2. Material Accounting Policies

2.1.1 Statement of compliance

Statement of Compliance with Indian
Accounting Standards (Ind AS):

The standalone financial statements have
been prepared in accordance with Indian
Accounting Standards (Ind AS) prescribed
under the Section 133 of the Companies Act
2013, other relevant provisions of the Act
and presentation requirements of Division II
of Schedule III to the Companies Act, 2013,
(Ind-AS compliant Schedule III).

2.1.2 Basis of preparation and presentation

These standalone Financial Statements
which comprise the Balance Sheet as at
March 31, 2025, the Statement of Profit and
Loss, the Statement of changes in equity
and the Statement of Cash flows for the year
ended March 31,2025, and other explanatory
information (together hereinafter referred
to as "Standalone Financial Statements" or
"financial statements").

These financial statements have been
prepared on historical cost basis, except
for certain assets and liabilities that are
measured at fair values at the end of each
reporting period. The financial statements
are presented in Indian Rupees (?) and all
values are rounded to the nearest Crores,
except where otherwise indicated.

2.1.3 Fair Value Measurement ²

Fair value is the price that would be received

to sell an asset or paid to transfer a liability

in an orderly transaction between market [

*

participants at the measurement date,
(regardless of whether that price is directly
observable or estimated using another
valuation technique). In estimating the fair
value of an asset or a liability, the Company
takes into account the characteristics of the
asset or liability, if market participants would
take those characteristics into account
when pricing the asset or liability, at the
measurement date.

In addition, for financial reporting purposes,
fair value measurements are categorised
into Level 1, 2, or 3 based on the degree to
which inputs to the fair value measurements
are observable and the significance of the
inputs to the fair value measurement in its
entirety, which are described as follows:

• Level 1 inputs are quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at the measurement
date;

• Level 2 inputs are inputs, other than
quoted prices included within Level
1, that are observable for the asset or
liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs
for the asset or liability.

Fair value for measurement and/or disclosure
purposes in these financial statements is
determined on such a basis, except for share-
based payment transactions that are within
the scope of Ind AS 102, leasing transactions
that are within the scope of Ind AS 116, and
measurements that have some similarities
to fair value but are not fair value, such as net
realisable value in Ind AS 2 or value in use in
Ind AS 36.

SUMMARY OF MATERIAL ACCOUNTING POLICIES

2.2 Current verus Non-Current Classification

The Company presents assets and liabilities in
the balance sheet based on current/non-current
classification.

An asset is treated as current when it is

• Expected to be realised or intended to be
sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading

• Expected to be realised within twelve

months after the reporting period, or

• Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

The Company classifies all other assets as non¬
current.

A liability is current when:

• It is expected to be settled in normal

operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months

after the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities. The operating
cycle is the time between the acquisition of assets
for processing and their realisation in cash and cash
equivalents. The Company has identified twelve
months as its operating cycle.

2.3 Revenue from contract with customer

2.3.1 Revenue from contracts with customers is
recognised when control of the goods or
services are transferred to the customer at
an amount that reflects the consideration to
which the Company expects to be entitled in
exchange for those goods or services. The
Company has generally concluded that it
is the principal in its revenue arrangements
except for the agency services because
it typically controls the goods before
transferring them to the customers.

2.3.2 Retail sale of Merchandise:

Revenue towards satisfaction of a
performance obligation is measured at
the amount of transaction price (net of

variable consideration) allocated to that
performance obligation. The transaction
price of goods sold and services rendered
is net of variable consideration on account
of various discounts, schemes, Goods and
Service Tax (GST) offered by the Company
as part of the contract.

Retail sales are recognised on delivery of
the merchandise to the customer, when the
property in goods and control are transferred
for a price and no effective ownership control
is retained.

Where the Company is the principal in
the transaction the Sales are recorded at
their gross values. Where the Company is
effectively the agent in the transaction, the
difference between the revenue and the cost
of the merchandise is disclosed as other
operating income. (Refer Note 19)

The Customer can exchange/refund the
merchandise in undamaged and saleable
condition with a valid memo within 14 days
from the date of sale.

Point award schemes: The Company
operates a loyalty programme which
allows customers to accumulate points
on purchases made in retail stores. The
points give rise to a separate obligation
as it entitles the customers to redeemed
these points against the future purchase
transaction price. The fair value of the
consideration on sale of goods that result
in award credits for customers, under
the Company's point award schemes, is
allocated between the goods supplied and
the award credits granted. The consideration
allocated to the award credits is measured by
reference to fair value from the standpoint
of the holder and is recognised as revenue
on redemption and/or expected redemption
after breakage. The Company has no rights
to defer these unredeemed points.

