2.16 Provisions

Provisions are recognised when the Company has
a present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation and the amount
can be reliably estimated. Provisions are not
recognised for future operating losses.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a current pre-tax
rate that reflects current market assessment of the
value of moneyand the risks specific to the liability.

2.17 Contingent Liabilities and Contingent Assets

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 Companyor a present obligation that

is not recognized because it is probable that an
outflow of resources will not be required to settle the
obligation. However, if the possibility of outflow of
resources, arising out of present obligation, is
remote, it is not even disclosed as contingent
liability.

A contingent liability also arises in extremely rare
cases where there is a liability that cannot be
recognized because it cannot be measured
reliably. The Company does not recognize a
contingent liability but discloses its existence in the
notes to financial statements. A Contingent asset is
not recognized in financial statements, however,
the same are disclosed where an inflow of
economic benefit is probable.

2.18 Foreigncurrencytransactions

a) Functional and presentation currency

Items included in the financial statements of
the Company are measured using the currency
of the primary economic environment in which
the entity operates. The functional currency of
the Company is the Indian Rupee. The financial
Statementsare presented in Indian Rupees.

b) Transactions,translationandbalances

Foreign currency transactions are translated
into the functional currency using the exchange
rates at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation of monetary assets and liabilities
denominated in foreign currencies at year end
exchange rates are recognised in the
Statement of Profit and Loss.

All foreign exchange gains and losses are
presented in the Statement of Profit and Loss on
a net basis.

2.19 EarningsPerShare

Basic earnings per equity share are computed by
dividing the net profit attributable to the Equity
shareholders of the Company by the weighted
average number of equity shares outstanding
during the period.

For calculating diluted earnings per share, the net
profit or loss for the period attributable to equity

shareholders is adjusted for after income tax effect
of interest and other financing costs associated
with dilutive potential equity shares and the
weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equityshares.

2.20 Taxes on Income

Income tax expense for the year comprises of
current tax and deferred tax.

CurrentTax

Current Income Tax for the current and prior period
is recognised at the amount expected to be paid to
or recovered from the tax authorities, using the tax
rate and tax laws that have been enacted or
substantivelyenacted by the Balance Sheet date.

Current tax is recognised in statement of profit or
loss, except when they relate to items that are
recognised in other comprehensive income or
directly in equity, in which case, the current tax is
also recognised in other comprehensive income or
directly in equity respectively. Where current tax
arises from the initial accounting for a business
combination, the tax effect is included in the
accounting for the business combination.

Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to
realise the asset and settle the liability
simultaneously.

Deferredtax

Deferred tax is provided using the balance sheet
approach on temporary differences at the
reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
creditsand unused taxlossescan be utilized.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting
date.

Deferred tax relating to items recognised outside
the statement of profit and loss is recognised
outside the statement of profit and loss. Deferred
tax items are recognised in correlation to the
underlying transaction either in other compre¬
hensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current income tax
liabilities and the deferred taxes relate to the same
taxable entity and the sametaxation authority.

2.21 Employeebenefit

(i) ShortTermEmployeeBenefits

Liabilities for wages and salaries,including non¬
monetary benefits that are expected to be
settled wholly within 12 months after the end of
the period in which the employees render the
related service are recognised in respect of
employees' services up to the end of the
reporting period and are measured at the
amounts expected to be paid when the
liabilities are settled. The liabilities are
presented as short term employee benefit
obligations inthebalancesheet

(ii) Post-EmploymentBenefits

The following are the post-employment
schemes:

(a) defined benefit plans such as gratuityand

(b) defined contribution plans such as
provident fund, ESIC, LWF.

Defined Benefit Plans
Gratuity Obligations

The liability or asset recognised in the balance
sheet in respect of defined benefit gratuity plans is
the present value of the defined benefit obligation
at the end of the reporting period .The defined
benefit obligation is calculated annually by

actuaries using the projected unit credit method.
The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximating to the terms of the
related obligation. The net interest cost is
calculated by applying the discount rate to the net
balance of the defined benefit obligation This cost
is included in employee benefit expense in the
Statement of Profit and Loss. Re-measurement of
gains and losses arising from experience
adjustments and changes in actuarial
assumptions are recognised in the period in which
they occur, directly in other comprehensive
income. They are included in retained earnings in
the statement of changes in equity and in the
balance sheet. Changes in the present value of the
defined benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in profit or lossas past service cost.

Defined Contribution plans

The Company pays provident fund contributions to
publicly administered provident funds as per local
regulations. The Company has no further payment
obligations once the contributions have been paid.

The contributions are accounted for as defined
contribution plans and the contributions are
recognized as employee benefit expense when
they are due. Prepaid contributions are recognized
as an asset to the extent that a cash refund or a
reduction inthe future payments is available.

(iii)Other long-term employee benefit obliga¬
tions

The liabilities for earned leave and sick leave
are not expected to be settled wholly within 12
months after the end of the reporting period in
which the employees render the related
service. They are therefore measured as the
present value of expected future payments to
be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the market yields
at the end of the reporting period that have
termsapproximating to the terms ofthe related

obligation. Re-measurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in the Statement of
Profit and Loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

2.22 Share-Based Payments

Equity-settled share based payments to
employees and others providing similar services
are measured at the fair value of the equity
instruments at the grant date. Details regarding the
determination of the fair value of equity-settled
share based payments transactions are set out in
note30.

