l) Provisions and Contingent Liabilities and Contingent Assets
The Company recognizes a provision where there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation and accordingly all known liabilities wherever material are provided for. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources however 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.
A contingent asset is disclosed, where an inflow of economic benefits is probable. Contingent assets are not recognised in financial statements since this may result in the recognition of income that will never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.
m) Employee Benefits
(i) Employee benefits like salaries, wages etc. payable wholly within twelve months of
rendering the service are classified as short¬ term employee benefits. A liability is recognised for the amount expected to be paid when there is 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) Contribution towards provident fund and employee state insurance is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as defined contribution plans as the Company does not carry any further obligations, apart from the contributions made on a monthly basis. Such contributions are charged to the statement of profit and loss for the period of service rendered by the employees.
(iii) Short-term employee benefits are recognized as an expense in the Statement of Profit & Loss of the year in which the related service is rendered.
(iv) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected method made at the end of the financial year. The Company has created a trust under the Group Gratuity Scheme with the Life Insurance Corporation of India (LIC) and amount paid/payable in respect of the present value of liability for past services is charged to the Statement of Profit & Loss every year. The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with LIC is provided for as liability in the books.
n) Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue in the period in which they are incurred.
o) Foreign Exchange Transactions
(i) Assets and liabilities relating to foreign currency transactions remaining unsettled at the year-end are converted into Indian rupees at closing rates and any gain or loss arisen is adjusted in Statement of Profit and Loss.
(ii) Gains/losses arising out of fluctuations in foreign exchange rates between the transaction date and settlement date are recognized in the Statement of Profit and Loss under the head "Exchange Rate Fluctuation".
(iii) The difference between the forward rate and the exchange rate on date of inception of a forward contract in respect of forward contracts with underlying assets or liabilities is recognized as income or expense and is amortized over the life of the contract.
(iv) Forward exchange contracts entered to hedge the foreign currency risk are marked to market as at the year end and the resultant exchange gain or loss is recognised in the Statement of Profit & Loss.
(v) Non-monetary foreign currency items are carried at cost and accordingly the investment in foreign subsidiary is expressed in Indian Currency at the exchange rate prevailing at the date of the transaction.
p) Assessment of risks
The Company follows the process of assessing the financial risks relating to its business activities. Its principal financial liabilities comprising borrowings, trade and other payables etc. are part of its working capital for the purpose of its business operations and for the purpose of funding its principal financial assets including cash and cash equivalents, trade receivables and security deposits directly derived from its operations. The Company is exposed to credit risk, liquidity risk and market risk summarised as under:
Credit Risk:
Credit risk may arise on not meeting of its financial obligations by other party, primarily relating to trade
receivables and may lead to financial loss to the Company. Companyduring the course of its business operations to reduce the risk with trade receivables, follows the mechanism of setting credit limits to respective parties and reviews their outstanding on time to time basis to access the likely impairment.
Liquidity Risk:
Liquidity risk may result in not meeting Company's financial obligations and to mitigate the same and meet its financial obligations in timely manner the Company reviews its Trade Payables and other long term and short-term financial liabilities on time to time basis and manages the resources availability of cash and cash equivalents and credit lines and borrowing facilities from banks.
Market Risk
Market risk may be the risk of fair value of Company's assets and liabilities on account of change in foreign exchange rates and applicable rate of interest on borrowings having variable interest terms. Exposure of the Company to foreign exchange risk majorly relates to its operating activities to the extent denominated in foreign currency and the Company goes for forward exchange contracts to mitigate the risk. Similarly to get de-risked to maximum extent from changes in variable rate of interest, depending upon its funds utilization plan on time to time basis the Company further gets the part of related facilities converted into fixed rate for specific period.
