i. Provisions and contingencies
Provisions
A provision is recognised when the Company
has a present obligation (legal or constructive)
as a result of past event i.e., it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the amount
of the obligation. If the effect of the time value
of money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision
due to the passage of time is recognised as a
finance cost.
Contingencies
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation
that is not recognised because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases, where there is a
liability that cannot be recognised because it
cannot be measured reliably. The Company does
not recognise a contingent liability but discloses
its existence in the financial statements unless the
probability of outflow of resources is remote.
Provisions, contingent liabilities, contingent assets
and commitments are reviewed at each balance
sheet date.
j. 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. Revenue is recognised to the extent that it
is probable that the economic benefits will flow
to the Company, taking into account contractually
defined terms of payment and excluding taxes or
duties collected on behalf of the government.
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 and schemes offered by the Company as
part of the contract.
Given the nature of business, the period between
the transfer of goods and payment by the
customer is generally immediate or as per the
agreed credit terms, accordingly management has
determined that there is no adjustments needed to
the transaction prices for the time value of money.
Specifically, the following basis is adopted for
various sources of income:
Sale of goods
Revenue from sale of goods comprises the sale
of consumer electronics and durables and is
recognised at a point in time, on satisfaction of
performance obligation upon transfer of control
of promised products which generally coincides
with delivery. Amounts disclosed as revenue are net
of returns, trade allowances, rebates and exclusive
of goods and services tax.
Commission
Revenue in relation to commission is recognised
when the right to receive and performance of
agreed contractual task has been completed in
accordance with the terms of agreements entered
and are linked to sale of goods.
k. Vendor incentive
Price support incentives are recorded as per the
terms of the schemes with the vendors and are
recognised as a reduction in the cost of purchase
of traded goods or carrying value of inventories.
l. Retirement and other employee benefits
Provident fund and employee state insurance fund
are defined contribution schemes and is charged
to the Statement of Profit and Loss of the period
when the contributions to the respective funds are
due. There are no other obligations other than the
contribution payable to the respective authorities.
Gratuity is a defined benefit obligation and is
provided for on the basis of an actuarial valuation
as per the projected unit credit method made at the
end of period.
Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to statement
of profit and loss in subsequent periods.
m. 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.
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.
i. 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
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 Method
basis.
If ownership of the leased asset transfers to
the Company at the end of the lease term or
the cost reflects the exercise of a purchase
option, depreciation is calculated using the
estimated useful life of the asset.
The right-of-use assets are also subject to
impairment. Refer to the accounting policies
in section (i) Impairment of non-financial
assets.
ii. 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 insubstance 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.
iii. Short-term leases 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 leases that are
considered to be low value. Lease payments
on short-term leases and leases of low-value
assets are recognised as expense in the year it
is incurred.
n. Statement of cash flows
Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts
or payment and items of income or expenses
associated with investing or financing cash flows.
The cash flows from operating, investing and
financing activities of the Company are segregated.
o. Segment reporting
The management has assessed the identification
of reportable segments in accordance with
the requirements of Ind AS 108 ‘Operating
Segment1 and believes that the Company has
only one reportable segment namely “retailing
and wholesale of electronic household items
and accessories through its stores and online
platforms”. Operating segments are reported in
a manner consistent with the internal reporting
provided to the Chief Executive Officer, and the
Managing Director, who together constitute as
Chief Operating Decision Maker (‘CODM’).
p. Dividends
Annual dividend distribution to the shareholders
is recognised as a liability in the period in which
the dividend is approved by the shareholders. Any
interim dividend paid is recognised on approval by
Board of Directors.
q. Earnings per equity share
Basic earnings per equity share are calculated by
dividing the profit for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period.
For the purpose of calculating diluted earnings per
equity share, the profit for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period
are adjusted for the effects of all dilutive potential
equity shares.
(B) (i) Recent accounting pronouncement
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 31st March 2026, MCA has notified
following Amendment to Ind AS, applicable to the
Company we.f. 1st April 2025.
- Ind AS — 21 The Effects of Changes
in Foreign Exchange Rates Lack of
Exchangeability
- Ind AS 12 - Income Taxes relating to
International Tax Reform — Pillar Two
Model Rules — Exception to recognition and
disclosure of deferred tax.
- Amendments to Ind AS 7 — Cash flow
statement and Ind AS 107 — Financial
Instrument Disclosures relating to supplier
finance arrangements
- Ind AS 1-Presentation of Financial
Statements- Classification of Liabilities as
current or non- current and non- current
liabilities with covenants.
The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its Standalone financial statements.
. (B) (ii) New and amended standards issued but not
effective
The MCA has issued certain amendments to
Indian Accounting Standards which are not yet
effective as at 31st March 2026. The Company has
not early adopted any standard, interpretation or
amendment that has been issued but is not yet
effective.
