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Notes to Accounts of Safari Industries (India) Ltd.

Mar 31, 2023

Extension and termination option

Extension and termination options are included in a number of leases across the Company. 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 sales 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 sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs.

Pursuant to shareholders'' approval obtained in the General Meeting held on 25 th March 2021 , the Company had allotted on preferential basis, 1,315,790 Compulsorily Convertible Debentures ("CCDs") having face value of ^ 570 each to Investcorp Private Equity Fund II ("Investor") .Each warrant is convertible into 1 equity share of ^ 2 per share on the earlier of occurrence of following events - a) Investor electing to convert the CCDs into equity shares and b) the date that is 18 months from the date of issue of CCDs. The CCD''s have been converted into equity shares as the Investor elected to convert the CCD''s into equity dated 30th August 2022.

(b) Rights, preference and restrictions on equity shares:

1) 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.

2) In 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 shareholder

Nature and purpose of reserves:

i) Capital reserve

Any profit or loss on purchase, sale, issue or cancellation of the Company''s own equity instrument is transferred to capital reserve.

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.

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) Stock option outstanding account

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 will be 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.

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 account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, 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 period, 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 years.

Note 35 Share based payments (a) Employee options plan

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 plan envisaged the grant of options to eligible employees setting aside 41,500 options under this scheme. The shareholders of the Company through special resolution dated 30 August 2017 approved the sub division in the face value of existing one share of Rs 10 each into five shares of Rs 2 each.Accordingly, post subdivision in the face value of share, the no. of options granted stands modified from 41,500 options to 207,500 options.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 will be entitled to options, subject to satisfaction of the prescribed vesting conditions.

Volatility: Volatility of the Company''s stock price based on the price data commensurate with the expected life of options upto the date of grant.

Risk free rate: The risk free rate being considered for the calculation is the interest rate applicable for a maturity equal to the expected life of the options based on zero coupon yield curve for government securities.

Expected life of options: The period upto vesting date plus the exercise period corresponding to each vesting. Dividend yield: Expected dividend yield has been calculated by dividing the last declared dividend per share by the market price per share as on the date of grant.

B) Share appreciation rights (’SAR’)

The Board of Directors in their meeting held on 8th February 2022 and Members of the Company vide Postal Ballot, results of which were declared on 15th March 2022, approved implementation of Safari Employees Stock Appreciation Rights Scheme, 2022 (''SAR 2022'') 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.

ii) V aluation 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.

- Trade receivables, cash and cash equivalents, other bank balances, loans, 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.

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Fair value of assets and liabilities which are measured at amortised cost for which fair value are disclosed:

(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 (’INR1) 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. 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.

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 12).

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.

In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties 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.

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 (designated as derivative instrument):

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 or a financial institution. These derivative financial instruments are valued based on inputs which are directly or indirectly observable in the marketplace.

(b) Dividend

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 holding Company''s Board of Directors.The Company declares and pays dividends in Indian rupees. Companies are 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.

Note 40 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-trade

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 each reporting period. Our customers have the contractual right to return goods only when authorised by the Company. An estimate is made of goods that will be returned and a liability is recognised for this amount using a best estimate based on accumulated experience. The Company recognises provision for sales return, based on the historical results.

Note 41 Segment Reporting

Ind AS 108 ''Operating Segments'' (''Ind AS 108'') establishes standards for the way that 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 business activity primarily falls within a single business and geographical segment and the Chief Operating Decision Maker monitors the operating results of its business units not separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the standalone financial statements, thus there are no additional disclosures to be provided under Ind AS 108 -"Segment Reporting".

Notes:

Note 42 Contingent liabilities and capital commitments (a) Contingent liabilities

(^ in lakhs, unless otherwise stated)

Particulars

As at 31st March 2023

As at 31st March 2022

Sales tax matters

2.80

10.89

Central excise matters

1.90

-

Goods and service tax matters

3.05

-

Other claims against the Company not acknowledged as debts

22.44

25.09

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 and does not include penalty, if any.

(b)

Capital commitments

Particulars

As at 31st March 2023

As at 31st March 2022

Capital commitments

298.39

94.65

iii) The Company is contesting all of the above demands in respect of central excise, goods and service tax and sales tax and the management believes that its positions are likely to be upheld at the appellate stage. No expense has been accrued in the standalone financial statements for the aforesaid demands. 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 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).

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 Company is not holding 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 act and rules mentioned above.

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

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

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

ended 31st March 2023 and 31st March 2022.

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 31st March 2023.

51 Restatement

The Company has reclassified the bank deposits in accordance with Ind AS 7, Statement of Cash Flow, and disclosure requirements specified under Schedule III Division II of the Act and has accordingly restated the comparative period as tabulated below. This restatement has no financial impact as the total of cash and cash equivalent and other bank balance remains unchanged.

52 Authorisation of standalone financial statements

The standalone financial statements as at and for the year ended 31st March 2023 were approved by the Board of Directors on 16th May 2023.

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


Mar 31, 2022

(c) Dividend paid and proposed: Refer note 32(b)

(d) During the previous year, the Company has issued and allotted 13,15,790 Compulsorily Convertible Debentures ("CCDs") having face value of '' 570 each to Investcorp Private Equity Fund II ("Investor") on preferential allotment basis on 25th March, 2021. The CCDs carry a coupon rate of 6% p.a. payable on quarterly basis. The CCDs shall automatically and compulsorily be converted into equal number of equity shares at a face value of '' 2 per share on the earlier of occurrence of following events :

a) Investor electing to convert the CCDs into equity shares and

b) the date that is 18 months from the date of issue of CCDs.

