, amusement and water parks.

Favourable macroeconomic and demographic factors such as economic growth, rising disposable income, a Our theme park rides and attractions, growing young population, an expanding middle class and rapid urbanisation population spending rise in education levels and exposure to international trends, Indian consumers are willing to pay a premium for quality entertainment.

The Company is strategically located in an attractive catchment area

The Company parks are based in strategic locations with close proximity to younger population, major cities potential guests primarily from Mumbai, Pune and the rest of Maharashtra and Gujarat, which are some of the more economically developed areas in India. Wealsohavetheabilitytoattract pan-India guests due to the proximity and theconnectivity presentations for the ofImagicaaPark and Hotel to Mumbai and Pune through the Mumbai Pune Expressway. The Imagicaa Park and Hotel is 46 kilometres from Panvel, Navi Mumbai and is between a 1.5 to 2 hour drive from most suburbs of Mumbai, as well as from Pune, making it easily accessible for guests. Wetn Joy is a popular water park and amusement park located in Lonavala, which is an extremely popular hill station in Maharashtra. Lonavala is a preferred destination for tourists and locals, especially during summer months and even the monsoons.

WetnJoy Water Park Shirdi is conveniently located near the famous Sai Baba Temple at Shirdi and adjacent to the water park is Sai Teerth. More than 70,000 pilgrims come to Shirdi every day to visit the Sai Baba temple. Recently, the Vande Bharat Express has also scheduled a halt at Shirdi railway station, making the location more accessible by public transport. which Aqua Imagicaa is located in the municipal limits of Surat and is around a 10-minute drive from the Surat Railway Station and about 30 minutes from the Surat Airport. Surat is well connected by all means of transport i.e., roads, railways and airways. The city also enjoys a sizeable floating population due to the textile diamond hubs it harbours, which allows us to market Aqua Imagicaa as a venue for meetings, off-sites and other corporate events.

Rides and Attractions of Standards which are customised to Indian tastes and preferences

Our parks are attractively quality entertainment, aesthetic appeal, shopping and dining options. such as our popular attractions, Nitro, Rajasaurus,

Wrath have of the Gods, resulted in I for India and Mr. India the Ride at the Indian moreonentertainment.Withthe our Imagicaa Park; Lanka Dahan, Dwarkamai and Teerth Yaatra at Sai Teerth;, You are the Star and 5D Show at Wetn Joy, have been designed in accordance with the best safety and international quality standards and are customised to appeal to the tastes and preferences of Indian customers. We have a large number of rides and attractions from different age groups and with varying tastes and thus having preferences engaged for an entire day. Our offerings to attract higher footfalls. Currently, we include, high-speed roller coasters, VFX shows for an enhanced visual experience, indoor attractions a 360 degrees cinema, a number of rides for children, a thrill based vertical-drop for young adults and mythology based immersive experiences consisting of live theatre, specialeffectsand entire family. Our water-park offerings include a 72-feet plunge in water, several kinds of slides and a wave pool. We engaged internationally acclaimed design consultants for entertainment destinations architectural firms in India in the entertainment space, to conceptualise and design our parks. The rides and attractions for Imagicaa Theme Park, Imagicaa Water Park, Aqua Imagicaa, Wetn Joy and Sai Teerth have been manufactured by and sourced from leading international and domestic suppliers who are based out of countries including Switzerland, Istanbul and the United States. Our consultants and vendors have worked with many of the leading theme and water parks across the world, thus allowing us to leverage their expertise in customising or creating the rides and attractions of internationalquality standards for Indian requirements. are based Ourtheme park rides and attractions on Indian mythology, Bollywood and other popular themes, allow us to develop an emotional connect with our local customer base.

We aim to offer a safe and injury free environment for our guests to enjoy our parks. While providing the best and possible experience for our customers, we also ensure high safety standards are maintained. We generally obtain safety certificationsfrom our international vendors statingthattheridesandattractionsinstalled

International have been designed and manufactured in accordance with international standards such as the American Society for Testing and Materials, or the ASTM standard, themedanddeliverhigh- the European, or the EN standard or the Deutsches Institut fur Normung e.V., or the DIN standard technical services organisation to carry out inspection, installations certifications for our rides and

Competitive advantage through entry barriers

There are significant barriers for entry into the business of theme and water parks in India and it is difficult to replicate a project of similar scale and size in our catchment areas. Among the most important of these barriers is the need for significant capital expenditure and the hurdles in acquisition and water parks. The difficulty to identify and purchase large and suitable parcels of land on commercially terms and the long lead-timefrom the conceptualisation to the launch of rides and attractions. The location of the Imagicaa Parks, Wetn Joy Parks, Aqua Imagicaa and Sai Teerth, our significant presence in the western our rides and attractions of international quality and management and operations standardsandourqualified team provide us with a significant competitive over any new park in the regions. Due to our realized competitive advantage in the amusement and theme park industry and our strong technical and execution capabilities, we are also able to set up new attractions in a time and cost effective manner.