The fair value determined at the grant date of the
equity-settled share based payments is expensed
on a straight line basis over the vesting period,
based on the Company's estimate of equity
instruments that will eventually vest, with a
corresponding increase in equity. At the end of
each reporting period, the Company revises its
estimate of the number of equity instruments
expected to vest. The impact of the revision of the
original estimates, if any, is recognised in
Statement of Profit and Loss such that the
cumulative expenses reflects the revised estimate,
with a corresponding adjustment to the Share
Based Payments Reserve.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation ofdiluted earnings per share.

2.23 StatementofCashFlows

Statement of Cash flows are reported using the
indirect method, whereby profit for the period is
adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and
item 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 based on available
information.

For the purpose of presentation in the Statement of
Cash Flows, cash and cash equivalents includes
cash on hand, deposits held at call with financial
institutions, other short-term highly liquid
investments with original maturities of three
months or less that are readily convertible to known
amounts of cash and which are subject to an
insignificant riskofchangesinvalue.

2.24 Leases

Ind AS 116 sets out the principles for the recognition,
measurement, presentation and disclosure of
leases and requires lessees to account for all leases
under a single on-balance sheet model similar to
the accounting for finance leases under Ind AS 17.
The standard includes two recognition exemptions
for lessees - leases of 'low-value' assets (e.g.,
personal computers) and short-term leases (i.e.,
leases with a lease term of12monthsorless).

The Company assesses at contract inception
whether a contract is or contains a lease. That is, of
the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

Where the Companyis the lessee:

The Company's lease asset classes primarily
consists of leases for stores, warehouses and
offices taken on lease. The Company assesses
whether a contract contains a lease, at inception of
a contract and period to be considered for
recognition of lease liability and right-of-use
assets. At the date of commencement of lease, the
Company recognise a right-of-use asset ("ROU")
and a corresponding lease liability for all lease
arrangement in which it is a lessee except for leases
with a non-cancellable term of twelve months or
less (short-term leases) and low value leases. For
these short-term leases which have term less than
12 months and low value leases, the Company
recognizes the lease payments as an operating
expense on a straight-line basis over the term ofthe
lease.

The lease liability is initially measured at the present
value of the lease payments (including Common

Area Maintenance) that are not paid at the
commencement date, discounted by using the rate
implicit in the lease. If this rate cannot be readily
determined, the Company uses its incremental
borrowing rate. The lease liability is subsequently
measured by increasing the carrying amount to
reflect interest on the lease liability (using the
effective interest method) and by reducing the
carrying amount to reflect the lease payments
made.

The Company remeasures the lease liability (and
makes a corresponding adjustment to the related
right-of-use asset) whenever:

• The lease term has changed or there is a
significant event or change in circumstances
that is within the control of the Company affects
whether the lessee is reasonably certain to
exercise an option not previously included in its
determination of the lease term, or not to
exercise an option previously included in its
determination of the lease term., in which case
the lease liability is remeasured by discounting
the revised lease payments using a revised
discount rate.

• A lease contract is modified and the lease
modification is not accounted for as a separate
lease, in which case the lease liability is
remeasured based on the lease term of the
modified lease by discounting the revised lease
payments using a revised discount rate at the
effective date of the modification. The effective
date of the modification is the date when both
the parties agree to the lease modification and
isaccounted for inthat point in time.

The right-of-use assets comprise the initial
measurement of the corresponding lease liability,
lease payments (including Common Area
Maintenance) made at or before the commen¬
cement day, less any lease incentives received and
any initial direct costs. They are subsequently
measured at cost less accumulated depreciation
and impairment losses. Right-of-use assets are
depreciated over the non-cancellable period or
leaseterm as per the managementassessment.

The Company applies Ind AS 36 to determine
whether a right-of-use asset is impaired and

accounts for any identified impairment loss as
described in the 'Impairment of Non-Financial
Assets'policy.

Variable rentals that do not depend on an index or
rate, are recognised as expenses in the periods in
which they are incurred

Wherethe Company is the Lessor:

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an assets are classified the asset are
classified as operating leases. Rental income
arising is accounted for on a straight line basis over
the lease terms. Initial direct costs incurred in
negotiating and arranging on operating lease are
added to the carrying amount of the leased asset
and recognized over the lease term on the same
basis as rental income. Contingent rents are
recognized as revenue in the period in which they
are earned.

The Ministry of Corporate Affairs vide notification
dated July 24, 2020 and June 18, 2021, issued an
amendment to Ind AS 116-Leases, by inserting a
Practical Expedient w.r.t "Covid-19-Related Rent
Concessions" effective from the period beginning
on or after April 01, 2020. Pursuant to the above
amendment, the Company has elected to apply
the Practical Expedient of not assessing the rent
concessions as a lease modification for all the rent
concession which are granted due to Covid-19
Pandemic and has recognized the impact of such
rent concession as other income in the Statement
of Profitand Loss.

2.25 BusinessCombination

Business combinations have been accounted for
using the acquisition method under the provisions
of Ind AS 103, Business Combinations. The cost of an
acquisition is measured at the fair value of the
assets transferred, equity instruments issued and
liabilities incurred or assumed at the date of
acquisition, which is the date on which control is
transferred to the Company. The cost of acquisition
also includes the fair value of any contingent
consideration. Identifiable assets acquired,
liabilities and contingent liabilities assumed in a
businesscombination are measured initially at
their fair value on the date of acquisition.
Transaction costs that the Company incurs in
connection with a business combination such as
finder's fees, legal fees, due diligence fees, and
other professional and consulting fees are
expensed asincurred.