Price Risk:
Key raw materials used in the manufacturing of footwear are EVA, PU material etc. are subject to price volatility depending upon the fluctuation in the price of crude oil and it's derivatives. To mitigate the pricerisk the Company takes several measures including continuous monitoring the price trend of key materials, value engineering of goods and passing of the cost on the product wherever required in timely manner.
q) Fair Value Measurement
The fair value of the assets and liabilities are
assessed at balance sheet date considering normal circumstances as per the following:
a) Cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, trade payables, borrowings and other financial assets and liabilities at their carrying amount due to their short-term nature.
b) Financial assets and liabilities with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty.
c) Assessment by the Management about the carrying value of financial assets including leasehold rights and obligations due to be amortised.
d) Forward exchange contracts using exchange rates at the balance sheet date.
r) Provision for Taxation
Provision for taxation is made taking into consideration the provisions of Income Tax Act, 1961. Adjustment, if any, arising out of the assessment is made in the year the assessment is completed. Current tax assets and liabilities are offset when there is a legally enforceable right to set-off the recognised amounts and there is an intention to settle the asset and the liability on a net basis
Income tax expense represents the sum of current and deferred tax. Tax expense is recognised in the statement of profit and loss except to the extent that it relates to items recognised directly in equity or other comprehensive income, in such case the tax expense is also recognised directly in equity or in other comprehensive income.
Any subsequent change in income tax on items initially recognised in equity or other comprehensive income is also recognised in equity or other comprehensive income, such change could be for change in tax rate.
s) Provision for Deferred Taxation
Deferred tax is recognised on temporary timing differences between the carrying amount of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the balance sheet approach.
Deferred tax liabilities are recognised for all taxable temporary timing differences and deferred tax assets are recognised for all deductible temporary timing differences, carry forward tax losses and allowances to the extent it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilised.
Deferred tax asset and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or liability is settled, based on tax rates and tax laws that have been enacted or substantially enacted at the reporting date.
The carrying amount of deferred tax asset, if any, is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be utilised.
Deferred tax assets and liabilities are offset when there is legally enforceable right to set-off current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority and no deferred tax asset is recognized as on the date of reporting.
35. Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors proposed a special incentive of ' 300 lakhs for three Executive Directors in recognition of their performance for the financial year ended 31st March 2025. The proposal was approved by the shareholders through a postal ballot process concluded on 22nd May 2025. However, in its meeting held on 28th May 2025, the Board, after reviewing the financial results for the said financial year, decided to withhold the disbursement of the approved incentive, which was also waived by the concerned Directors. Consequently, the said incentive has not been recognised as an expense, nor has any provision been made in the Statement of Profit and Loss for the year ended 31st March 2025.
36. In the opinion of the Board and to the best of its knowledge, the value of realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they have been stated in the Balance Sheet. However, confirmation/reconciliation of some customers balance is pending as on the date of signing of the financial statement.
37. During the course of its business the Company usually extends credit terms for more than six months to some of its customers more particularly to overseas and institutional customers and during the year ended 31st March, 2025 the outstanding for more than six months from customers has increased to ' 2323.85 Lakhs as against ' 1,884.61 Lakhs as on 31st March, 2024.
38. Against the arbitrary deductions and claims made by the appropriate authority on account of shortages, delayed deliveries, etc., an amount of ' 436.57 Lakhs was withheld while releasing payments ' 2,246.32 during the financial year 2022-23. These deductions pertained to a government tender supply executed by the Company during the financial year 2019-20, with a total invoice value of ' 2,682.88 Lakhs.
Against the said arbitrary deductions, the Company had filed a petition before the Hon'ble High Court of Andhra Pradesh seeking the appointment of an Arbitrator, which was duly allowed. Pursuant to the arbitration proceedings, an award has been passed in favour of the Company by the Learned Arbitrator vide order dated 26th December
2024, granting a claim amount of ' 1,173.74 Lakhs, including interest. The award also entitles the Company to further interest @ 8% p.a. from the date of the award until actual realization.
However, the awarded amount has not been recognized in the financial statements for the year ended 31st March
2025, and will be accounted for on realization basis, net of the share attributable to related vendors. As on the date of signing of the balance sheet, the Company is in the process of filing an execution petition before the Hon'ble District Judge, Vijayawada, for enforcement of the award.
As disclosed in earlier periods, the above said deductions amounting to ' 436.56 Lakhs had been written off in the financial year 2022-23 i.e the year of receipt, after adjusting ' 268.82 Lakhs against outstanding dues payable to the related vendors. Accordingly, there is no impact on the profit and loss statement for the financial year 2024-25 on this account.