2.3.3 Gift vouchers: Gift vouchers issued by
the Company to the customers entitles to
redeem the value of the voucher against
the future purchases. The amount collected
on sale of a gift voucher is recognised as a
liability and transferred to revenue (sales)
when redeemed or to revenue (other retail
operating revenue) on expiry.

and condition. Costs of inventories are determined '
on a weighted average cost basis. Net realisable
value represents the estimated selling price for
inventories less all estimated costs necessary to
make the sale. Provision is made for obsolete/slow
moving inventories.

2.5 Property, Plant and Equipment and Intangible
Assets

2.5.1 Property, Plant and Equipment are stated
at cost less accumulated depreciation
and accumulated impairment losses.
Cost comprises of all cost of purchase,
construction and other related costs
incurred in bringing the assets to their
present location and condition.

2.5.2 Depreciation is recognised on a straight¬
line basis over the estimated useful lives of
respective assets as under:

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 statement of profit and loss
when the asset is derecognised.

2.5.3 Intangible Assets are stated at cost less
amortisation and accumulated impairment
losses. Cost comprises of all cost of
purchases, construction and other related
costs incurred in bringing the assets to their
present location and condition.

2.5.4 Amortisation is recognised on a straight
line basis over the estimated useful lives of
respective assets as under :-

An item of Intangible Assets 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 statement of profit
and loss when the asset is derecognised.

Useful life of assets different from
prescribed in Schedule II has been estimated
by management supported by technical
assessment.

The estimated useful lives, residual values
and depreciation method are reviewed at the
end of each reporting period and the effect
of any changes in estimate is accounted for
prospectively.

2.5.5 impairment losses: At the end of each
reporting period, the Company reviews the
carrying amounts of the assets to determine
whether there is any indication that those
assets have suffered an impairment loss. If
any such indication of impairment loss exists,
the recoverable amount, (i.e. higher of fair
value less costs of disposal and value in use)
of the asset is estimated, or, when it is not

possible to estimate the recoverable amount
of an individual asset, the recoverable
amount of the cash- generating unit to
which the asset belongs is estimated. If the
recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than
its carrying amount, the carrying amount
of the asset (or cash-generating unit) is
reduced to its recoverable amount and an
impairment loss is recognised immediately
in profit or loss.

A cash- generating unit is the smallest
identifiable group of assets that generate
cash inflows that are largely independent
of cash inflows from other assets or group
of assets. Identification of an asset's cash¬
generating unit involves judgement. If
recoverable amount cannot be determined
for an individual asset, an entity identifies
the lowest aggregation of assets that
generate largely independent cash inflows.
The Company has considered each store as
cash generating unit as recoverable amount
of individual asset can be identifiable. Each
store is largely independent of cash inflows
of other assets as each store has there own
customer base and separate assets to use.

When an impairment loss subsequently
reverses, the carrying amount of the asset
(or a cash-generating unit) is increased
to the revised estimate of its recoverable
amount, but so that the increased carrying
amount does not exceed the carrying
amount that would have been determined
had no impairment loss been recognised for
the asset (or cash-generating unit) in prior
years. A reversal of an impairment loss is
recognised immediately in profit or loss.

2.5.6 Deemed cost on transition to ind AS: The

Company has elected to continue with the
carrying value of all of its Property, Plant and
Equipment and Intangible Assets as of April
01, 2015 (transition date) measured as per
the previous GAAP, and use that carrying
value as its deemed cost as of the transition
date.

2.6 Financial Instruments

Classification:

The Company classifies its financial assets in the

following measurement categories:- those to be

measured subsequently at fair value (either through

other comprehensive income, or through the
Statement of Profit and Loss), and - those measured
at amortised cost. The classification depends on
the Company's business model for managing the
financial assets and the contractual terms of the
cash flows. For assets measured at fair value, gains
and losses will either be recorded in the Statement of
Profit and Loss or other comprehensive income. For
investments in debt instruments, this will depend
on the business model in which the investment is
held. For investments in equity instruments, this
will depend on whether the Company has made an
irrevocable election at the time of initial recognition
to account for the equity investment at fair value
through other comprehensive income.