The equity shares to be alloted on conversion of the CCDs shall rank pari-passu with the then existing fully paid up equity shares of the company with respect to dividends and voting rights.

(e) The Company has not issued any shares by way of bonus or for consideration other than cash and has not bought back any shares during the period of five years immediately preceding the reporting date.

Purpose of the Reserves:

1. Capital Reserve: Capital Reserve represents transfers from share application money (refund) account.

2. Securities Premium: The amount received in excess of face value of the equity shares is recognised in securities premium. In case of equity-settled share based payment transactions, the fair value of the options on grant date is transferred from equity settled share based payment reserve to securities premium at the time of exercise of options.

3. General Reserve: The reserve is a distributable reserve maintained by the company out of transfers made from annual profits.

4. Equity settled share based payment reserve: The fair value of options of equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to Equity settled share based payment reserve. The same is transferred to securities premium at the time of exercise of options or to retained earnings in the event of forfeiture, non-vesting or lapse.

5. 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.

Security and terms of repayment:

1) Term loans from banks for vehicles amounting to ''18.54 lakhs (as at 31st March 2021 ''35.28 lakhs) including current maturities of ''9.20 lakhs (as at 31st March 2021 '' 16.74 lakhs) are secured by way of charge on specific vehicles. The said loans are repayable in a range of 0-1 year '' 9.20 lakhs; 1-2 years ''6.50 lakhs; 2-3 years ''2.84 lakhs; >3 years Nil.

These loans carry interest rate ranging from 7.90% p.a. to 9.30% p.a. (31st March 2021 7.90% p.a. to 10.00% p.a.)

2) Term loans from others for vehicles amounting to Nil (as at 31st March 2021 '' 0.93 lakhs) were secured by way of charge on specific vehicles. These loans carry interest rate of 8.49% p.a.

3) During the previous year, the Company had issued and allotted 13,15,790 Compulsorily Convertible Debentures (“CCDs") having face value of''570 each to Investcorp Private Equity Fund II ("Investor") on preferential allotment basis on 25th March, 2021. The CCDs carry a coupon rate of 6% p.a. payable on quarterly basis. The CCDs shall automatically and compulsorily be converted into equal number of equity shares at a face value of'' 2 per share on the earlier of occurrence of following events - a) Investor electing to convert the CCDs into equity shares and b) the date that is 18 months from the date of issue of CCDs.

The CCDs shall be unsecured, and until converted, shall rank pari passu with any other unsecured creditors of the Company.

4) Also, refer note 40 for details of assets provided as security.

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligation.

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable and individual risk limits are set accordingly.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. For the Company, liquidity risk arise from obligations on account of financial liabilities-borrowings, trade payables and other financial liabilities.

The Company''s objective is to maintain at all times, optimum levels of liquidity to meet its obligations when due. The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of the financial assets and liabilities. It maintains adequate sources of financing including loans and short term borrowings from banks.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , foreign currency payables and loans and borrowings.

(i) Market risk - 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.

(ii) Market risk - foreign currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade payables and is therefore exposed to foreign exchange risk. The operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies. The Company manages foreign currency risk by hedging its transactions using foreign currency forward contracts.

D. Impact of COVID-19

The Company has considered the possible impact of COVID-19 in preparation of these financial statements. The impact of the global pandemic may be different from that estimated as at the date of the financial statements. Considering the continuing uncertainties, the Company will continue to closely monitor any material changes to future economic conditions.

Note 32 Capital risk management (a) Risk management

The Company''s objectives when managing capital are to

(i) Safeguard their 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.

(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 and is monitored by various metrics. Funding requirements are reviewed periodically with any debt issuances.

(b) Dividend

The Company follows the policy of dividend for every financial year as may be decided by Board considering financial performance of the Company and other internal and external factors enumerated in the Company dividend policy.

The Board of Directors of the Company, in its meeting on 13th May, 2022, have proposed a final dividend of '' 0.80 per equity share (40% on equity share of '' 2 each) for the year ended 31st March, 2022. The proposal is subject to the approval of shareholders at the ensuing Annual General Meeting and if approved would result in a cash outflow of '' 179.12 lakhs.

A. Defined contribution plan: Amounts recognised towards defined contribution plan have been disclosed under "Contribution to provident and other funds” '' 344.92 lakhs (Previous year '' 329.15 lakhs). (Refer Note 26)

B. Defined benefit plan - Gratuity: In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous service), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date. The Gratuity Plan is a funded plan and the Company makes annual contribution to the gratuity fund administered by Life Insurance Company under its respective Group Gratuity Scheme.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, 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 period, 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 years.

vii. Characteristics of defined benefit plan:

The entity has a defined benefit gratuity plan (funded). The entity''s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.

viii. Risks associated with defined benefit plan:

Gratuity is a defined benefit plan and entity is exposed to the following risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability. Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk. Mortality rate during employment is calculated considering Indian Assured Lives Mortality (2006-08) Ultimate.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

a) Sales Tax and Entry Tax related litigation/demand primarily pertains to non- submission of required declaration forms in time due to non- receipt of the same from customers and / or some interpretation related issues. However in most of the cases, required documents are being filed and minor impact if any, shall be given in the year of final outcome of respective matter in appeal.

b) The Company''s pending litigations comprise mainly claims against the Company, proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

a) Related party relationship is as identified by the management and relied upon by the auditors.

b) No amounts in respect of related parties have been written off/ written back during the year and no provision has been made for doubtful debts/receivable.

c) All related party transactions entered during the year were in the ordinary course of the business at arm''s length basis.

d) Key Managerial Persons who are under the employment of the Company are entitled to post-employment benefits (defined benefit gratuity plan) recognised as per Ind AS 19 "Employee Benefits" in the financial statements and short-term employee benefits in the form of premium paid by company for group health insurance plan. As these employee benefits are lumpsum amounts provided on the basis of actuarial valuation/ premium payment for the Company as a whole, the same is not included above.

