2.21 Provisions, contingent liabilities and contingent
assets
Provisions are measured at the Present value of the
management's best estimate (these estimated are reviewed
at each reporting date and adjusted to reflect the current
best estimate) of the expenditure required to settle the
present obligation at the end of reporting period. Provisions
involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result
of past events and it is probable that there will be an outflow
of resources.
Contingent liabilities are disclosed only 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 which is
not wholly within the control of the Company or a present
obligation that arises from past events where it is either not
probable that an outflow of resources will be required to
settle the obligation or estimate of the amount cannot be
measured reliably.
No contingent asset is recognized but disclosed by way of
notes to accounts only when its recognition is virtually certain.
2.22 Revenue recognition
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue
can be reliably measured, regardless of when the payment is
being made. Amount of sales are net of goods and service tax,
sale returns, trade allowances and discounts.
Revenue from contracts with customers is recognised
when control of the goods is transferred to the customer on
satisfaction of performance obligations. The Performance
obligations as per contracts with customers are fulfilled at
the time of dispatch or delivery of goods depending upon the
terms agreed with customer.
Revenue towards satisfaction of performance obligation is
measured at the amount of transaction price (net of variable
consideration and provision for sales returns) allocated to
that performance obligation. Amounts disclosed as revenue
are net of returns and trade discounts, rebates, incentives,
etc. A receivable is recognised where the Company's right to
consideration is unconditional. The Company collects goods
and services tax on behalf of the government and therefore,
these are not economic benefits flowing to the Company.
Hence, these are excluded from the revenue.
Additional points:
Contract assets/contract liabilities
When either party to a contract has performed, an entity shall
present the contract in the balance sheet as contract asset or
contract liability, depending on the relationship between the
entity's performance and the customer's payment.
Principal vs agent :
The Company assesses its revenue arrangement in order
to determine if its business partner is acting as a principle
or as an agent by analysing whether the Company has
primary obligation for pricing latitude and exposure to credit /
inventory risk associated with the sale of goods. The Company
has concluded that certain arrangements are on principal to
agent basis where its business partner is acting as an agent.
Hence, sale of goods to its business partner is recognised
once they are sold to the end customer.
Rights of return :
Certain contracts provide a customer with a right to return
the goods within a specified period. The Company uses the
expected value method to estimate the goods that will be
returned because this method best predicts the amount of
variable consideration to which the Company will be entitled.
The requirements in Ind AS 115 on constraining estimates of
variable consideration are also applied in order to determine
the amount of variable consideration that can be included
in the transaction price. For goods that are expected to be
returned, instead of revenue, the Company recognises a
refundable liability. A right of return asset and corresponding
adjustment to change in inventory is also recognised for the
right to recover products from a customer.
Returnable assets :
Assets and liabilities arising from returns i.e. Returnable assets
represents the Company's right to recover the goods expected
to be returned by customers. The asset is measured at the
former carrying amount of the inventory, less any expected
costs to recover the goods, including any potential decrease
in the value of the returned goods. The Company updates the
measurement of the asset recorded for any revisions to its
expected level of returns, as well as any additional decrease
in the value of the returned products.
Refundable liabilities:
A refundable liability is the obligation to refund some or all of
the consideration received (or receivable) from the customer
and is measured at the amount the Company ultimately
expects it will have to return to the customer. The Company
updates its estimates of refundable liabilities (and the
corresponding change in the transaction price) at the end of
each reporting period. Refer to above accounting policy on
variable consideration.
Allowance for uncollectible trade receivables:
Trade receivables do not carry any interest and are stated at
their nominal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Estimated irrecoverable
amounts are based on the ageing of the receivable balance
and historical experience. Additionally, a large number of
minor receivables is grouped into homogeneous groups
and assessed for impairment collectively. Individual trade
receivables are written off when management deems them
not to be collectible.
Other income :
Interest income
Interest income from a financial asset is recognized when it is
probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest is
accrued on time proportion basis, by reference to the principle
outstanding at the effective interest rate.
Dividends
Income from dividend on investments is accrued in the year in
which it is declared, whereby the Company's right to receive
is established.
All other income is recognized on accrual basis when no
significant uncertainty exists on their receipt.
