1. Summary of material accounting policies
The material accounting policies adopted by the
company in preparation of its standalone
financial statements are listed below. Such
accounting policies have been applied
consistently to all the years presented in these
standalone financial statements, unless
otherwise stated.
a. Basis of Preparation
The standalone financial statements
(“financial statements”) comply in all
material aspects with the Indian Accounting
Standards (Ind AS) notified under section
133 of Companies Act, 2013 (the Act)
[Companies (Indian Accounting Standards)
Rules, 2015 (as amended)] and other
relevant provisions of the Act.
These financial statements are authorised for
issue by Company's Board of Directors on
27th May 2026.
The financial statements have been prepared
on a historical cost basis except for the
following:
All the amounts included in the financial
statements are reported in millions of Indian
Rupee (INR) and are rounded off to the
nearest million, except per share data and
unless stated otherwise.
b. Property, plant and equipment
Freehold land is carried at historical cost. All
other items of property, plant and
equipment are stated at cost, net of
accumulated depreciation and accumulated
impairment losses, if any.
Capital work-in-progress is stated at cost,
net of accumulated impairment losses, if any
Depreciation on property, plant and
equipment
i. Leasehold improvements (LHI) are
depreciated on straight line basis over
the period of lease or useful life (not
exceeding 9 years), whichever is lower.
ii. Furniture and fixture (at stores) are
depreciated on straight line basis over
the period of 5 years.
iii. Depreciati on on other property, pl ant
and equipment is provided on written
down value method at the rates based
on the estimated useful life of the assets
as described below:
c. Intangible assets
Intangible assets acquired separately are
recorded at cost at the time of initial
recognition.
The Company amortises intangible assets
using the straight-line method over the
following periods:
Refer note 1A(b) for the other accounting
policies relevant to intangible assets.
d. Inventories
The costs of individual items of inventory are
determined on a first-in first-out basis.
Volume rebates or discounts are taken into
account when estimating the cost of
inventory if it is probable that they have been
earned and will take effect.
Inventories are valued at the lower of cost
and net realisable value.
Net realisable value is the estimated selling
price in the ordinary course of business, less
the estimated costs of completion and the
estimated costs necessary to make the sale.
Refer note 1A(c) for the other accounting
policies relevant to inventories.
e. Revenue from contracts with customers
The Company manufactures and sells a
range of footwear and accessories through
its own retail and franchisee stores,
wholesale network and e-commerce.
Sale of goods - retail
The Company operates a network of own
and franchisee retail stores across India.
Additionally, the Company also sells its
goods to shop-in-shop customers ('SIS')
who are engaged in the business of running
large retail outlets at various locations across
India. Revenue from the sale of goods sold
through own retail stores is recognised when
the Company delivers goods to the
customer.
Payment of the transaction price is due
immediately when the customer purchases
the goods and takes delivery in store.
Revenue from sale of goods sold through
franchisee and SIS stores is recognised when
control of the products has transferred,
being when the products are delivered to
the customer, the customer has full
discretion over the channel and price to sell
the products, and there is no unfulfilled
obligation that could affect the customer's
acceptance of the products. Delivery occurs
when the products have been shipped or
delivered to the customer depending on the
terms of arrangement.
For SIS sales, it is the Company's policy to
sell its products to the customer with a right
of return within 6 to 12 months. Therefore, a
refund liability in relation to expected returns
(included in other current liabilities- refund
liabilities) and a right to recover the returned
goods (included in other current assets) are
recognised for the products expected to be
returned. Accumulated experience is used
to estimate such returns at the time of sale
at a portfolio level (expected value method).
Based on management's significant
experience in this business, it is highly
probable that a significant reversal in the
cumulative revenue recognised will not
occur. The validity of this assumption and
the estimated amount of returns are
reassessed at each reporting date.
The goods sold through franchisee stores are
often sold with retrospective volume
discounts based on aggregate sales over a
12 month period. Revenue from these sales
is recognised based on the price specified
in the contract, net of the estimated volume
discounts. Accumulated experience is used
to estimate and provide for the discounts,
using the most likely method, and revenue
is only recognised to the extent that it is
highly probable that a significant reversal will
not occur. A liability for refund of volume
discounts (included in other current
liabilities- refund liabilities) is recognised for
expected volume discounts payable to
customers in relation to sales made until the
end of the reporting period. No significant
element of financing is deemed present as
the sales are generally made with a credit
term of 30 to 90 days, which is consistent
with market practice.
