l. Provisions and Contingent Liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) 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 a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating
losses. The expense relating to any provision is presented in the standalone statement of profit and loss, net of any
reimbursement. 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 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 part of finance costs.
A contingent liability is a possible obligation that arises from past events 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 Company
or a present obligation that arises from past events but is not recognised because it is not probable that an outflow
of resources embodying economic benefits will be required to settle the obligation or a amount of obligation cannot
be measured with sufficient reliability.
The Company does not recognise a contingent liability but discloses its existence in the Financial Statements.
m. Investments
Long term investments being Investment in Equity Shares are stated at fair value through other comprehensive income.
n. Foreign Currency Transactions
Functional and presentation currency
The Company’s financial statements are presented in INR, which is also the Company’s functional and presentation currency.
Transactions and balances
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 profit or loss.
o. Leases
Company ‘as a’ lessee
The Company’s lease asset classes primarily consist of leases for buildings taken for warehouses, offices and retail
stores. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset,
the Company assesses whether: the contract involves the use of an identified asset, the Company has right to
obtain substantially all of the economic benefits from use of the asset through the period of the use and the Company
has the right to direct the use of the identified asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset (ROU) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Company recognises the
lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised.
The ROU assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any
lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, which is generally the case for
the company, using the incremental borrowing rate, being the rate that the individual lessee would have to pay to
borrow the funds necessary to obtain an asset of similar value of ROU asset in a similar economic environment with
similar terms, security and conditions.
Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.
Variable lease payments that depend on sales are recognised in profit or loss in the period which the condition that
triggers those payment occurs.
p. Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition except for outstanding
dues to micro enterprises and small enterprises where the due date is within 45 days. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised
initially at their fair value and subsequently measured at amortised cost using the effective interest method.
q. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand.
For the purpose of the standalone statement of cash flows, cash and cash equivalents consist of cash at banks and on hand.
r. Earnings per equity share
The Company presents basic and diluted earnings per share.
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company.
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares.
- the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.
s. Employee benefits
a. Short Term Employment Benefits
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.
b. Post-Employment Benefits:
Defined contribution plans are employee state insurance scheme and Government administered pension fund
scheme for all applicable employees and superannuation scheme for eligible employees.
The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement
of Profit and Loss when the employees render services to the Company during the reporting period. If the
contributions payable for services received from employees before the reporting date exceed the contributions
already provided, the deficit payable is recognized as a liability after deducting the contribution already provided.
If the contribution already provided exceeds the contribution due for services received before the reporting
date, the excess is recognized as an asset to the extent that the prepayment will lead to, for example, a
reduction in future payments or a cash refund.
t. Government Grants
Export benefits in the form of Duty Drawback, Duty Entitlement Pass Book (DEPB) and other schemes are recognized
in the Statement of profit and loss when the right to receive credit as per the terms of the scheme is established in
respect of exports made and when there is no significant uncertainty regarding the ultimate collection of the relevant
export proceeds and/or the company will comply with all attached conditions.
Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities
as deferred income and are credited to the statement of Profit and Loss on a straight - line basis over the expected
lives of related assets and presented within other income.
u. Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a
sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets,
assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are
specifically exempt from this requirement.
Non-current assets are not depreciated or amortised while they are classified as held for sale.
v. Trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of
business and reflects company’s unconditional right to consideration (that is, payment is due only on the passage of
time). Trade receivables of the Company, are recognised initially at the transaction price as they do not contain
significant financing components. The company holds the trade receivables with the objective of collecting the
contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest
method, less loss allowance.
w. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously
x. Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to be
reasonable under the circumstances.
This note provides detailed information of the areas that involved a higher degree of judgement or complexity, and
of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different
than those originally assessed.
The areas involving critical estimates or judgements are:
i. Contingent liabilities
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including
legal and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events
occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves
the exercise of significant judgement and the use of estimates regarding the outcome of future events.
ii Defined benefit plans
The cost of the defined benefit gratuity plan and other post-employment defined benefits 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 underlying bonds are further
reviewed for quality.
The mortality rate is based on publicly available mortality tables for the specific countries. 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.
Further details about gratuity obligations are given in Note 33 in the standalone financial statements.
iii. Determination of lease term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated).
For leases of warehouses, retail stores and equipment, the following factors are normally the most relevant:
- If there are significant penalty payments to terminate (or not extend), the Company is typically reasonably
certain to extend (or not terminate).
- If any leasehold improvements are expected to have a significant remaining value, the Company is typically
reasonably certain to extend (or not terminate).
- Otherwise, the Company considers other factors including the costs and business disruption required to
replace the leased asset.
iv. Useful lives of property, plant and equipment and intangible assets:
Useful life is determined by the management based on a technical evaluation considering nature of asset, past
experience, estimated usage of the asset, vendor’s advice etc and same is reviewed at each financial year end.
v. Net Realisable Value of inventory
The Company has defined policy for provision on inventory based on obsolete, damaged and slow moving
inventories. The Company provides provision based on policy, past experience, current trend and future
expectations of these materials depending on the category of goods.
New and amended standards
Amendments to standards adopted by the Company
The Ministry of Corporate Affairs vide notification dated 9th September 2024 and 28th September 2024 notified the
Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively, which amended/ notified certain accounting standards (see
below), and are effective for annual reporting periods beginning on or after 1st April 2024:
• Insurance contracts - Ind AS 117; and
• Lease Liability in Sale and Leaseback - Amendments to Ind AS 116
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.
A) Financial risk management objectives and policies
The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors
has overall responsibility for the establishment and oversight of the Company’s risk management framework. This
note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related
impact in the financial statements.
B) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price
risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables,
loans and derivative financial instruments.
(i) Interest rate risk -is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. At present the company has no borrowing and accordingly the exposure to
risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.
(ii) Foreign currency risk- is the risk that the fair value or future cash flows of an exposure will fluctuate due to
changes in foreign exchange rates.The Company does not have any foreign exchange transactions or any
derivative instruments for trading or speculative purposes. So foreign currency risk is nil.
(iii) Other price risk- is the risk that the fair value of a financial instrument will fluctuate due to changes in market
traded price.Other price risk arises from financial assets such as investments in mutual funds ,bonds ,equity
instruments etc. The Company is exposed to price risk arising mainly from investments in mutual funds
recognised at FVTOCI. As at 31st March, 2025, the carrying value of mutual funds recognised at FVTOCI
amounts to Rs. 31,473.67 lakhs (Previous year Rs 26,383.36 lakhs).
The Company is mainly exposed to change in market rates of its investments in equity investments recognised at
FVTOCI. A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the
prices existing as at the reporting date is given below:
If the equity prices had been higher/lower by 5% from the market prices existing as at 31st March, 2025, Other
Comprehensive Income for the year ended 31st March, 2025 would increase/(decrease) by Rs.1573.68 Lakhs
(2023-24 Rs.1319.17 lakhs) with a corresponding increase/decrease in total equity of the Company as at 31st
March, 2025. 5% represents management’s assessment of reasonably possible change in equity prices as the
company has basically invested in Debt oriented Mutual Funds.
C) Credit Risk
Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the
Company.Credit risk arises primarily from financial assets such as trade receivables,derivative financial instruments,
other balances with banks, loans and other receivables.To manage this, the Company periodically assesses financial
reliability of customers and other counter parties, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically
reviewed on the basis of such information.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant
increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk
of default as at the date of initial recognition. It considers reasonable and supportive forward-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability
to meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized as income in the statement of profit and loss.
C) Credit Risk (Contd.)
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. To
manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial
condition,current economic trends, forward looking macroeconomic information, analysis of historical bad debts and
ageing of accounts receivables. Individual risk limits are set accordingly. 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.
The expected credit loss rates are based on the payment profiles of sales over a period of 36 months before the
reporting date and the corresponding historical credit losses experienced within this period. The historical loss rates
are adjusted to reflect current and forward-looking information on macro-economic factors affecting the ability of the
customers to settle the receivables. The Company recognises lifetime expected losses for all trade receivables and
contract assets that do not constitute a financing component.
D) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or other financial assets.
The company is exposed to liquidity risk as there are outstanding related to trade and other payables. The company
measures risk by forecasting cash flows.
Interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.
Liquidity Risk : This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to
non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary
increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from
the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability
Demographic Risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The
Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the
maximum limit on gratuity).
There are no material overdue principal amounts to such vendors at the Balance Sheet date. This information relied
upon by statutory auditors.
NOTE 40 :
Balances of trade recievables, trade payables and loans & advances are subject to confirmation and consequential
adjustments, if any.
NOTE 41 :
In the opinion of the board, current assets, loans and advances have value in the ordinary course of business at least
equal to the amount at which they are stated.
NOTE 42 :
There are no instances of cyber security threat during the financial year under audit.
NOTE 43 : AUDIT TRAIL
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
Companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software
which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the
books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has used accounting software for maintaining its books of account which have a feature of audit trail (edit
log) facility and the same was enabled at the application level. During the year ended 31st March, 2025, the Company
had not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log
any direct data changes. Additionally, the audit trail has been preserved by the Company as per the statutory requirements
for record retention where such feature was enabled.
NOTE 44:
The standalone Financial statements for the Year ended 31st March 2025 were approved by the Board of Directors on
29th May, 2025.
NOTE 45 :
The figures of the previous years have been regrouped / rearranged wherever necessary. The company has compiled
the above accounts based on the revised/Modified schedule III applicable for the accounting period 2024-2025. The
disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as
required by the Companies Act are made in the notes to accounts.
NOTE 46 : ADDITIONAL REGULATORY INFORMATION
(i) No proceeding has been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company has not been declared as wilful defaulter by any bank or Financial Institution or other lender.
(iii) There are no trasaction which has been surrendered or disclosed as income during the current and previous year
in the tax assessments under the Income Tax Act, 1961.
(iv) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous year.
(v) There are no funds, which have been advanced or loaned or invested (either from borrowed funds or securities
premium or any other sources or kind of funds) by the Company to or in any persons or entities, including foreign
entities (‘intermediaries’), with the understanding, whether recorded in writing or otherwise, that the intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (‘the Ultimate
Beneficiaries’)by or on behalf of the Company or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(vi) There are no funds which have been received by the Company from any person or entities, including foreign entities
(‘the Funding Parties’), 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 (‘Ultimate
Beneficiaries’) by or on behalf of the Funding Party or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(vii) The Company has complied with the layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules,2017, the names and CIN of the companies beyond the specified layers
and the relationship or extent of the Company in such downstream companies shall be disclosed.
(viii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(ix) The company has not been sanctioned working capital limits from its banks on the basis of security of current
assets in the current and previous year.
(x) During the year ended 31st March,2025 and 31st March 2024 the company does not have entered into any
transactions with companies struck off under section 248 of the Act or section 560 of Companies Act, 1956.
(xi) The compnay has not revalued its property, plant and equipment(including right-of use-assets) or intangible assets
or both during the current or previous year.
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