2.23 Income taxes
Income tax expense for the year comprises of current tax
and deferred tax. It is recognised in the Statement of Profit
and Loss except to the extent it relates to any business
combination or to an item which is recognised directly in
equity or in other comprehensive income.
a) Current tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the tax authorities in accordance with the Income Tax
Act, 1961 enacted in India. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted at the reporting date. Current
income tax relating to items recognized outside statement
of profit or loss is recognized outside statement of profit or
loss (either in other comprehensive income or in equity).
Current tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
b) 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 recognized for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets
are recognized 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 utilized.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilized. Unrecognized deferred tax assets are re¬
assessed at each reporting date and are recognized to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted
at the reporting date.
Deferred tax relating to items recognized outside
statement of profit or loss is recognized outside statement
of profit or loss. Deferred tax items are recognized in
correlation to the underlying transaction either in OCI or
directly in equity.
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 Company Group and the same
taxation authority.
2.24 Employee benefits
i) Short term employee benefits
Short-term employee benefit obligations are measured on
an undiscounted basis and are expensed as the related
service is provided.
A liability is recognized for the amount expected to be
paid under performance related pay if the Company has a
present, legal or constructive obligation to pay this amount
as a result of past service provided by the employee and
the obligation can be estimated reliably.
ii) Post-employment benefits
Employee benefit that are payable after the completion
of employment are Post-Employment Benefit (other
than termination benefit). Company has identified post
employment benefits:
a) Defined contribution plans
Defined contribution plans are those plans in which
the Company pays fixed contribution into separate
entities and will have no legal or constructive
obligation to pay further amounts. Provident Fund and
Employee State Insurance are Defined Contribution
Plans in which Company pays a fixed contribution and
will have no further obligation beyond the monthly
contributions and are recognised as an expenses in
Statement of Profit & Loss.
b) Defined benefit plans
A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan.
Company pays Gratuity as per provisions of the
Payment of Gratuity Act. The Company's net obligation
in respect of defined benefit plans is calculated
separately for each plan by estimating the amount of
future benefit that employees have earned in return
for their service in the current and prior periods; that
benefit to employees is discounted to determine its
present value.
The calculation is performed annually by a qualified
actuary using the projected unit credit method.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in
the statement of profit and loss. Any actuarial gains or
losses pertaining to components of re-measurements
of net defined benefit liability/(asset) are recognized
in OCI in the period in which they arise. The calculation
is performed annually by a qualified actuary using the
projected unit credit method. The net interest cost
is calculated by applying the discount rate to the
net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in
employee benefit expense in the statement of profit
and loss. Any actuarial gains or losses pertaining to
components of re-measurements of net defined
benefit liability/(asset) are recognized in OCI in the
period in which they arise.
c) Compensated absences
The liabilities for leave balance are not expected to
be settled wholly within 1 2 months after the end of
the reporting period in which the employees render
the related service. They are therefore measured as
the present value of expected future payments to be
made in respect of services provided by employees up
to the end of the reporting period using the projected
unit credit method. The benefits are discounted using
the market yields on government bonds at the end of
the reporting period that have terms approximating to
the terms of the related obligation. Remeasurements
as a result of experience adjustments and changes in
actuarial assumptions are recognised in statement of
profit and loss.
The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.
2.25 Earnings per share
Basic earnings/(loss) Per Share is calculated by dividing
the net profit or loss for the period attributable to equity
shareholders by weighted average number of equity shares
outstanding during the period.
For the purpose of calculating diluted earnings/(loss) per
share, net profit after tax during the year and the weighted
average number of shares outstanding during the year are
adjusted for the effect of all dilutive potential equity shares.
2.26 Leases
Leases
The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period
of time in exchange for consideration.
Company as 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.
The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to
be exercised.
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 measurement of lease liabilities.
The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs 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 lease term or
useful life of assets which ever is lower, if ownership of the
leased asset transfer to the Company at the end of lease
term or the cost reflects the exercise of purchase option,
depreciation is calculated using the estimated useful life
of the assets. The Right-of-use assets are also subject
to impairment.
Right of Use Assets having definite life are depreciated on
straight line method in their useful life mentioned below:
a) Right of use assets 05-15 Years as per term of lease
Lease liability
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 less any lease incentives
receivable. 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 or a change in the
assessment of an option to purchase the underlying asset.