The Company reclassifies debt investments when
and only when its business model for managing
those assets changes.

Measurement:

At initial recognition, All financial assets (except
trade receivable) are recognised initially at fair value,
plus in the case of financial assets not recorded at
fair value through profit or loss (FVTPL), transaction
costs that are attributable to the acquisition of the
financial asset However, trade receivables that do
not contain a significant financing component are
measured at transaction price.

Debt instruments:

Subsequent measurement of debt instruments
depends on the Company's business model for
managing the asset and the cash flow characteristics
of the asset. There are three measurement
categories into which the Company classifies its
debt instruments:

Amortised cost:

Assets that are held for collection of contractual
cash flows where those cash flows represent solely
payments of principal and interest are measured at
amortised cost. A gain or loss on a debt investment
that is subsequently measured at amortised cost
and is not part of a hedging relationship is recognised
in the Statement of Profit and Loss when the asset
is derecognised or impaired. Interest income from
these financial assets is included in other income
using the effective interest rate method.

Fair value through other comprehensive income
(FVOCI):

Assets that are held for collection of contractual
cash flows and for selling the financial assets,

where the assets' cash flows represent solely
payments of principal and interest are measured
at fair value through other comprehensive income
(FVOCI). Movements in the carrying amount are
taken through OCI, except for the recognition
of impairment gains or losses, interest revenue
and foreign exchange gains and losses which are
recognised in the Statement of Profit and Loss.
When the financial asset is derecognised, the
cumulative gain or loss previously recognised in
OCI is reclassified from equity to the Statement of
Profit and Loss and recognised in other income/
expense. Interest income from these financial
assets is included in other income using the
effective interest rate method.

Fair value through profit and loss:

Assets that do not meet the criteria for amortised
cost or FVOCI are measured at fair value through
Statement of Profit and Loss. A gain or loss on a
debt investment that is subsequently measured at
fair value through Statement of Profit and Loss and
is not part of a hedging relationship is recognised in
the Statement of Profit and Loss and presented net
in the Statement of Profit and Loss In the period in
which it arises. Interest income from these financial
assets is included in other income.

Equity instruments:

The Company subsequently measures all equity
investments at fair value. Where the Company's
management has elected to present fair value
gains and losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
the Statement of Profit and Loss. Dividends from
such investments are recognised in the Statement
of Profit and Loss as other income when the
Company's right to receive payments is established.
Changes in the fair value of financial assets at fair
value through the Statement of Profit and Loss are
recognised in other income/other expenses in the
Statement of Profit and Loss. Impairment losses
(and reversal of impairment losses) on equity
investments measured at FVOCI are not reported
separately from other changes in fair value.

impairment of financial assets:

The Company assesses on a forward looking basis
the expected credit losses associated with its
assets carried at amortised cost. The impairment
methodology applied depends on whether there
has been a significant increase in credit risk.

Derecognition of financial assets:

A financial asset is derecognised only when -the
Company has transferred the rights to receive
cash flows from the financial asset or retains the
contractual rights to receive the cash flows of
the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more
recipients. Where the Company has transferred
an asset, the Company evaluates whether it has
transferred substantially all risks and rewards of
the financial asset. In such cases, the financial
asset is derecognised. Where the Company
has not transferred substantially all risks and
rewards of ownership of the financial asset, the
financial asset is not derecognised. Where the
Company has neither transferred a financial asset
nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset
is derecognised if the Company has not retained
control of the financial asset. Where the Company
retains control of the financial asset, the asset
is continued to be recognised to the extent of
continuing involvement in the financial asset.

2.6.1 investments in subsidiaries: The Company
has elected to account for its equity
investments in subsidiaries under Ind AS
27 on Separate Financial Statements, at
cost.At the end of each reporting period
the Company assesses whether there are
indicators of diminution in the value of its
investments and provides for impairment
loss, where necessary.

2.6.2 Financial liabilities are initially measured
at fair value. Transaction costs that are
directly attributable to the issue of financial
liabilities are deducted from the fair value of
the financial liabilities on initial recognition.
After initial recognition, all financial liabilities
(other than financial guarantee contracts
and derivative instruments - see below) are
subsequently measured at amortised cost
using the effective interest method.

Offsetting financial instruments:

Financial assets and liabilities are offset and
the net amount is reported in the balance
sheet where there is a legally enforceable
right to offset the recognised amounts and
there is an intention to settle on a net basis
or realise the asset and settle the liability
simultaneously. The legally enforceable right
must not be contingent on future events and

must be enforceable in the normal course
of business and in the event of default
insolvency or bankruptcy of the Company or
the counterparty.

2.6.3 Financial guarantee contracts: The Company
on a case to case basis elects to account for
financial guarantee contracts as a financial
instrument or as an insurance contract,
as specified in Ind AS 109 on Financial
Instruments and Ind AS 104 on Insurance
Contracts. The Company has regarded all its
financial guarantee contracts as insurance
contracts. At the end of each reporting
period the Company performs a liability
adequacy test, (i.e. it assesses the likelihood
of a pay-out based on current undiscounted
estimates of future cash flows), and any
deficiency is recognised in profit or loss.

2.6.4 Derivative instruments: The Company
enters into foreign exchange forward
contracts to manage its exposure to foreign
exchange rate risks. These contracts
are initially recognised at fair value and
subsequently, at the end of each reporting
period, re- measured at their fair values on
reporting date. The resulting gain or loss is
recognised in profit or loss in the same line
as the movement in the hedged exchange
rate.

2.7 Taxation

Income tax expense represents the sum of the tax
currently payable and deferred tax. Current and
deferred tax are recognised in profit or loss except
when they relate to items that are recognised in
other comprehensive income or directly in equity,
in which case the current and deferred tax are also
recognised in other comprehensive income or
directly in equity, respectively.

2.7.1 Current tax: The tax currently payable is
based on the taxable profit for the year and
is calculated using applicable tax rates
and tax laws that have been enacted or
substantively enacted.

2.7.2 Deferred tax:

Deferred tax is provided using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax assets are recognised for
all deductible temporary differences, the
carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are
recognised to the extent that it is probable
that taxable profit will be available against
which the deductible temporary differences,
and the carry forward of unused tax credits
and unused tax losses can be utilised,
except when the deferred tax asset relating
to the deductible temporary difference
arises from the initial recognition of an
asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss and does
not give rise to equal taxable and deductible
temporary differences.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will
be available to allow all or part of the asset
to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting
date and are recognised to the extent that
it has become probable that future taxable
profits will allow the deferred tax asset to be
recovered.

Deferred tax liabilities and assets are
measured at the tax rates that are expected
to apply in the period in which the liability is
settled or the asset realised, based on tax
rates (and tax laws) that have been enacted
or substantively enacted.

Deferred tax assets and deferred tax liabilities
are offset if a legally enforceable right exists
to set off current tax assets against current
tax liabilities and the deferred taxes relate
to the same taxable entity and the same
taxation authority.

2.8 Employee benefits

2.8.1 Defined Contribution Plan: The Company
makes defined contribution to Government
Employee Provident Fund, Government
Employee Pension Fund, Employee Deposit
Linked Insurance and ESI, which are
recognised in the statement of profit and loss
on accrual basis. The Company recognises
contribution payable to the provident
fund scheme as an expenditure, when an
employee renders the related service. The
Company has no obligation, other than the
contribution payable to the provident fund.

2.8.2 Retirement benefit costs and termination
benefits: Payments to defined benefit plans
are recognised as expense when employees
have rendered service entitling them to the
contributions.

The Company determines the present value
of the defined benefit obligation and fair
value of plan assets and recognises the net
liability or asset in the balance sheet. The
net liability or asset represents the deficit
or surplus in the Company's defined benefit
plans. (The surplus is limited to the present
value of economic benefits available in the
form of refunds from the plans or reductions
in future contributions to the plans).

The present value of the obligation is
determined using the projected unit credit
method , with actuarial valuations being
carried out at the end of each year.

Defined benefit costs are composed of:

• Service cost (including current service
cost, past service cost, as well as
gains and losses on curtailments and
settlements);

• net interest expense or income; and

• Re-measurement

The first two components are recognised in
profit or loss. Re-measurement, comprising
actuarial gains and losses, the effect of the
changes to the asset ceiling (if applicable)
and the return on plan assets (excluding net
interest), is reflected in the balance sheet
and a charge or credit, (as the case may
be), is recognised in other comprehensive
income. Re-measurement recognised in
other comprehensive income is reflected
in retained earnings. Past service cost is
recognised in profit or loss in the period of
a plan amendment. Net interest is calculated
by applying the discount rate at the
beginning of the period to the net defined
benefit liability or asset.