A well-positioned brand and marketing focus

In the short operational history, the Company has been able to establish strong recognition for its various brands in the Mumbai, Pune and the rest of Maharashtra and Gujarat markets. We have been able to achieve this through a combination of factors:

Delivering superior visitor experiences in the parks through the diverse offerings of rides and attractions and other entertainment options and thus, developing a brand recall through word of mouth publicity;

The Company has also actively focused on attracting school groups as the Company believes that school children who visit the parks act as the Companys brand ambassadors and have the potential of bringing the entire family back on another visit;

Dynamic and attractive pricing strategy to coincide with various events, festivals, seasons and holidays throughout the year;

Engaging with various target groups through focused marketing, consisting of regular electronic, print and digital media campaigns and direct sales efforts.

Experienced promoters and management team backed by board of directors comprising of entertainment industry veterans

Our Promoter, Malpani Parks Private Limited, part of the Malpani Group, is a family-owned diversified business group with interests in FMCG, renewable energy, real estate, hospitality, theme and water parks, and education businesses. Located out of Sangamner, Maharashtra, the group is spread across multiple cities and has more than two decades of experience in consumer-facing entertainment businesses and has evidenced growth over last six decades of their existence. ofland to set up theme The senior management team of our Companyincludes Margin of the experienced media and entertainment, marketing and consumer businesses executives, with an average tenure of more than two decades in the park business. Our Managing Director, Mr. Jai Malpani, is an economics belt, and finance graduate from Bentley University and London School of Economics and is responsible for advantage the expansion and management of our park He also manages the groups investments. Mr. Rajesh Malpani, our Chairman, is a seasoned executive with more than 40 years of experience, and his knowledge in taxation, the expansion of our Company. Mr. Manish Malpani, one of our non-executive has more than 30 years of experience in the FMCG and real estate industry, and a pioneer in Indias amusement and water park sector. Mr. Dhimant Bakshi, our Chief Executive alumnus of INSEAD with over 30 years of experience in retail, entertainment and e-commerce, and his prior experience includes working with companies like Reliance Retail, Shoppers Stop and the Future Group. Mr. Mayuresh Kore, our Chief Financial Officer and Head - legal actively contributes to our business and operations with his diverse experience of over 21 years across project finance,treasury, investment banking and new business initiatives. We also have veteran independent directors from the entertainment industry on our board.

Our promoter group also includes experienced personnel, with Mr. Prafulla Khinvasara, CEO of the Malpani Group, having over 30 years of experience each in the areas of operations, management and procurement, and Mr. Prashant Runwal, Chief Financial Officerof the Malpani Group, being a chartered accountant with strong expertise in the areas of mergers and and business strategy. Additionally, Mr. Uday Khairnar, Chief Technology Officer of the Malpani Group, has over 25 years of experience in implementation of IT solutions including systems application and products in data processing (SAP).

FINANCIAL RATIOS

The Debtor turnover ratio remained at 59.6 times average debtors in FY25. The Inventory turnover ratio was at 2.3 times the average inventory in FY25. The Interest Coverage ratio for FY25 was 9.12 times, this was at 22.75 times in FY24. The ratio improved as the EBITDA improved The current ratio of the has improved TheOperatingProfit to 21.3% in FY25 from 9.7% in FY24, while the Net Profit Margin was 19% in FY25. The Debt Equity ratio improved from 0.32 timesinFY24to 0.13 times in FY25.

OUTLOOK AND OPPORTUNITIES

Post COVID, the demand for experiential outdoor entertainment had seen a rise and footfall of all major parks . had reached pre-pandemic levels. Subsequently, there was some plateauing seen across the industry. However, demand for theme and water parks is likely to be back on upswing in planninghasbeencrucialto India over the next few years driven by increasing disposable income, favourable demographics, changing consumer independentdirectors, experiences, and a preferences,growing affinity continued dearth of outdoor entertainment activities cities. The state potential of amusement parks and are working with industry and Chief to implement conducive policies. Marketing Officer is an The industry constantly needs to innovate and introduce fresh themes, experiences, ets as well as focus on stronger marketing strategies to draw larger audience.