(ii) Trade receivables, disputed:
There are no secured and there are no disputed trade receivables outstanding as at 31st March 2026 and 31st March 2025.
* Represents incentive income and commission income accrued as per the agreed terms.
(b) Considering the nature of business of the entity i.e., retailing of electronics, with only a small portion being wholesale sales, majority
of the amounts are collected at the time of sales or through financing model and accordingly, the Company measures the expected
credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates.
Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivables is
not material hence no additional disclosures are presented.
(b) Equity shares issued
During the financial year ended 31st March 2023, pursuant to the initial public offering of equity shares, the Company received a sum
of '4,646.02 (net of issue expenses) on issuance of 84,745,762 equity shares of '10 each at a premium of '49 each. The Company’s
equity shares are listed and traded on both the National Stock Exchange of India Limited and BSE Limited. The Company has
incurred share issue expenses of '339.30 against an initially projected amount of '353.90 in financial year 2022-23 and accordingly
the Company has reinstated the securities premium to the tune of '14.64 in the previous financial year.
(c) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of '10 per share. Each holder of equity shares is entitled to one
vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors, if any,
is subject to the approval of the shareholders in the ensuing general meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company.
The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of reserves
(a) Retained earnings - Surplus in Statement of Profit and Loss
Surplus in Statement of Profit and Loss represents the profits that the Company has earned till Balance sheet date, less any transfers
to general reserve, dividends or other distributions to shareholders.
(b) Securities Premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.
(c) Other Comprehensive Income
The reserve represents the remeasurement gains arising from the actuarial valuation of the defined benefit obligations of the
Company. The remeasurement gains are recognised in other comprehensive income and accumulated under this reserve within equity.
The amounts recognised under this reserve are not reclassified to Statement of Profit and Loss.
Notes:
(a) Working capital loans from HDFC carries an interest rate of 7.70% (31st March 2025: 8.35%), Axis Bank carries an interest rate
of 8.70%(31st March 2025: 9.35%) and ICICI Bank carries an interest rate of 7.90% (31st March 2025: 9%). Unsecured Loans
from IDFC carries a interest rate of 10.40% (31st March 2025: 10.40%) and BFL carries an interest rate of 12.25% (31st March
2025: 12.25%).
(b) The aforementioned working capital loans from ICICI Bank Limited and Axis Bank Limited are personally guaranteed by Pavan
Kumar Bajaj and Karan Bajaj. Further, the working capital facility availed from HDFC Bank is also secured by way of pledge
of certain personal properties of Pavan Kumar Bajaj, Karan Bajaj and Renu Bajaj.
(a) Defined contribution plan
The Company contributed '50.03 (31st March 2025: '45.12) to provident fund and '10.15 (31st March 2025: '9.00) towards employee
state insurance fund during the year ended 31st March 2026.
(b) Defined benefit plan
The Company operates a defined benefit gratuity plan for its employees in India in accordance with the Payment of Gratuity Act,
1972.
The Government of India, on 21st November 2025, notified implementation of four new labour codes — Code on Wages (2019),
Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions Code
(2020) (hereinafter referred to as “the New Labour Codes”).
The New Labour Codes prescribe an uniform definition of the term ‘wages’, which is also relevant for determination of post¬
employment benefits including gratuity to all employees. In accordance with the definition, wages means all remuneration including
basic pay, dearness allowance and retaining allowance but does not include certain specified items forming part of remuneration and
in the event the quantum of those specified items exceed 50% of total remuneration, such excess is deemed to be considered as
wages.
The revised definition of wages has resulted in an increase in gratuity obligation of '1.76 Million in respect of services rendered in
prior periods, and the Company has treated such incremental impact as past service cost and recognised as expense in the statement
of profit and loss in the current year in accordance with Ind AS 19, Employee Benefits.
The Company will continue to monitor finalisation of rules and clarifications from government and would provide appropriate
accounting effect on the basis of such developments as needed.
Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set-off
current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same taxation authority.
30 FAIR VALUE MEASUREMENTS
(i) All the financial assets and financial liabilities of Company are carried at amortised cost, except for Investments in subsidiaries which
are carried at cost.
(ii) The management assessed that cash and bank balances, trade receivables, trade payables and other current financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.
(iii) In respect of fixed rate financial liabilities, the management has assessed the carrying value of these liabilities approximates to the
fair value mainly since the same are short term borrowings which are repayable on demand. Further, fair value of lease liabilities are
not presented in line with the requirements of Para 29(d) of Ind AS 107. In respect of the balance of non-current financial assets
and liabilities in the nature of loans and borrowings, the management has assessed the carrying value of these assets and liabilities
approximates to the fair value mainly due to the interest rates are at the market rate or linked to market rate, as the case maybe.