Business combination between entities under
common control is accounted for using the pooling
of interest method, the assets and liabilities of the
combining entities are reflected at their carrying
amounts. The only adjustments that are made are
to harmonise accounting policies.

2.26 BorrowingCosts

Borrowing cost includes interest, amortisation of
ancillary cost incurred in connection with the
arrangement of borrowings and the exchange
differences arising from foreign currency
borrowings to the extent they are regarded as an
adjustment to the interest cost. General and
specific borrowing costs that are directly
attributable to the acquisition, construction or
production of a qualifying asset are capitalized
during the period of time that is required to
completeand preparethe asset for its intended use
or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get
readyfortheirintended useorsale.

Investment income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization.

Other borrowing costs are expensed in the period in
which they areincurred.

2.27 WarrantyCosts

Costs of warranty include the cost of labour,
material and related overhead necessary to repair
a product during the warranty period. The warranty
period is usually one to three years. Costs related to
warranty are expensed in the period in which they
areincurred.

2.28 Offsetting Financial Instruments

Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where
there is a legally enforceable right to offset the

recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable
right must not be contingent on future events and
must be enforceable in the normal course of
business and in the event of default, insolvency or
bankruptcy of theCompanyorthecounterparty.

2.29 Critical estimates andjudgements

The areas involving critical estimates or
judgements are:

• Estimationofdeferredtaxassetsrecoverable

Deferred tax assets are recognised for unused
tax losses to the extent that it is probable that
taxable profit will be available against which
the same can be utilised. Significant
management judgement is required to
determine the amount of deferred tax assets
that can be recognised, based upon the likely
timing and the level of future taxable profits
togetherwithfuturetaxplanning strategies.

The Company has not recognized deferred tax
asset which is primarily on account of unused
brought forward losses, in the absence of the
reasonable certainty that taxable income will
be generated in the near future to offset the
losses if any, incurred by the Company. Refer
note 36 for amounts of such temporary
differences on which deferred tax assets are
notrecognised.

• Estimation of defined benefit obligation

The cost of the defined benefit gratuity plan and
other post-employment employee benefits
and the present value of the gratuity obligation
are determined using actuarial valuations. An
actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include the
determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its
long-term nature, a defined benefit obligation
is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.

Theparameter most subject tochangeis the

discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds in currencies consistent with
the currencies of the post-employment benefit
obligation.

The mortality rate is based on publicly available
Indian Assured Lives Mortality (2006-08) Ultimate.
Those mortality tables tend to change only at
interval in response to demographic changes.
Future salary increases and gratuity increases are
based on expected future inflation rates for the
respective countries. Refer note 29 for key actuarial
assumptions.

• Impairment of trade receivables, loans and
otherfinancialassets

The impairment provisions for financial assets
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgement in making these assumptions and
selecting the inputs to the impairment
calculation, based on the Company's history,
existing market conditions as well as forward

looking estimates at the end of each reporting
period.

Refer note 27 on financial risk management
where credit risk and related impairment
disclosures are made.

Equity-settled share based payments

The Company initially measures the cost of
equity settled transactions with employees
using a Black Scholes Pricing Model to
determine the fair value of the liability incurred.
Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which is
dependent on the terms and conditions of the
grant. This estimate also requires determi¬
nation of the most appropriate inputs to the
valuation model including the expected life of
the share option, volatility and dividend yield
and making assumptionsaboutthem.

The assumptions and models used for
estimating fair value for share-based payment
transactions are disclosed in Note no. 30.

(ii) Terms/Rights Attached to Equity Shares

The Company has only one class of Equity Shares having a par value of ^ 5/- each at the Balance Sheet Date. Each holder
is entitled to one vote per share in case of voting by show of hands and one vote per Shares held in case of voting by
poll/ballot. Each holder of Equity Share is also entitled to normal dividend (including interim dividend, if any) as may be
declared by the company.

In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distributions will be in proportion to the number of equity
shares held by shareholder.

(iii) : to the provisions of the Companies Act, 2013, the issue of 5,218 Equity Shares are kept in abeyance corresponding
to the respective shareholders holding of 1,04,371 equity shares in Future Retail Limited.

PRAXIS

HOME RETAIL UMITED

«ANNUALREPORT»

Nature and Purpose of Reserves:

a) Capital Reserve

During the financial year ended March 31, 2018, the capital reserve of W 7,968.34 Lakhs recognised due to
demerger of retail hometown division, pursuant to the composite scheme of arrangement with Future Retail
Limited. During the year ended March 31,2025, the respective warrant holder did not exercise the option to
convert three crore equity share warrants within the conversion period ending on February 2, 2025. These
equity share warrants were cancelled by the Company and application money amount of W1,200 lakhs
received on August 2,2023was forfeited in terms of the issue of said warrants and treated as Capital Reserve.

b) CapitalRedemptionReserve

During the financial year ended March 31, 2018, the capital redemption reserve of W 5.00 Lakhs recognised
due to demerger of retail hometown division, pursuant to the composite scheme of arrangement with
Future Retail Limited.

c) SecurityPremium

Security premium is created to record a sum equal to the aggregate amount of its premium received on
shares issued as per the Companies Act, 2013.

d) Share- Based Payment Reserve

This reserve relates to share options granted by the Company to its employees and directors under ESOP.
Further information about share-based payments to employees is set out in Note no. 30.

e) Retainedearnings

This represents the surplus / (deficit) of the Statement of Profit and Loss. The amount that can be distributed
by the Company as dividend to its equity shareholders is determined based on the separate Financial
Statements of the Company and also considering the requirements of the Companies Act, 2013.

f) Money received against sharewarrants

This represents amount received on partial allotment of Equity Share Warrants to preferential investors on
preferential allotment basis. (Refer note no. 45)

PRAXIS

HOME RETAIL UMITED

Notes annexed to and forming part of the financial statements for The Year Ended March 31, 2025
16 FINANCIAL LIABILITY-BORROWINGS (f in Lakhs)

Security:

(a) Inter Corporate Deposits are repayable on demand secured by promisory note.

