q) Provisions tor liabilities, contingent liabilities and contingent assets

The Company recognises a provision when there is a present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are
determined based on best estimates of the amount required to settle the obligation at the balance sheet date. These
are reviewed at each balance sheet date and adjusted to reflect the current best estimates. If the effect of time value
of money is material, provisions are discounted. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as interest expense. The Company does not recognize
a contingent liability but discloses its existence in the financial statements. A disclosure for a contingent liability is
made when there is a possible obligation arising from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or
a present obligation that arises from past events but is not recognized because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot
be measured with sufficient reliability. Where there is a possible obligation or a present obligation that the likelihood
of outflow of resources is remote, no provision or disclosure is made. Contingent liabilities are reviewed at each balance
sheet date and adjusted to reflect the current best estimates.

Contingent asset is not recognised in financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset and is recognized.

r) Declaration ot Dividend

The Company recognises a liability to pay final dividend to equity holders when the distribution is authorised, and
the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a final dividend is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

s) Share capital

Equity shares

Incremental costs directly attributable to the issue of equity shares are recognised as a deduction from equity. Income
tax relating to transaction costs of an equity transaction is accounted for in accordance with Ind AS 12.

t) Impairment of non-financial asset

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than biological
assets, investment property, inventories, contract assets and deferred tax assets) to determine whether there is any
indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is
tested annually for impairment.

u) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents. The Company has evaluated and considered its operating cycle as 12 months. Deferred tax assets/
liabilities are classified as non-current assets/ liabilities.

5. Intangible Assets and Intangible Assets Under Development (IAUD)¹ (Contd.)

The projections cover a period of five years, as the Company believes this to be the most appropriate time period
over which to review and consider annual performances and thereafter fixed terminal value has been considered.
The estimated future projections are after considering past performance and expected normal future performance
excluding disruption caused by the pandemic.

Weighted Average Cost of Capital % (WACC) = Risk free return ( Market risk premium x Beta for the Company).

The goodwill and brand (with indefinite life) are tested for impairment annually and based on such testing, no provision
towards impairment has been considered necessary in each of the year presented. Further based on Management
assessment there is no trigger for impairment as on March 31, 2025.

The Company has performed sensitivity analysis around the base assumptions and has concluded that reasonable
possible change in key assumptions would not result in the recoverable amount of the CGU to be less than the carrying
value.

(3) Represents usage rights acquired under license arrangement from Kolkata Municipal Corporation as recorded permit
holder.

(4) Represents applications made for various trademark registration.

8. Non-current - utner assets (Conta.)

transferred was considered more reliably measurable pending commencement of construction. Based on valuation
exercise conducted by an external valuer, fair value of the leasehold land was considered equivalent to the cost of land
transferred. Subsequently, the Company had exercised an exclusive and irrevocable option, granted by the aforesaid
developer, to convert such area/space sharing arrangement into the revenue sharing arrangement in terms of which
the Company is entitled to receive certain agreed percentage of proceeds from sale of the constructed area/space to
third parties. During the previous financial year ended March 31, 2024 share of sale proceeds received from developer
has been adjusted against capital advance and resultant income of Rs 19.76 million has been accounted as other
income due to transfer of control of the respective constructed space.

Nature and purpose of reserves

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. Retained earnings is a free reserve available to the Company
and eligible for distribution to shareholders.

Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium
as per the provision of Companies Act, 2013. This reserve is utilised in accordance with the provisions of the Act.

Capital Redemption Reserve: As per the provisions of section 68 of Companies Act, 2013, the Company has recognised
Capital Redemption Reserve on buyback of equity shares from its securities premium and retained earnings. The amount
in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back.

Capital Reserve: During amalgamation, the excess amount of the cancelled share capital of the Company over the investment
by the amalgamating Company in the Company is treated as Capital Reserve in the Company’s financial statements.

Share options outstanding account: The fair value of the equity-settled share based payment transactions is recognised
in Statement of Profit and Loss with corresponding credit to Share based payment reserve.The same is adjusted on ESOP
allotment made by the Company.

42.Employee benefits

(I) Defined contribution plan

In accordance with The Employees Provident Funds and Miscellaneous Provisions Act, 1952 employees are entitled
to receive benefits under the provident fund. Both the employee and the employer make monthly contributions to the
plan at a predetermined rate as per the provisions of applicable statute. Retirement benefit in the form of provident
fund and employees’ state insurance (ESI) are defined contribution scheme and the contributions are charged to
statement of profit and loss of the period when the employee renders the service. There are no obligations other than
the contribution payable to the respective funds.

(II) Defined benefit plan - Unfunded

In accordance with the Payment of Gratuity Act, 1972, the Company contributes to a defined benefit plan (the “Gratuity
Plan”) for employees who have completed 5 years of service. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, disability or termination of employment being an amount based on the respective employee’s
last drawn salary and the number of years of employment with the Company.