31 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s
primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s
risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and
processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors is responsible
for overseeing the Company’s risk assessment and management policies and processes.
(a) 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 risk for the Company comprises primarily of interest risk. Financial instruments affected by market risk include loans
and borrowings. The sensitivity analysis in the following sections relate to the position as at 31st March 2026.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations; provisions; and the non-financial assets.
The following assumptions have been made in calculating the sensitivity analysis:
(1) The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at 31st March 2026.
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 variable rate borrowing is subject to interest rate risk. Below is the details of exposure to variable rate
instruments:
(b) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments when a counterparty defaults on its obligations.
The Company’s exposure to credit risk arises primarily from loans extended, security deposits, balances with bankers and trade and
other receivables. The Company’s objective is to seek continual revenue growth while minimising losses incurred due to increased
credit risk exposure. The credit risk has always been managed by the Company through credit approvals, establishing credit limits, and
continuously monitoring the credit worthiness of the customers to whom the Company grants credit terms in the normal course of
business. Outstanding customer receivables are regularly monitored.
Exposure to credit risk:
At the end of the reporting year, the Company’s maximum exposure to credit risk is represented by the carrying amount of each
class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to
credit risk.
Credit risk concentration profile:
At the end of the reporting year, there were no significant concentrations of credit risk. The maximum exposures to credit risk in
relation to each class of recognised financial assets is represented by the carrying amount of each financial assets as indicated in the
balance sheet.
Financial assets that are neither past due nor impaired:
None of the Company’s cash and bank balances, loans, security deposits were past due or impaired as at 31st March 2026. Trade and
other receivables including’s loans that are neither past due nor impaired are from various individual customers and reputed financial
institutions.
Financial assets that are either past due or impaired:
The Company doesn’t have any significant trade receivables or other financial assets which are either past due or impaired. The
Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management
also evaluates the factors that may influence the credit risk of its customer base, including the default risk. The management has
established a credit policy, procedures and controls relating to customer credit risk management under which each new customer is
analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The
Company’s receivables turnover is quick and historically, there was no significant default on account of trade and other receivables.
An impairment analysis is performed at each reporting date on an individual basis. In addition, a large number of minor receivables
are grouped into homogenous groups and assessed for impairment collectively. The Company has used a practical expedient by
computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into
account historical credit loss experience and is adjusted for forward looking information.
Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company’s finance team in accordance with the Company’s policy. Investments
of surplus funds are made only with approved and reputed banks and within credit limits assigned to each bank. The amounts
invested and details of relevant banks are reviewed by the Company’s Board of directors on annual basis.
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under
both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.
Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash
and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice
and limits set by the management.
(d) Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical
region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments
affecting a particular industry.
In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the
maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
32 CAPITAL MANAGEMENT
Capital includes equity and all other reserves attributable to share holders. The primary objective of the capital management is to ensure
that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise share holders
value. The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or its business
requirements.
The Company monitors capital using a gearing ratio, which is net debt divided by equity plus net debt.
The Company includes within net debt, interest bearing loans and borrowings, less cash and bank balances.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial
covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial
covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any
interest-bearing loans and borrowing for the year ended 31st March 2026.
There have been no changes made in the objectives, policies or processes for managing capital during the year ended 31st March 2026.
33 SEGMENT REPORTING
In accordance with Indian Accounting Standard (Ind AS) 108 on “Operating Segments”, segment information has been disclosed in
the consolidated financial statements of the Company, and therefore no separate disclosure on segment information is given in these
standalone financial statements.
(i) The Company received an order from the National Anti-Profiteering Authority of the Central Goods and Services Tax Act, 2017
demanding an amount of '3.43 on account of disputes with customers in various forums alleging certain non-compliances with the
anti-profiteering regulations of the Goods and Services Act, 2017. The management filed necessary appeals in this regard with the
appropriate appellate authorities. However, on the basis of its internal assessment of the nature of the allegations and the facts of
the case, management is confident of resolving this matter in favour of the Company.
(ii) The Company has received an order from Director General of GST, Hyderabad demanding an amount of '107.26 alleging that the
Company has failed to levy GST on receipt of credit notes of certain types issued by its vendors. The management filed necessary
appeals in this regard with the appropriate appellate authority. However, on the basis of its internal assessment of the nature of the
allegations and the facts of the case, management is confident of resolving this matter in favour of the Company.
(iii) The Company has received an order from Commissioner of Customs and GST, Hyderabad demanding an amount of '52.42 alleging
the Company of irregular availment of input tax credit (ITC) during 2018-19 and 2019-20. The management has filed the necessary
appeals in this regard with the appropriate appellate authority. However, on the basis of its internal assessment of the nature of the
allegations and the facts of the case, management is confident of resolving this matter in favour of the Company.