The retirement benefit liability or asset
recognised in the balance sheet represents

the actual deficit or surplus in the Company's
defined benefit plans. The surplus is limited
to the present value of economic benefits
available in the form of refunds from the
plans or reductions in future contributions
to the plans.

2.8.3 Short-term benefits: A liability is recognised
for benefits accruing to employees in respect
of wages and salaries, annual leave and other
short term benefits in the period the related
service is rendered at the undiscounted
amount of the benefits expected to be paid
in exchange for that service.

Other long-term benefits: Liabilities
recognised in respect of other long-term
employee benefits are measured at the
present value of the estimated future
cash outflows expected to be made by the
Company in respect of services provided by
employees up to the reporting date.

2.9 Share based payment arrangements:

Equity-settled share-based payments to employees
of the Company are measured at the fair value of
the equity instruments at the grant date. Details
regarding the determination of the fair value of
equity-settled share-based transactions are set out
in Note 34. The fair value determined at the grant
date of the equity-settled share- based payments
to employees of the Company is expensed on a
straight-line basis over the vesting period, based
on the Company's estimate of equity instruments
that will eventually vest, with a corresponding
increase in equity at the end of year. At the end of
each year, the Company revisits its estimate of the
number of equity instruments expected to vest
and recognises any impact in profit or loss, such
that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the
equity-settled employee benefits reserve.

2.10 Leases

Ind AS 116 sets out the principles for the recognition,
measurement, presentation and disclosure of
leases and requires lessees to account for all leases
under a single on- balance sheet model similar to
the accounting for finance leases under Ind AS 17.
The standard includes two recognition exemptions
for lessees - leases of 'low-value' assets (e.g.,
personal computers) and short-term leases (i.e.,
leases with a lease term of 12 months or less).

The Company assesses at contract inception
whether a contract is or contains a lease. That is, of
the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

Where the Company is the lessee:

The Company applies a single recognition and
measurement approach for all leases, except for
short term leases and leases of low value assets.
The Company recognises lease liabilities to make
lease payments and right of use assets representing
the right to use the underlying assets.

Right of use assets:

The Company recognises right of use assets at the
commencement date of the lease (i.e. the date the
underlying asset is available for use). Right of use
assets are measured at cost, less any accumulated
depreciation and impairment losses and adjusted
for any remeasurement of lease liabilities. The
cost of right of use assets includes the amount
of lease liabilities recognised, initial direct cost
incurred, and lease payments made at or before
the commencement date less any lease incentives
received. Right of use assets are depreciated on a
straight line basis over the shorter of the lease term
and the estimated useful lives of the assets.

The right of use assets are also subject to
impairment.

Lease liabilities :

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made
over the lease term. The lease payments include
fixed payments (including in substance fixed
payments) less any lease incentives receivable,
variable lease payments that depend on an index
or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the Company
and payments of penalties for terminating the
lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease
payments that do not depend on an index or a
rate are recognised as expenses (unless they are
incurred to produce inventories) in the period
in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment of
an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases
of machinery and equipment (i.e., those leases
that have a lease term of 12 months or less from
the commencement date and do not contain a
purchase option). It also applies the lease of low-
value assets recognition exemption to leases of
office equipment that are considered to be low
value.

2.11 Foreign Currency transactions

The Company's financial statements are presented
in INR which is also its functional currency.
Transactions in currencies other than the
Company's functional currency (foreign currencies)
are recognised at the rates of exchange prevailing
at the dates of the transactions. At the end of each
reporting period, monetary items denominated
in foreign currencies are retranslated at the rates
prevailing at that date. Exchange differences arising
on settlement or translation of monetary items are
recognised in the profit or loss.

2.12 Borrowing Costs

Borrowing Cost includes interest and amortisation
of ancillary costs incurred in connection with the
arrangement of borrowings.

Borrowing costs if any, directly attributable to
the acquisition, construction or production of
qualifying assets, as defined in Ind AS 23 are added
to the cost of those assets, until such time as the
assets are substantially ready for their intended use
or sale.

All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.

2.13 Refund liabilities

A refund liability is the obligation to refund part
or all of the consideration received from the
customer towards exchange or return of the
goods. The Company has therefore recognised
refund liabilities in respect of credit note issued
to the customers for exchange or return of goods.
The Company has presented the same in other
current liabilities.