Notes to Accounts of Go Fashion (India) Ltd.

Mar 31, 2025

2.2.7 Provisions and Contingent liabilities

A provision is recognised when the Company
has a present obligation (legal or constructive)
as a result of past events and it is probable that
an outflow of resources will be required to settle

the obligation in respect of which a reliable
estimate can be made.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material). These are reviewed at each
balance sheet date and adjusted to reflect the
current best estimates.

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain
that reimbursement will be received and the
amount of the receivable can be measured
reliably.

Contingent liability is disclosed for (i) Possible
obligations which will be confirmed only by
future events not wholly within the control of
the Company or (ii) Present obligations arising
from past events where it is not probable
that an outflow of resources will be required
to settle the obligation or a reliable estimate
of the amount of the obligation cannot be
made. The Company does not recognise a
contingent liability but discloses its existence
in the Financial Statements. Contingent assets
are only disclosed when it is probable that the
economic benefits will flow to the entity.

2.2.8 Cash and cash equivalents and Cash Flow
Statement

For the purpose of presentation in the statement
of cash flows, cash and cash equivalents
includes cash in hand, cash with cash collecting
agents, balances with banks in current accounts
and balances with credit card companies and
wallets, highly liquid investments with original
maturities of three months or less that are
readily convertible to known amounts of cash
and which are subject to an insignificant risk
of changes in value, and book overdrafts. Bank
overdrafts are shown within borrowings in
current liabilities in the balance sheet.

Cash flows are reported using the indirect
method, whereby net profit before tax is
adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past
or future cash receipts or payments. The cash
flows from operating, investing and financing
activities of the Company are segregated based
on the available information.

2.2.9 Earnings per share (EPS)

Basic earnings per share is computed by dividing
the profit / (loss) after tax by the weighted
average number of equity shares outstanding
during the period. Diluted earnings per share
is computed by dividing the profit / (loss) after
tax as adjusted for dividend, interest and other
charges to expense or income relating to the
dilutive potential equity shares, by the weighted
average number of equity shares considered
for deriving basic earnings per share and the
weighted average number of equity shares
which could have been issued on the conversion
of all dilutive potential equity shares.

Potential equity shares are deemed to be
dilutive only if their conversion to equity shares
would decrease the net profit per share from
continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at
the beginning of the period, unless they have
been issued at a later date. The dilutive potential
equity shares are adjusted for the proceeds
receivable had the shares been actually issued
at fair value (i.e. average market value of the
outstanding shares). Dilutive potential equity
shares are determined independently for
each period presented. The number of equity
shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits
and bonus shares, as appropriate.

2. 2. 10Operating Cycle

Based on the nature of products / activities of
the Company and the normal time between
acquisition of assets and their realisation in
cash or cash equivalents, the Company has
determined its operating cycle as 12 months for
the purpose of classification of its assets and
liabilities as current and non-current.

2.2.11 Borrowing Cost

Borrowing costs consist of interest, ancillary
and other costs that the Company incurs in
connection with the borrowing of funds and
interest relating to other financial liabilities.
Borrowing costs also include exchange
differences to the extent regarded as an
adjustment to the borrowing costs.

Borrowing costs directly attributable to the
acquisition, construction or production of an
asset that necessarily takes a substantial period
of time to get ready for its intended use or sale
are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the
period in which these occur.

9.1 The Company has trade receivable outstanding of more than 5% from two customers amounting to
'' 9010.48 Lakhs (As at March 31, 2024: '' 6,407.44 Lakhs).

9.2 Trade Receivables are hypothecated as Security for part of Cash Credit facilities (Refer Note 14.1 & 14.2).
The credit worthiness of Trade Receivables and the credit terms set are determined on a case to case
basis. The fair values of Trade Receivables are not considered to be significantly different from their
carrying values, given their generally short period to maturity, with impairment reviews considered
on an individual basis rather than when these become overdue. The Company has used the practical
expedient by computing the expected credit loss allowance for trade receivable on provision matrix.
The provision matrix takes into account historical credit loss experience and adjusted for forward
looking information.