The Personal Guarantee given by Renu Bajaj is only for working capital facility availed from HDFC Bank for ' 4,072.39 (31st March
2025: ' 4,267.56). Personal guarantees provided by Pavan Bajaj and Karan Bajaj are towards the above outstanding loan amount.
Transaction with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances
at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for
any related party receivables or payables.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.
Rental expense recorded for short-term leases was '24.71 (31st March 2025: '9.30) for the year ended 31st March 2026.
The future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities are -
1) Leases not yet commenced to which the Company is committed amounts to 31st March 2026: '383.75 (31st March 2025:
'255.12).
2) Variable lease payments based on sales amounts to 31st March 2026: '1.37 (31st March 2025: '1.99).
(1) Excludes interest and depreciation on right-of-use assets and related liabilities.
(2) Cost of goods sold includes purchases of stock-in-trade and changes in inventories of stock-in-trade.
(3) capital employed = Total assets - Current liabilities.
Note: Reasons for change in % by more than 25% is as under
(i) Change in Return on equity ratio, Net profit ratio is attributed to significant expansion activities undertaken during the current year.
(ii) Change in Trade payables turnover ratio is attributed to increase in Average Trade payables during the current year.
39 (i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”) with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the
Company (Ultimate Beneficiaries).
(ii) The Company has not received any fund from any party (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
40 The Ministry of Corporate Affairs (MCA) has prescribed under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted
by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of
account, shall use only such accounting software which 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 changes were made and ensuring that the audit trail cannot
be disabled.
The Company has used accounting software’s for recording of transactions and billing records.
In respect of accounting software used for recording transactions, the audit trail (edit log) feature at database level was not enabled for the
period 1st April 2025 to 21st April 2025. For previous year, audit trail (edit log) feature at database level was not enabled in the accounting
software.
In respect of billing software, audit trail (edit log) feature at database level was enabled throughout the current year. For previous year, the
edit log at database level was enabled with effect from 7th August 2024.
Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention, except for audit
trail (edit log) facility at database level for the aforesaid accounting and billing softwares.
41 During the previous financial year, on account of an Unified Payment Interface (UPI) payment scam attempt, the Company suffered a loss
of ' 16.5 perpetrated by third parties. The Company has filed a First information report (“FIR”) on this matter. Further, the Company has
also charged this amount as expenditure in the standalone statement of profit and loss. Summary is as follows:
42 ADDITIONAL DISCLOSURES
(i) No proceeding have been initiated on or is pending against the Company for holding benami property under the Benami Transactions
Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder
(ii) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.
(iii) The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956 during the year ended 31st March 2026 (31st March 2025:Nil)
(iv) No charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.
(v) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.
(vi) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Act.
(vii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.
(viii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
43 During the year, the Company reclassified sell-out scheme incentives and cash discounts received from suppliers from ‘Revenue from
operations - Other operating income’ to reduction from ‘Purchases of Stock in Trade’ in the Statement of Standalone Profit and Loss
and receivables pertaining to such incentives and discounts from ‘Trade Receivables’ to ‘Other non-financial current assets’ and ‘Trade
Payables’ in the Standalone Balance Sheet in accordance with the applicable accounting standards, since such incentives and discounts
are associated with inventory purchases and are not in exchange for any distinct goods or services by the Company to the such vendors.
Further, the aforementioned adjustment has resulted in decrease in inventories, increase in Profit before tax and decrease in other Equity
for the previous year. These adjustments made to the comparative financial statements are not considered material.
1 44 EXCEPTIONAL ITEMS
a) On 29th May 2025, a fire incident occurred at one of the Company’s godowns, resulting in significant damage to inventory valued at
' 81.72 Million. The Company lodged an insurance claim and received full and final settlement for ' 75.27 Million against the claim,
which was recognised as an exceptional item in the Statement of Profit and Loss.
b) The Company, transferred its four “IQ” retail stores located in the states of Telangana and Andhra Pradesh, along with the related
trademarks and certain immovable assets but excluding inventory, for a total consideration of '80 Million. The gain on disposal of
such assets of '76.65 Million has been recognised as an exceptional item in the Statement of Profit and Loss.
c) The Government of India has merged various existing labour laws into a unified framework comprising four labour codes, collectively
referred to as the “New Labour Code”. During the current year, the Company has restructured the compensation to employees which
resulted in an additional impact of ' 1.76 Million which has been accounted under exceptional items. The Company continues to
monitor the developments pertaining to Labour Codes and will evaluate impact, if any, on the measurement of liability pertaining to
employee benefits.
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