Short term lease and leases of low value assets
The Company applies the short-term lease recognition
exemption to its short-term leases (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 items
that are considered to be low value. Lease payments on short-
term leases and leases of low-value assets are recognised as
expense on a straight-line basis over the lease term.
2.27 Government grants
Grants from the Government are recognised when there is
reasonable assurance that all the underlying conditions will
be complied with and the grants will be received.
Government Grant whose primary condition is that the
Company should purchase,construct or otherwise acquire
capital assets are presented by adding them to the carrying
value of Assets. The grant is recognized as income over the
life of depreciable asset by way of transferring balance from
deferred revenue income to other income.
2.28 Amendments to Accounting Standards (Ind AS)
issued but not yet effective
(i) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants
In accordance with Ind AS 1 currently applicable, breach
of an immaterial covenant is ignored deciding in current
vs. non-current classification of liabilities. Also, in case of
breach of a material covenant of a non-current loan on
or before the reporting date, the entity can obtain waiver
from the lender after the reporting date and continue to
classify the loan as non-current liability.
In accordance with changes to Ind AS 1 already notified
by the MCA, the above relaxations to classify loan as non¬
current liability will not be available from FY 2026-27 onward
and need to be applied retrospectively. Consequently:
• A breach of either material or immaterial covenant will
trigger current classification of liability.
• To continue classifying loan as non-current liability,
entities will need to obtain waiver from the breach on or
before the reporting date.
The amendments are not expected to have a material impact
on the company's financial statements.
2.29 Amended Accounting Standards (Ind AS) and
interpretations effective during the year
Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2026, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind AS
116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1,2024. The Company
has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant
impact in its financial statements.
The Ministry of Corporate Affairs notified new standards or
amendment to existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. The
Group applied following amendments for the first-time during
the current year which are effective from 1 April 2025:
Lack of exchangeability - Amendments to Ind AS 21
MCA via notification dated 7 May 2025, announced
amendments to Ind AS 21 “The Effects of Changes in Foreign
Exchange Rates” to specify how an entity should assess
whether a currency is exchangeable and how it should
determine a spot exchange rate when exchangeability
is lacking. The amendments also require disclosure of
information that enables users of its financial statements to
understand how the currency not being exchangeable into
the other currency affects, or is expected to affect, the entity's
financial performance, financial position and cash flows. The
amendments are not expected to have a material impact on
the company's financial statements."
Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with Covenants
- Amendments to Ind AS 1
MCA via notification dated 13 August 2025 announced
amendments to Ind AS 1 “Presentation of Financial
Statements”, which elaborate on guidance set out in Ind AS
1 by:
• clarifying that the right to defer settlement of a liability
for at least 12 months after the reporting period; a) must
have substance, and b) must exist at the end of the
reporting period;
• stating that management's expectations around whether
they will defer settlement or not does not impact the
classification of the liability;
• including requirements for liabilities that can be settled
using an entity's own instruments; and
• stating that at the reporting date, the entity does not
consider covenants that will need to be complied with in
the future when considering the classification of the debt
as current or non-current.
The amendments are not expected to have a material impact
on the company's financial statements. in the period of
initial application.
Supplier Finance Arrangements - Amendments to
Ind AS 7 and Ind AS 107
MCA via notification dated 13 August 2025 announced
amendments to Ind AS 7 “Statement of Cash Flows” and Ind
AS 107 “Financial Instruments: Disclosures” which introduced
disclosure requirements with the objective to enable users
of financial statements to assess how supplier finance
arrangements affect an entity's liabilities, cashflows and
exposure to liquidity risk.
The amendments are not expected to have a material impact
on the company's financial statements."
International Tax Reform - Pillar Two Model Rules -
Amendments to Ind AS 12
MCA via notification dated 13 August 2025 announced
amendments to Ind AS 12 “Income Taxes” which includes:
• a temporary exception to the recognition and disclosure of
deferred taxes arising from the implementation of the Pillar
Two model rules; and
• additional disclosure requirements targeted at a reporting
entity's exposure to income taxes in periods in which the
Pillar Two Model legislation is enacted or substantively
enacted but not yet in effect.
The amendments are not expected to have a material impact
on the company's financial statements.