Notes:

14.1 The working capital facility from Ratnakar Bank Limited comprising of '' 8,000 Lakhs (March 31, 2024:
'' 8,000 Lakhs), from ICICI Bank for '' 6,000 Lakhs (March 31,2024: '' 6,000 Lakhs), from Axis Bank for
'' 4,000 Lakhs (March 31,2024: '' 4,000 Lakhs) and from HDFC Bank for '' 2,500 Lakhs (March 31,2024:
'' 2,500 Lakhs) has been obtained. The facility has been availed for a tenure of 12 months.

14.2 The facility is secured by way of an exclusive charge on the entire current assets and movable property,
plant and equipment of the Company, both present and future.

14.3 As at March 31, 2025 Interest is charged at 0.25% above 1 year MCLR on a monthly basis in case of RBL
Bank, at 1.50% above 6 month MCLR in case of ICICI Bank, at 0.25% above 1 month MCLR in case of Axis
Bank and at WCDL 8.75% linked to 1 month T Bill with monthly reset in case of HDFC Bank.

14.4 The cash credit availed has been utilised to meet the Working Capital requirements of the Company.

14.5 There are no differences between the financial information filed with the banks and books of accounts
for the first three quarters of the financial year ended March 31, 2025. The Company is in the process of
filing the statement for the 4th quarter of financial year ended March 31, 2025.

i) Foreign Currency Risk

Foreign 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’s exposure to the risk
of changes in foreign exchange rates relates primarily to its operating activities (when revenue or
expense is denominated in foreign currency). The Company evaluates exchange rate exposure arising
from foreign currency transactions and follows established risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange
rates, with all other variables held constant. The impact on the profit before tax is due to changes in the
fair value of monetary assets and liabilities. Foreign currency exposures recognised by the Company
that have not been hedged by a derivative instrument or otherwise are as under:

The fair value of the financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:

1. The Company has disclosed financial instruments such as comprise of lease liabilities, trade payables
and other financial liabilities, trade receivables, other financial assets, cash and cash equivalents and
bank balances other than cash and cash equivalents at carrying value because their carrying values
are a reasonable approximation of the fair values due to their short term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counter party.

C) Financial Risk Management

The Company’s principal financial liabilities, comprise of lease liabilities, trade payable and other financial
liabilities.

The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s
principal financial assets include investments, trade receivables, cash and cash equivalents and bank
balances other than cash and cash equivalents that are derived directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its business
strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals
working to manage the financial risks and the appropriate financial risk governance framework for the
Company are accountable to the Board of Directors.

This process provides assurance to Company’s senior management that the Company’s financial risk¬
taking activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with Company policies and Company’s risk objective.

The management reviews and agrees policies for managing each of these risks which are summarised as
below:

(a) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market prices comprises three types of risk: currency rate risk,
interest rate risk and other price risks, such as equity price risk. Financial instruments affected by
market risks include borrowings, security deposits, investments and foreign currency receivables and
payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2025.
The analyses exclude the impact of movements in market variables on; the carrying values of gratuity
and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The
sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective
market risks. This is based on the financial assets and financial liabilities held as of March 31, 2025.

ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Company’s financial liabilities comprises of interest
bearing cash credit facility; however these are not exposed to risk of fluctuation in market interest rate
as the rates are fixed at the time of contract/agreement and do not change for any market fluctuation.
Moreover, the cash credit facility is used to facilitate the cash flow movement of the Company during
the year, and the Company prefers to generally maintain a positive balance, hence controlling the
interest costs pertaining to the cash credit facility.

(b) Credit Risk :

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks, foreign exchange
transactions and other financial instruments.

i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy,
procedures and control relating to customer credit risk management. Credit quality of a customer
is assessed based on an extensive credit rating review and individual credit limits are defined in
accordance with this assessment. The Company regularly monitors its outstanding customer
receivables.

ii) Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance
department in accordance with the Company’s policy. Investments of surplus funds are made in bank
deposits and mutual funds. The limits are set to minimise the concentration of risks and therefore
mitigate financial loss through counter party’s potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March
31, 2025 is the carrying amounts which are given below. Trade Receivables and other financial assets
are written off when there is no reasonable expectation of recovery, such as debtor failing to engage
in the repayment plan with the Company.

(c) 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 reasonable price. The Company’s objective is to at all times maintain optimum levels
of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity
position and deploys a robust cash management system. It maintains adequate source of financing
throughthe use of short term investments and a cash credit facility. Processes and policies related
to such risks are overseen by senior management. Management monitors the Company’s liquidity
position through rolling forecasts on the basis of expected cash flows. The Company assessed the
concentration of risk with respect to its debt and concluded it to be very low.

