Note 1 Corporate Information
NB Footwear Limited is a Public Limited company incorporated in India and has its registered office at Vellore,
Tamilnadu. As per our report of even date attached, the company is engaged in the business as tanners,
processors, manufacturers, importers, exporters, agents, representatives, dealers and consultants in hides,
skins of all animal leather, leathergoods and footwear of all kinds.
Note 1.1 Basis of Preparation
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at
fair values, the provisions of the Companies Act, 2013 ('the Act') (to the extent notified) and guidelines issued
by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act
read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant amendment
rules issued thereafter.
Effective April 1,2017, the Company has adopted all the Ind AS standards and the adoption was carried out in
accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards, with April 1, 2017 as the
transition date. The transition was carried out from Indian Accounting Principles generally accepted in India
as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
(IGAAP), which was the previous GAAP.
Accounting policies have been consistently applied except where a newly-issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.
Note 1.2 Use of estimates and judgments
The preparation of the financial statements in conformity with Ind AS requires the Management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application
of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets
and liabilities at the date of the financial statements and reported amounts of revenues and expenses during
the period. The application of accounting policies that require critical accounting estimates involving
complex and subjective judgments and the use of assumptions in these financial statements have been
disclosed in Note 1.4. Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as the Management becomes aware of
changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, their effects are disclosed in the notes
to thefinancial statements.
Note 1.3 Critical Accounting Estimates
a. Non Curent Assets
For the purposes of current/non-current classification of assets and liabilities the company has ascertained
its normal operating cycle as twelve months. This is based on nature of service and the time between the
acquisiting of assets or inventories for processing and their relaization in cash and cash equivalants.
b Cash and Cash Equivalents
Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid
investments and deposits with the banks that are readily convertible into cash and which are subject to an
insignificant riskof changes in value,
c Earnings Per Share
Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares outstanding during the period. Diluted earnings
per equity share is computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares considered for deriving basic earnings per equity share and
also the weighted average number of equity shares that could have been issued on conversion of all dilutive
potential equity shares are adjusted for the proceeds receivables had the equity shares been actually issued
at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares
are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity
shares are determined independently for each period presented.
Nature of Reserves
(a) Capital Reserve
The Company recognises profit or loss on purchase, sale, issue or cancellation of the
Company's own equity instruments is transferred to capital reserve.
(b) Securities Premium Reserve
The amount received in excess of face value of the equity shares is recognised in securities
premium reserve. The reserve is utilised in accordance with the provision of the Companies
Act, 2013.
(c) Retained Earnings
Retained earnings comprise of the undistributed earnings after taxes.
J
As per report of even date attached For & Behalf of the Board of Directors of
For K. Gopal Rao & Co. n B Footwear Limited
Chartered Accountants
FRN : 000956S
(CA Madan Gopal Narayanan) (S.Krishnan) (Kannan Yadav) (Rajen K. Desai)
Partner (ED, CFO & Company Secretary) (Managing Director & CEO) (Director)
M No. 211784 DIN: 00583985 DIN: 00249225 DIN: 00382740
Place: Chennai Place: Mumbai ,
Date : 20.04.2024
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