The Company's obligation to repair or
replace faulty products under the standard
warranty terms is recognised as a provision,
see note 17b.
Sale of goods - other than retail
i. Wholesale
The Company sells products to
distributors. Revenue from sale of goods
in such arrangements is recognised
when control of the products has
transferred, being when the products
are delivered to the customer, the
customer has full discretion over the
channel and price to sell the products,
and there is no unfulfilled obligation that
could affect the customer's acceptance
of the products. Delivery occurs when
the products have been shipped or
delivered to the customer depending on
the terms of arrangement.
The goods are often sold with
retrospective volume discounts based
on aggregate sales over a 12 month
period. Revenue from these sales is
recognised based on the price specified
in the contract, net of the estimated
volume discounts. Accumulated
experience is used to estimate and
provide for the discounts, using the most
likely method, and revenue is only
recognised to the extent that it is highly
probable that a significant reversal will
not occur. A liability for refund of volume
discounts (included in other current
liabilities- refund liabilities) is recognised
for expected volume discounts payable
to customers in relation to sales made
until the end of the reporting period. No
significant element of financing is
deemed present as the sales are
generally made with a credit term of 30
to 120 days, which is consistent with
market practice. The Company's
obligation to repair or replace faulty
products under the standard warranty
terms is recognised as a provision, see
note 17b.
ii. E-Commerce
The Company through marketplace and
its own website sells its products to
customers. Revenue from sale of goods
is recognised when control of the
products has transferred, being when
the products are Shipped or delivered
to the customer depending on the terms
of arrangement. For e-commerce sales,
it is the Company's policy to sell its
products to the end customer with a
right of return within 7 to 30 days.
Therefore, a refund liability in relation to
expected returns (included in other
current liabilities- refund liabilities) and
a right to recover the returned goods
(included in other current assets) are
recognised for the products expected
to be returned. Accumulated experience
is used to estimate such returns at the
time of sale at a portfolio level (expected
value method). Because the number of
products returned has been steady for
years, it is highly probable that a
significant reversal in the cumulative
revenue recognised will not occur. The
validity of this assumption and the
estimated amount of returns are
reassessed at each reporting date.
Non-cash consideration
In some cases, the Company enters into
contract with customer to avail media,
marketing or other services in exchange for
supply of its products. To determine the
transaction price, the Company measures
the non-cash consideration at fair value.
Customer loyalty programme
The Company operates a loyalty points
programme which allows customers to
accumulate points when they purchase
products in the Company's retail stores. The
points can be redeemed against
consideration payable for subsequent
purchases. Hence, consideration is allocated
between the products sold and the points
issued based on the relative stand-alone
selling prices. For the allocation of
consideration to points issued, relative
stand-alone selling prices of the points
issued is determined by applying a statistical
analysis (based on data available) of points
redemption history of the customers. The
transaction price allocated to the points
issued is deferred (deferred revenue) and
recognised as revenue when the points are
redeemed or expire.
f. Employee Benefits
i) Retirement benefit in the form of
pension costs is a defined contribution
scheme. The Company has no
obligation, other than the contribution
payable to the pension fund. The
Company recognises contribution
payable to the pension fund scheme as
an expense, when an employee renders
the related service. If the contribution
payable to the scheme for service
received before the balance sheet date
exceeds the contribution already paid,
the deficit payable to the scheme is
recognized as a liability after deducting
the contribution already paid. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excess is recognized as an asset to the
extent that the pre-payment will lead to
a reduction in future payment or a cash
refund.
ii) The Provident Fund (administered by a
Trust) is a defined benefit scheme
whereby the Company deposits an
amount determined as a fixed
percentage of basic pay to the fund
every month. The benefit vests upon
commencement of employment. The
interest credited to the accounts of the
employees is adjusted on an annual basis
to conform to the interest rate declared
by the government for the Employees
Provident Fund. The Company has
adopted actuarial valuation based on
projected unit credit method to arrive
at provident fund liability as at year end.
iii) The Company operates a defined benefit
gratuity plan, which is primarily funded
through the Company's own trust with
certain employee categories covered
under an unfunded arrangement. For
funded arrangement, the Company
make contributions to a separately
administered fund. These defined
benefit gratuity plans are governed by
the Payment of Gratuity Act, 1972.
The cost of providing benefits under the
defined benefit plan is determined using
actuarial valuation based on the
projected unit credit method.