(D) Fair value hierarchy

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

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

Level 2 (L-2): Other techniques for which all inputs that have a significant effect on the recorded fair
value are observable, either directly or indirectly

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

During the year, there are no transfer amongst levels for financial asset & liabilities.

This note provides information about how the Company determines fair value of various financial
assets and liabilities.

32. EMPLOYEE BENEFITS
(a) Defined Contribution plan:

(i) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan,
for qualifying employees. Additionally, the Company also provides, for covered employees, health
insurance through the Employee State Insurance scheme. Under the Schemes, the Company is
required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions
payable to these plans by the Company are at rates specified in the rules of the Schemes.

(b) Defined Benefit plans:

The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as
per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous
service and once vested it is payable to employees on retirement or on termination of employment. In
case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual
contribution to the group gratuity scheme administered by the Life Insurance Corporation of India.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the
defined benefit obligation were carried out as at March 31, 2025. The present value of the defined benefit
obligation, and the related current service cost and paid service cost, were measured using the projected
unit cost credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity
risk and salary risk.

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. When there is a deep market for such bonds; if the return on plan asset is below this rate, it will
create a plan deficit.

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

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the
life expectancy of the plan participants will increase the plan’s liability.

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

(xi) The weighted average duration of the defined benefit obligation is 5.97 years (March 31, 2024 -
7.78 years).

The Code on Social Security, 2020 ("the Code) which would impact the contributions by the Company
towards Provident Fund and Gratuity has received Presidential assent in September 2020. The Code
have been published in the Gazette of India. However, the date from which the Code will come into
effect has not been notified. The Company will complete its evaluation and will give appropriate
impact in its financial results in the period in which the Code becomes effective and the related rules
are published.

33. SEGMENT REPORTING

The Company is primarily engaged in the business of retail trade through retail and departmental stores
facilities, which in the terms of Ind AS 108 on ‘Operating Segments’, constitutes a single reporting business
segment.

There are no material individual markets outside India and hence the same is not disclosed for geographical
segments for the segment revenues or results or assets.

Explanations to items included in computing the above ratios:

1. Current Ratio: Current Asset over Current Liabilities

2. Debt-Equity Ratio: Debt (includes Borrowings and Current & Non-Current Lease Liabilities) over total
share holders equity (including Reserves & Surplus)

3. Debt Service Coverage Ratio: EBIT Interest on lease liabilities Depreciation over Lease payments
(prinicipal interest)

4. Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)

5. Inventory turnover ratio: Revenue over average Inventory

6. Trade Receivables turnover ratio: Revenue other than retail operations over average Trade Receivable

7. Trade payables turnover ratio: Purchases over average Trade Payable

8. Net capital turnover ratio: Revenue from operations over average working capital (working captial =
current assets - current liabilities)

9. Net profit ratio: Profit After Tax over Revenue from operations

10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed
includes total equity, borrowings and lease liabilities)

11. Return on investment: Interest income on fixed deposit with banks Mutual fund investment gain
over average investments (investments includes investments in mutual funds, margin money and
other bank deposits)

35. No proceedings have been initiated during the year or are pending against the Company as at March
31, 2025 and as at March 31, 2024 for holding any benami property under Benami Property Transactions
(prohibition) Act, 1988.

36. Transactions and balances with companies which have been removed from register of Companies [struck
off companies] as at March 31, 2025 and March 31, 2024 is Nil.

37. The Company has not traded / invested in Crypto currency or virtual currency during the financial year
March 31, 2025 and March 31, 2024.

38. The Company has no layers, hence not required to comply with the number of layers prescribed under the
Companies Act, 2013, read with the Companies (Restriction on number of layers) Rules, 2017.

39. The Company has not revalued its property, plant and equipment (including right-of-use assets) or
intangible assets or both during the current or previous year.

40. 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

41. 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

(i) 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

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

42. The Company has no 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).

43. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs
and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person.

44. The Company has not declared or paid any dividend during the year and has not proposed any final
dividend for the year.

45. No scheme of arrangements has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013 and thus the disclosure is not applicable.

46. The Company has maintained the backup of the books of accounts on a daily basis on server situated in
India.

47. There were no unclaimed or unpaid dividend during the previous years and hence no funds or shares
required to be transferred to Investor Education and Protection Fund during the year under audit.