17 TRADE PAYABLES (? in Lakhs)

During the year 2018-19, the Nomination and Remuneration Committee ("NRC") of the Company had granted
4,66,500 options under the Praxis SVAR Plan - 2018 to director and employees of the Company. The options granted
are convertible into equal number of equity shares of face value Rs.5/- each. The exercise price of each option is
Rs.176/- (including Rs. 171/- as share premium). The options were subject to a minimum vesting period of 1 (one)
year from the date of grant. Method of accounting is Fair Value based and the method of settlement will be Equity-
settled.

Thereafter, during the financial year 2019-20,2020-21,2021-22,2022-23,2023-24 & 2024-25, no stock options were
granted under Praxis SVAR Plan - 2018.

Praxis EmployeeStockOption Plan-2021

The ESOP Plan titled as Praxis Home Retail Limited, Employee StockOption Plan - 2021 ("ESOP- 2021") was approved
by the Board of Directors at its meeting held on October 27,2021 and the same was also passed by way of a special
resolution by the Shareholders of the Company in terms of SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021 by way of postal ballot approved on December 12, 2021. In aggregate, 20,00,000 stock options
were covered under the ESOP - 2021.

During the year 2021-22, the Nomination and Remuneration Committee ("NRC") of the Company had granted
12,05,000 options under the ESOP Plan - 2021 to director and employees of the Company. The options granted are
convertible into equal number of equity shares of face value ^ 5/- each. The exercise price of each option is ^ 5/-.
The options were subject to a minimum vesting period of 1 (one) year from the date of grant. Method of accounting
is Fair Value based and the method of settlement will be Equity-settled.

During the year 2022-23, the Nomination and Remuneration Committee ("NRC") of the Company has granted

1.00. 000 options under the ESOP Plan - 2021 to employee of the Company. The options granted are convertible into
equal number of equity shares of face value ^ 5/- each. The exercise price of each option is ^ 5/-. The options were
subject to a minimum vesting period of 1 (one) year from the date of grant. Method of accounting is Fair Value
based and the method of settlement will be Equity-settled.

Praxis Employee StockOption Plan-2024

The ESOP Plan titled as Praxis Home Retail Limited Employee Stock Option Plan - 2024 ("ESOP - 2024") was
approved by the Board of Directors at its meeting held on November 11, 2024 and the shareholders at the Extra
Ordinary General Meeting held on April 27, 2024. In aggregate, 30,00,000 stock options were covered under the
ESOP - 2024.

During the year 2024-25, the Nomination and Remuneration Committee ("NRC") of the Company had granted

5.00. 000 options under the ESOP Plan - 2024 to director and employees of the Company. The options granted are
convertible into equal number of equity shares of face value ^ 5/- each. The exercise price of each option is ^ 5/-.
The options were subject to a minimum vesting period of 1 (one) year from the date of grant. Method of accounting
is Fair Value based and the method of settlement will be Equity-settled.

* As the effect of the weighted average number of potential equity share on account of ESOP and equity
warrants are anti-dilutive in nature for year ended March 31, 2025 and March 31, 2024, the same is not
considered in the calculation of weighted average number of equity shares for the Diluted EPS.

32. Leases:-

The Company has lease contracts for office, store premises and warehouses used in its operations, which
has lease terms between 3 and 30 years. The Company's obligations under its leases are secured by the
lessor's title to the leased assets. The Company also has certain leases of offices , store premises and
warehouses with lease terms of 12 months or less and leases of office equipment with low value. The
Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these
leases.

The company has entered into variable lease agreements as it offers the opportunity to optimize the
costs in the inception stage of store operations. All variable lease agreements are calculated as a pre¬
defined percentage on the net sales.

(e) The Company has several lease contracts that include extension and termination options. These
options are negotiated by management to provide flexibility in managing the leased-asset portfolio
and align with the Company's business needs. Management exercises significant judgement in
determining whether these extension and termination options are reasonably certain to be exercised.

36. Unclaimed Fractional Share Money

Pursuant to the Composite Scheme of Arrangement, the Company had appointed a Trustee M/s Anant
Gude& Associates, to deal with the fractional shares of the Company. The total number of fractional shares
worked out to 17,061 equity shares. Accordingly, on April 4,2018 the Trustee sold 17,061 equity shares for a total
value of ^ 35.47 Lakhs. As per the certificate received from the Trustee, out of the total warrants issued
towards disbursement of amount pertaining to fractional shares, ^ 3.31 Lakhs of the value is still pending to
be claimed by the shareholders. The balance amount has been shown as current financial liability in the
financial statements. This balance has been kept in a separate bank account.

2. Significant Related Party Transactions

A. Purchases includes purchase from Future Retail Limited W Nil (2024: W 3.86 lakhs), Smartsters Private
Limited W 151.93 lakhs (2024: W 320.43 lakhs) & Transportation and Warehousing services includes to
Future SupplyChain Solutions Limited W Nil (2024: W 690.48 lakhs).