40. Provision for doubtful debts:
During the year out of overdue outstanding towards customers and advances to vendors, the Company has considered debts/advances aggregating to ' 782.79 Lakh (Previous year ' 437.12 Lakh) as doubtful debts/advances/securities and also has withdrawn ' 40.24 Lakh (Previous year ' Nil Lakh
out of the provisions made in the earlier years for the same and has written off as bad debts ' 37.54 Lakh (Previous year ' Nil Lakh). Further the difference of the provision made and amount withdrawn during the year, detailed as under, has been charged to Statement of Profit & Loss for the year and the balance has been carried in the balance sheet.
43. The Company has taken various retail stores and warehouses under operating lease arrangements. The lease agreements generally have an escalation clause and there are no subleases. These leases are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by lease agreements.
The leasehold rights are depreciated/amortized using the straight line method from the commencement date over the shorter of lease term or useful life of right to use.
44. The Company implemented the Ind-AS-116 with effect from 1 stApril, 2019 and accordingly is considering all the persisting leasehold rights having maturity for more than 12 months including entered during the year 2024-25 at its present value as
Intangible Rights in Schedule of Fixed Assets and is amortizing the leasehold rights on year on year basis. During the year 2024-25 the Company has capitalized/(adjusted)the present value of leasehold rights entered during the year (net of terminated) for ' 2,420.68 Lakhs (Previous year ' 2,446.58 Lakhs) and has amortized the leasehold rights (net of terminated) for ' 1936.62 Lakhs (Previous year ' 2,076.26 Lakhs).
Further while amortizing the leasehold rights for the year, decrease in leasehold obligations agreed with the some of the landlords has not been factored being temporary in nature and the said decrease in leasehold obligations aggregating to ' 91.50Lakhs (Previous year ' 186.39 Lakhs) has been passed on through Profit & Loss account for the year.
54. Contemplating the long-term benefits for unlocking the shareholders' value through acquisition of the tangible and intangible assets including business rights of two partnership firms, in which few Directors of the Company are interested as partners, namely Liberty Enterprises (LE) & Liberty Group Marketing Division (LGMD), the Company had entered into a Memorandum of Understanding (MOU) on March 31, 2015, with these two Partnership Firms for acquisition of their respective business of footwear. Since then, due to certain technical reasons, this MOU and the subsequent MOU for the related matter have not been materialized to the envisaged extent. The Company, keeping in view the protection of its shareholders interest and alsoto ensure long term continuance of the arrangements with these partnership firms till materialization of the acquisition of their respective business of footwear has extended the validity of earlier executed agreements and is assessing the business rights of the two firms with its availability till March 2028.
During the year in terms of above referred arrangements, the Company has paid/provided for franchise fee of ' 115 Lakh (Previous year ' 115 Lakh) to LE and ' 750.00Lakh (Previous year ' 756.03 Lakh) to LGMD and in terms of the renewed agreement dated April 3, 2013 of the Company with Liberty Footwear Co. (LFC), another Partnership Firm of the group and owner of trademarks "LIBERTY", for granting exclusive rights of usage of the trademark "LIBERTY" for a period of fifteen years from April 1,2013 onwards, the Company has paid/provided for trademark license fee of ' 1,649.93 Lakh (Previous year ' 1,377.43 Lakh) to LFC.
As disclosed in the previous financial year i.e. 2022-23, certain partners of Liberty Enterprises (LE), Liberty Group Marketing Division (LGMD) and Liberty Footwear Company (LFC) had issued notices to the Company seeking termination of the ongoing franchise/ trademark license arrangements with effect from April 1, 2023. The Company has franchise/trademark license arrangements with LE, LGMD and LFC since 2003 duly renewed from time to time with latest arrangements dated 29th March, 2018 in case of LE and LGMD and 3rd April 2013 in case of LFC and
all the said arrangements are valid till 31st March, 2028 subject to renewal on mutually agreed terms on or before expiry of the existing tenure. The Company, in response to termination notice of partners of LE, LGMD and LFC, duly reiterated its contractual rights to continue the use of tangible and intangible assets of the said partnership firms until March 31, 2028, as per the respective agreements in force.