Notes:
a) Work in progress includes material lying at job-worker’s premises amounting to 51,449.47 lakhs (31 March 2025: 51,398.90 lakhs).
b) (i) Finished goods manufactured includes goods in transit Nil (31 March 2025: 540.27 lakhs) and goods lying with third party amounting to 5290.20
lakhs (31 March 2025: 5178.76 lakhs)
b) (ii) Finished goods traded includes goods in transit Nil (31 March 2025: 557.37 lakhs) and goods lying with third party amounting to 528.70 lakhs
(31 March 2025: 517.67 lakhs)
c) Refer note 54 for inventories hypothecated with banks.
d) The Company on a periodic basis assesses the markdown of its aged(slow moving/non-moving) or obsolete inventories. The exercise has been
carried out throughout the year and also at the year end. The estimated markdown amounts to 51,670.70 lakhs (31 March 2025: 5912.34 lakhs). The
management believes that above estimation is adequate both in line with the Company practise and industry standards.These were recognized as an
expense respectively during the year and were included in "Changes in inventories of finished goods, work-in-progress and stock-in-trade" in Statement
of Profit and Loss.
* Includes inventory of carry bags amounting 534.23 lakhs (31 March 2025:530.30 lakhs)
(iv) Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of ?2/- per share. Every holder of equity shares is entitled to
voting rights in proportion to his shares of the paid up equity share capital. The dividend, if any, proposed by the board of directors
is subject to the approval of the shareholders in the ensuing annual general meeting. The Company declares and pay dividend in
Indian rupees.
In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(v) No shares have been issued by the Company for consideration other than cash, during the period of five years immediately preceding
the reporting periods. Further, no shares are reissued for use under options and contracts or commitment for sale of shares or
disinvestment.
(vi) Further, there has been no buy back of shares during the period of five years immediately preceding 31 March 2026 and 31 March
2025.
(vii) No bonus shares have been issued by the Company during the period of five years immediately preceding the reporting periods.
46 EMPLOYEE BENEFIT OBLIGATIONS
Gratuity: 'The Company provides for gratuity for employees in India as per the Payment of Gratuity Act. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last
drawn salary per month computed proportionately for 15 days salary multiplied for the number of years of service. Liabilities with regard
to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the
projected unit credit method. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or
liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive
income and are not reclassified to profit or loss in subsequent periods.
During the year ended 31 March 2026, the Company has established an irrevocable and approved gratuity trust, namely “Cantabil Retail
India Limited Employees Gratuity Trust” registered under the Income-tax Act, 1961. The Company has obtained gratuity policies from
HDFC Life Insurance Company Limited and Nippon Life India for the purpose of funding its defined benefit obligations. The legal obligation
for any benefits remains with the Company, even if plan assets for funding the defined benefit plan have been set aside.
Compensated absences: The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature.
The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each
balance sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused
entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating leaves is recognized in the period in which
the absences occur.
51 FAIR VALUE DISCLOSURES
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are divided into three Levels of
a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Valuation process and technique used to determine fair value
Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted
prices in the active market. This category consists of mutual funds.
Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted
prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of
investment in equity shares of private limited companies.
The carrying amount of financial assets and financial liabilities measured at amortised cost in the Financial Statements are a
reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly
different from the values that would eventually be received or settled.
52 FINANCIAL RISK MANAGEMENT
The Company's principal financial liabilities comprise borrowings, lease liabilities, trade payables and other financial liabilities. The main
purpose of these financial liabilities is to finance the Company's operations and to support its operations. The Company's financial assets
include Investment, trade receivables, cash and cash equivalents, Other bank balances and Other financial assets that derive directly
from its operations.
ii) Risk management
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall
responsibility for the establishment and oversight of the Company's risk management framework. The Company's financial risk
activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in
accordance with the Company's policies and risk objectives. This note explains the sources of risk which the entity is exposed to
and how the entity manages the risk and the related impact in the financial statements.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company's maximum exposure to credit
risk is limited to the carrying amount of following types of financial assets.
- cash and cash equivalents,
- trade receivables,
- loans and receivables carried at amortised cost, and
- deposits with banks
a) Credit risk management
The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of
customers and other counterparties, identified either individually or by the Company, and incorporates this information into its
credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The
Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors
specific to the class of financial assets.
(a) Low credit risk (b) Moderate credit risk (c) High credit risk
Cash and Cash Equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and
diversifying bank deposits and accounts in different banks.