48. The Company did not have any long term contracts including derivative contracts for which there were any
material foreseeable losses.

49. Previous period’s figures have been reclassified wherever necessary to correspond with the current period’s
classification/disclosure.

50. APPROVAL OF THE FINANCIAL STATEMENTS:

The Board of Directors of the Company has reviewed the realisable value of all the current assets and has
confirmed that the value of such assets in the ordinary course of business will not be less than the value
at which these are recognised in the financial statements. In addition, the Board has also confirmed the
carrying value of the non-current assets in the financial statements. The Board, duly taking into account
all the relevant disclosures made, has approved these financial statements in its meeting held on April 30,
2025.

In terms of our report of even dated For and on behalf of the Board of Directors

For Price Waterhouse Chartered Accountants LLP Go Fashion (India) Limited

Firm Registration Number: 012754N/N500016

Arun Kumar R Prakash Kumar Saraogi Gautam Saraogi

Partner Managing Director Executive Director & CEO

Membership Number: 211867 DIN No: 00496255 DIN No: 03209296

R.Mohan Gayathri Kethar

Chief Financial Officer Company Secretary

Place : Chennai Place : Chennai

Date : April 30, 2025 Date : April 30, 2025

---

Mar 31, 2024

Other Notes:

1. Cost of Inventories pledged as security against current borrowings, details of which have been described in Note 14.

2. Provision made for slow moving inventories amounts to '' 551.25 Lakhs for March 31, 2024 ('' 400.95 Lakhs for March 31, 2023)

3. The Inventories include '' 1,371.14 Lakhs which are lying with third parties as at March 31, 2024 ('' 1,387.58 Lakhs as on March 31, 2023).

4. For mode of valuation of inventories refer Note 2.12 of Accounting Policies.

9.1 The Company has trade receivable outstanding of more than 5% from two customers amounting to '' 6,407.44 Lakhs (As at March 31, 2023: '' 5,481.13 Lakhs).

9.2 Trade Receivables are hypothecated as Security for part of Cash Credit facilities (Refer Note 14). The credit worthiness of Trade Receivables and the credit terms set are determined on a case to case basis. The fair values of Trade Receivables are not considered to be significantly different from their carrying values, given their generally short period to maturity, with impairment reviews considered on an individual basis rather than when these become overdue. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

9.3 As per Ind AS 109, the Company uses the Expected Credit Loss (ECL) model to assess any required allowances; and uses a provision matrix to compute the ECL allowance for trade receivables. In calculating ECL, the Company has also other related credit information for customers to estimate the probability of default in future.

The Company in its meeting of the Board of Directors held on October 29, 2021, converted 24,99,615 Series A Compulsorily Convertible Preference shares and 23,99,860 Series B Compulsorily Convertible Preference shares into 1,49,97,690 and 71,99,580 equity shares of '' 10 each respectively at face value.

The Company’s equity shares were listed on the National Stock Exchange (“NSE”) and on the BSE Limited (“BSE”) on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of '' 10 each at an issue price of '' 690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares. During the previous year 2022-23, considering the actual IPO expenditure incurred, an amount of '' 16.44 has been adjusted in Securities premium account.

(a) Securities premium account is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings represent the amount of accumulated earnings / deficit of the Company, and re-measurement gains/losses on defined benefit plans. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in its entirety.

(c) In accordance with the notification issued by Ministry of Corporate Affairs dated March 24, 2021, remeasurement of defined benefit plan shall be recognised as a part of retained earnings with separate disclosure of such item. Accordingly re-measurement of defined benefit plan has been disclosed as part of retained earnings.

14.1 The working capital facility from Ratnakar Bank Limited comprising of '' 8,000 Lakhs (March 31, 2023: '' 8,000 Lakhs), from ICICI Bank for '' 6,000 Lakhs (March 31, 2023: '' 3,000 Lakhs) & from Axis Bank for '' 4,000 Lakhs (March 31, 2023: '' 4,000 Lakhs) & from HDFC Bank for '' 2,500 Lakhs (March 31, 2023: '' Nil), has been obtained. The facility has been availed for a tenure of 12 months.

14.2 The facility is secured by way of an exclusive charge on the entire current assets and movable property, plant and equipment of the Company, both present and future.