Invoking the arbitration clauses embedded in the agreements with LGMD and LFC, the Company initiated legal proceedings and filed petitions under Section 9 of the Arbitration and Conciliation Act, 1996 before the appropriate court at Karnal. Considering the Company's submissions, the Hon'ble Court, vide its orders dated March 16, 2023 and July 20, 2023 respectively, directed all parties to maintain status quo until further orders.
Subsequently, the Company also filed applications under Section 11 of the Arbitration and Conciliation Act, 1996 before the Hon'ble Punjab and Haryana High Court seeking appointment of arbitrators, which were duly allowed. As on the date of signing of these financial statements:
- The Learned Arbitrator, in the matter of LGMD and the Company, has passed an award confirming continuation of the existing arrangement with LGMD until its validity period.
- The arbitral proceedings in the matter of LFC and the Company are currently ongoing and is pending for adjudication before the Learned Arbitrator.
The Company continues to operate under the framework of the original agreements, and the above developments have been considered in the preparation of these financial statements.
Further to ensure the usage of the right available under these agreements continued beyond 31st March, 2028, the Board of Directors of the Company while approving the financial statement for the previous year had also considered for seeking extension of its existing arrangements of Franchise/ Royalty beyond 31st March 2028 subject to mutual understanding and the related legal compliance. Though based upon the understanding had with some of the partners of
respective firms as well as overall assessment of the above-referred ongoing arbitration proceeding, the Company is quite hopeful about continuation of the existing arrangements even beyond 31st March, 2028 and/or acquisition of the related intangible assets of the respective firms over a period of time, however to avoid any probable risk in case of non-materialization of the above understanding well within the reasonable period, the Board of Directors of the Company are also contemplating an alternative strategy to ensure the consistency of its business.
55. During the year, Sh. Adesh Kumar Gupta, the erstwhile CEO & Executive Director (the Petitioner) along with few other shareholders (the Petitioners), had filed a Petition No. CA No. 179/2023 and CP No. 89/Chd/Hry/202 before the Hon'ble National Company Law Tribunal (NCLT) at Chandigarh u/s 241 & 242 of the Companies Act, 2013 against his removal initiated in accordance to the provisions of Section 169 of the Companies Act 2013 also alleging certain acts of oppression and mismanagement on the part of the Company and its management.
The Company contested the same by rebutting all his allegations duly leveling counter allegations against him.
The above referred petitions filed by the erstwhile CEO & Executive Director were dismissed by the Hon'ble Bench vide its order dated 20/11/2023 on the technical ground of maintainability being not having adequate shareholding for filing the petition and the Petitioners have preferred their appeal before the Hon'ble National Company Law Appellate Tribunal (NCLAT) against the order passed by the NCLT, Chandigarh and have also been dismissed by the Hon'ble NCLAT. As per the information available with the Company, the Petitioners have preferred an appeal before Hon'ble Supreme Court of India. However, the same is yet to be listed as on the date of signing of this balance sheet.
56. During the year 2023-24 owing to some reservations emerged subsequently with the supplies viz.-a.-viz. billed by few of the Company's vendors, payments against their supplies were put on hold for the want of few more details/supporting required for releasing
the payments. In the meanwhile, due to earlier availability of multi authorisation with the authorised signatories the part payment against the these supplies was released to the vendors by one of the signatory ignoring the board mandate of the joint signatures for release of payment through bank. The cheques issued were not as per the authorisation matrix approved by the board and also not as per the bank mandate due to which it got dishonoured by the bank.
Against such dishonoring the concerned vendors have filed criminal complaints under Section 138 of the Negotiable Instrument Act, 1881 against three of the Executive Directors and the Company as well before the Judicial Magistrate at Panipat (Haryana). The related matter with the vendors is yet to be concluded and meanwhile to protect the interest of the respective Directors, the Company has preferred a revision before the Hon'ble High Court infew of the related matters which is pending before the Hon'ble High Court for adjudication. The Company is further pursuing for similar course in rest of matters as well.
Also in the previous year, the erstwhile CEO and Executive Director Sh. Adesh Kumar Gupta has incurred unapproved expenses for ' 15.39 Lakhs. The Company has considered this amount as recoverable from him. Accordingly the advance recoverable in cash or kind or for the value to be received and considered good aggregating to ' 733.14 Lakhs vide Note no. 11 of financial statements includes the same. Sh. Adesh Kumar Gupta, in his defamation suit filed before the Hon'ble Delhi High Court against Sh. Sunil Bansal, erstwhile Executive Director and Sh. Adish Gupta, Executive Director, has referred these expenses to support some contention of the said suit. The same were vehemently objected by the Company and the related matter is pending before the Hon'ble Delhi High Court for adjudication.