B. Other Income includes income from U2L Learning Solutions Limited (Rental Income) W 1.95 lakhs (2024:
W 9.20 lakhs).

C. Rent expenses from Future Market Networks Limited W 100.32 lakhs (2024: W 119.07 lakhs) and Ojas
Tradelease and Mall Management Private Limited W 25.03 lakhs (2024: W 37.92 lakhs).

D. Other Expenses from U2L Learning Solutions Limited (Training & Development Expenses) W 13.85 lakhs
(2024: W 65.23 lakhs), Future Market Network Limited W 1.16 lakhs (Advertisement Expenses) (2024: W 3.83
lakhs), Future Ideas Company Limited (Employee welfare expenses) W 0.14 lakhs (2024: W 0.28 lakhs).

E. Insurance Premium paid to Future Generali India Insurance Company Limited W Nil (2024: W 10.62
lakhs).

F. Interest expenses include interest paid/payable to Future Capital Investment Private Limited W Nil
(2024: W 128.68 lakhs), FDRT Consultancy Services Limited W Nil (2024: W 98.89 lakhs), Future Hospitality
Private Limited W Nil (2024: W 55.63 lakhs), Future Market Networks Limited W 41.42 lakhs (2024: W 0.39
lakhs), Nubusiness Ventures Private Limited W Nil (2024: W 104.75 lakhs) ,Surplus Finvest Private Limited W
Nil (2024: W 78.82 lakhs) and Suhani Mall Management Company Pvt Ltd W 28.70 (2024: W Nil). During the
year related parties of the Company, have agreed to waive the interest accrued on the loan from April 1,
2024 till December 31,2024 aggregating to W 466.33 lakhs.

G. Inter-Corporate Deposit Taken from Future Capital Investment Private Limited W Nil (2024: W 1300.00),
FDRT Consultancy Services Limited W 525.00 lakhs (2024: W 1,440.00 lakhs), Future Hospitality Private
Limited W Nil (2024: W 900.00 lakhs), Future Market Networks Limited W 168.00 lakhs (2024: W 250.00 lakhs),
Nubusiness Ventures Private Limited W 79.61 lakhs (2024: W 400.00 lakhs), Surplus Finvest Private Limited
W 800.00 lakhs (2024: W 150.00 lakhs), Suhani Mall Management Company Pvt Limited W 380.00 (2024: W
Nil), Cutcost Consumers Private ltd W 350.00 (2024: W Nil) and Niyman Mall Management Company W

983.00 (2024: W Nil).

H. Inter-Corporate Deposit Repaid to FDRT Consultancy Services Limited S Nil (2024: S 880.00 lakhs),
Surplus Finvest Private Limited S 403.00 lakhs (2024 : S 1485.00 lakhs) and Future Hospitality Private
Limited S 70.00 (2024: S Nil)

I. Liabilities no longer required written back includes amount against Ojas Tradelease and Mall
Management Private Limited S Nil (2024: S 96.06 lakhs) ,Future Lifestyle Fashions Limited S 907.15 lakhs
(2024: S Nil), Future Retail Limited S 240.57 lakhs (2024: S Nil), Future Supply Chain Solutions Limited S
1519.71 lakhs (2024: S Nil), Nufuture Digital (India) Limited S 24.52 lakhs (2024: S Nil) and Future Brands
Limited S1.76lakhs (2024: S Nil).

J. Expenses incurred in behalf of related parties includes amount paid on behalf of Future Lifestyle
Fashions Limited S Nil (2024: S 448.34 lakhs).

K. Managerial Remuneration includes Mr. Ashish Bhutda S 24.90 lakhs (2024: S Nil) Mr. Mahesh Shah S
Nil (2024: S 139.33 lakhs), Mr. Swetank Jain S 69.05 lakhs (2024: S 110.19 lakhs), Mr. Samir Kedia S 112.56
lakhs (2024: S 106.30 lakhs), Mr. Vimal Dhurve S 26.72 lakhs (2024: S Nil) and Ms. Sanu Kapoor S 11.25
lakhs (2024: S 34.13 lakhs).

Director Sitting fees paid to Mr. Mahesh Shah S 0.60 lakhs (2024: S 1.50 lakhs), Mr. Jacob Mathew S 3.00
lakhs (2024: S 4.10 lakhs), Mr. Harminder Sahni S Nil (2024: S 3.90 lakhs), Ms. Anou Singhvi S 1.70 lakhs
(2024: S 3.20 lakhs), Ms. Lynette Monteiro S 1.20 lakhs (2024: S 1.80 lakhs), Mr. Samson Samuel S 2.00
lakhs (2024:S2.40 lakhs) and Mr. Vijay Singh Dugar S1.90 lakhs (2024:S Nil)

Outstanding Balance as on 31st March,2025:

A. Equity shares held in the Company - Surplus Finvest Private Limited S 1,226.19 lakhs (2024:S 1,479.85
lakhs), Future Corporate Resources Private Limited S 20.78 lakhs (2024: S 20.78 lakhs), Future
Hospitality Private Limited S Nil lakhs (2024: S 225.67 lakhs), Kishore Biyani S 0.01 lakhs (2024: S 0.01
lakhs)

B. Security Deposit receivable from Future Enterprises Limited, amounting to S 10,100.00 lakhs (2024: S

10.100.00 lakhs) and Future Market Network Limited, amounting to S 49.74 lakhs (2024: S 49.74 lakhs).

