2.9 Provisions (other than employee benefits)
A provision is recognized if, as a result of a past event, the Company has a present obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the legal or contractual
obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of
the expenditure required to settle the present obligation at the Standalone Balance Sheet date) at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of
the discount is recognised as finance cost. Expected future operating losses are not provided for.
Contingencies
Contingent liabilities are 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 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 or a reliable estimate of the amount cannot be made.
2.10 Revenue recognition
Revenue from contracts with customers
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer, at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements
because it typically controls the goods or services before transferring them to the customer.
a) Revenue from the sale of product is recognized upfront at the point in time when the product is delivered to the
customer. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume
discounts, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also
excludes taxes collected from customers.
b) Revenue from services is recognized in accordance with the terms of contract when the services are rendered and
the related costs are incurred and the balance amount is recognised as deferred revenue.
c) Revenue from membership fees is recognised over the period of membership.
Contract balances
Trade receivables
A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage
of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in
financial instrument - initial recognition and subsequent measurement.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs
under the contract.
2.11 Government grants
Government grants are recognised initially as deferred income at fair value when there is reasonable assurance that
they will be received and the Company will comply with the conditions associated with the grant; they are then
recognised in profit or loss as other operating revenue on a systematic basis. Grants related to the acquisition of assets
are recognised in profit or loss as other income on a systematic basis over the useful life of the asset.
Grants that compensate the Company for expenses incurred are recognised in profit or loss as other operating revenue
on a systematic basis in the periods in which such expenses are recognised.
2.12 Employee benefits
The Company’s obligation towards various employee benefits has been recognised as follows:
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 recognised for the amount expected to be paid e.g., under short-term cash bonus, 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 amount of obligation can be estimated reliably.
ii. Share based payment transactions
The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an
employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become
entitled to the awards. The amount recognised as expense is based on the estimate of the number of awards for which
the related service and nonmarket vesting conditions are expected to be met, such that the amount ultimately recognised
as an expense is based on the number of awards that do meet the related service and non-market vesting conditions at
the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-
based payment is measured to reflect such conditions and there is no true up for differences between expected and
actual outcomes. If the entity elects to settle in cash, the cash payment shall be accounted for as the repurchase of an
equity interest, i.e. as a deduction from equity
iii. Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts. The Company makes specified
monthly contributions towards Government administered provident fund scheme. Obligations for contributions to
defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which
the related services are rendered by employees.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is
available.
iv. Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. 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 the current and prior periods, discounting that amount and deducting the fair
value of any plan assets.
The calculation of defined benefit obligation is performed annually by a qualified actuary- using the projected unit credit
method.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised in OCI. The Company
determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the
discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined
benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as
a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans
are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past
service ('past service cost’ or 'past service gain’) or the gain or loss on curtailment is recognised immediately in profit
or loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement
occurs.
The group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the reporting date. Actuarial gains/Iosses are immediately taken to
the Standalone Statement of Profit and Loss and are not deferred. The obligations are presented as current liabilities in
the Standalone Balance Sheet if the entity does not have an unconditional right to defer the settlement for at least twelve
months after the reporting date.
v. Other long-term employee benefits
The Company’s net obligation in respect of long-term employee benefits other than post-employment benefits is the
amount of future benefit that employees have earned in return for their service in the current and prior periods; that
benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The obligation
is measured on the basis of an annual independent actuarial valuation using the projected unit credit method.
Remeasurements gains or losses are recognised in profit or loss in the period in which they arise.
vi. Termination benefits
Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of those benefits
and when the Company recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 12
months of the reporting date, then they are discounted.
2.12 Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated into the functional currencies of Company at the exchange rates at the
dates of the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign
currency are translated into the functional currency at the exchange rate when the fair value was determined. Non¬
monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the
exchange rate at the date of the transaction. Exchange differences are recognised in profit or loss.
2.13 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 of consideration.
Company as a 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.
i) Right of use asset
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 re-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 shorter of the lease
term and the estimated useful lives of the assets.
ii) Lease liabilities
At the commencement date of the lease, the company recognizes lease liabilities measured at the present value of the
lease payment to be made over the lease term. The lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an
index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the
event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used
to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset
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 of assets 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.
Company as a lessor
At inception or on modification of a contract that contains a lease component, the Company allocates the consideration
in the contract to each lease component on the basis of their relative stand-alone prices.
When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating
lease.
To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the
risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease, if
not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether
the lease is for the major part of the economic life of the asset.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately.
It assesses the lease classification of a sub-lease with reference to the right of use asset arising from the head lease, not
with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption
described above, then it classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Company applies Ind AS 115 to allocate the
consideration in the contract.