Note 39 Segment Reporting

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”. The CODM evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators . The Company is primarily engaged in the manufacturing and marketing of luggage and luggage accessories. Since this segment meets the aggregation criteria as per the requirements of Ind AS 108 on ''Operating segments'', the management considers this as a single reportable segment. Accordingly, disclosure of segment information has not been furnished.

45 Exceptional items

Exceptional items of '' 928.02 lakhs is on account of provision for doubtful debts created towards receivables from certain customers. '' 655.80 lakhs (PY '' 867.64 lakhs) have been provided against the said customers during previous quarters of FY 2021-22 is the part of Other Expenses.

4 6 Other statutory information

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 transactions with companies struck off.

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

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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) 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 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 survey or any other relevant provisions of the Income Tax Act, 1961.

viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

ix) The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

x) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

4 7 Recent accounting pronouncements

The Ministry of Corporate Affairs (MCA) vide Notification dated 23th March, 2022 has issued new Companies (Indian Accounting Standard) Amendment Rules, 2022. Major amendments notified in the notification are provided below (a) Ind AS 16 | Property, plant and equipment - The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022.

(b) Ind AS 37 | Provisions, contingent liabilities and contingent assets - The amendment specifies that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022.

(c) Ind AS 103 | Business combinations - The amendment adds a new exception in Ind AS 103 for liabilities and contingent liabilities.

(d) Ind AS 109 | Financial instruments - The amendment clarifies which fees an entity includes when it applies the ''10%'' test in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other''s behalf.

The Company is evaluating the impact of these amendments.

48 The Indian Parliament has approved the Code on Social Security, 2020 ("the Code”) which, inter alia, deals with employee benefits during employment and post-employment, and the same has 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. The Company will assess the impact of the Code and recognise the same when the Code becomes effective.

Reasons for variance in ratios:

* Profits earned in current year as a result of higher operations as compared to previous year in which the company incurred losses due to lower level of operations impacted by COVID 19.

** Higher turnover during FY 2021-22.

# The Company is debt free hence the interest cost is on the lower side.

50 Certain financial assets and financial liabilities are subject to formal confirmations and reconciliations, if any. The Management, however, is confident that the impact whereof for the year on the financial statements will not be material.

51 The previous year''s figures have been regrouped / rearranged wherever necessary to conform to the current year''s classification.


Mar 31, 2018

Note 1

First-time adoption of Ind AS

These financial statements for the year ended 31st March 2018 are the first the company has prepared in accordance with Ind AS. The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 1st, 2017, with a transition date of April 1st, 2016. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements for the year ended 31st March, 2018, be applied retrospectively and consistently for all financial years presented. However, in preparing these Ind AS financial statements, the Company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Optional Exemptions

(a) Deemed cost for property, plant & equipment’s and intangible assets

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for Intangible assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its property, plant and equipment and Intangible assets at their previous GAAP carrying value.

(b) Investment in subsidiary

The Company presents separate financial statement wherein Ind AS 27 requires it to measure its investment in subsidiary either at cost or in accordance with the Ind AS 109. The Company at first time adoption has measured such investment at cost in accordance with Ind AS 27, wherein it has option to measure the investment in its separate opening Ind AS Balance Sheet at cost as determined in accordance with Ind As 27 or deemed cost. Deemed cost shall be fair value at the entity''s date of transition to Ind AS in its separate financial statement or previous GAAP carrying amount as on that date. The Company has adopted deemed cost being prevous GAAP carrying amount as on the date of transition.

B. Mandatory Exceptions

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

(b) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

I. Reconciliation of Balance Sheet as at 1st April 2016 and 31st March 2017

II. Reconciliation of Statement of Profit and Loss for the year ended 31 March 2017

III. Reconciliation of Equity as at 1st April 2016 and 31st March 2017

IV. Impact on Statement of Cash Flows for the period ended 31 March 2017

Footnotes to the reconciliation of equity as at 1st April 2016 and 31st March 2017 and Profit & Loss for the year ended 31st March 2017 Note 1: Proposed Dividend

Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as subsequent events. Accordingly, provision for proposed dividend including dividend distribution tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

Note 2: Remeasurement of post-employment benefit obligations

Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in Other Comprehensive Income (OCI) instead of profit or loss. Under the previous GAAP, these re-measurements were forming part of the profit or loss for the year. As a result of this change there

st

is no impact on the total equity as at 31 March 2017.

Note 3: Discount

Under the prevous GAAP, discounts and rebates paid to the customers were recorded as part of expenses in the Statement of Profit and Loss. However, under Ind AS, these expenses are netted-off against revenue.

Note 4: Derivative Instruments

Under previous GAAP, premium paid on the forward contracts were amortised over the period of the forward contracts. Under Ind AS, such forward contracts have been fair valued through profit & loss.

Note 5: Deferred taxes

Under previous GAAP, deferred taxes were recognised based on profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS, deferred tax is recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base.