Medium & Long Term Business Strategies

The Company is adopting the following business strategies to grow the business in the future:

• Expand in newer geographies

The Company plans to expand its reach and leverage its brand to newer geographies. In line with this philosophy, the Company has already ventured to new states Gujarat and Madhya Pradesh. This year, we have started operations of Aqua Imagicaa, Water Park, in the city of Indore. Madhya Pradesh is one of the faster growing tourism hubs and the Indore-Ujjain belt has been identified as a corridor economic growth.

Continue to focus on increasing the number of guests hosted at the parks

The Company plans to increase attendance at the parks through the following strategies:

Increasing awareness of the parks, and various brands through effective media and marketing campaigns, aimed at various target groups including families, young kids, college students and young professionals. The Company will also continue to reach out to a greater number of schools and corporates for increasing attendance at its parks;

. Offering a variety of ticket options and pricing and promotional strategies 0.59times to coincide FY25. with events and holidays throughout the year. The Company also aims to follow a dynamic pricing model which will enable us to adjust admission prices for the parks based on expected demand and attract diverse segments of customer base;

By periodically introducing new attractions, differentiating experiences and enhancing service offerings, the Company believes that word of mouth is the most important marketing tool for our product and, therefore, the Companys primary business objective is to make the time spent by the guests in its parks as enjoyable as possible. The Company specifically focuses on entrance procedures, queue management, cleanliness, quick in availability of F&B products and retail merchandise governments in the country have realized the to make the guests experiences as comfortable and entertaining as possible; and

Diversify our Revenue Streams a significant portion Saleofadmission of the Companys total income and going forward the Company intends to increase its non-ticketing through the following strategies:

Focus on F&B and retail & merchandise operations by targeting the per capita spending of guests. The Company believes that by providing guests additional and enhanced offerings at various price points, the Company can increase spending in its parks. The Company will continue to innovate in its F&B offerings to cater to the diverse preferences of its guests.

Monetise the crowd movement in the parks by offering sponsorship opportunities to advertisers for special events, naming rights for the rides and of tourismaswellasoverall attractions,partnering in and assisting in products and brand

The Company aims to develop an emotional with the guests through its brands and characters taxation, developed by the Company, which will provide the opportunities to leverage the intellectual property portfolio, and to develop new media and entertainment options consumer products.

Increase profitability and achieve cost optimisation

The Company believes that increased attendance at its parks and an increase in the per capita spending will allow the Company to make its business more profitable because of the relatively fixed cost-base and the operative leverage involved in the business. The Company will continue and merchandise spending to improve its operating margins. The Company shall continue to offer dynamic pricing to account for seasonal in attendance. The Company also aims to achieve better cost optimisation by measures such as company-wide and centralised procurement and sourcing strategy and integrated marketing campaigns. In addition, benefit from shared services such as security, ticketing, park F&Bandgeneraladministration ofthe

PARK SECURITY AND SAFETY

The Company was awarded with an ISO certificate Integrated Management Systems by Bureau of Indian Standards (BIS) for Imagicaa Theme Park. Following is the list of ISO certifications awarded:

Quality Management System- IS/ISO 9001:2008

Environmental Management System-IS /ISO 14001:2004

OccupationalHealth and Safety Management system IS 18001:2007 Other parks of the Company, including WetnJoy Lonavala, WetnJoy Shirdi, Sai Teerth Shirdi and Aqua Imagicaa Surat are on advanced stages of achieving the above certifications The Company recognises park security and safety as one of its most important focus areas in ensuring the success of the parks. The park security and safety plan is based on three principles: being proactive, the utilisation combination international standards on security

MAINTENANCE

The Companys maintenance team is responsible for the inspection, attractions. The Company has appointed a safety member of each of its parks management team to supervise discretiona ry consumer spending, antextent signific the maintenance and ride operations teams, and carry out regular audits and surprise inspections. and the availability of disposable income. Every ride and attraction at the parks is according to daily, weekly, monthly, and annual schedules. The Company has formulated detailed maintenance guidelines and checklists for each of its rides and attractions with the objective of ensuring that the rides and attractions are operating within the manufacturers criteria and that maintenance is conducted according to internal standards, industry best practiceand standards, as well as the ride designer or manufacturers specifications. The Company has installed a networked enterprise software system which is used to plan and track all the tofocusonF&Bandretail maintenance activities Companys infrastructure maintenance function comprises upkeep, repair, preventive maintenance and improvement of the parks infrastructure.