E. Risk analysis

Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined
benefits plans and management estimation of the impact of these risks are as follows:

(1) Salary growth risks

The present value of the defined benefit plan liability is calculated by reference to the future salaries of
plan participants. Salary increase considered at the rate of 7%. As such, an increase in the salary of the plan
participants will increase the plan’s liability.

(2) Life expectancy / Longevity risks

The present value of the defined benefit plan liability is calculated by reference to the best estimates of the
mortality of plan participants both during and after their employment. Mortality tables as per Indian Assured
Lives Mortality (2006-08) Ult. is used for during the employment and post retirement respectively. An increase
in the life expectancy of the plan participants will increase the plan’s liability.

(3) Interest rate risks

A decrease in the bond interest rate will increase the plan liability.

(4) Inflation risks

A decrease in the inflation rate will increase the plan’s liability.

F. The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified and the final rules/interpretation
have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record
any related impact in the period the Code becomes effective.

48 Financial Risk Management (Contd.)

a) Market Risk

Market risk is the risk that changes in market prices - e.g. foreign exchange rates, interest rates and equity prices - will
affect the company income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency Risk

The Company operates both in domestic and international market and consequently the Company is exposed to foreign
exchange risk through its sales in overseas countries. The Company holds forward contracts such as foreign exchange
contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

(1) For the year ended March 31, 2025, every percentage appreciation/depreciation in the exchange rate between the
Indian rupee and USD, would increase/decrease the Company’s profit before tax by approx. INR 0.32 Million (INR
0.02 Million for the year ended March 31, 2024) and increase/decrease in equity by INR 0.24 Million (INR 0.01
Million for the year ended March 31, 2024).

(2) For the year ended March 31, 2025, every percentage appreciation/depreciation in the exchange rate between the
Indian rupee and CAD, would increase/decrease the Company’s profit before tax by approx. INR 0.01 Million (INR
0.00 Million for the year ended March 31, 2024) and increase/decrease in equity by INR 0.00 Million (INR 0.00
Million for the year ended March 31, 2024).

(3) For the year ended March 31, 2025, every percentage appreciation/depreciation in the exchange rate between the
Indian rupee and GBP, would increase/decrease the Company’s profit before tax by approx. INR 0.00 Million (INR
0.00 Million for the year ended March 31, 2024) and increase/decrease in equity by INR 0.00 Million (INR 0.00
Million for the year ended March 31, 2024).

Derivative Financial Instruments

The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency
exchange rates. The Company does not acquire or issue derivative financial instruments for trading or speculative
purposes. The Company does not enter into complex derivative transactions to manage the treasury risks. Treasury
derivative transactions are in the form of forward contracts and these are subject to the Company’s guidelines and
policies.

All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair
value, generally based on quotations obtained from banks. The accounting for changes in the fair value of a derivative
instrument depends on the intended use of the derivative and the resulting designation. The fair values of all derivatives
are separately recorded in the balance sheet within current assets and liabilities.

48 Financial Risk Management (Contd.)

The Company uses derivative instruments as part of its management of exposures to fluctuations in foreign currency
exchange rates. The use of derivatives can give rise to credit and market risk. The Company tries to control credit risk
as far as possible by only entering into contracts with reputable banks and financial institutions. The use of derivative
instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits,
authorities and monitoring systems are periodically reviewed by management. The market risk on derivatives is
mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only
for risk management purposes.

Commodity Price Risk

The Company is affected by price volatility of its key raw materials and traded goods. Its operating activities requires a
continuous supply of key material for manufacturing products. The Company’s procurement department continuously
monitor the fluctuation in price and take necessary action to minimize its price risk exposure.

Interest rate Risk

The Company is debt-free and the exposure to interest rate risk from the perspective of Financial Liabilities is negligible.
Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered
under a set of approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that
investments are only made within acceptable risk parameters after due evaluation.

Price Risk

The Company’s businesses are subject to certain risks and uncertainties including financial risks. Company has invested
in bonds, debentures and mutual funds. To manage its price risk arising from investments, the Company diversifies
its portfolio. The investments are susceptible to market price risk, mainly arising from changes in the interest rates or
market yields which may impact the return and value of such investments.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivables amounting to INR 6,186.12 Million
and INR 5,645.21 Million as at March 31, 2025 and March 31, 2024 respectively. Trade receivable includes both
secured and unsecured receivables and are derived from revenue earned from domestic and overseas customers.
Credit risk has always been managed by the Company through taking security deposits and bank guarantees from
customers, credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business. An impairment analysis is performed at
each reporting date on an individual basis based on historical data of credit losses.

Credit risk on cash and cash equivalents including other bank balances, investment in mutual funds and debt securities
is limited as the Company generally invest in deposits with banks, financial institutions and counterparties with high
credit ratings assigned by international and domestic credit rating agencies.