14.3 As at March 31, 2024 Interest is charged at 0.25% above 1 year MCLR on a monthly basis in case of RBL Bank, at 1.50% above 6 month MCLR in case of ICICI Bank & at 0.25% above 1 month MCLR in case of Axis Bank & at WCDL 8.75% linked to 1 month T Bill with monthly reset in case of HDFC Bank.

14.4 The cash credit availed has been utilised to meet the Working Capital requirements of the Company.

14.5 There are no differences between the financial information filed with the banks and books of accounts for the first three quarter of the financial year 2023-24. The Company is in the process of filing the statement for the 4th Quarter of Financial year 2023-24.

14.6 The Company does not have any charges or satisfaction of charge which is yet to be registered with the Registrar of Companies beyond the statutory period.

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

Gains arising from rent concession and early termination of lease arrangements:

The Company has elected to apply the practical expedient of not assessing the rent concessions as a lease modification, as per Ind AS 116. Consequently, the remaining amount of unadjusted lease value as per Ind AS 116 computation has been credited to Other income from lease accounting, it amounts to '' Nil in the Current Financial Year (March 31, 2023: '' 83.45 Lakhs).

During the year, the Company has also recognised '' 228.84 Lakhs (March 31, 2023: '' 243 Lakhs), as Other income from lease accounting, arising out of difference between the closing lease asset & liability value, on account of short closure of lease agreements.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

31 FINANCIAL INSTRUMENTS A) Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital as well as the level of dividends on its equity shares. The Company’s objective when managing capital is to maintain an optimal structure so as to maximise shareholder value while providing stable capital structure that facilitate considered risk taking and pursued of business growth.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and business opportunities.

1. The Company has disclosed financial instruments such as comprise of borrowings, trade payable,and other current liabilities, trade receivable, cash and cash equivalents and bank balances other than cash and cash equivalents at carrying value because their carrying values are a reasonable approximation of the fair values due to their short term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party.

C) Financial Risk Management

The Company’s principal financial liabilities, comprise of borrowings, trade payable and other financial liabilities.

The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments, trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents that are derived directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors.

This process provides assurance to Company’s senior management that the Company’s financial risktaking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company policies and Company’s risk objective.

The management reviews and agrees policies for managing each of these risks which are summarised as below:

(a) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk. Financial instruments affected by market risks include borrowings, security deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2024. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2024.

i) Foreign Currency Risk

Foreign 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’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities (when revenue or expense is denominated in foreign currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in US$ and AED exchange rates, with all other variables held constant. The impact on the profit before tax is due to changes in the fair value of monetary assets and liabilities. Foreign currency exposures recognised by the Company that have not been hedged by a derivative instrument or otherwise are as under:

of risk with respect to trade receivables as low, as a majority of its trade receivable balance is receivable from Large Format Stores(‘LFS’), who are well established business entities, and have been regular in their payments over the history of the business.

ii) Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. Investments of surplus funds are made in bank deposits and mutual funds. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counter party’s potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 is the carrying amounts which are given below. Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company.

(c) 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 reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short term investments and a cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be very low.

ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Company’s financial liabilities comprises of interest bearing cash credit facility; however these are not exposed to risk of fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not change for any market fluctuation. Moreover, the cash credit facility is used to facilitate the cash flow movement of the Company during the year, and the Company prefers to generally maintain a positive balance, hence controlling the interest costs pertaining to the cash credit facility.

(b) CreditRisk:

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating review and individual credit limits are defined in accordance with this assessment. The Company regularly monitors its outstanding customer receivables.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company evaluates the concentration

d) Fair value hierarchy

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

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

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

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

This note provides information about how the Company determines fair value of various financial assets and liabilities.

32. EMPLOYEE BENEFITS (a) Defined Contribution plan:

(i) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also provides, for covered employees, health insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

(b) Defined Benefit plans:

The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India. In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2024. The present value of the defined benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit cost credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

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. When there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

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

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

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

The Code on Social Security, 2020 ("the Code) which would impact the contributions by the Company towards Provident Fund and Gratuity has received Presidential assent in September 2020. The Code have been published in the Gazette of India. However, the date from which the Code will come into effect has not been notified. The Company will complete its evaluation and will give appropriate impact in its financial results in the period in which the Code becomes effective and the related rules are published.

