Extension and termination option

Extension and termination options are included in a number of leases . These are used to maximise operational flexibility in terms of managing the assets used in the Company's operations. The majority of extension and termination options held are excersiable when mutually agreed between the lessor and the Company.

Variable lease payments

Some property leases contain variable payment terms that are linked to revenue generated from a store. Variable payment terms are used for a variety of reasons, including minimising the fixed costs base for newly established stores. Variable lease payments that depend on revenue are recognised in the statement of profit and loss in the period in which the condition that triggers those payments occurs.

Terms of leases

The Company's major leasing arrangements are in respect of commercial premises (including furniture and fittings therein wherever applicable taken on leave and license basis) having various lease terms.

* Terms of preference shares :

All the aforementioned cumulative redeemable preference shares are redeemable on or before the end of 10 years from the date of investment ( refer note 1 below). The early redemption of preference shares shall be at the discretion of the issuer i.e. Safari Manufacturing Limited.

1 During the year ended 31 March 2024, pursuant to approval given by the shareholders in the Extraordinary General Meeting held on 27 November 2023, the Company had issued 2,37,83,607 fully paid up bonus equity shares of ' 2 each in the ratio of one equity share of ' 2 each for each existing equity share of ' 2 each.

2 The Board of Directors of the Company, at its meeting held on 15 January 2024 had considered and approved, the issuance and allotment of 12,00,000 equity shares of the Company having face value of ' 2 each at a price of ' 1,908 per equity share (including a premium of ' 1,906 per equity share) on a preferential basis amounting to ' 228.96 Crores, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Companies Act, 2013, and the rules made thereunder. The above proposal was approved by the shareholders of the Company at the Extraordinary General Meeting held on 13 February 2024.

(b) Rights, preference and restriction on equity shares

The Company has only one class of issued equity shares having a par value of ' 2 per share. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in INR. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of the Company remaining after distribution of all preferential amounts. The distribution will be in proportion to the number of fully paid-up equity shares held by the shareholders.

(d) The Company had issued 2,37,83,607 equity shares of ' 2 each during the financial year ended 31 March 2024 as bonus shares. Other than the said issue of bonus shares, the Company has not issued any other bonus shares. Further the Company has neither bought back any of its shares, nor any shares have been issued pursuant to contract without payment being received in cash during the five years immediately preceding 31 March 2025.

(f) Shares reserved for issue under options

I nformation relating to the employee stock option plan (ESOP) and employee share appreciation rights (ESAR), including details of options issued, exercised and forfeited during the financial year and the options outstanding at the end of the reporting year, is as set out in note 36.

(g) For detail of dividend paid and proposed: Refer note 40(b)

Nature and purpose of reserves:

i) Capital reserve

Capital reserve has been created out of capital profits and will be utilised in accordance with the provisions of the Companies Act, 2013.

ii) Securities premium

Amount received (on issue of shares) in excess of the par value has been classified as securities premium. The reserve is utilised in accordance with the provisions of the Companies Act , 2013.

iii) General reserve

This represents appropriation of profit by the Company.

iv) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

v) Share based payment reserve

The employee share-based compensation reserve is used to record the value of equity-settled share-based payment transactions with employees. The amounts recorded in this reserve are transferred to equity share capital and securities premium upon exercise of stock options by employees. In case of forfeiture, corresponding balance will be transferred to retained earnings.

Primary security:

First pari-passu charge on the entire current assets of the Company, both present and future.

Secondary security:

First pari-passu charge on entire moveable property, plant and equipment of the Company both present and future, excluding vehicles charged to other banks.

Equitable mortgage on factory land and building situated at Halol(Gujarat). iii) Others

It pertains to letter of credit. The amount is payable within 90 days.

Notes:

(a) There is no default in repayment of borrowings and interest during the year ended 31 March 2025 and 31 March 2024.

(b) Details related to borrowings secured against current assets

The Company has given current assets as security for borrowings obtained from banks. The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of account other than those set out below:

Disclosure in respect of Micro, Small and Medium Enterprises

The management has identified enterprises which qualify under the definition of micro enterprises and small enterprises, as defined under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at the year end has been made in the standalone financial statements based on information received and available with the Company and has been relied upon by the statutory auditors.

Above amounts have been included in the line item "Contribution to provident fund and other funds" in note 29. Also, the obligation of the Company is limited to the amount contributed and it has no further contractual or constructive obligation.

B. Defined benefit plan - gratuity

The Company has a defined benefit gratuity plan (funded). The plan requires contributions to be made to a separately administered fund. The plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed continuous services of five years or more gets a gratuity on death, resignation, retirement or permanent disablement at 15 days salary (last drawn salary) for each completed year of service. Gratuity is funded through investment with Life Insurance Corporation (LIC) under its respective Group Gratuity Scheme.

These assumptions were developed by the management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical experience. The estimate of future salary increase considered in actuarial valuation take into account the inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

vi) Category of funded asset

Fund asset comprises of the LIC insurance funds

vii) Sensitivity analysis

The financial statements are sensitive to the actuarial assumptions. The changes to the defined benefit obligation for increase / decrease of 1% from assumed salary growth, attrition rate and discount rate are given below. The following table summarises the effects of changes in these actuarial assumptions on the defined benefit obligation at year-end.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting year, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting year which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior year.

The members of the Company had approved the Safari Stock Option Scheme 2016 ('ESOP 2016') at the Annual General Meeting held on 12 August 2016. The holder of each option is eligible for one fully paid up equity share of the Company. According to the scheme, the employees selected by the Remuneration Committee from time to time are entitled to options, subject to satisfaction of the prescribed vesting conditions

The Board of Directors in their meeting held on 8 February 2022 and Members of the Company vide Postal Ballot, results of which were declared on 15 March 2022, approved implementation of Safari Employees Stock Appreciation Rights Scheme, 2022 ('ESAR scheme') with an objective of rewarding the employees for association, dedication and contribution to the goals of the Company. The Company intends to use this ESAR Scheme to attract and retain key talents working with the Company by way of rewarding their performance and to motivate them to contribute to the overall corporate growth and profitability. The ESAR Scheme covers eligible employees of the Company and its wholly owned subsidiaries. The ESAR Scheme is in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

i) All the related party transactions are made on terms equivalent to those that prevail in an arm's length transactions.

ii) The remuneration to the KMP does not include the provisions made for gratuity and compensated absences, as they are determined on an actuarial basis for the Company as a whole.

iii) The Company has provided a bank guarantee for credit facilities for its wholly owned subsidiary- Safari Manufacturing Limited.

iv) All outstanding balances at the year end are unsecured and settlement occurs in cash.

v) There are no commitments with any related party, during the year and as at year end, except for (iii) above

38 Financial instruments

i) Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

ii) Valuation techniques used to determine fair value

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods were used to estimate the fair values:

- Other non-current financial assets and liabilities : The carrying value is considered to be approximate to their fair value.

- Derivative financial assets and liabilities: The Company enters into derivative contracts with various counterparties, principally financial institutions with investment grade credit ratings. Forward foreign currency contracts are determined using forward exchange rates at the reporting date.

- Current investments-The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.

NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

- Trade receivables, cash and cash equivalents, other bank balances, other current financial assets, trade payables and other current financial liabilities: Approximate their carrying amounts largely due to the short-term maturities of these instruments.

- Borrowings taken by the Company are as per the Company's credit and liquidity risk assessment and there is no comparable instrument having the similar terms and conditions with related security being pledged and hence the carrying value of the borrowings represents the best estimate of its fair value.

i) The carrying value of trade receivables, investments in preference shares, cash and cash equivalents, bank balances other than cash and cash equivalents and other financial assets recorded at amortised cost, is considered to be a reasonable approximation of fair value.

ii) The carrying value of borrowings, trade payables, lease liabilities and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of their respective fair value.

iii) All financial assets and financial liabilities are categorised under level 3 of fair value hierarchy except derivative financial assets, derivative financial liability and current investments.