Note 6: Employee Stock Option Expense

Under the previous GAAP, the cost of equity-settled employee share-based plan were recognised using the intrinsic value method. Under Ind AS, the cost of equity-settled share based plan is recognised based on the fair value of the Options as at the grant date.

Note 7: Excise Duty

Under the previous GAAP, revenue from sale of goods was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the Statement of Profit and Loss as part of expenses.

Note 8: Other Comprehensive Income

Under Ind AS, all items of income and expense recognised during the year should be included in profit or loss for the year, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss are shown in the Statement of Profit and Loss as "Other Comprehensive Income". OCI for the Company includes re-measurement of defined benefit plans of '' 45.05 lakhs net of taxes. The concept of Other Comprehensive Income did not exist under previous GAAP.

Note 9: Retained Earnings

Retained earnings as at 1st April 2016 and 31st March 2017 have been adjusted consequent to the above Ind AS transition adjustments.

Note 10: Statement of Cash Flow

The transaction from previous GAAP to Ind AS has not had any material impact on the Statement of Cash Flows.

Note 11: Regrouping

The presentation requirements under prevous GAAP differs from Ind AS and hence figures are regrouped to conform with the requirements of Ind AS.

Note 30

Financial instruments

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

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

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

A. Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable and individual risk limits are set accordingly.

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 on-going 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 forwarding-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

Credit items : The average credit period allowed to customers is less than 90 days.

B. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows. The Company''s objective is to maintain at all times, optimum levels of liquidity to meet its obligations.

Financing arrangements

The Company had access to following undrawn borrowing facilities at end of reporting period:

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , foreign currency receivables, payables and loans and borrowings.

(i) Market risk - 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.

Hence, the Company is not significantly exposed to the interest rate risk as working capital facilities are, as per contractual terms, primarily of short term in nature.

Interest rate sensitivity

A change of 50 bps in interest rates would have following impact on profit before tax

(ii) Market risk - Foreign Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade payables and is therefore exposed to foreign exchange risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies. The Company manages foreign currency risk by hedging its transactions using foreign currency forward contracts.

Derivative Financial Instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts are generally the banks. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.

E. Commodity Risk

Principal raw material for Company''s manufactured products is variety of plastic polymers which are primarily derivatives of crude oil. Company sources its raw material requirement from other Asian countries. Domestic market prices also generally remains in sync with international market price scenario.

Volatility in crude oil prices, currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability of polymers for the Company. Company effectively manages with availability of material as well as price volatility through:

1. Widening its sourcing base

2. Prudent hedging policy on foreign currency exposure

Note 32

Capital Risk Management

(a) Risk Management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders

- maintain an optimal capital structure to reduce the cost of capital

- 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 and is monitored by various metrics. Funding requirements are reviewed periodically with any debt issuances.

The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders, issue new shares or sell assets.

(b) Dividends

The Company follows the policy of Dividend for every financial year as may be decided by Board considering financial performance of the company and other internal and external factors.

(i) The Board of Directors, in its meeting on 23 May, 2017, proposed a final dividend of '' 2 per equity share (20 % on equity share of '' 10 each) and the same was approved by the shareholders at the Annual General Meeting held on 30 August, 2017, this resulted in a cash outflow of Rs, 98.00 Lakh, including corporate dividend tax of Rs, 16.90 Lakh.

(ii) The Board of Directors, in its meeting on 21 May, 2018, have proposed a final dividend of '' 0.50 per equity share (25% on equity share of '' 2 each) for the year ended 31 March, 2018. The proposal is subject to the approval of shareholders at the ensuing Annual General Meeting and if approved would result in a cash outflow of '' 134.38 Lakh, including corporate dividend tax of '' 22.91 Lakh.

Note 12

Disclosure pursuant to Ind AS - 19 "Employee benefits"

i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Life Insurance Company under its respective Group Gratuity Scheme.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, 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 period, 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 years.

ii) Compensated Absences: The Company permits encashment of compensated absence accumulated by their employees on retirement, separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave at the balance sheet date is determined and provided on the basis of actuarial valuation as at the balance sheet date performed by an independent actuary. The Company doesn''t maintain any plan assets to fund its obligation towards compensated absences.

Notes:

a) Sales Tax and Entry Tax related litigation/ demand primarily pertains to non-submission of required declaration forms in time due to non- receipt of the same from customers and/ or some interpretation related issues. However in most of the cases, required documents are being filed and minor impact if any, shall be given in the year of final outcome of respective matter in appeal.

b) The Company''s pending litigations comprise mainly claims against the Company, proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

Note 13

Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) is '' 0.79 (Previous year '' 133.51 Lakh).

b) (i) The Company has taken premises under cancellable operating lease. These lease agreements are normally renewed on expiry. The rental expenditure is accounted for in Statement of Profit and Loss of the Company in accordance with Ind AS-17 on lease transactions.

(ii) The Company has also taken office premises under non-cancellable operating lease. The total of future minimum lease payments under this lease for the period not later than one year is Rs, 396.54 Lakh (previous year Rs, 210.72 Lakh) and for the period later than one year and not later than five years is Rs, 563.35 Lakh (previous year Rs, 376.43 Lakh) and for the period later than five year is Rs, 0.51 Lakh (previous year Rs, 7.84 Lakh).