For ageing analysis of the trade receivables, refer Note 12.

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances amounts to INR 50.85 million and INR 44.26
million as at year ended March 31, 2025 and March 31, 2024 respectively.

c) Liquidity Risk

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations as well as investment in mutual funds, fixed deposits, bonds and debentures. The Company believes that
the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

54. Critical estimates and judgements in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are prudent and
reasonable. Information about estimates and judgements made in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements are as follows:

i) Revenue Recognition

Management applies following criteria to determine the point of revenue recognition:

(a) The Company has a present right to payment for the product if a Customer/ Franchisee is presently obliged to pay
for an product in accordance with the terms of the agreement.

(b) The Customer/ Franchisee has legal title to the product

(c) The Company has transferred physical possession of the product

(d) The Customer/ Franchisee has the significant risks and rewards of ownership of the product

(e) The Customer/ Franchisee has accepted the product

Based on the evaluation of the aforementioned criteria, the Company recognises revenue when the good are delivered
to the Customer/ Franchisee.

The Company updates its assessment of expected returns based on the best estimates and judgements and the
refund liabilities are adjusted accordingly. Estimates of expected returns are sensitive to changes in circumstances
& judgements and the Company’s past experience regarding returns may not be representative of customers’ actual
returns in the future. As at March 31, 2025, the amount recognised as refund liabilities for the expected returns is INR
1,099.22 Million and corresponding right of return asset is INR 363.30 Million (March 31, 2024: expected returns was
INR 1,083.20 Million and corresponding right of return asset is INR 358.91 Million).

ii) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment and intangible assets (excluding brand & goodwill) is arrived at by
depreciating the assets over the useful life of assets. The estimate of useful life is reviewed at the end of each financial
year and changes are accounted for prospectively.

iii) Impairment of non-financial assets (including intangible assets)

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which
is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation
is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted
cash flow model. The recoverable amount is sensitive to the discount rate used for the discounted cash flow model as
well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are
most relevant to the goodwill and brand.

iv) Estimation of provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the
applicable Ind AS. A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to
settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the
expected future cash flows.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
There are certain obligations which management has concluded, based on all available facts and circumstances, are not
probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities
and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no
assurance regarding the final outcome of the legal proceedings in which the Company is involved, it is not expected
that such contingencies will have a material effect on its financial position or profitability.

v) Defined benefit plan

The cost of the defined benefit gratuity plan 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. The parameter most
subject to change is 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 mortality table. 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. (Refer Note 42)

vi) Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by
an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised. The Company has several lease contracts that include extension
and termination options. The Company applies judgement in evaluating whether it is reasonably certain to exercise
the option to renew or terminate the lease. It considers all relevant factors that create an economic incentive for it to
exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if
there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
to exercise the option to renew or to terminate.

vii) Share-based payment

The Company uses the most appropriate valuation model depending on the terms and conditions of the grant, including
the expected life of the share option and volatility. The assumptions and models used for estimating fair value for
share-based payment transactions are disclosed in Note 51.

viii) Fair Value Measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market
quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with
how market participants would price the instrument. Management bases its assumptions on observable data as far as
possible but this is not always available. In that case management uses the best information available. Estimated fair
values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.

ix) Recoverability of Deferred Tax Assets

Deferred tax assets are recognised for unused tax losses including capital losses to the extent it is probable that taxable
future profit/capital gains will be available against which applicable losses 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 together with future tax planning strategies.

55. Consequent to the approval of the National Company Law Tribunal (NCLT), the Company on April 01, 2024, has
recorded the net assets (net asset represents assets, liabilities and reserves) of Manyavar Creations Private Limited.
The Company has accounted the acquisition in accordance with Appendix C to IND AS 103 being business combination
of entities under common control. Accordingly, the financial information in respect of prior year has been restated for
the amalgamation as if the business combination has occurred from the beginning of previous year. The Company
has recorded assets at carrying value of INR 267.65 million, liabilities at INR 20.87 million, reserves at INR 206.68
million and cancelled the investments held amounting to INR 200.10 million. The difference between the investment
cancelled and the net assets taken over on amalgamation of INR 160 million has been adjusted with retained earnings.

56. Subsequent event

There are no material non-adjusting events after the reporting period till the date of issue of these financial statements
(i.e. May 06, 2025) which require disclosure in financial statement.

In terms of our report attached of the even date

For B S R & Co. LLP Vedant Fashions Limited

Chartered Accountants For and on behalf of the Board of Directors

ICAI Firm registration number: 101248W/W-100022

Seema Mohnot Ravi Modi Shilpi Modi

Partner Chairman and Managing Director Wholetime Director

Membership No. 060715 DIN : 00361853 DIN : 00361954

Rahul Murarka Navin Pareek

Place: Kolkata Chief Financial Officer Company Secretary

Date: May 06, 2025 ICSI Membership No. F10672