C. Trade Payables includes payable to Future Supply Chains Solutions Limited of S Nil (2024: S 1,519.71
lakhs), Future Lifestyle Fashions Limited S Nil (2024: S 610.59 lakhs) and Provisions S Nil (2024: S 729.05
lakhs), Future Retail Limited S Nil (2024: S 240.47 lakhs), Smartsters Private Limited S 52.81 lakhs (2024: S
133.90 lakhs), Ojas Tradelease and Mall Management Private Limited S Nil (2024: S Nil) and Provisions
of S 39.54 lakhs (2024: S 17.01 lakhs), Future Market Networks Limited S 58.91 lakhs (2024: S 80.86 lakhs)
and Provisions S 6.74 lakhs (2024: S 5.21 lakhs), Nufuture Digital (India) Limited of S Nil (2024: S 24.52
lakhs), U2L Learning Solutions Limited S Nil (2024: S 15.28 lakhs) and Future Brands Limited S Nil (2024: S
1.76 lakhs).

D. Advances given includes lease rental advances to Future Enterprises Limited S 331.97 lakhs (2024: S
331.97 lakhs) and Ojas Tradelease and Mall Management Private Limited S 36.40 lakhs (2024: S 11.95
lakhs).

E. Provision for Doubtful Advances against lease rental advances given to Future Enterprises Limited S

300.00 lakhs (2024: S 300.00 lakhs).

F. Inter-Corporate Deposit Taken (including Interest accrued) Outstanding from Future Capital
Investment Private Limited S 1,370.39 lakhs (2024: S 1,370.39 lakhs), FDRT Consultancy Services Limited
S 1,112.32 lakhs (2024: S 590.32 lakhs), Future Hospitality Private Limited S 878.73 lakhs (2024: S 948.73
lakhs), Future Market Networks Limited S 459.71 lakhs (2024: S 250.35 lakhs), Nubusiness Ventures
Private Limited S 1,017.42 lakhs (2024: S 948.73 lakhs), Surplus Finvest Private Limited S 779.54 lakhs
(2024: S 402.54 lakhs), Cutcost Consumer Pvt Limited S 3,444.71 lakhs (2024: S Nil), Niyman Mall
Management Co. S 983.00 lakhs (2024: S Nil) and Suhani Mall Management Company Pvt Ltd S
405.83 lakhs (2024: S Nil).

39. Commitmentsand Contingent Liabilities
(l) Commitments

a. Leases - Operating Lease commitments - Company as lessee

The Company has entered into lease agreement and its undiscounted present value of the lease
rental for the non-cancellable term is 5 1,220.45 Lakhs (2024: 5 444.00 Lakhs).

b. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided
for as on March 31,2025:

Capital Commitments - 5 9.81 lakhs (2024:5 356.43 lakhs)

(ii) ContingentLiability:

(a) The Company has not provided for Income Tax demand demand excluding contingent interest
of 5 113.80 lakhs (2024:5113.80 lakhs) which is pending before CIT Appeals & for GST Tax demand
of 5 670.62 lakhs (2024:5 Nil) which is pending before GST Appellate Authorities.

(b) On November 27,2020, The Company has received demand notice from the Directorate General
of Anti Profiteering department wherein the department has stated that the Company has
contravened the provisions of Section 171(1) of the Central Goods and Service Tax Act, 2017 and
the benefit of the rate reduction in GST from 28% to 18% was not passed on to the recipients by
increasing the base price of the products. As per the report the total amount of profiteering
covered for the period 15.11.2017 to 30.09.2019 has been worked out to 5 368 Lakhs. The Company
has submitted its reply on January 18, 2021 to National Anti-Profiteering Authority (GST). The
Company was granted personal hearing in the matter by National Anti-Profiteering Authority
(GST) on April 7,2022. Pursuant to the said hearing, the Company has argued and submitted its
reply vide letter date April 12,2022 to emphasize the fact that the benefit of GST rate change was
duly passed on to the customers. Further clarification was required by the Directorate General of
Anti Profiteering department on November 3, 2022, for which Company has submitted its reply
vide letter date November 17,2022. Final order is awaited in this regard.

(c) Based on consultation with the legal advisors of the Company, the management believes that
the tax authorities are not likely to be able to substantiate their tax assessments / demands &
accordingly it has not provided for these tax demands at the Balance sheet date.

(d) In FY 2021-22, an operational creditor filed an application under IBC with NCLT, Mumbai bench for
alleged non-payment of its dues (including interest) amounting to ? 100.65 lakhs. However, the total
outstanding as per the Company's books is only ? 0.83 lakhs. As at March 31,2025, the said matter was
pending before the NCLT.

(e) The Company is a party to various legal proceedings in normal course of business and does not
expect the outcome ofthese proceedings to have any adverse effect on its financial conditions, results
of the operations or cash flow. Amounts of such disputesare unascertainable.