57. Out of the total vehicles registered in the name of the Company few vehicles having current book value of ' 147.38 Lakhs which are earlier given to the former employees of the Company are not in the possession of the Company and the legal proceedings
are being initiated for the recovery of the possession of its vehicles.
58. During the year 2023-24, there had been a fire incident in one of the block of Company's Central Warehouse (CWH) situated in rented premises in Panipat (Haryana) on February 07, 2024 due to electric short-circuit which had resulted in complete damage of stocks of finished goods and packing materials stored there for the value aggregating to ' 1763.92 Lakhs. In addition there had been a complete loss of rented building of particular block including additions made by the Company on the superstructure and plant & machinery (including petty & office equipment) having tentative value of ' 150.79 Lakhs including third party claim for loss of property estimating to ' 65 Lakhs (net of salvage). Against the reported loss, claim filed and the management's estimated recoverable amount of insurance claim for ' 1,425 Lakhs, during the year the Company has received the gross claim for ' 1,353.35 Lakhs wit
no consideration of loss of Input Tax Credit (ITC) against the goods lost and liability discharged by the Company aggregating to ' 145.04 Lakhs. Accordingly the differential of claim estimated and realized amounting
to ' 71.45 Lakhs, amount of GST liability discharged for ' 145.04 Lakhs and the amount spent on reconstruction of the particular block of the rented building over and above the estimated amount of ' 65 Lakhs i.e. ' 29.03 Lakhs has been charged to Profit & Loss account for the year under Exceptional Items.
59. During the year the Company, in its exercise to physically verify and rationalize its gross block, has further leveled out its fully depreciated Gross Block of Tangible Assets (Not under Lease) aggregating to ' 1,278.44 Lakhs (Previous year ' 4,606.95 Lakhs), detailed hereunder, and the Sale/Adj. during the year aggregating to ' 1,278.44 Lakhs (Previous year ' 4,958.65 Lakhs) in Note No. 2-Fixed Assets includes the same:
61. The assessment of the Company in respect of Income Tax is completed up to the Assessment Year 2023-24 under faceless scrutiny assessment in accordance to the provisions of section 143(3) of the Income Tax Act, 1961 vide order dated 18.03.2025.
62. a) Assessment Year 2020-21
i. Scrutiny Assessment
The Company's assessment for the Assessment Year 2020-21 was completed under scrutiny by the National Faceless Assessment Unit (NFAC) vide order dated 27.03.2023. The assessed income was determined at ^4,038.41 lakhs as
against the returned income of ^2,014.05 Lakhs. The variation primarily arose due to arbitrary disallowances and additions, particularly by treating recurring revenue expenditure in the nature of trademark license fees paid/payable annually as per long-standing agreements effective since 2003 and on prevailing terms since 2013 as expenditure of enduring nature. These disallowances were made by misinterpreting the agreements, overlooking applicable legal provisions, ignoring detailed submissions made during the course of assessment proceedings (including virtual hearings), and disregarding the Company's past 16 years of assessment history.
The Company has preferred an appeal before the appropriate appellate authority and, based on legal opinion and existing precedents in Company's matter for assessment year 2023-24, is confident of a favourable outcome.
ii. Grievance petition before Jurisdictional Local Committee on High-Pitched Scrutiny Assessment & Related WRIT Proceedings
In addition to the above, considering the high- pitched and unreasonable nature of the assessment framed for AY 2020-21, the Company had filed a grievance petition before the Jurisdictional Local Committee constituted by the CBDT, intended as an administrative additional remedy for such cases under both faceless and traditional regimes. However, the grievance was disposed of in a cursory and mechanical manner, without granting an opportunity of hearing or considering the substance of the petition.