Note 14

Disclosure on Related Party Transactions

Names of related parties and description of relationship:

Subsidiaries:

Name__Extent of Holding_

Safari Lifestyles Limited Wholly Owned Subsidiary

Key Managerial Personnel:

Name Nature of Relationship

Mr. Sudhir Jatia Chairman & Managing Director

Mr. Vineet Poddar Chief Financial Officer

Mr. Rameez Shaikh Company Secretary (w.e.f. 10th Feb 2018)

Ms. Jigna Parikh Company Secretary (upto 9th Feb 2018)

Note 15

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". The CODM evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators . The Company is primarily engaged in luggage business only. Since this segment meets the aggregation criteria as per the requirements of Ind AS 108 on ''Operating segments'', the management considers this as a single reportable segment. Accordingly, disclosure of segment information has not been furnished.

Note 16

Assets Provided as Security

The carrying amounts of assets provided as security (First Charge) for current and non-current borrowings are:

Refer Note 14 (b) for share split during the year. Accordingly number of options, grant price, average market price, discount and weighted average fair value of options has been restated for options granted in the previous periods.

17 Post the applicability of the Goods and Service Tax (GST) with effect from 1 July, 2017, revenue from operations are disclosed net of GST, whereas Excise Duty formed part of expenses in previous year. Accordingly, the revenue from operations and expenses for the year are not comparable with the previous year.

18 Certain financial assets and financial liabilities are subject to formal confirmations and reconciliations, if any. The Management, however, is confident that the impact whereof for the year on the financial statements will not be material.

19 Recent accounting pronouncements

Ind AS 115 - Revenue from Contracts with Customers

On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers effective from April 1, 2018. The core principle of the new standard is that an entity should recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

Control of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset.

Amendment to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 effective from April 1, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

Amendments to Ind AS 12, Income Taxes clarifying the requirements for recognising deferred tax assets on unrealised losses. The amendments clarify the accounting for deferred tax where an asset is measured at fair value and that fair value is below the asset''s tax base. They also clarify certain other aspects of accounting for deferred tax assets. These amendments only clarify the existence of guidance of Ind AS 12 and do not change the underlying principles for recognition of deferred tax asset.

Consequential amendments to other Ind AS due to notification of Ind AS 115 and other amendments discussed above. The management is yet to assess the impact of the aforesaid amendments on the Company''s financial information.

20.The financial statements were approved for issue by the Board of Directors on 21 May 2018.


Mar 31, 2017

1. Related Party Disclosures :

Related Party Disclosures, as required by Accounting Standard - 18 :

i) Name of the related parties & description of relationship.

Safari Investments Private Limited : Enterprise in which Key Management Personnel has significant influence

Tarapur Vastra Udyog : Enterprise in which relative of Key Management Personnel has

Private Limited significant influence

Ramgopal Textiles Limited : Enterprise in which relative of Key Management Personnel has

significant influence

Safari Lifestyles Limited : Wholly Owned Subsidiary of Safari Industries (India) Limited

Key Management Personnel :

Mr. Sudhir Jatia : Chairman and Managing Director

Relative of Key Management Personnel :

Mr. Mohanlal Jatia : Father of Mr. Sudhir Jatia

Mr. Sanjay Jatia : Brother of Mr. Sudhir Jatia

Ms. Shivani Jatia : Daughter of Mr. Sudhir Jatia

2. Disclosure for operating lease under Accounting Standard 19 - “Leases”

The Company has entered into agreements for taking on leave and license under operating lease for office Premises/ warehouses, including furniture & fittings therein, as applicable. These agreements are not non-cancelable and are for tenures between 3 months & 10 years and are renewable by mutual consent on mutually agreeable terms.

(i) Under most of the agreements, refundable interest free deposits have been given.

(ii) Most of the agreements provide for increase in rent.

(iii) All the agreements provide for early termination by either party with a notice period which varies from 1 month to 3 months.

(iv) Some of the agreements are under renewal.

36. Deferred Taxation :

Deferred Taxes recognized/reversed in respect of items of timing differences between accounting income and taxable income in terms of Accounting Standards 22.

3. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March, 2017have been identified as relating to the Micro, Small and Medium Enterprise referred to in the said Act.

4. Corporate Social Responsibility

Gross Amount required to be spent by the Company during the year Rs, 12.23 Lacs (Rs, 3.50 Lacs). Donations made for objects/purposes as per Schedule VII of the Act - Rs, 14.96 Lacs (Rs, 3.50 Lacs)

B) The fair value of options used to compute proforma net income and earnings per equity share have been done by independent firm of Chartered Accountants using the Black-Scholes Model.

The key assumptions in the Black-Scholes Model for calculating fair value on the date of grant;

For Safari Stock Option Scheme 2016:

1. Risk Free Rate - 6.55%(Tranche I), 6.74%(Tranche II)

2. Option Life (no. ofyears) - 1.50 (Year 1),2.50 (Year 2),3.50(Year 3)

3. Expected Volatility - 0.7716 (Tranche I), 0.8247 (Tranche II)

4. Dividend Growth Rate - 5% (Tranche I), 5% (Tranche II)

The weighted average fair value of the options, as on the date of grant for Safari Stock Option Scheme 2016 works out to be Rs, 527.20 (Tranche I) and Rs, 632.68 (Tranche II).

5. Trade receivables, Trade Payables and Advances/Deposits balances are subject to confirmation and subsequent reconciliation.

6. Previous year figures have been regrouped or reclassified wherever necessary. Figures in bracket relates to previous year.


Mar 31, 2016

C. Rights, preference and restriction attaching to various classes of Shares

1) Each Equity Shareholder is entitled to one vote per share.