Trade receivables, Loans and other financial assets
The Company has established a credit policy under which each new customer (Business to Business sales model) is analysed
individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company's review
includes external ratings, if they are available, financial statements, credit agency information, industry information and business
intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require
approval from the appropriate authority as per policy.
In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are
an individual or a legal entity, whether they are a institutional, dealers, their geographic location, industry, trade history with the
Company and existence of previous financial difficulties.
Expected credit loss for trade receivables and other financial assets:
The Company based on internal assessment which is driven by the historical experience/ current facts available in relation
to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its
allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 month , is ?52.32 lakhs
(31 March 2025: ?26.93 lakhs).
Loan and other financial assets measured at amortised cost includes security deposits, fixed deposits, loan and others. Credit
risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at
the same time internal control system in place ensure the amounts are within defined limits.
B) Liquidity risk
Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with
financial liabilities that are required to be settled by delivering cash or another financial asset. The Company's objective is to, at all
times maintain optimum levels of liquidity to meet its cash and collateral obligations . The Company requires funds both for short
term operational needs as well as for long term investment programs mainly in growth projects. The Company closely monitors its
liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows
from its current operations, which in addition to the available cash and cash equivalents, liquid investments and sufficient committed
fund facilities, will provide liquidity.
C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: interest rate risk, foreign currency risk and competition and price risk.
a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's policy is to minimise interest rate cash flow risk exposures.
During the current year and previous year company does not hold any borrowings hence there is no interest rate risk at
reporting date.
b) Foreign currency risk
There is no significant foreign currency risk during the year as there are minimal transactions.
c) Competition and price risk
The Company faces competition from competitors. Nevertheless, it believes that it has competitive advantage in terms of high
quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.
d) Other price risk
The Company is exposed to price risk arising from mutual fund and equity investment.
Price sensitivity analysis:
The sensitivity analysis below have been detained based on the exposure of mutual fund price risk at the end of the reporting year.
If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on profit before tax and
pre-tax equity effect.
53 CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that
it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements
of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The Company's policy is to keep the gearing ratio optimum. The Company's net debts includes working capital borrowings.
55 REVENUE RELATED DISCLOSURES
Revenue from sale of goods and services are recognised at a point in time. There are no disaggregation of revenue with respect to
this information.
No single external customer amounts to 1 0% or more of the Company's revenue from operations for both current and previous
financial years.
56 LEASE
The lease asset class primarily consists of leases for buildings with the exception of short-term leases, leases of low-value and cancellable
long-term leases underlying assets,each lease is reflected on the balance sheet as a right of use asset and a lease liability. Lease liabilities
are measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate on the date of
adoption that is 9% per annum (31 March 2025 is 9% per annum).
Each lease generally imposes a restriction that, unless there is a contractual right to sublet the asset to another party, the right of use
asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination
fee. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying
leased assets as security against the Company other debts and liabilities.
The Company also has certain leases of offices, store premises and warehouses with lease terms of 12 months or less. The Company
applies the 'short-term lease’ recognition exemptions for these leases. The lease payments for such leases is being recognised on actual
basis by applying paragraph 6 of Ind AS 116.
Notes
*The Company has recognised gain on termination of lease of '186.71 lakh (March 31,2025: 150.10) under the head Other Income in the
Statement of Profit and Loss.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the Company believes that it will able to generate
sufficient cash to meet the obligations related to lease liabilities as and when they fall due.
(v) Impact on cash flow statements for the year ending 31st March 2026
For the financial year ended 31 March 2026, the Company had cash outflows in terms of repayment of lease liability for ?10,064.45
Lakhs (31 March 2025 ^8,321.80 Lakhs) (including finance costs) which is shown under financing activities in cash flow statement.
(vi) The schedule of lease rental payments in respect of leases is set out below:
Future minimum lease payments were as follows for 31 March 2026
58 SEGMENT REPORTING
The Company's primary business segment is reflected based on principal business activities carried on by the Company. Chairman and
Managing Director has been identified as being the Chief Operating Decision Maker ('CODM') and evaluates the Company's performance
and allocates resources based on analysis of the various performance indicators of the Company as a single unit. Therefore, there are
no separate reportable business segments as per Ind AS 108 "Operating Segments". The Company operates in one reportable business
segment, i.e. Retail and is primarily operating in India and hence, considered as single geographical segment.