40. During the Financial Year 2022-23, tenure of a lease rental agreement entered by the Company with a related
party - Future Enterprises Limited (Lessor) pursuant to the demerger of business and assignment of the original
lease arrangement expired on November 30, 2022. The Company has security deposits of ? 10,100 lakhs
receivable from the Lessor. The Company continues to hold the possession of the Stores leased assets (PPE) from
the Lessor. The Company has made follow up with the Lessor for transfer of Stores leased assets and recovery of
security deposit amount. In the year 2023, the Company obtained a valuation report from an independent
professional firm under which the value of these assets were more than the amount of security deposit. The
Company has considered the security deposits amount is good and adequately receivable against realizable
value of these assets. Further, no lease rental charges are liable to be paid in view of expiration of the agreement
with the Lessor. Accordingly, no provision towards lease rental has been provided in the books of accounts.
Further it may also be mentioned that post expiry of lease term the Lessor has been referred under Corporate
Insolvency Resolution Process with effect from February 27, 2023. The Resolution Professional ("RP") of the said
Lessor has filed an Interlocutory Application (IA) in Company Petition (IB) No.513/NCLT/MB/2022 on January 9,
2025, before the National Company Law Tribunal, Mumbai bench (NCLT) under the IBC, 2016 against, amongst
others, the Promoter of the Company and the Company. In the said IA, the RP has, inter alia, claimed the lease
rental amounting to ? 4577.35 lakhs from the Company for the in-store retail infra assets leased by the Lessor to
the Company. The said IA is challenged on the grounds that the RP has relied upon the unauthenticated, unsiged
and incomplete Transaction Audit report. The Company is in the process of filing its reply disputing all the claims.

41. IndAS115: Revenue from contracts with customers

The application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue and
related items in the standalonefinancial statements.

" 1. Disintegrated revenue information

Set out below is the disaggregation of the Company's revenue from contracts with customers:

Note - During year ended March 31,2025, revenue recognized is ^ 1,047.00 lakhs and advances collected is ^ 507.11 lakhs.
During year ended March 31,2024, revenue recognized is ^ 1,144.10 lakhs and advances collected is ^1,047.00 lakhs.

42. Costs of warranty include the cost of labour, material and related overhead necessary to repair a product during the
warranty period. The Company has deployed an in-house staff for to repair the products under warranty period. The
Company being a trader have back to back warranty agreements with the parties for all the products it sales. Further the
Company's cost on stores and spares based on the actual expenses incurred itself is not material and is further
insignificant related to products which are under warranty period of more than one year. Hence the Company does not
make any provision for warranties in accordance with in accordance with Ind AS 37 and expense out the cost on an
actual basis.

43. The Company has incurred a cash loss of ^ 4542.46 lakhs during the year ended March 31, 2025. Further, its current
liabilities exceed its current assets which indicate a material uncertainty exists that may cast a significant doubt on the
Company's ability to continue as a going concern. In the current year, the Company has raised funds through issue of
share warrants amounting to ^ 487.50 lakhs, issue of equity shares amounting to Rs 1200 lakh and also announced
raising further funds under Rights Issue to improve its liquidity position. Further, the Company is committed to improve its
operational efficiency to boost sales, reduce cost and to explore various possible options to raise the funds. These
together are expected to bring finanical stability and improve the networth enabling the Company to meet all
obligations. Accordingly, the financial results of the Company have been prepared on a going concern basis.

44. RightsIssue

a) The Board of Directors of the Company approved Rights Issue for an aggregate amount of ^ 4,958.00 Lakh. The
Company has received necessary in-principle approvals of the Stock Exchanges. Subsequent to such approvals, the
Company has fixed issue price of Rs.10/- per equity share under the Rights Issue. However, as at March 31,2025, the issue
was pending to open for subscription.

b) The Company in its Letter of Offer dated May 26,2023 offered 4,91,85,572 Equity shares byway of rights issue at a face
value of ^ 5 each and a price of ^ 10 per equity share (including a premium of ^ 5 per equity share). The issue opened on
June 6,2023 and closed on June 14,2023. The Company allotted 4,91,85,572 equity shares of face value of ^ 5 each on the
basis of allotment approved by Committee of Directors of the Board of Directors of the Company on June 22, 2023,
aggregating to ^ 4,918.55 Lakhs including Securities Premium of ^ 2,459.28 Lakhs. As on March 31,2024, the net proceeds
has been fully utilised towards the stated objectives of repayment of outstanding trade payables and general corporate
purposes.

45. PreferentialAllotment

a) Pursuant to the Shareholders' approval at the Extra Ordinary General Meeting held on April 27,2024, the Company on
May 9,2024 issued and allotted 45,07,629 Share Warrants at an issue price of ^ 43.26 per Share Warrant to the Specified
Investor - Bennett, Coleman and Company Limited on preferential allotment basis, on receipt of 25% (^ 487.50 lakhs) of
the total consideration price (^ 1950 lakhs) for the Share Warrants. The Warrants shall be converted into equivalent
number of equity shares at a conversion price of ^ 43.26 per equity share on receipt of the remaining consideration of
75% within a period of 18 months from the date of allotment of Share Warrants.

b) Pursuant to the terms of 4,00,00,000 Share Warrants issued and allotted in 2023-24, a holder of the said Share
Warrants exercised the option to convert 1,00,00,000 Share Warrants into equity shares by paying remaining 75% amount
thereon and accordingly, the Company allotted 1,00,00,000 equity shares on October 15,2024 at an issue price of Rs.16 per
equityshare.

46. SubsequentEvents

i. After close of the Finanical Year 2024-25, the Chief Financial Officer of the Company resigned w.e.f. April 30,2024.

ii. Pursuant to approval of the Board of Directors, the Shareholders at the Extra Ordinary General Meeting held on March 13,
2025 had approved to issue 52,88,900 equity shares at an issue price of Rs.23.19 per equity share to various trade
creditors of the Company on a preferential basis ("Preferential Issue"). The said Preferential Issue was subject to, inter
alia, receipt of 'in-principle approvals' of the Stock Exchanges under the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (the "Listing Regulations") and achieving requisite compliances with SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2018 (the "ICDR Regulations"). Subsequent to the passing of special
resolution by the shareholders, the Company was in receipt of a specific query from BSE Limited with respect to
compliance with regulation 163(3) of the ICDR Regulations regarding issuance of equity shares for 'consideration other
than cash'. The Company responded stating that issue of new shares against settlement of trade liabilities is to be
considered for 'cash' and therefore, do not attract provisions of regulation 163(3) of ICDR Regulations. However, BSE
Limited did not agree with the interpretation and accordingly, has closed the application of the Company on 22nd April
2025, upon expiry of given timeframe, without according "in-principle approval" for the Preferential Issue as required
under regulation 28 of Listing Regulations. In view of closure of application for'in-principle approval' by BSE Limited, the
special resolution passed by the shareholders for allotment under Preferential Issue was not acted upon.