2) Of the 21,17,500 equity shares held by Mr.Sudhir Jatia,Promoter & Managing Director of the Company, 17,87,500 equity shares (holdings prior to preferential allotment) are subject to a lock-in of 6 months and 3,30,000 equity shares (shares allotted to him on conversion of the share warrants) are subject to a lock-in of 3 years , from the date of the respective trading approvals granted by the Bombay Stock Exchange, in accordance with the provisions of SEBI (Issue of Capital Disclosure Requirement) Regulations 2009.

1. Term Loan( including current maturities of Long term Debt) ofRs,303 Lacs,carrying interest rate @12.95% p.a are repayable in 60 monthly installments, beginning from May ,2016.

2. Term Loan is secured by first pari passu charge on specific movable Plant and Machinery lying at the Company''s Halol Plant and Equitable mortgage on the immovable properties situated at Company''s Halol Plant.

3. Vehicle Loan (including current maturities of Long term Debt) ofRs,6.01 Lacs, carrying interest rate @10 % p.a are repayable in 60 monthly installments, repayments have started in August 2015.

4. Vehicle Loan (including current maturities of Long term Debt) ofRs, 7.28 Lacs, carrying interest rate @10.15% p.a are repayable in 60 monthly installments, repayments have started in August 2015.

5. Vehicle Loan( including current maturities of Long term Debt) ofRs, 7.75 Lacs carrying interest rate @10.15% p.aare repayable in 84 monthly installments, repayments have started in January 2013.

6. Vehicle Loans from bank are secured by a charge on the specific vehicles.

All the above Short Term Borrowings are secured by ;

7 Hyphothecation of stocks of Raw-materials, Semi-finished goods, Finished goods, Packing materials, Stores & Spares and book debts of the Company.

8. First pari-passu charge on the movable Plant and Machinery (other than those specific charged) lying at the Company''s Halol Plant.

9. Equitable mortgage on the immovable properties situated at Company''s Halol Plant.

10. Related Party Disclosures :

Related Party Disclosures, as required by Accounting Standard - 18 :

i) Name of the related parties & description of relationship.

Safari Investments Private Limited : Enterprise in which Key Management Personnel has significant influence Tarapur Vastra Udyog : Enterprise in which relative of Key Management Personnel has

Private Limited significant influence

Ramgopal Textiles Limited : Enterprise in which relative of Key Management Personnel has

significant influence

Safari Lifestyles Limited : Wholly Owned Subsidiary of Safari Industries (India) Limited

Key Management Personnel :

Mr. Sudhir Jatia : Chairman and Managing Director

Relative of Key Management Personnel :

Mr. Mohanlal Jatia : Father of Mr. Sudhir Jatia

Mr. Sanjay Jatia : Brother of Mr. Sudhir Jatia

Ms. Shivani Jatia : Daughter of Mr. Sudhir Jatia

(i) Under most of the agreements, refundable interest free deposits have been given.

(ii) Most of the agreements provide for increase in rent.

(iii) the agreements provide for early termination by either party with a notice period which varies from 1 month to 3 months.

(iv) Some of the agreements are under renewal.

11. Deferred Taxation :

Deferred Taxes recognized/reversed in respect of items of timing differences between accounting income and taxable income in terms of Accounting Standards 22.

12. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March, 2016 have been identified as relating to the Micro, Small and Medium Enterprise referred to in the said Act.

13. Corporate Social Responsibility

Gross Amount required to be spent by the Company during the year Rs, 3.50 Lacs (Rs, Nil). Donations made for objects/ purposes as per Schedule VII of the Act - Rs, 3.50 Lacs (Rs, Nil)

14. Trade receivables, Trade Payables and Advances/Deposits balances are subject to confirmation and subsequent reconciliation.

15. Previous year figures have been regrouped or reclassified wherever necessary. Figures in bracket relates to previous year.


Mar 31, 2015

1) Each Equity Shareholder is entitled to one vote per share.

2) Of the 19,52,500 equity shares held by Mr. Sudhir Jatia, Promoter& Managing Director of the Company, 17,87,500 shares (his holding prior to preferential allotment)are subject to a lock-in of 6 months and 1,65,000 equity shares (shares allotted to him on conversion of the share warrants) are subject to a lock-in of 3 years, from the date of the respective trading approvals granted/to be granted by the Bombay Stock Exchange, in accordance with the provisions of SEBI (Issue of Capital Disclosure Requirement) Regulations 2009.

8,30,000 Shares allotted to Tano India Private Equity Fund II are subject to a 1 year lock-in from the date of the trading approval granted by the Bombay Stock Exchange

3. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (Net of advances) Rs. 2.58 lacs (Rs. 6.68 lacs).

4. Contingent Liabilities not provided for :

Sr.No. Particulars

(a) Counter Guarantees given by the 21.87 50.72 Company

(b) Claims / demands against the Amount not Amount Company by employees/ex-employees, not

disputed /not acknowledged as ascertain ascert debts : -able ainable

(c) Disputed Sales Tax Liabilities 59.67 66.23 (Net of Advance Rs. 21.23 Lacs)

(d) Rent and Telephone Bills Disputes 0.58 NIL

5. Depreciation:

Effective from 01.04.2014, the Company has adopted the useful lives of its Tangible Fixed Assets as per Part C of Schedule II of the Companies Act, 2013 and provided depreciation accordingly, except in respect of Furniture and Fixtures installed at the Company's retail stores, for which, the useful life of 2 years has been adopted, as hitherto. The same is based on the nature of assets at the said stores and the internal evaluation of the uncertainty of the number of years for which such stores may continue to remain in operation at the same location.

In respect of assets of which the remaining useful lives have been exhausted as on April 1,2014, the carrying amount of assets after retaining residual value, amounting to Rs. 8.13 lacs (Net of Deferred Tax Credit of Rs. 3.9 lacs) has been recognized in the opening balance of General Reserve.

The provision of depreciation in terms of Companies Act 2013 as aforesaid has resulted in higher provision by Rs. 45.27 lacs for the year as compared to the provision in terms of erstwhile Companies Act, 1956.

6. Segment Reporting :

The Company's activities pertain to a single reportable segment of travel goods as per Accounting Standard - 17.

7. Disclosure for operating lease under Accounting Standard 19 - "Leases"

The Company has entered into agreements for taking on leave and license under operating lease for office Premises/warehouses, including furniture & fittings therein, as applicable. These agreements are not non-cancelable and are for tenures between 3 months

8. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March, 2015 have been identified as relating to the Micro, Small and Medium Enterprise referred to in the said Act.

9. Trade receivables, Trade Payables and Advances/Deposits balances are subject to confirmation and subsequent reconciliation.

10. Previous year figures have been regrouped or reclassified wherever necessary. Figures in bracket relates to previous year.


Mar 31, 2014

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 6.68 Lacs (Net of advances) (Previous Year Rs. 20.96 Lacs)

2. Contingent Liabilities not provided for :

Current Year Previous Year Sr.No. Particulars (Rs. in Lakhs) (Rs. in Lakhs)

(a) Counter Guarantees given by the Company 50.72 19.45

(b) Claims / demands against the Company by employees, disputed / Amount not Amount not not acknowledged as debts : ascertainable ascertainable

(c) Disputed Sales Tax liabilities 66.23 64.15

3. Segment Reporting :

The Company''s activities pertain to a single reportable segment of travel goods as per Accounting Standard - 17 on Segment Reporting.

4. Related Party Disclosures : Related Party Disclosures, as required by Accounting Standard - 18 :

i) Name of the related parties & description of relationship.

Safari Sales Private Limited : Enterprise in which Key Management Personnel has significant influence

Safari Investments Private Limited : Enterprise in which Key Management Personnel has significant influence Tarapur Vastra Udyog Private Limited : Enterprise in which relative of Key Management Personnel has significant influence

Key Management Personnel :

Mr. Sudhir Jatia : Managing Director

Relative of Key Management Personnel :

Mr. Mohanlal Jatia : Father of Mr Sudhir Jatia

ii) The following transactions were carried out with related parties

5. Employee Benefits:

Consequent upon adoption of Revised Accounting Standard 15 on "Employee Benefits" ("AS-15"), issued by the Institute of Chartered Accountants of India, as required by the Standard, the following disclosures are made :

6. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act"). Accordingly no amount of dues outstanding as at 31st March, 2014 have been identified as relating to the Micro, Small and Medium Enterprises referred to in the said Act.

7. Trade receivables, Trade Payables and Advances/Deposits balances are subject to confirmation and subsequent reconciliation.

8. Previous year figures have been regrouped or reclassified wherever necessary.


Mar 31, 2013

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 20.96 Lacs (Net of advances) (Previous Year Rs. Nil)

2. Contingent Liabilities not provided for : Current Year Previous Year

Sr. No. Particulars (Rs. in Lakhs) (Rs. in Lakhs)

(a) Bills discounted with Central Bank of India 448.30

(b) Counter Guarantees given by the Company 19.45 22.73

(c) Claims / demands against the Company by employees, disputed / Amount not Amount not not acknowledged as debts : ascertainable ascertainable

(d) Disputed Sales Tax liabilities 64.15 59.05

3. Segment Reporting :

The Company''s activities pertain to a single reportable segment of travel goods as per Accounting Standard - 17 on Segment Reporting.

4. Related Party Disclosures :

Related Party Disclosures, as required by Accounting Standard - 18 : i) Name of the related parties & description of relationship.

Safari Sales Private Limited Enterprise in which Key Management Personnel has significant influence

Safari Investments Private Limited Enterprise in which Key Management Personnel has significant influence

Tarapur Vastra Udyog Private Limited Enterprise in which relative of Key Management Personnel has significant influence

Key Management Personnel :

Mr. Sudhir Jatia Managing Director (w.e.f. 18th April,2012)

Mr. A. S. Mehta Managing Director (upto 18th April, 2012)

Relative of Key Management Personnel :

Mr. Mohanlal Jatia Father of Mr Sudhir Jatia

5. Disclosure for operating lease under Accounting Standard 19 - "Leases”

a) The Company has entered into agreements for taking on leave and license under operating lease for office Premises/warehouses, including furniture & fittings therein, as applicable. These agreements are not non-cancelable and are for tenures between 3 months & 10 years and are renewable by mutual consent on mutually agreeable terms. The specified disclosure in respect of these agreements is given below :

6. Employee Benefits:

Consequent upon adoption of Revised Accounting Standard 15 on "Employee Benefits" ("AS-15"), issued by the Institute of Chartered Accountants of India, as required by the Standard, the following disclosures are made:

7. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March, 2013 have been identified as relating to the Micro, Small and Medium Enterprises referred to in the said Act.

8. Balances of Trade receivables, Trade Payables and Advances/Deposits are subject to confirmation and subsequent reconciliation.

9. Previous year figures have been regrouped or reclassified wherever necessary.


Mar 31, 2012

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. Nil (Previous Year Rs. Nil).