II) Financial risk management

The Company's activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and to minimise potential adverse effects on its financial performance. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and equity prices) Market risk is attributable to all market risk-sensitive financial instruments and all short-term and long-term debt. Market risk comprises three types of risk: interest rate risk, foreign exchange risk and other price risk, such as equity price risk or commodity risk. Financial instruments affected by market risk include loans and borrowings, trade payables, trade receivables, investments, derivative financial instruments and other financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments

(a) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. The Company is mainly exposed to this risk due to borrowings having variable rate of interest.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's foreign exchange risk arises from its trade payables and trade receivables denominated in foreign currencies. The results of the Company's operations can be affected as the Indian Rupees ('INR') is volatile against these currencies. The Company enters into derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures and also inherent hedging as it is engaged in the export of manufacturing products and import of raw materials and stock-in-trade. The Company has a treasury team which monitors the foreign exchange fluctuations on a continuous basis and advises the management of any material adverse effect on the Company.

Foreign currency sensitivity analysis:

The following table demonstrates the sensitivity in the USD, with other variables held constant. The below impact on the Company's standalone profit or loss before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities as at standalone balance sheet date. The Company's exposure to foreign currency changes for all other currencies is not material.

B Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises from cash and cash equivalents, bank balances other than cash and cash equivalents, other financial assets as well as credit exposures to customers including outstanding receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets.

The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of allowance for expected credit loss for trade receivables( refer note 14).

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits, continuously monitoring the credit worthiness of customers.

Also, forward-looking information is also incorporated into expected credit losses, including the use of macroeconomic information.

In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any group of counter-parties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. The Company has very limited history of customer default, and considers the credit quality of trade receivables for evaluation of allowance for expected credit loss.

The credit risk on liquid funds such as balance in current and deposit accounts with banks and derivative financial instruments (included in other financial assets) is limited because the counterparties are banks with high credit-ratings.

Credit risk exposure

i) Expected credit loss for trade receivables under simplified approach. (refer note 14)

ii) Expected credit losses for other financial assets (measured at an amount equal to 12 months expected credit losses)

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

The tables below provides details regarding the contractual maturities of financial liabilities into relevant maturity groupings (on undiscounted basis):

III) Derivative financial instruments

The Company holds derivative financial instrument i.e., foreign currency forward contracts to mitigate the risk of changes in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on inputs which are directly or indirectly observable in the marketplace.

40 Capital risk management (a) Risk management

The Company's objectives when managing capital are to :

(i) Safeguard its ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders;

(ii) Maintain an optimal capital structure to reduce the cost of capital; and

(iii) Support the corporate strategy and meet shareholder expectations.

The policy of the Company is to borrow through banks / financial institutions supported by committed borrowing facilities to meet anticipated funding requirements. The capital structure is governed by policies approved by the Board of Directors of the Company and is monitored by various metrices.

(b) Dividends

The final dividend on shares is recorded as a liability on the date of approval by the shareholders of the Company and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. The Company declares and pays dividends in INR. The Company is required to pay / distribute dividend after deducting applicable withholding income-taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

Proposed dividend on equity shares not recognised as liability

In addition to the above dividends, subsequent to the year ended 31 March 2025, the Board of Directors of the Company have recommended the payment of a final dividend of ' 1.50 per fully paid equity share. This proposed dividend is subject to the approval of the shareholders of the Company in the ensuing Annual General Meeting.

41 Revenue from operations (a) Performance obligation

The performance obligation of the Company is satisfied at a point in time.

Revenue from sale of products and stock-in-trad

Revenue from sale of products and stock-in-trade is recognised when the Company satisfies performance obligation by transferring promised goods to the customer. Performance obligations are satisfied at the point of time when the customer obtains controls of the asset which is generally on dispatch of products or on delivery of products.

The revenue is recognised net of estimated rebates / discounts pursuant to the schemes offered by the Company, estimated additional discounts and expected sales returns. Accumulated experience is used to estimate and provide for the rebates/discounts. The assumptions and estimated amount of rebates/discounts and returns are reassessed at the end of each reporting period.