RISKS through economies of scale

The business is seasonal in nature, and may be affected by weather conditions, school vacations, public holidays and weekends.the Company aims to The theme and water park industry is seasonal in nature. The parks could experience volatility in attendance as a result of school vacations, and adverse weather conditions such as excessive for heat and monsoons. It is believed that attendance at the theme and water park and revenues from F&B and retail and merchandise operations is, and will continue to be, higher during school vacations, public holidays and weekends. In addition,the water park is expected to generate higher revenues in the summer months. Conversely, the Company may face a reduction in revenues during the monsoon months. Further, unfavourable weather conditions such as forecasts of excessive rainfalls or heat may reduce the attendance at the parks.

. Companysbusinessandresultsofoperationscould be adversely affected by changes in public and consumer tastes or a decline in discretionary consumer spending, consumer confidenceandgeneraleconomicconditions. of an optimum The success of the parks depends substantially on consumerof technology and manpower and meeting tastes and preferences that can change in often unpredictable ways. The Company must and safety. adapt to these changes to meet consumer tastes and preferences. The Company carries out research and analysis before opening new rides and attractions and often invest substantial time and resources to gaugeupkeep, repairs and testing extent to which these new rides and attractions officer consumer acceptance. Further, the success depends to a

which is heavily influenced by general conditions regularly, Actual or perceived difficult economic conditions and inflationary periods may adversely impact park attendance figures, the frequency with which guests choose to visit the parks and guest spending patterns at the parks. Both attendance and total per spending at the parks are key drivers of its revenue and profitability, and reductions . affectthebusinessandresultsofoperations

Incidents or adverse publicity concerning the parks or the theme or the water park industry generally

The could harm Companys brands or reputation as well negatively impact the business.

The Companys brands and reputation are among the most important assets. The ability to attract and guests depends, in part, upon the external perceptions of the parks, the quality of the parks and services and performance of the operations team. The operation of the parks involves the risk of accidents, contagious, airborne or waterborne diseases and other incidents that may negatively affect guest satisfaction and perception of the public holidays, weekends security of the parks, which could negatively impact the brands and reputation operations.

• Impact of Epidemics and Pandemics

The Theme and Amusement park industry had been impacted by the recent pandemic of COVID-19. This is a new risk which has been faced by the industry. The theme park industry operates in a highly crowded environment where physical distancing may be difficult to maintain. The regulators havebeentargetingthis industry for various restrictions, "non-essential"service.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has internal controls commensurate with its size. It has also adopted standard operating procedures, policies and process guidelines. These guidelines are well documented with clearlydefinedauthority limits corresponding with the level of responsibility for each functional area. They are designed to ensure that transactions are conducted and authorised within their framework. Further, the Companys reporting guidelines ensure that transactions are recorded and reported in conformity with generallyacceptedaccountingprinciples. of the rides and These guidelines asare regularly reviewed and updated to meet the expectations of the current business environment The Companys Code of Business Conduct lays down ethical standards expected from each of its personnels and business associates in their day to- day actions. The Company‘s robust internal audit programme which works to conduct a risk-based audit ot only tests the adherence to laid down policies and procedures but also suggests improvements in the current processes and systems. The audit program is agreed upon with the Audit Committee. Internal Audit observations and recommendations are reported to the ineithercanadversely Audit Committee, which monitors the implementation of such recommendations. Company had appointed M/s Kirtane & Pandit (KPCA) as the internal auditors during the financial year 2024-25.

SIGNIFICANT DEVELOPMENT IN HUMAN RESOURCES

People are one of the key and critical success factors for the Company. The Theme Park and Water Park industry in India is relatively in the nascent stages. As such to find skilled manpower having experience of the industry is not easy. The company has developed a strong on-job training and development programs, which cut across the junior team members as well as the middle management layer. The senior technical & engineering team has been trained under safety,healthand supervision of global / Indian experts of park industry.

The Companys Human Resource team works cohesively and the business and results of with the employees to help them in their personal as well as professional development. Employee satisfaction priority, and the Company ensures that all its employees enjoy a safe, healthy and progressive work environment at all its offices. The Companys Human Resource team works cohesively with the employees to help them in their personal as well as professional development. There is a well- defined Code of Conduct that guides all employees in their interaction with the various Company. The Company has a unique work-culture based on being categorised as a team building and bonding through cross-job training.

As of March 31, 2025, the total number of permanent employees on the rolls of the Company were 745.

CAUTIONARY STATEMENT

This document contains statements about expected future events, financial and operating results Entertainment Limited, which are forward looking. By their nature, forward- looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautionednot to place undue reliance on forward-looking statements as a number . of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis section