Notes to Accounts of Cantabil Retail India Ltd.

Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

Provisions are measured at the Present value of the
management''s best estimate (these estimated are
reviewed at each reporting date and adjusted to reflect
the current best estimate) of the expenditure required to
settle the present obligation at the end of reporting
period. Provisions involving substantial degree of
estimation in measurement are recognized when there
is a present obligation as a result of past events and it is
probable that there will be an outflow of resources.

Contingent liabilities are disclosed only when there is a
possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events which is not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle the obligation or
estimate of the amount cannot be measured reliably.

No contingent asset is recognized but disclosed by way
of notes to accounts only when its recognition is virtually
certain.

2.22 Revenue Recognition

Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the company and
the revenue can be reliably measured, regardless of
when the payment is being made. Amount of sales are
net of goods and service tax, sale returns, trade
allowances and discounts.

To determine whether to recognize revenue, the
company follows a 5-step process:

1. Identifying the contract with a customer

2. Identifying the performance obligations

3. Determining the transaction price

4. Allocating the transaction price to the performance
obligations

5. Recognising revenue when/as performance
obligation(s) are satisfied.

The company considers the terms of the contract and its
customary business practice to determine the
transaction price.

In all cases, the total transaction price is allocated
amongst the various performance obligations based on
their relative standalone selling price. The transaction
price excludes amounts collected on behalf of third
parties. The consideration promised include fixed
amounts, variable amounts, or both.

Revenue is recognised either at a point in time or over
time, when (or as) the company satisfies performance
obligations by transferring the promised goods or
services to its customers.

For each performance obligation identified the
company determines at contract inception whether it
satisfies the performance obligation over time or
satisfies the performance obligation at point in time. If
any entity does not satisfy a performance obligation
over time, the performance obligation is satisfied at a
point in time.

A receivable is recognised where the company''s right to
consideration is unconditional (i.e. any passage of time
is required before payment if the consideration is due).
When either party to a contract has performed, an entity
shall present the contract in the balance sheet as
contract asset or contract liability, depending on the
relationship between the entity''s performance and the
customer''s payment.

While this represents significant new guidance, the
implementation of this new guidance had no impact on
the timing or amount of revenue recognised by the
company in any year.

Company continues to account for export benefits on
accrual basis.

Other Income

All other income is recognized on accrual basis when no
significant uncertainty exists on their receipt.

Interest Income

Interest income from a financial asset is recognized
when it is probable that the economic benefits will flow
to the company and the amount of income can be
measured reliably. Interest is accrued on time
proportion basis, by reference to the principle
outstanding at the effective interest rate.

Dividends

Income from dividend on investments is accrued in the
year in which it is declared, whereby the company’s
right to receive is established.

2.23 Foreign Currency Conversions/Transactions

Foreign Currency Transactions are recorded at the
exchange rates prevailing on the date of the
transactions. Gains and losses arising out of
subsequent fluctuations are accounted for on actual
payments or realisations as the case may be. Monetary
assets and liabilities denominated in foreign currency as
on Balance Sheet date are translated into functional
currency at the exchange rates prevailing on that date
and Exchange differences arising out of such
conversion are recognised in the Statement of Profit
and Loss.

2.24 Income Taxes

Income tax expense for the year comprises of current
tax and deferred tax. It is recognised in the Statement of
Profit and Loss except to the extent it relates to any
business combination or to an item which is recognised
directly in equity or in other comprehensive income.

a) Current Tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the tax authorities. The tax rates and
tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting
date.

Current income tax relating to items recognized
outside statement of profit or loss is recognized
outside statement of profit or loss (either in other
comprehensive income or in equity). Current tax
items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to
interpretation and establishes provisions where

b) Deferred Tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of
assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax

assets are recognized to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilized.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each reporting
date and are recognized to the extent that it has
become probable that future taxable profits will allow
the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognized outside
statement of profit or loss is recognized outside
statement of profit or loss. Deferred tax items are
recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable
company Group and the same taxation authority.

2.25 Employee Benefits

i) Short Term Employee Benefits

Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided.

A liability is recognized for the amount expected to be
paid under performance related pay if the Company
has a present, legal or constructive obligation to pay
this amount as a result of past service provided by the
employee and the obligation can be estimated
reliably.

ii) Post-Employment benefits

Employee benefit that are payable after the
completion of employment are Post-Employment
Benefit (other than termination benefit). Company
has identified two types of post employment benefits:
a) Defined Contribution Plans

Defined contribution plans are those plans in
which the company pays fixed contribution into
separate entities and will have no legal or
constructive obligation to pay further amounts.
Provident Fund and Employee State Insurance
are Defined Contribution Plans in which
company pays a fixed contribution and will have
no further obligation beyond the monthly

contributions and are recognised as an expenses
in Statement of Profit & Loss.
b) Defined Benefit Plans

A defined benefit plan is a post-employment
benefit plan other than a defined contribution
plan.

Company pays Gratuity as per provisions of the
Gratuity Act, 1972. The Company’s net
obligation in respect of defined benefit plans is
calculated separately for each plan by estimating
the amount of future benefit that employees have
earned in return for their service in the current
and prior periods; that benefit to employees is
discounted to determine its present value.

The calculation is performed annually by a
qualified actuary using the projected unit credit
method. The net interest cost is calculated by
applying the discount rate to the net balance of
the defined benefit obligation and the fair value of
plan assets. This cost is included in employee
benefit expense in the statement of profit and
loss. Any actuarial gains or losses pertaining to
components of re-measurements of net defined
benefit liability/(asset) are recognized in OCI in
the period in which they arise. The calculation is
performed annually by a qualified actuary using
the projected unit credit method. The net interest
cost is calculated by applying the discount rate
to the net balance of the defined benefit
obligation and the fair value of plan assets. This
cost is included in employee benefit expense in
the statement of profit and loss. Any actuarial
gains or losses pertaining to components of re¬
measurements of net defined benefit
liability/(asset) are recognized in OCI in the
period in which they arise.

Company provided for compensated absences
which are expected to occur within twelve
months after the end of the period in which the
employee renders the related services are
recognised as undiscounted liability at the
balance sheet date. Compensated absences
which are not expected to occur within twelve
months after the end of the period in which the
employee renders the related services are
recognised as an actuarially determined liability
at the present value of the defined benefit
obligation at the balance sheet date.

2.26 Borrowing Cost

Borrowing cost include interest calculated using the
effective interest method, amortization of ancillary costs
and other costs the company incurs in connection with
the borrowing of funds. Borrowing costs directly
attributable to the acquisition, construction or
production of a qualifying asset are capitalized during

the period of time that is necessary to complete and
prepare the asset for its intended use or sale. A
qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use.
Capitalisation of borrowing costs is suspended in the
period during which the active development is delayed
due to, other than temporary, interruption. All other
borrowing costs are charged to the statement of profit
and loss as incurred.

2.27 Earning Per Share

Basic Earning Per Share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per
share, net profit after tax during the year and the
weighted average number of shares outstanding during
the year are adjusted for the effect of all dilutive potential
equity shares.

2.28 Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.
Company as Lessee

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets.

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is
reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.

Right of Use Assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any measurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the lease
term.

Lease Liability

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.

The lease payments include fixed payments less any
lease incentives receivable. Variable lease payments
that do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or condition
that triggers the payment occurs.

In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in
the lease payments or a change in the assessment of an
option to purchase the underlying asset.

Short Term Lease & Leases of Low Value Assets

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases of office equipment
that are considered to be low value. Lease payments on
short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the
lease term.

2.29 Statement of Cash Flows

Statement of cash flows is prepared in accordance with
the Indirect method prescribed in Ind AS-7 ‘Statement
of Cash Flows''.

2.30 Government Grants

Government grants are recognised where there is
reasonable assurance that the grant will be received,
ultimate collection of the grant/subsidy is reasonably
certain and all attached conditions will be complied
with. When the grant relates to an expense item, it is
recognised as income on a systematic basis over the
periods that the related costs, for which it is intended to
compensate, are expensed. When the grant relates to

an asset, it is recognised as income in equal amounts
over the expected useful life of the related asset.

2.31 Segment Reporting

The company is engaged in “the business of designing,
manufacturing, branding and retailing of apparel
accessories and footwear for womens and mens which
in the context of Ind AS 108 “Operating Segment" is
considered as the only segment and the Executive
Management Committee does not monitors the
operating results of its business units separately for the
purpose of making decisions about resource allocation
and performance assessment.

2.32 Standards issued but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. There are no new Standards
that became effective during the year. Amendments
that became effective during the year did not have any
material effect. On March 31,2023, MCA amended the
Companies (Indian Accounting Standards) Amendment
Rules, 2023, as below

Ind AS 1— Presentation of Financial Statements

The amendments require the entities to disclose their
material accounting policies rather than their significant
accounting policies

Ind AS 8 - Accounting Policies, changes in
accounting estimates and Errors

This amendement has introduced a definition of
accounting estimates and includes amendement to IND
AS 8 to help entities distinguish changes in accounting
policies from changes in accounting estimates.

Ind AS 12 -Income Taxes

This amendment has narrowed the scope of the initial
recognition exemption so that it does not apply to
transactions that give rise to equal and offsetting
temporary differences.

The effective date for adoption of these amendments is
annual periods beginning on or after April 1,2023

---

Mar 31, 2018

1 Company Overview

Cantabil Retail India Limited (‘the company’) having CIN : L74899DL1989PLC034995 is a public limited company domiciled in India and incorporated on February 9, 1989 under the provisions of the Companies Act applicable in India. The company is engaged in the business of designing, manufacturing, branding and retailing of apparel and apparel accessories through chain of retail store under the brand name “CANTABIL”, “CROZO “ & “KANESTON”. Registered office of company is situated in Delhi, India. The Company has its primary listings on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The financial statements were authorised for issue in accordance with a resolution of the Board of Directors on 25th May, 2018.

Fair Value

The fair value of investment property as at March 31, 2018 is Rs.415 lakhs (approx) [as at March 31, 2017 Rs. 400 lakhs (approx), as at April 1,2016 Rs. 390 lakhs (approx)] after considering the relevant assumptions that market participants would use when pricing investment properties under current market conditions.

*Company is paying Minimum Alternate Tax (MAT) in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liabilities. Accordingly, company has availed MAT Credit entitlement for the taxes paid (MAT) in earlier years as well as in current year. Also, the company is having virtual certainity with convincing evidence that sufficient future taxable income will be available to set off the unabsorbed tax losses and accordingly deferred tax assets on such losses have been created. (Read with Note no 45)

Terms / rights attached to equity shares

The company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share.

1 Term Loan of Rs. 300 lakhs, Tenure-60 months proportionate principal and actual interest @ Base Rate 4.00% p.a., secured against the hypothecation of Plant & Machinery at HSIIDC Bahadurgarh(Haryana). 31 installments pending.

2 Term Loan of Rs. 436.60 lakhs, Tenure-42 months including 6 months of morotorium, to be repaid in 36 equal installments payable monthly @ 1 Year MCLR is 8.20% p.a. and spread is 0.70 % p.a. repayable over the period April , 2018 to March, 2021 secured by way of company’s movable Fixed Assets including Plant & Machinery and Furniture & fixtures. Personal Guarantees which should necessarily include the guarantees of Mrs. Sushila Bansal, Mr. Deepak Bansal & Mr. Vijay Bansal. 36 installments pending.

3 Auto Loan of Rs. 35.04 lakhs, Tenure-36 months by equated monthly installment (EMI) of Rs. 1,13,460/- @10.24% p.a.repayable over the period July 15, 2014 to June 15,2017.

4 Auto Loan of Rs. 39.70 lakhs, Tenure-36 months by equated monthly installment (EMI) of Rs. 1,28,568/- @10.25% p.a.repayable over the period Jan 15,2015 to December 15,2017.

5 Loan against property of Rs. 119.50 lakhs, Tenure- 122 months by equated monthly installment (EMI) of Rs. 1,55,524/- Interest payable @ 9.75 % p.a. repayable over the period December 10, 2017 to January 10, 2028 against mortgage of Shop No GF SR 20, Ansal Plaza, Vaishali, villgae Hassanpur , Ghaziabad, Uttar Pardesh and Shop No. F07 and F08, Mittal Mall Sector 25 Part II, Panipat, Haryana-132103. 118 installments pending.

6 Loan against property of Rs. 181.50 lakhs, Tenure- 121 months by equated monthly installment (EMI) of Rs. 2,38,689/- Interest payable @ 10.00 % p.a. repayable over the period December 10, 2017 to December 10, 2027 Floating against mortgage of Plot No. J 27, Mayfield Garden, Sector 51, Gurgaon Haryana - 122001. 117 installments pending.

7 Term Loan of Rs. 200.00 lakhs, Tenure-120 months by equated monthly installment (EMI) of Rs. 3,10,533/-@14% p.a. repayable over the period July 01, 2015 to June 01, 2025 ,secured against collateral security of two plots at Mayfield Garden, Gurgaon (Haryana). Closed on August 14, 2017.

1 Interest payable @ MCLR - 6M is 8.15 % p.a. and spread is 0.70% and WCDL Interest payable @ MCLR 3M is 7.90% and spread is 0.55% to be applied on daily balances of the Facility. Pari passu charge by way of hypothecation on company entire stock of Raw Materials , processed stock , Finished Goods, consumable stores and spares situated at present and future premises of the company and such other movables including Books-debts , Bills whether documentary or clean, outstanding monies, receivables, both and future in a form and manner satisfactory to the Bank .Pari passu charge by way of equitable mortgage on residential property located at 28, Road no. 78, Punjabi Bagh (West), New Delhi, owned by Deepak Bansal.Personal Guarantees which include the guarantees of Mr. Vijay Bansal (CMD), Mr. Deepak Bansal ( Director and Guarantor) and Smt. Sushila Bansal (Guarantor).

2 Interest payable @ one month MCLR 2% p.a. (variable) to be applied on daily balances on the Overdraft Facility. Interest, commission and other charges as approriate,will be levied as stated in sanction. Secured against hypothecation on Present and Future current assets of the company. CRR on stocks and book debts post deduction on charge on current assets for ICICI Bank Ltd. and OBC. Mortgage on residential property located at 28, Road no. 78, Punjabi Bagh (West), New Delhi, owned by Deepak Bansal. Value considered post deduction of pari passu charge on the property by ICICI Bank Ltd. and Personal Guarantees which include the guarantees of of Mr. Vijay Bansal (CMD), Mr. Deepak Bansal ( Director and Guarantor) and Smt. Sushila Bansal (Guarantor).

3 Interest payable @ one year MCLR 4.00% p.a. chargeable on monthly rests, Secured Against hypothecation of stocks of raw material,stock-in-process, Finished goods,stores & Spares of garment manufacturing unit and receivables on pari-passu basis with ICICI Bank Ltd. and Standard Chartered Bank. Further secured against Equitable/Registered Mortgage of immovable properties of the company’s Land alongwith Building at Plot No. 359,360 & 361 Phase 4B, HSIIDC Industrial Estate, Bahadurgarh (Haryana) total Plot area 12150 Sq. Mtr. and further Secured against Pari-Passu charge over entire current assets and entire movable fixed assets (excluding vehicles) of the company both present and future and Personal Guarantee of Mr. Vijay Bansal (CMD), Mr. Deepak Bansal ( Director and Guarantor) and Smt. Sushila Bansal (Guarantor).

4 Interest payable @ 3M MCLR 2.95% p.a. payable monthly,Secured against First Pari Passu charge by way of hypothecation of entire Current assets of the company both present and future and First parri passu charge by way of hypothecation of entire movable fixed assets of the company both present and future excluding vehicles except immovable properties of the company specifically mortgage to other lenders and Pari passu charge (alongwith Standard Chartered Bank) by way of EM of residential property in the name of Deepak Bansal (promoter/director), situated at 28, Road no. 78, Punjabi Bagh (West), New Delhi, admeasuring 1127.50 sq. yds. The same is also secured by way of personal guarantee of Mr. Vijay Bansal (CMD), Mr. Deepak Bansal ( Director and Guarantor) and Smt. Sushila Bansal (Guarantor).

In compliance with the provisions of Ind AS 12, the company has reviewed its deferred tax assets at the balance sheet date and is having virtual certainity with convincing evidence that sufficient future taxable income will be available to set off the unabsorbed tax losses and accordingly deferred tax assets has been created.

In terms of above, Basic and diluted EPS for the year ended as on March 31, 2018 has shown exceptional improvement for the fact of recognition of taxable temporary difference arising due to deferred tax asset of Rs. 1110.14 Lakhs on brought forward unused tax losses of Rs. 4029.17 lakhs and MAT credit entitlement for Rs. 311.97 lakhs in the current financial year ending March 31, 2018.

Before recognition of this deferred tax asset on unused tax losses in the financial year ending March 31, 2018, the profit for the year from continuing operations is Rs. 888.60 lakhs and the consequential EPS without considering the above mentioned temporary tax difference is Rs. 5.44. (Read with Note no 10)

2. Sensitivity Analyses

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

III. Changes in Defined benefit obligation due to 1% Increase/Decrease in Mortality Rate, if all other assumptions remain constant is negligible.

The sensitivity analysis presented above may not be representative of the actual change in the defined 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 defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the statement of financial position.

Actuarial measurements may differ in future from the current measurements shown in this report due to actors such as:-

(i) Plan experience differing from that anticipated by the economic or demographic assumptions

(ii) Changes in economic or demographic assumptions

(iii) Changes in plan provisions or applicable law

(iv) Significant events since last actuarial valuation

3. Sensitivity Analyses

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

III. Changes in Defined benefit obligation due to 1% Increase/Decrease in Mortality Rate, if all other assumptions remain constant is negligible.

The sensitivity analysis presented above may not be representative of the actual change in the defined 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 defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the statement of financial position.

There is no change in the method of the valuation for the prior period.

4. Related party Disclosure

(i) The related parties as per terms of Ind AS-24, “ related Party Disclosure” , ( specified under section 133 of the Companies Act , 2013, read with rule 7 of (Accounts) Rule , 2015) are disclosed below :-

c) Notes to reconciliation of equity as at April 1, 2016 and March 31, 2017 and profit or loss for the year ended March 31, 2017

(i) Property Plant and Equipment

Certain machineries under Property Plant and Equipments have been reinstated as per Ind AS 20 for the amount of Government Grant receivable (net of depreciation) as on March 31,2017 as compared to being deducted from the gross value of the assets concerned under previous GAAP, to be read with Note No. 54.

(ii) Investment Property

Investment properties shown under Inventory in earlier years have been regrouped and now these properties have been reduced as per Ind AS 40 for the amount of depreciation of Rs. 6.87 lakhs, as it was not required under previous GAAP.

(iii) Financial Assets -Loans & Other Current Assets

As per previous GAAP, company recognised interest free security deposits paid for leasehold properties at transaction value. Under Ind AS 109, such security deposits are required to be amortised for deemed prepaid rent and its consequential interest income has been recognised by applying present value factor. Accordingly, prepaid rent component has been recognised in other current assets which will be amortised on straight line through rent expense over the period of lease for which security deposit is given.The cumulative amortisable prepaid rent of Rs. 148.21 lakhs (Previous Year Rs. 82.33 lakhs) has been reduced from financial assets-Loans and adjusted into Other current Assets.

(iv) Deferred Tax Assets (net)

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires accounting for deferred taxes using the Balance sheet approach, which focuses on temporary difference between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on account of remeasurement of post employment benefits amounting Rs. 10.52 lakhs. In addition, the various transitional adjustments lead to temporary differences and the Company has accounted for such differences amounting to Rs. 36.26 lakhs. Deferred tax adjustment are recognised in correlation to the underlying transaction in other equity.

(v) Financial Assets - Investments

As per previous GAAP, company recognised investments at transaction value. Under Ind AS 109, such investments are required to be recognised at fair market value i.e. cumulatively increased by Rs. 3.33 lakhs (Previous year Rs.2.14 lakhs) and such Fair value has been recognised in other income as FVTPL.

(vi) Other Equity

As per Ind AS 101 transitional provisions for first time adoption of Ind AS, all adjustements relating to Ind AS that have an impact on previos years , should be adjusted throuhgh retained earnings, accordingly the company has taken the cumulative impact of transitional provision of Rs.246.26 lakhs (previous year Rs.159.21 lakhs) to Ind AS through other equity, to be read with all notes to reconciliation of equity and statement of changes in equity.

(vii) Financial Liabilities - Other financial liabilities

As per previous GAAP, company recognised interest free security deposits received at transaction value. Under Ind AS 109, such security deposits are to be recognised at present value and remaining amount to be recognised as Deferred revenue amounting to Rs.165.50 lakhs (Previous year Rs.157.07 lakhs) and such revenue will be amortised on straight line over the period of agreement. Accordingly interest expense on such security deposits received have been recognised in the profit & loss by applying rate used in present value factor.

(viii) Revenue

Trade discounts allowed to an extent of Rs.444.55 lakhs shown as an expense in Previous GAAP is adjusted against revenue as per Ind -AS 18.

(ix) Excise Duty on Sale of Goods

As per Previous GAAP, excise duty should be included and shown as reduction from the gross turnover on the statement of profit and loss. However, Ind AS 18 does not specifically prescribe any guidance for inclusive presentation of excise duty. Accordingly the Company has presented revenue gross of excise duty. This resulted in increase of revenue and increase of excise duty expense to an extent of Rs.434.15 lakhs. Further, amounts collected by the seller on behalf of the government are not be included as part of the revenue as per IND-AS 18.

(x) Remeasurement of actuarial gains/ (losses):

Both under Previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefit cost is reduced by Rs. 34.05 lakhs and remeasurement gains/ losses on defined benefit plans has been recognized in the OCI.

(xi) Other comprehensive income

As per Ind AS, the company translated Previous GAAP profit or loss to total comprehensive income .

(xii) Statement of cash flows

The transition from Indian GAAP to Ind AS does not had a material impact on the statement of cash flows.

5 Segment Reporting

The Company is primarily engaged in the business of “Retail” which constitutes a single reporting segment and the Executive Management Committee does not monitors the operating results of its business units 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 financial statements, thus there are no additional disclosures to be provided under Ind AS 108 - “Segment Reporting”.

* Customs Excise and Service Appellate Tribunal has passed the order in favour of the company u/s 35-C(1) of the Central Excise and salt Act , 1944. However, department Central Tax, GST appealed to the HON’BLE HIGH COURT OF DELHI

It is not possible to predict the outcome of the pending litigations with accuracy, however, the Company believes based on the facts of the cases stated above that it has meritorious defences to the claims.The management believe that the pending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the company.

(b) Capital Commitments-

Estimated amounts of contracts remaining to be executed for opening of new showrooms on capital accounts is Rs. 40 Lakhs approx.(FY Rs. 21 Lakhs approx.)

6 Government Grants

The Company was eligible for subsidy amount of Rs. 62.89 Lakhs during the financial year 2016-17 for installation and commissioning of machinery under A TUFS (Technology Upgradation Fund Scheme). According to previous GAAP the grant was shown as a deduction from the gross value of the asset concerned in arriving at its book value. Consequent to issuance of ITFG clarification Bulletin 12 dated October 24,2017 issued by ICAI, the company has recognised the asset related government grant outstanding as on March 31, 2017 as deferred income in accordance with the requirements of Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance and adjustments of grant for machiney has been added to the gross block & adjustment of depreciation have been made in retained earnings.

7 Micro, Small & Medium Enterprises :-

The Company has sent the confirmation letter to its supplier at the year end to identify the supplier registered with Disclosure as per Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.As per the informatin available with the company none of its supplier has confirmed that they are registered with the Act.In view of this, the liablity of ineterst has not been provided nor is required disclosure done.

8 Financial risk management objectives and policies Financial Risk Management Framework

The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk (fluctuations in interest rate), which may adversely impact the fair value of its financial instruments. The Company assess the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

Credit Risk

Credit risk is a risk that counterparty will not meet its obligations under a financial assets leading into a financial loss. Credit risk includes direct risk of default and risk of deterioration of creditworthiness. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted. Financial assets consist of trade receivables, investments, loans, cash and cash equivalents, bank deposits and other financial assets.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company manages liquidity risk by maintaining adequate reserves and banking borrowing facilities by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of interest rate risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. As the Company’s debt obligation with floating interest rates are in INR which is subject to insignificant change, exposure to the risk of changes in market interest rates are substantially independent of changes in market interest rates.

9 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holde Rs. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure in consideration to the changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by Equity plus net debt. Net debt consists of borrowings including interest accrued on borrowings, trade and other payables, less cash and short-term deposits.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2018.

10 . Figures Relating to April 1, 2016 (date of transition) and previous year have been restated/ regrouped/ reclassified wherever necessary to make them comparable with the current year figures.

11. Figures in Balance Sheet, Statement of Profit and loss, cash flow statement, statement of changes in equity and Notes to audited financial statements have been shown in lakhs and rounded off to the nearest thousand and have been expressed in terms of decimals of thousands.

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Mar 31, 2016

1 Employee benefit plans

(a) Defined benefit plans

The Company offers the following employee benefit schemes to its employees: Gratuity

Other defined benefit plans (Leave Encashment)

Note 2 : Disclosures under Accounting Standards 32 Segment Reporting

Company’s revenue from Real Estate segment is less than minimum level required to be reported, therefore

segment results are not given as per Accounting Standard (AS) 17 “Segment Reporting” prescribed by Companies (Accounting Standard) Amendment Rules 2011.

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Mar 31, 2015

1. Corporate information : CIN L74899DL1989PLC034995

The Company was incorporated on 9th Feb,1989 and is mainly engaged in the business of designing, manufacturing, branding and retailing of apparel and apparel accessories through chain of retail store under the brand name "CANTABIL" & "Bonetti".The Company is also into the business of real estate trade.

2: Corporate Social Responsibility

Provision of corporate social responsibility as per Section 135 of Companies Act, 2013 read with schedule VII is not applicable to the company.

3. Employee benefit plans

4. (a) Defined benefit plans

The Company offers the following employee benefit schemes to its employees: Gratuity

Other defined benefit plans (Leave Encashment)

5. (a) Related Parties with whom transactions have taken place during the year :

Names of related parties Description of relationship

Mr. Vijay Bansal Key Managerial Personnel

Mr. Deepak Bansal Key Managerial Personnel

Mr. Anil Bansal Key Managerial Personnel

Mrs. Megha Bansal Key Managerial Personnel's relative

Poonam Bansal Key Managerial Personnel's relative

Rekha Bansal Key Managerial Personnel's relative

Sunil Bansal Key Managerial Personnel's relative

Anil Bansal (HUF) Enterprise in which Key Managerial Personnel has significant influence

Balaji International Clothing Enterprise in which Key Managerial Personnel has significant influence

Vardhman Enterprises Enterprise in which Key Managerial Personnel's relative has significant influence

Drishti Enterprises Enterprise in which Key Managerial Personnel's relative has significant influence

Balaji Apparel Enterprise in which Key Managerial Personnel's relative has significant influence

Akshi Marketing Private Limited Company in which Key Managerial Personnel's relative has significant influence

6. Segment Reporting

Company's revenue from Real Estate segment is less than minimum level required to be reported , therefore segment results are not given as per Accounting Standard (AS) 17 "Segment Reporting" prescribed by Companies (Accounting Standard) Rules, 2006.

Additional information to the financial statements

Note Particulars As at 31st As at 31st March, 2015 March, 2014 Rs. (In Lacs) Rs. (In Lacs)

30 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not Nil Nil acknowledged as debt

(b) Guarantees - Corporate Guarantee Nil Nil for Subsidiary Company

(c) Other money for which the Company is contingently liable for :-

Labour Disputes 3.55 11.97

TDS demands in Dispute Nil 420.88

CENTRAL Excise Act, 1944 86.35 86.35

For Others Nil 14

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Mar 31, 2014

1. Corporate information : CIN :- L74899DL1989PLC034995

The Company was incorporated on 09th Feb,1989 and is mainly engaged in the business of designing, manufacturing, branding and retailing of apparel and apparel accessories through chain of retail store under the brand name "CANTABIL". The Company has also undertaken the buisness of real estate trade.

Note 2: Disclosures under Accounting Standards 25.1 Employee benefit plans

2.1 (a) Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

Gratuity

Other Defined benefit plans (Leave Encashment)

Note 3: Disclosures under Accounting Standards

(a) Related Parties with whom transactions have taken place during the year :

Names of related parties Description of relationship

Mr. Vijay Bansal Key Management Personnel

Mr. Deepak Bansal Key Management Personnel

Mr. Anil Bansal Key Management Personnel

Mrs. Megha Bansal Key Management Personnel''s relative

Poonam Bansal Key Management Personnel''s relative

Rekha Bansal Key Management Personnel''s relative

Sunil Bansal Key Management Personnel''s relative

Anil Bansal (HUF) Enterprise in which Key Management Personnel has significant infuence.

Balaji International Clothing Enterprise in which Key Management Personnel has significant infuence.

Vardhman Enterprises Enterprise in which Key Management Personnel''s relative has significant infuence.

Akshi Marketing Private Limited Company in which Key Management Personnel''s relative has significant infuence.

Note 4: Additional information to the financial statements

Note Particulars As at 31st As at 31st march, 2014 march, 2013 Rs. In Lacs Rs. In Lacs

4.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

(b) Guarantees - Corporate Guarantee for Subsidiary Company Nil Nil

(c) Other money for which the Company is contingently liable for :-

Labour Disputes 11.97 21.87

VAT demands in Dispute Nil 23.65

TDS demands in Dispute 420.88 420.88

CENVAT on Service Tax Credit Show Cause Nil 110.38

CENTRAL Excise Act 1944 86.35 Nil

For Others 14.00 8.46

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Mar 31, 2013

Corporate information

The Company was incorporated on 09th Feb, 1989 and is mainly engaged in the business of designing, manufacturing, branding and retailing of apparel and apparel accessories underthe brand name of "CANTABIL''Mhe Company has also entered into the business of real estate trade.

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Mar 31, 2012

1. Corporate information

The Company is engaged in the business of designing, manufacturing, branding and retailing of apparels under the brand name of "CANTABIL".

2.1 Employee benefit plans

2.1 a Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Other defined benefit plans (Leave Encashment)

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements: