o) Provisions & contingent liabilities:
Contingent Liabilities are possible but not probable
obligations as on Balance Sheet date, based on the
available evidence. Provisions are recognised when
there is a present obligation as a result of past events,
and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which
a reliable estimate can be made. Provisions are not
discounted to its present value and are determined
based on the best estimate required to settle the
obligation at the Balance Sheet date.
2.4 No shares are reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.
2.5 For a period of five years immediately preceding the Balance Sheet date, the Company has
(a) not allotted any class of shares as fully paid up pursuant to any contracts without payment being received in cash;
(b) allotted 1,31,36,823 shares by way of bonus shares;
(c) not bought back any class of shares.
2.6 No securities which are convertible into equity/preference shares have been issued by the company.
2.7 No calls are unpaid by any director or officer of company during the year.
2.8 No amounts have been forfeited on shares issued.
2.9 Shares held by promoters at the end of the year and during the year
Note 29: Employee Benefit Expenses
A. General Description
i) Provident Fund/ Employees' State Insurance(Defined contribution)
The Company's Provident Fund Scheme & Employees' State Insurance Scheme are defined contribution plans. The expense
charged to the Statement of Profit & Loss under the head Contribution to provident & other funds in respect to the above
schemes is Rs. 27.59 lakhs (Previous year Rs.29.73 lakhs).
ii) Gratuity (Defined benefit plan)
In respect of gratuity which is a define benefit plan is governed by the Payment of Gratuity Act, 1972. Under the said act,
employees are entitled to specific benefits at the time of retirement or termination of the employment on completion of
five years. The level of benefits provided depends upon employee's length of service and salary at the time of retirement/
termination, The Company has estimated the Gratuity liability on the basis of actuarial valuation.
iii) Enterprise in which significant influence is exercised by Key Managerial personnel
SD Fashions LLP (converted w.e.f. 06-02-2024) (Formerly SD Fashions Private Limited)
Grace Garments LLP (converted w.e.f. 30-12-2023) (Formerly - Grace Garments Limited)
Sweet Dreams Loungewear (India) LLP (converted w.e.f. 07-03-2024) (Formerly - Sweet Dreams Loungewear (India) Private
Limited)
TVH Computer & Consultant Private Limited
Intimate Apparels Association of India
Shaligram Apparels LLP
a) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and/or disclosed the contingent liabilities where applicable, in its financial statements. The Company does
not expect the outcome of these proceedings to have a materially adverse effect on its financial position. Refer Note 28 for
details on contingent liabilities.
b) The Company did not have any long term derivative contract as at balance sheet date.
Note 36: Operating Lease Payments
The company has entered into operating leases for various EBO's, office premises and warehouses . Aggregate lease payments
during the year of INR 578.54 lakhs (previous year INR 374.60 lakhs) are grouped under Other Expenses as Rent Expenses in
Statement of Profit and Loss.
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.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party with the
understanding (whether recorded in writing or otherwise) that the Company shall
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any step down subsidiaries hence compliance of layer of companies are not applicable.
Note 38: Extra Discount
Extra Discount represents allowances made to Customers towards claim of freight, Obsolete stock, promotional scheme
benefits, rate difference, reconciliation differences and other re-imbursible expenses.
Note 39: Other Additional Disclosure as required under Schedule III Division I as applicable to the company are as follows:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company
for holding any Benami Property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(Iv) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any
other relevant provisions of the Income Tax Act, 1961).
(v) 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) Mainly on account of Increase in Fixed deposit with bank (IPO Funds) and repayment of short-term borrowings.
(b) During the current year, the company has raised funds through IPO and consequently Equity is significantly increased,
which has resulted into lower debt-equity ratio.
(c) Due to full repayment of Working Capital Loan in current year, resulting in lower Principal repayments as compared to
previous year.
(d) During the current year, the company has raised funds through IPO and consequently shareholder's Equity is significantly
increased, which has resulted into lower return on equity.
(e) Average working capital for current year is significantly higher on account of reasons mentioned in Note (a) above, which
has resulted into lower capital turnover ratio.
(f) During the current year, the company has raised funds through IPO and consequently shareholder's Equity is significantly
increased, which has resulted into lower return on capital employed.
In the current year, the Company has completed its initial public offer ("IPO”) of 49,60,000 Equity Shares of ' 10 each at an issue
price of ' 131 per equity share (Security Premium ' 121 per equity share). The issue was entirely fresh issue of Equity Shares
for value aggregating ' 6,497.60 lakhs. Pursuant to IPO, the equity shares of the Company were listed on Emerge platform of
National Stock Exchange of India Limited w.e.f. September 27, 2024.
Note 46: Events occurring after the balance sheet date
There are no other events after the reporting date that require disclosure in the financial statements.
For and on behalf of Board of Directors of
S D Retail Limited
(Formerly S D Retail Private Limited)
Hitesh Ruparelia Utpal Ruparelia
Director Director
DIN No: 00490790 DIN No: 00300525
Ritesh Surendra Saraogi Poojaben Shah
Chief Financial Officer Company Secretary
Place: Ahmedabad Place: Ahmedabad
Date: May 29, 2025 Date: May 29, 2025
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