2.Contingent Liabilities not provided for: Current Year Previous Year Sr. No. Particulars (Rs.in Lakhs) (Rs. in Lakhs) (a) Bills discounted with Central Bank of India 448.30 448.41

(b) Counter Guarantees given by the Company 22.73 17.84

(c) Claims/demands against the Company by employees, disputed/ amount not amount not not acknowledged as debts: ascertainable ascertainable

(d) Disputed Sales Tax and Income-Tax liabilities 59.05 162.18

3. Segment Reporting:

The Company's activities pertain to a single reportable segment of travel goods as per Accounting Standard -17 on Segment Reporting.

4. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March,2012 have been identified as relating to the Micro, Small and Medium Enterprise referred to in the said Act.

5. Sundry Debtors', Creditors' and Advances'/Deposits' balances are subject to confirmation and subsequent reconciliation.

6. Financial statements for the year ended March 31,2011 were prepared as per the applicable, pre-revised Schedule VI to the Companies Act, 1956..Consequent to the Notification of revised Schedule VI, the financial statements for the year ended March 31,2012 are prepared in terms of revised Schedule VI. Accordingly, previous year's figures have also been re-classified, regrouped and rearranged to conform to this year's classification.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. Nil (Previous Year Rs. Nil).

2. Contingent Liabilities not provided for:

Current Year Previous Year Sr.No. Particulars (Rs. in Lakhs) (Rs. in Lakhs)

(a) Bills discounted with Central Bank of India 448.41 698.97

(b) Counter Guarantees given by the Company 17.84 21.62

(c) Claims / demands against the Company by employees, disputed / amount not amount not not acknowledged as debts: ascertainable ascertainable

(d) Disputed Sales Tax and Income-Tax liabilities 162.18 163.01

3. Segment Reporting:

The Companys activities pertain to a single reportable segment of travel goods as per Accounting Standard -17 on Segment Reporting.

4. Related Party Disclosures :

Related Party Disclosures, as required by Accounting Standard - 18 : i) Name of the related parties & description of relationship.

Key Management Personnel:

Mr. A. S. Mehta Managing Director

Relatives of Key Management Personnel:

Miss Maitri A. Mehta Daughter of Mr. A. S. Mehta

Miss Rachana A. Mehta Daughter of Mr. A. S. Mehta

5. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March, 2011 have been identified as relating to the Micro and Small Enterprise referred to in the said Act.

6. As per the revised Accounting Standard-15, on "Employee Benefits", expenditure under Voluntary Employees Separa- tion Schemes ("VESS") incurred up to 31st March, 2009 could be deferred only up to 31st March,2010. Accordingly, the company has charged to the Profit and Loss Account for the year 2009-10, the entire deferred expenditure carried under the head "Deferred Revenue Expenditure".

The Deferred Revenue Expenditure charged during the year includes Rs. Nil (P. Year .Rs. 22.87 Lacs) pertaining to prior periods.

7. Sundry Debtors, Creditors and Advances/Deposits balances are subject to confirmation and subsequent reconciliation.

8. Figures for the previous year have been regrouped, rearranged and recast, wherever considered necessary.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. Nil (Previous Year Rs. Nil).

2. Contingent Liabilities not provided for:

(Rs.in Lakhs) Sr. No. Particulars Current Year Previous Year

(a) Bills discounted with Central Bank of India 697.97 483.75

(b) Bills factored with State Bank of India -- 257.13

(c) Counter Guarantees given by the Company 21.62 17.22

(d) Claims / demands against the Company by employees, disputed / amount not amount not not acknowledged as debts: ascertainable ascertainable

(e) Disputed Sales Tax and Income-Tax liabilities 163.01 145.25

3. Segment Reporting:

The Companys activities pertain to a single reportable segment of travel goods as per Accounting Standard -17 on Segment Reporting.

4. Related Party Disclosures :

Related Party Disclosures, as required by Accounting Standard - 18 : i)

Name of the related parties & description of relationship. Key Management Personnel:

Mr. A. S. Mehta Managing Director



Relatives of Key Management Personnel:

Mrs. S. S. Mehta Mother of Mr. A. S. Mehta

Miss Maitri A. Mehta Daughter of Mr. A. S. Mehta

Miss Rachana A. Mehta Daughter of Mr. A. S. Mehta

5. Micro, Small and Medium Enterprises

Based on the information in possession with the Company no supplier has been identified as being covered under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act").

Accordingly no amount of dues outstanding as at 31st March,2010 have been identified as relating to the Micro and Small Enterprise referred to in the said Act.

6. Payment to & Provisions for Employees and Others (Schedule 10) includes Rs.51,000 (Previous Year Rs.48,111) in respect of prior period.

7. As per the revised Accounting Standard-15, on "Employee Benefits", expenditure under Voluntary Employees Separa- tion Schemes ("VESS") incurred up to 31st March, 2009 could be deferred only up to 31st March,2010. Accordingly, the company has changed the accounting policy and charged to the Profit and Loss Account, the entire deferred expenditure carried under the head "Deferred Revenue Expenditure".

The Deferred Revenue Expenditure charged during the year includes Rs.22.87 Lacs pertaining to prior periods. Similar expenditure for the year is also fully charged to the Profit and Loss Account, reflected under Payments to & Provisions for Employees and others".

8. Sundry Debtors and Creditors balances are subject to reconciliation and confirmation.

9. Figures for the previous year have been regrouped, rearranged and recast, wherever considered necessary.

10. ADDITIONAL INFORMATION PURSUANT TO THE PROVISION OF THE PARAGRAPHS 3 (i)(a) and (ii), 4C AND 4D, OF PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956.

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