47. As on the balance sheet date (current year and previous year), the Company has reversed the inventories which were
purchased on Sale or Return basis (SOR) basis of ^ 1,183.60 lakhs and ^ 2,277.83 lakhs respectively along with the
simultaneous reversal of such amounts from purchases / trade payables.

48. Exceptional items for the year ended March 31,2024 includes ^ 838.51 lakhs reversal of overheads. The Company had a
practice to load the overheads, under standard cost method, in the inventories by increasing the costs of purchases of
stock in trade, including costs which were yet to be incurred by it. Subsequently, as and when the actual costs were
incurred towards supply chain for such purchases, they were getting added at that point in time with the cost of
purchases of stock in trade, rather than being charged in the respective line items of statement of profit & loss. From year
ended March 31,2024 onwards, to comply with the requirements of Ind AS, the Company has stopped such practice and
has identified and reversed all such overheads aggregating to ^ 838.51 lakhs which were lying in its opening inventories
of ? 6,633.64 lakhs.

49. Balances of Trade Payables and Other Receivables are subject to confirmations and reconciliation, if any. Such
reconciliation, in the opinion of the management, are not likely to be material and will be carried out as and when
ascertained.

50. The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013
during the year ended March 31,2025. However, it had a transaction of ^ 4.76 Lakhs with Veteran Facility Management Pvt.
Ltd. (a company struckoff under section 248 of Companies Act, 2013) during year ended March 31,2023.

51. During the year, the performance of the Company was abnormal due to shortage of inventory and liquidity. Pursuant to
which there is an increase in losses in the current year as compared to the preceding periods. Most of the stores of the
Company were running into losses during this period, which may trigger up the requirement for providing impairment on
Right of Use (ROU) Assets of ^ 12,581.29 lakhs. However, The Company has received necessary in-principle approvals of
the Stock Exchanges for the Right issue amounting to ^ 4,918.55 lakhs. Subsequent to such approvals, the Company has
fixed issue price of Rs.10/- per equity share under the Rights Issue. However, as at March 31,2025, the issue was pending to
open for subscription.The Company is confident that the liquidity and profitability position of the Company will improve
in the next financial year. And hence, it envisages that there may not be a need arising to provide any impairment on ROU
in the current financial year.

52. Resolution Professional (rp) of Future Lifestyle Fashions Limited ("FLFL") has filed an Interlocutory Application against the
Promoter, Mr. Kishore Biyani and Praxis Home Retail Limited ("Respondents") before Hon'ble National Company Law
Tribunal, Mumbai Bench ("NCLT"), in the matter relating to Corporate Insolvency Resolution Process initiated against FLFL,

which is received by the Company on 4 January 2024. In the said Interlocutory Application filed against the Respondents, the
RP has prayed to NCLT to treat the transactions carried out by the erstwhile directors of the Corporate Debtor as fraudulent
transactions, in accordance with Section 66 of the Code and has sought directions from NCLT directing the Respondents to
pay the amount due to FLFL to the tune of ? 23.21 Crore along with interest. The Company is in the process of seeking legal
advice and is taking appropriate steps to contest this matter. Till the time the claim is not substantiated, it is considered as
contingent liability.

53. OtherStatutoryinformations

i. The Company does not have any transaction 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.

ii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

iii. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the funding party company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

iv. During the year the company is not declared wilful defaulter by any bank or financial institution or
other lender.

v. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

vi. The Company has not traded or invested in crypto currency or virtual currency during the financial
year.

vii. The Company has not defaulted in repayment of loans or other borrowings or payment of interest
thereon to any lender.

viii. The Company does not have any Benami property, where any proceeding has been initiated or
pending againstthecompanyfor holding anyBenami property.

ix. Corporate Social Responsibility (CSR) - As per the section 135 of the Companies Act 2013, the
Company is required to spend ? Nil (2024: ? Nil) towards CSR based on profitability of the Company,
against thesame? Nil has been spent bytheCompany.

55. Recent accounting pronouncements

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. During the year ended March 31,
2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind As 116 - Leases, relating to sale
and lease back transactions, applicable from April 1,2024. The Company has assessed that there is no significant
impactonitsfinancialstatements.

56. Previousyearfigures

Previous years figures have been regrouped or reclassified wherever necessary to conform to current year's
presentation which are not considered to be material to the Financial Statements.

As per our report of even date attached For and on behalf of Board of Directors

Praxis Home Retail Limited

CIN: L52100MH2011PLC212866

For Singhi & Co. Ashish Bhutda Samson Samuel

Chartered Accountants Chief Executive Officer and Chairman &

Firm Registration No. 302049E Whole Time Director Non- Executive Director

DIN: 10810844 DIN: 07523995

Ravi Kapoor

Partner Vimal Dhruve

Membership No.: 040404 Company Secretory

Place:Mumbai
Date: May 12, 2025