Remeasurements, comprising of
actuarial gains and losses, the effect of
asset ceiling, excluding amounts
included in net interest on the net
defined benefit liability and the return
on plan assets (excluding amounts
included in net interest on the net
defined benefit liability), are recognised
immediately in the balance sheet with a
corresponding debit or credit to other
comprehensive income (OCI) in the
period in which they occur.
Remeasurements are not reclassified to
profit or loss in subsequent periods.
Past service costs are recognised in
profit or loss on the earlier of:
- The date of the plan amendment or
curtailment, and
- The date that the Company
recognises related restructuring
costs.
Net interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company
recognises the following changes in the
net defined benefit obligation as an
expense in the standalone statement of
profit and loss:
- Service costs comprising current
service costs, past-service costs,
gains and losses on curtailments and
non-routine settlements; and
- Net interest expense or income
iv) Compensated absences are provided for
based on actuarial valuation on
projected unit credit method carried by
an actuary, at each year end.
Actuarial gains/losses are immediately
taken to the standalone statement of
profit and loss and are not deferred. The
Company presents the leave as a current
liability in the balance sheet, to the
extent it does not have the right to defer
its settlement for 12 months after the
reporting date.
v) Expenses incurred towards voluntary
retirement scheme are charged to the
standalone statement of profit and loss
in the year such scheme is accepted by
the employees/workers.
g. LeasesCompany as a lessee
The Company's lease asset classes primarily
consist of leases for buildings taken for
warehouses, offices and retail stores. The
Company assesses whether a contract
contains a lease, at inception of a contract.
A contract is, or contains, a lease if the
contract conveys the right to control the use
of an identified asset for a period of time in
exchange for consideration. To assess
whether a contract conveys the right to
control the use of an identified asset, the
Company assesses whether: the contract
involves the use of an identified asset, the
Company has right to obtain substantially
all of the economic benefits from use of the
asset through the period of the use and the
Company has the right to direct the use of
the identified asset.
At the date of commencement of the lease,
the Company recognises a right-of-use asset
(ROU) and a corresponding lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve
months or less (short-term leases). For these
short-term leases, the Company recognises
the lease payments as an operating expense
on a straight-line basis over the term of the
lease.
Certain lease arrangements include the
options to extend or terminate the lease
before the end of the lease term. ROU assets
and lease liabilities include these options
when it is reasonably certain that they will
be exercised.
The ROU assets are initially recognised at
cost, which comprises the initial amount of
the lease liability adjusted for any lease
payments made at or prior to the
commencement date of the lease plus any
initial direct costs less any lease incentives.
They are subsequently measured at cost less
accumulated depreciation and impairment
losses.
ROU assets are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful
life of the underlying asset.
The lease liability is initially measured at the
present value of the future lease payments.
The lease payments are discounted using the
interest rate implicit in the lease or, if not
readily determinable, which is generally the
case for the Company, using the incremental
borrowing rate, being the rate that the
individual lessee would have to pay to
borrow the funds necessary to obtain an
asset of similar value of ROU asset in a
similar economic environment with similar
terms, security and conditions.
The lease term is reassessed if an option is
actually exercised (or not exercised) or the
Company becomes obliged to exercise (or
not exercise) it. The assessment of
reasonable certainty is only revised if a
significant event or a significant change in
circumstances occurs, which affects this
assessment, and that is within the control of
the lessee. Lease liabilities are remeasured
with a corresponding adjustment to the
related right of use assets if the Company
changes its assessment if whether it will
exercise or not exercise an extension or a
termination option.
Variable lease payments that depend on
sales are recognised in profit or loss in the
period which the condition that triggers
those payment occurs.
h. Trade receivables
Trade receivables are amounts due from
customers for goods sold in the ordinary
course of business and reflects the
Company's unconditional right to
consideration (that is, payment is due only
on the passage of time). Trade receivables
are recognised initially at the transaction
price as they do not contain significant
financing components. The Company holds
the trade receivables with the objective of
collecting the contractual cash flows and
therefore measures them subsequently at
amortised cost using the effective interest
method, less loss allowance.
For trade receivables, the Company applies
the simplified approach required by Ind AS
109, which requires expected lifetime losses
to be recognised from initial recognition of
the receivables.
i. Financial assetsClassification of financial assets at
amortised cost
The Company classifies its financial assets
at amortised cost only if both of the
following criteria are met:
- the asset is held within a business model
whose objective is to collect the
contractual cash flows, and
- the contractual terms give rise to cash
flows that are solely payments of
principal and interest.
Financial assets classified at amortised cost
comprise trade receivables, loans, security
deposits, deposits and other receivables.
Remittance in transit
'Remittance in transit', which represent
amount collected from customers through
credit card / debit cards / UPI / Wallets /
net banking and not yet settled by the bank
are classified as other financial assets.
Interest Income
Interest income on financial assets at
amortised cost is calculated using the
effective interest method is recognised in
the standalone statement of profit and loss
as part of other income.
Refer note 1A(n) for the other accounting
policies relevant to financial instruments.
1A. Summary of other accounting policies
This note provides a list of other accounting
policies adopted in the preparation of these
standalone financial statements to the extent
they have not already been disclosed as part of
material accounting policy information (refer
note 1). These policies have been consistently
applied to all the years presented, unless
otherwise stated.
(a) Property, plant and equipment
The cost comprises purchase price,
borrowing costs if capitalisation criteria are
met, directly attributable cost of bringing the
asset to its working condition and location
for the intended use. Any trade discounts
and rebates are deducted in arriving at the
purchase price. Subsequent costs are
included in the asset's carrying amount or
recognised as a separate asset, as
appropriate, only when it is probable that
future economic benefits associated with the
item will flow to the Company and the cost
of the item can be measured reliably. The
carrying amount of any component
accounted for as a separate asset is
derecognised when replaced.
The present value of the expected cost for
decommissioning of an asset after its use is
included in the cost of the respective asset,
if the recognition criteria for a provision are
met.
On transition to Ind AS, the Company has
elected to continue with the carrying value
of all of its property plant and equipment
recognised as at 1st April 2015, measured as
per the previous GAAP, and use that carrying
value as the deemed cost of such property
plant and equipment.
The Company identifies and determines cost
of each component/ part of the asset
separately, if the component/ part has a cost
which is significant to the total cost of the
asset and has useful life that is materially
different from that of the remaining asset.
An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising
on derecognition of the asset (calculated as
the difference between the net disposal
proceeds and the carrying amount of the
asset) is included in the standalone
statement of profit and loss when the asset
is derecognised.
The residual values, useful lives and methods
of depreciation of property, plant and
equipment are reviewed at each financial
year end and adjusted prospectively, if
appropriate.
(b) Intangible assets
Following initial recognition, intangible
assets are carried at cost less any
accumulated amortisation and accumulated
impairment losses, if any. Internally
generated intangibles, excluding capitalised
development costs, are not capitalised and
the related expenditure is reflected in profit
or loss in the period in which the expenditure
is incurred.
Intangible assets with finite lives are
amortised over the useful economic life and
assessed for impairment whenever there is
an indication that the intangible asset may
be impaired. The amortisation period and
the amortisation method for an intangible
asset with a finite useful life are reviewed at
least at the end of each reporting period.
Changes in the expected useful life or the
expected pattern of consumption of future
economic benefits embodied in the asset are
considered to modify the amortisation
period or method, as appropriate, and are
treated as changes in accounting estimates.
The amortisation expense on intangible
assets is recognised in the standalone
statement of profit and loss.
On transition to Ind AS, the Company has
elected to continue with the carrying value
of all of its intangible assets recognised as
at 1st April 2015, measured as per the
previous GAAP, and use that carrying value
as the deemed cost of such intangible assets.
Gains or losses arising from derecognition
of an intangible asset are measured as the
difference between the net disposal
proceeds and the carrying amount of the
asset and are recognised in the standalone
statement of profit or loss when the asset is
derecognised.
The Company capitalises intangible asset
under development for a project in
accordance with the accounting policy. Initial
capitalisation of costs is based on
management's judgement that
technological and economic feasibility is
confirmed, usually when a product
development project has reached a defined
milestone according to an established
project management model.
(c) Inventories
Costs incurred in bringing each product to
its present location and condition are
accounted for as follows:
- Raw materials, Traded Goods and Stores
and spares: Cost includes cost of
purchase and other costs incurred in
bringing the inventories to their present
location and condition.
- Finished goods and work-in-progress:
Cost includes cost of direct materials,
direct labour and a proportion of
variable and fixed manufacturing
overhead expenditure, the latter being
allocated based on the normal operating
capacity.
(d) Contract liabilities
Deferred revenue / Advance from customers
(“contract liabilities”) is recognised if a
payment is received or a payment is due
(whichever is earlier) from a customer before
the Company transfers the related goods.
Contract liabilities are recognised as revenue
when the Company performs under the
contract (i.e., transfers control of the related
goods or services to the customer).
(e) Foreign Currency TransactionsFunctional and presentation currency
The Company's financial statements are
presented in INR, which is also the
Company's functional and presentation
currency.
Transactions and balances
Foreign currency transactions are translated
into the functional currency using the
exchange rates at the dates of the
transactions. Foreign exchange gains and
losses resulting from the settlement of such
transactions and from the translation of
monetary assets and liabilities denominated
in foreign currencies at year end exchange
rates are recognised in profit or loss.
(f) Earnings per share
The Company presents basic and diluted
earnings per share.
Basic earnings per share
Basic earnings per share is calculated by
dividing:
- the profit for the year
- by the weighted average number of
equity shares outstanding during the
financial year, adjusted for bonus
elements in equity shares issued during
the year.
Diluted earnings per share
Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to take into account:
- the after-income tax effect of interest
and other financing costs associated
with dilutive potential equity shares
the weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.
(g) Dividends
Provision is made for the amount of any
dividend declared, being appropriately
authorised and no longer at the discretion
of the entity, on or before the end of the
reporting period but not distributed at the
end of the reporting period.
(h) Taxation
The income tax expense or credit for the
period is the tax payable on the current
period's taxable income based on the
applicable income tax rate for each
jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to
temporary differences and to unused tax
losses.
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the end of the
reporting period. Management periodically
evaluates positions taken in tax returns with
respect to situations in which applicable tax
regulation is subject to interpretation and
considers whether it is probable that a
taxation authority will accept an uncertain
tax treatment. The Company measures its
tax balances either based on the most likely
amount or the expected value, depending
on which method provides a better
prediction of the resolution of the
uncertainty.
Deferred income tax is provided in full on
temporary differences arising between the
tax bases of assets and liabilities and their
carrying amounts in the financial statements.
Deferred income tax is not accounted for if
it arises from initial recognition of an asset
or liability in a transaction other than a
business combination that at the time of the
transaction affects neither accounting profit
nor taxable profit (tax loss) and does not
give rise to equal taxable and deductible
temporary differences.
Deferred income tax is determined using tax
rates (and laws) that have been enacted or
substantially enacted by the end of the
reporting period and are expected to apply
when the related deferred income tax asset
is realised or the deferred income tax liability
is settled.
Deferred tax assets are recognised for all
deductible temporary differences, unused
tax credits and unused tax losses only if it is
probable that future taxable amounts will be
available to utilise those temporary
differences and losses.
Deferred tax assets and liabilities are offset
where there is a legally enforceable right to
offset current tax assets and liabilities and
where the deferred tax balances relate to
the same taxation authority. Current tax
assets and tax liabilities are offset where the
entity has a legally enforceable right to
offset and intends either to settle on a net
basis, or to realise the asset and settle the
liability simultaneously.
Current and deferred tax is recognised in
profit or loss, except to the extent that it
relates to items recognised in other
comprehensive income or directly in equity.
In this case, the tax is also recognised in
other comprehensive income or directly in
equity, respectively.
(i) Impairment of non-financial assets
Non-financial assets are tested for
impairment whenever events or changes in
circumstances indicate that the carrying
amount may not be recoverable. An
impairment loss is recognised for the
amount by which the asset's carrying
amount exceeds its recoverable amount. The
recoverable amount is the higher of an
asset's fair value less costs of disposal and
value in use. For the purposes of assessing
impairment, assets are grouped at the lowest
levels for which there are separately
identifiable cash inflows which are largely
independent of the cash inflows from other
assets or groups of assets (cash-generating
units). Non-financial assets other than
goodwill that suffered an impairment are
reviewed for possible reversal of the
impairment at the end of each reporting
period.
(j) Trade and other payables
These amounts represent liabilities for goods
and services provided to the Company prior
to the end of the financial year which are
unpaid. The amounts are unsecured and are
usually paid within 90 days of recognition
except for outstanding dues to micro
enterprises and small enterprises where the
due date is within 45 days. Trade and other
payables are presented as current liabilities
unless payment is not due within 12 months
after the reporting period. They are
recognised initially at their fair value and
subsequently measured at amortised cost
using the effective interest method.
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