The Company's customers have the contractual right to return goods only when authorised by the Company.

The aggregate amount of transaction price allocated to the performance obligations (yet to be completed) for the year ended 31 March 2025 is ' 2.81 Crore (31 March 2024: ' 1.90 Crores). This balance represents the advance received from customers (gross) against sale of products. The management expects to further bill and collect the remaining balance of total consideration within next 12 months. These balances will be recognised as revenue in subsequent year as per the policy of the Company.

f) Revenue from sale of products and stock-in trade does not include any significant financing component.

42 Segment Reporting

Ind AS 108 'Operating Segments' establishes standards for the way the business enterprises report information about operating segments and related disclosures about revenue, geographic areas and major customers. The Company's Chairman and Managing Director has been identified as the Chief Operating Decision Maker ('CODM') as defined under Ind AS 108 'Operating Segments'. As the Company's business activity primarily falls within a single business and geographical segment and the CODM monitors the operating results of its business as a single unit for the purpose of making decisions about resource allocation and performance assessment, there are no additional disclosures to be provided under Ind AS 108 'Operating Segments' apart from the one mentioned in note 41(c).

Notes:

i) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

ii) The amounts disclosed above represent the best possible estimates arrived at on the basis of available information.

iii) The Company is contesting all of the above demands and the management believes that its positions are likely to be upheld at the appellate stage. The management believes that the ultimate outcome of these proceedings are not expected to have a material adverse effect on the Company's financial position and results of operations and hence no provision has been made in this regard.

48 Other statutory information

A The Company has not advanced or loaned or invested funds to any person or any entity, 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 a 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.

B The Company has not received any fund from any person or any entity, 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 a or on behalf of the Funding Party (Ultimate Beneficiaries); or

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

C The Company does not have any transactions and outstanding balances during the current as well previous year with companies struck off under section 248 of the companies Act, 2013 or section 560 of Companies Act, 1956.

D The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Further, no proceedings have been initiated or pending against the Company for holding any benami property under the above mentioned act and rules mentioned above

E The Company has not been declared wilful defaulter by any bank or financial institution or government or government authority.

F The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013

G The Company has not entered into any scheme of arrangement in terms of section 230 to 237 of the Companies Act,

2013 during the year ended 31 March 2025 and 31 March 2024.

H No income has been surrendered or disclosed as income during the current and previous year

I The Company has not traded or invested in crypto currency or virtual currency during the current and

previous year.

J There are no charges which are yet to be registered with the Registrar of Companies beyond the statutory period as at 31 March 2025.

K The Company has not revalued its property, plant and equipment and intangible assets during the year.

L The Company has not granted any loan or advance in the nature of loan, which is repayable on demand or without

specifying any terms or period of repayment.

Definitions:

1 Total debt = Non-current borrowings current borrowings lease liabilities

2 Earnings available for debt service = Profit for the year Non-cash operating expenses Interest

3 Debt service = Interest and lease payments principal repayments

4 Net worth = Paid-up share capital Reserves created out of profit - accumulated losses

5 EBIT = Profit before tax Finance costs

6 Cost of goods sold = Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods, stock-in-trade and work-in-progress

50 The Company has used accounting software for maintaining its books of account for the year ended 31 March 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that no audit trail has been enabled at the database level for accounting software, to log any direct data changes, on account of recommendation by the accounting software administration guide which states that enabling the same would consume additional storage space on the disk and could potentially impact database performance significantly. Further, the audit trail has been preserved by the Company as per the statutory requirement for record retention.

51 Authorisation of standalone financial statements

The standalone financial statements as at and for the year ended 31 March 2025 were approved by the Board of Directors on 6 May 2025.

52 Previous year's figures have been regrouped or reclassified wherever necessary to correspond with the current year classification/ disclosure. However, they are not material to these standalone financial statements.

Accompanying notes are an integral part of these standalone financial statements.