(m) Provisions and contingent liabilities
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and the amount can be reliably estimated. The expense relating to a provision is presented in
the Standalone Statement of Profit and Loss, net of any reimbursements.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset, if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
A present obligation that arises from past events, where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent
liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company (Refer Note - 44).
Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are
not disclosed as contingent liabilities.
Contingent assets are not recognised in the financial statements since this may result in the recognition of
income that may never be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and is recognised.
(n) Employee benefits
(a) Short-term employee benefits
Short-term employee benefits are recognised as an expense on accrual basis.
(b) Defined contribution plan
The Company makes defined contribution to the Government Employee Provident Fund and Superannuation
Fund, which are recognised in the Standalone Statement of Profit and Loss, on accrual basis. The Company
recognises contribution payable to the provident fund scheme as an expense, when an employee renders the
related service. The Company has no obligation, other than the contribution payable to the provident fund.
(c) Defined benefit plan
The Company operates a defined benefit gratuity plan in India. The Company operates gratuity plan through
a Trust wherein certain employees are entitled to the benefit equivalent to fifteen days salary last drawn for
each completed year of service as per the Payment of Gratuity Act, 1972. In case of some employees, the
Company's scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972.
The benefit vests after five years of continuous service and the same is payable on termination of service or
retirement, whichever is earlier. The gratuity plan is funded (maintained by an independent insurance company)
hence the liability has been categorized as funded. The Company's liabilities under The Payment of Gratuity
Act, 1972 are determined on the basis of actuarial valuation made at the end of each financial year using
the projected unit credit method. Obligation is measured at the present value of estimated future cash flows
using a discounted rate that is determined by reference to market yields at the Standalone Balance Sheet date
on Government bonds, where the terms of the Government bonds are consistent with the estimated terms
of the defined benefit obligation. The net interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and fair value of plan assets. This cost is included in the ‘Employee
benefits expense' in the Standalone Statement of Profit and Loss. Re-measurement gains or losses and return
on plan assets (excluding amounts included in net Interest on the net defined benefit liability) arising from
changes in actuarial assumptions are recognised in the period in which they occur, directly in OCI. These are
presented as re-measurement gains or losses on defined benefit plans under other comprehensive income in
other equity. Remeasurements gains or losses are not reclassified subsequently to the Standalone Statement
of Profit and Loss.
(d) Compensated absences
The employees of the Company are entitled to compensated absences. The employees can carry forward a
portion of the unutilised accumulating compensated absences and utilise it in future periods or receive cash
at retirement or termination of employment. The Company records an obligation for compensated absences in
the period in which the employee renders the services that increases this entitlement. The Company measures
the expected cost of compensated absences as the additional amount that the Company expects to pay as
a result of the unused entitlement that has accumulated at the end of the reporting period. The Company
recognises accumulated compensated absences based on actuarial valuation in the Standalone Statement
of Profit and Loss.
The Company presents the entire leave as a current liability in the Standalone Balance Sheet, since it does
not have any unconditional right to defer its settlement for twelve months after the reporting date.
(o) Share-based payment
Certain employees of the Company have been granted stock-based awards, including stock options, stock
appreciation rights (SARs), and restricted stock units (RSUs) of Aditya Birla Fashion and Retail Limited
(Demerged Company), in accordance with the ESOP Policy of ABFRL. In compliance with Ind AS 102 - Share-
based Payments, the Company has accounted for these awards using the graded vesting method. The Grant
date fair value of equity-settled awards has been used for the purpose of accounting the related expenses.
SARs are remeasured at fair value at each balance sheet date, with changes recognized in the Statement of
Profit and Loss.
(p) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holders of the
Company by the weighted average number of equity shares outstanding during the period.
Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to
participate in dividends relative to a fully paid equity share during the reporting period. Earnings, considered
in ascertaining the Company's earnings per share, is the net profit for the period after deducting preference
dividends. The weighted average number of equity shares outstanding during the period is adjusted for treasury
shares and events such as bonus issue, bonus element in a rights issue that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.
(q) Cash and cash equivalents
Cash and cash equivalents in the Standalone Balance Sheet and for the purpose of the Standalone Statement
of Cash Flows comprise cash on hand and cash at bank including fixed deposits with original maturity period
of three months or less and short-term highly liquid investments with an original maturity of three months
or less net of outstanding bank overdrafts as they are considered an integral part of the Company's cash
management.
(r) Common control business acquisition
Acquisition of business under common control has been accounted in accordance with “Pooling of interest
method", as specified below:
(a) All assets and liabilities acquired are stated at their carrying values as appearing in the financial statements
of de-merged company
(b) Shares held by the de-merged company in the Company shall be cancelled
(c) Difference between the carrying amounts of assets and liabilities acquired, face value of the shares cancelled
as referred to in (b) above and the amount recorded as share-capital issued to the shareholders of the de¬
merged company shall be transferred to capital reserve; and
(d) Financial information relating to the acquired business has been accounted from the beginning of the financial
year, as if the acquisition had occurred from that date.
NOTE - 52
ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III
(i) DETAILS OF BENAMI PROPERTY HELD
No proceedings have been initiated on or are pending against the Company under the Prohibition of Benami
Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act,
1988 (45 of 1988)) and Rules made thereunder.
(ii) COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES
The Company has complied with the number of layers prescribed under Section 2(87) of the Companies Act,
2013 read with Companies (Restriction of number of layers) Rules, 2017.
(iii) RELATIONSHIP WITH STRUCK OFF COMPANIES
The Company has no transactions with or balances due to or from companies struck off under Companies
Act, 2013 or Companies Act, 1956.
(iv) BORROWINGS SECURED AGAINST CURRENT ASSETS
During the period, the Company was not granted working capital loans secured by current assets; therefore,
it was not required to file quarterly statements with any banks or financial institutions.
(v) WILFUL DEFAULTER
The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.
(vi) COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS
The Company has accounted for the Scheme of arrangement with Aditya Birla Fashion and Retail Limited in
accordance with the accounting treatment as specified in the Scheme. (Refer Note 48)
(vii) UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(viii) UNDISCLOSED INCOME
There is no income surrendered or disclosed as income during the current year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.
(ix) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company has not traded or invested in crypto currency or virtual currency during the current year.
(x) VALUATION OF PROPERTY PLANT AND EQUIPMENT (INCLUDING RIGHT-OF-USE ASSETS) AND INTANGIBLE
ASSETS
The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) and Intangible
assets during the current year. The Company did not have any Investment Property during the current year.
(xi) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
In accordance with the Scheme of Arrangement, the Company has assumed unsecured borrowings from the
Demerged Company and, as a result, is not required to register charges with the Registrar of Companies.
NOTE - 53
Comparative Financial Information
The Company was incorporated on April 9, 2024 and accordingly comparative numbers have not been presented
in these financial statements.
As per our report of even date
For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board of Directors of
Chartered Accountants Aditya Birla Lifestyle Brands Limited
ICAI Firm Registration No. 304026E/E-300009
A.J. SHAIKH ASHISH DIKSHIT VISHAK KUMAR
Partner (Managing Director) (Deputy Managing Director and CEO)
Membership No.: 203637 (DIN: 01842066) (dIN: 09078653)
Place: Mumbai Place: Mumbai
Date : May 23, 2025 Date : May 23, 2025
DHARMENDRA LODHA RAJEEV AGRAWAL
(Chief Financial Officer) (Company Secretary)
(M.No: A18877)
Place: Mumbai
Date : May 23, 2025 Place: Mumbai Place: Mumbai
Date : May 23, 2025 Date : May 23, 2025
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