The Company applies the derecognition and impairment requirements in lnd AS 109 to the net investment in the lease.
The Company further regularly reviews estimated unguaranteed residual values used in calculating the gross investment
in the lease.
The Company recognised lease payments received under operating leases as income on a straight-line basis over the
lease term as part of ‘other income’.
2.14 Income tax
Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to an
item recognised directly in equity or in other comprehensive income.
i. Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. I he amount of current tax reflects the best
estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income
taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
ii. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial repotting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also
recognised in respect of carried forward tax losses and tax credits. Deferred tax is not recognised for
temporary differences arising on the initial recognition of assets or liabilities in a transaction that
o at the time of transaction that neither affects neither accounting nor taxable profit or loss and does not
give rise to equal taxable and deductible temporary differences.
o temporary differences related to investments in subsidiaries to the extent that the Company is able to
control the timing of the reversal of the temporary differences and it is probable that they will not reverse
in the foreseeable future; and
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
which they can be used. The existence of unused tax losses is an evidence that future taxable profit may not be available.
Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it
has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be
available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or recognised, are
reviewed at each reporting dale and are recognised/ reduced to the extent that it is probable/ no longer probable
respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability
is settled, based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realised simultaneously.
2.15 Recognition of dividend income, interest income or expense
Dividend income is recognised in profit or loss on the date on which the Company’s right to receive payment is
established. Interest income or expense is recognised using the effective interest method.
The -effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the
expected life of the financial instrument to:
- the gross carrying amount of the financial asset; or
- the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset
(when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have
become credit impaired subsequent to initial recognition, interest income is calculated by applying the effective interest
rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation ol interest
income reverts to the gross basis.
2.16 Borrowing cost
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time (hat is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with
the borrowing of funds (including exchange differences relating to foreign currency borrowings the extent that they
are regarded as an adjustment to interest costs).
For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for
capitalization is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is
the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during
the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of
borrowing costs capitalized during a period does not exceed the amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in which they occur.
2.17 Earnings per share
Basic Earnings Per Share
Basic earnings/(loss) per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during
the period. The weighted average number of equity shares outstanding during the period is adjusted for events including
a bonus issue.
Diluted Earnings Per Share
For the purpose of calculating diluted earnings per share, the net profit or loss 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. The dilutive potential equity shares are deemed to be converted as of the beginning
of the period, unless they have been issued at a later date.
2.18 Segment reporting
An operating segment is a component that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the other components, and for which
discrete financial information is available. The Company is engaged into designing, manufacturing, branding, and
retailing of own-branded eyewear products. The Company sells prescription eyeglasses, sunglasses, and other products
including contact lenses and eyewear accessories which has been defined as one business segment. Accordingly, the
Company's activities/business are reviewed regularly by the Company's Board of Director s from an overall business
perspective, rather than reviewing its products/services as individual standalone components.
2.19 Investment property:
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the
company is classified as investment property.
Investment property also includes property that is being constructed or developed for future use as investment
property.
Initial measurement
Investment property is measured initially at its cost, including related transaction costs and where applicable
borrowing costs. Investment property that is obtained through a lease is measured initially at the lease liability amount
adjusted for any lease payments made at or before the commencement date (less any lease incentives received), any
initial direct costs incurred by the company, and an estimate of costs to be incurred by the lessee in dismantling and
removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease.
Though the Company measures investment property using cost based measurement, the fair value of investment
property is disclosed in the notes to the financial statements.
Subsequent measurement (depreciation and useful lives)
Depreciation on investment properties comprising right of use held for sublease is provided on straight-line basis over
the period of lease and other tangible assets as per the policy defined for same class of assets under property, plant
and equipment. The residual values, useful lives and method of depreciation are reviewed at each financial year end
and adjusted prospectively, if appropriate.
Where during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded,
demolished or destroyed, or significant components replaced; depreciation on such assets is calculated on a pro rata
basis as individual assets with specific useful life from the month of such addition or, as the case may be, up to the
month on which such asset has been sold, discarded, demolished or destroyed or replaced.
De-recognition
Investment properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of de-recognition.
2.20 Recent accounting pronouncement
Standard notified but not yet effective:
The Ministry of Corporate Affairs vide notification dated 07 May 2025 has notified Companies (Indian Accounting
Standards) Amendment rules 2025 respectively, which amended/ notified certain accounting standards (see below),
and are effective for annual reporting periods beginning on or after 01 April 2025.
The Effects of Changes in Foreign Exchanges Rates - Amendments to IND AS 21. These amendments are not expected
to significantly affect the current or future periods.
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