(i) Central excise and service tax
Central excise department had raised a demand amounting to ?11 0.39 lakhs on the Company on 30 September 201 3. The
demand order has been set aside by Central Excise and Service Tax Appellate Tribunal (CESTAT) by order dated 01 June 2017.
However, the department has made an appeal before Hon'ble Delhi High Court against the order of CESTAT. In case department
succeeds in the appeal, the Company may be liable to pay the said demand of ?110.39 lakhs along with due interest.
(ii) Custom duty against unexecuted export obligation
In respect of pending export obligation of ?373.66 lakhs (31 March 2025 ?405.08 lakhs), the Company may be required to pay
custom duty of ?62.28 lakhs (31 March 2025 ?67.52 lakhs) along with interest @ 15% to the custom authority if such export
obligation is not met by the Company.
(iii) Enhancement cost for industrial plot at Bahadurgarh
During the year 2019, the Company has received a demand order from Haryana State Industrial and Infrastructure Development
Corporation Ltd (HSIIDC) over land enhancement cost for Company's Bahadurgarh industrial plot in Sector 4B, HSIIDC Industrial
estate, Footwear Park, Bahadurgarh, Haryana amounting to ^1,438.82 lakhs and 1 2% interest thereon , which was upheld by
the Hon'ble Punjab and Haryana High Court (""High Court"")in 2020.
The Company contested the demand before Hon’ble Supreme Court of India which passed a stay order on enhancement demands
in November 2021 and referred back the case to Hon'ble Punjab and Haryana High Court (""High Court""). Subsequently, HSIIDC
issued a show cause notice dated 12 April 2022 with a demand of ^1,152.1 7 lakhs towards the land enhancement cost of plots.
High Court in June 2022, ordered a fresh hearing and restrained all demands. The matter is still pending before Hon'ble High
Court of Punjab and Haryana.
In absence of any revised order, the Company has proposed to pay an amount of ?335.05 lakhs for the applicable enhanced
cost towards portion of the plot within sector 4B and sector 17, in line with HSIIDC's geographical demarcation. Accordingly,
the management based on their assessment in consultation with legal counsel believes that the maximum liability that could
be devolved on the Company would be ?335.05 lakhs. Management has recorded the liability by capitalising the said amount
under “Property, plant and equipment” and corresponding increase in “Provision for contingencies” in the financial statements.
(iv) Other matters
There are various labour, consumer and other cases under other acts pending against the Company, the liability of which cannot
be ascertained. However, the management does not expect significant or material liability devolving on the Company.
Note: In respect of all litigations mentioned above, based on the opinion taken from independent consuitants/lawyers an based
on assessment, the management believes that the outcome of these cases will be favourable and does not result into outflow
of any economic resources. Accordingly, no adjustment is required in the financial statements.
60 SKILL DEVELOPMENT PROGRAM:
a Deen Dayal Upadhyay - Gramin Kaushal Yojna (DDU-GKY)
The Company has entered into an memorandum of understanding to implement the skill development training programs under DDU-
GKY (Deen Dayal Upadhyay - Gramin Kaushal Yojna) project funded by ministry of rural development (MoRD) and Haryana State Rural
Livelihood Mission (HSRLM) on "no profit no loss basis". The objective of the project is to work for the empowerment of the poor and
for reduction in poverty by focusing on livelihoods of the poor and vulnerable sections of the society in rural areas. Total estimated
cost of the project is ?483.14 lakhs. Total amount spent till 31 March 2026 was ?484.42 lakhs (31 March 2025 ?416.09 lakhs), out
of which ?130.79 lakhs (31 March 2025 ?62.11 lakhs) is receivable.
b Samarth Project
The Company has entered into a memorandum of understanding to implement the capacity building in textile sector (SCBTS) under
Samarth project funded by ministry of textiles Government of India on "no profit no loss basis". The objective of the project is to skill
the youth for gainful and sustainable employment in the textile sector. Total estimated cost of the project is ?158.76 lakhs. Total
amount spent till 31 March 2026 was ?84.13 lakhs, out of which ?4.76 lakhs is receivable.
64 ADDITIONAL REGULATORY INFORMATION NOT DISCLOSED ELSEWHERE IN THE FINANCIAL INFORMATION
(a) The Company does not have any benami property and no proceedings has been initiated or pending against the Company for holding
any benami property, under the benami transactions (prohibition) act, 1988 (45 of 1988) and the rules made thereunder.
(b) The Company does not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section
560 of the Companies Act, 1956,except for the parties mentioned below :
(c) The Company has duly registered all the charges within the statutory period during the financial year ending 31 March 2026 and
31 March 2025.
(d) The Company has not traded or invested in crypto currency or virtual currency during the current and previous financial year.
(e) The Company has not advanced or provided loan to or invested funds in any entity(ies), including foreign entities (Intermediaries)
or to any other person(s), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall :
1) 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
2) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(f) The Company has not received any fund 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.
(g) The Company has not undertaken any transactions which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).
(h) The Company has not been declared a 'willful defaulter' by any bank or financial Institution (as defined under the Companies Act,
2013) or consortium thereof, in accordance with the guidelines on willful defaulter issued by the Reserve Bank of India.
(i) The Company has duly complied with the number of layers prescribed under clause (87) of section 2 of the act read with the
Companies (restriction on number of layers) rules, 2017.
(j) The borrowings obtained by the Company from banks have been applied for the purpose for which such loans were taken.
(k) The Company has not revalued its property ,plant and equipment's (including right-of-use-assets) or intangible assets or both during
the current or previous year.
(l) The Company has not filed for any Scheme of Arrangements that has been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013.
(m) The Company has not granted Loans or Advances to promoters, directors, KMPs and the related parties (as defined under Companies
Act, 2013), either severally or jointly with any other person, that are repayable on demand; or without specifying any terms or period
of repayment during the year. Also, there is no outstanding balance receivable from promoters, directors, KMPs and the related parties
as on 31 March 2026 for loan that are repayable on demand; or without specifying any terms or period of repayment .
(n) The Company has been sanctioned working capital limits of ?5,950.00 lakhs, from banks on the basis of security of current assets.
The quarterly returns or statements filed by the Company with such banks are in agreement with the books of account of the
Company of the respective quarters ."
Details of Securtiies and Undrawn borrowing facilities:
The above sanctioned limits are secured by way of first pari passu charge on current assets of the Company and equitable mortgage
over immovable property (industrial land and building of the Company bearing at plot No. 359, 360 and 361 Phase 4B, HSIIDC Industrial
Estate, Bahadurgarh (Haryana), under a consortium arrangement with multiple banks as mentioned below.
Amount (? in lakhs):
Standard Chartered Bank: ?1,500.00 ((Previous year: ?1,500.00)
State Bank of India: ?1,450.00 (Previous year: ?1,450.00)
HDFC Bank: ?1,500.00 (Previous year: ?1,500.00)
Axis Bank: ?1,500.00 (Previous year: ?1,500.00)"
Further, personal guarantee given by Mr. Vijay Bansal (Chairman and Managing Director) and Mr. Deepak Bansal (Whole Time
Director).
All charges are registered with the Registrar of Companies (ROC) within the statutory period.
(o) As per Section 128 of the Companies Act, 2013 read with proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 with
reference to use of accounting software by the Company for maintaining its books of account, has a feature of recording audit trail
of each and every transaction, creating an edit log of each change made in the books of account along with the date when such
change were made and ensuring that the audit trail cannot be disabled is applicable with effect from the financial year beginning on
1 April 2023. Further the audit trail shall be preserved by the Company as per the statutory requirements for record retention.
The Company, in respect of financial year commencing on 1 April 2025, has used an accounting software for maintaining its books
of account which have a feature of recording audit trail (edit log) facility and the same have been operated throughout the year
for all relevant transactions recorded in the software except that the audit trail feature was not enabled at the database level for
accounting software to log any direct data changes, used for maintenance of all accounting records by the Company. Further, there
were no instance of audit trail feature being tampered with and the audit trail has been preserved by the Company as per the statutory
requirements for record retention, other than the consequential impact of the exception given above."
(p) Title deeds of all immovable properties owned by the Company under Property, Plant and Equipment are held in the Company's name
except for below mentioned property.
65 Previous year's figures have been regrouped/reclassified wherever necessary to conform to current year's grouping and classifications.
The impact of such reclassification/regrouping is not material to the financials statements.
66 The financial statements for the year ended 31 March 2026 were approved by the Board of director's on 18 May 2026.
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