Aggrieved by this, the Company filed Civil Writ Petition (CWP No. 6536 of 2024) before the
Hon'ble High Court of Punjab & Haryana. The petition was dismissed, with liberty granted to raise all its grounds/argumentswith regard to challenge the assessment order before the appellate authority. A subsequent Review Petition (RA-CW-136-2024) was also dismissed. The Company then filed a Special Leave Petition (SLP) before the Hon'ble Supreme Court of India (Diary No. 26631/2024), which was also disposed of without interference, while directing the CIT (Appeals) [NFAC-Appeals] to dispose it of as expeditiously as possible. A Review Petition against this order has been filed by the Company before the Hon'ble Supreme Court on 29.03.2025 (Diary No. 16721/2025).
iii. Revision Proceedings u/s 263 of the Income Tax Act, 1961
The Income Tax Department has initiated revision proceedings under Section 263 of the Income Tax Act, 1961, against the scrutiny assessment order dated 27.03.2023, vide order dated 28.03.2025. The Company has challenged this revision order by filing an appeal before the Hon'ble Income Tax Appellate Tribunal (ITAT), New Delhi on 02.04.2025, which is presently pending for adjudication.
b) Assessment Year 2016-17 (Reassessment u/s 148A)
Further, proceedings were initiated by the Assessing Officer under Section 148A(d) of the Income Tax Act, 1961, vide order dated 05.04.2023, alleging escaped income amounting to ' 1,557.99 lakhs for Assessment Year 2016-17. The alleged issues pertain to salary payments of ' 64.07 lakhs, foreign remittances of ' 1,454.43 lakhs, and export shipping bills amounting to ' 39.48 lakhs, based on data uploaded on the Income Tax Department's Insight portal. These proceedings have been stayed by the Hon'ble High Court of Punjab & Haryana in CWP No. 13252 of 2023 filed by the Company. The next date of hearing is scheduled for 20.08.2025.
63. For the current year, a Deferred Tax Liability has been recognized based on cumulative timing differences amounting to ' 51.25 lakhs (Previous year: ' Nil), primarily arising due to differences in depreciation as per the Income Tax Act, 1961 and the Companies Act, 2013. The recognition of deferred tax is in accordance with the applicable accounting standards
71. As per Company's assessment about recoverability and carrying values of its assets comprising of receivables, inventories, plant and equipment, intangible assets, it expects to recover the carrying amount of these assets.
72. The current year and previous year figures have been rounded off to the nearest lakh of rupee upto two decimal places unless stated otherwise.
73. The Company does not hold any benami property and no proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.
74. The Company has duly filed Quarterly returns or statements, Unaudited and Audited as the case may be, of its current assets with the banks and are in agreement with its books of accounts.
75. The Company is not declared as willful defaulter by any bank in accordance with the guidelines on wilful defaulters issued by the RBI.
76. The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013. This is determined to the extent of such parties have been identified on the basis of information available with the Company.
77. The Company has duly registered all the charges or satisfaction thereof with Registrar of Companies (ROC) within the statutory period.
78. The number of layers prescribed under clause (87) section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable to the Company
79. During the year, no scheme of arrangements has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act, 2013.
80. The Company has not advanced or loaned or invested funds to any other persons (intermediaries) with the understanding that the intermediary shall directly or indirectly lend or invest in other persons or provide any guarantee in any manner whatsoever on behalf
of the Company (ultimate beneficiary). The Company has also not received any fund from any persons with the understanding that the Company shall directly lend or invest or provide any guarantee to any other persons on behalf of the funding party.
81. The Company does not have any transactions which are 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.
82. During the year, the Company has not traded or invested in crypto currency or virtual currency.
83. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
84. Fair Value Measurements
Fair value of financial assets and liabilities is normally determined by references to the transaction price or market price and in case of non-reliably determinable, the Company determines the same using valuation techniques that are appropriate in the circumstances and for which sufficient data are available, maximising the use of relevant observable inputs and minimisin
the use of unobservable inputs as per the following:
a. Foreign exchange forward contracts are valued using market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period.
b. Unquoted equity instruments where most recent information to measure fair value is not determinable, cost has been considered as best estimate of fair value.
c. The carrying amount of other 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 any significant difference that the carrying amounts would be significantly different from the values that would eventually be received or settled.
Fair Value Hierarchy
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed as per Ind-AS 113 "Fair Value Measurement":
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