33. SEGMENT REPORTING

The Company is primarily engaged in the business of retail trade through retail and departmental stores facilities, which in the terms of Ind AS 108 on ‘Operating Segments’, constitutes a single reporting business segment.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments for the segment revenues or results or assets.

34. AUDIT TRAIL

As per the requirements of Rule 3(1) of the Companies (Accounts) Rules, 2014, the Company uses only such accounting software for maintaining its books of account that have a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and who made those changes within such accounting software. This feature of recording audit trail has operated throughout the year and was not tampered with during the year.

35. The Company’s equity shares were listed on the National Stock Exchange (“NSE”) and on the BSE Limited (“BSE”) on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of '' 10 each at an issue price of '' 690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares. The IPO entire proceeds of '' 11,904.63 Lakhs has been utilised by the Company as at March 31, 2024 for the purpose stated in the prospectus / offer. As at March 31, 2024, Unutilised amount is Nil.

36. No proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 and as at March 31, 2023 for holding any benami property under Benami Property Transactions (prohibition) Act, 1988.

37. Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at March 31, 2024 and March 31, 2023 is Nil.

38. The Company has not traded / invested in Crypto currency or virtual currency during the financial year March 31, 2024 and March 31, 2023.

39. 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

40. 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

(i) 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

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

40 (a). Previous period’s figures have been reclassified wherever necessary to correspond with the current period’s classification/disclosure.

Explanations to items included in computing the above ratios:

1. Current Ratio: Current Asset over Current Liabilities

2. Debt-Equity Ratio: Debt (includes Borrowings and Current & Non-Current Lease Liabilities) over total share holders equity (including Reserves & Surplus)

3. Debt Service Coverage Ratio: EBIT Interest on lease liabilities Depreciation over Lease payments (prinicipal interest)

4. Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)

5. Inventory turnover ratio: Revenue over average Inventory

6. Trade Receivables turnover ratio: Revenue from operations over average Trade Receivable

7. Trade payables turnover ratio: Purchases over average Trade Payable

8. Net capital turnover ratio: Revenue from operations over average working capital

9. Net profit ratio: Profit After Tax over Revenue from operations

10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed includes total share holders equity, borrowings, short term and long term lease liabilities)

11. Return on investment: Interest income on fixed deposit with banks Mutual fund investment gain over average investments (investments includes investments in mutual funds, margin money and other bank deposits)

The Non-GAAP measures presented may not be comparable to similarly titled measures reported by other

companies. Further, it should be noted that EBIDTA, EBITDA Margin, Gross Margin, Net worth, Return on

Net Worth, Net Asset Value (per Equity Share), debt equity ratio, Return on Capital Employed, Return on

Equity is not a measure of operating performance or liquidity defined by generally accepted accounting

principles and may not be comparable to similarly titled measures presented by other companies.

42. The Company has no 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).

43. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

44. The Company has not declared or paid any dividend during the year and has not proposed any final dividend for the year.

45. No scheme of arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 and thus the disclosure is not applicable.

46. The Company has maintained the backup of the books of accounts on a daily basis on server situated in India.

47. There were no unclaimed or unpaid dividend during the previous year and current year. Hence no funds or shares required to be transferred to Investor Education and Protection Fund during the year under audit.

48. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

49. APPROVAL OF THE FINANCIAL STATEMENTS:

The Board of Directors of the Company has reviewed the realisable value of all the current assets and has confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held on May 03, 2024.

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Mar 31, 2023

The Company in its meeting of the Board of Directors held on October 29, 2021, converted 24,99,615 Series A Compulsorily Convertible Preference shares and 23,99,860 Series B Compulsorily Convertible Preference shares into 1,49,97,690 and 71,99,580 equity shares of H10 each respectively at face value.

The Company''s equity shares were listed on the National Stock Exchange (""NSE"") and on the BSE Limited (""BSE"") on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of H10 each at an issue price of H690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares. The Company''s share of public issue expense amounting to H530.28 Lakhs has been adjusted in Securities Premium a/c as at March 31,2022. During the current year, considering the actual IPO expenditure incurred, an amount of H16.44 has been adjusted in Securities premium account.

(a) Securities premium account is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act 2013.

(b) Retained earnings represent the amount of accumulated earnings / deficit of the Company, and re-measurement gains/ losses on defined benefit plans. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in entirety.

(c) In accordance with the notification issued by Ministry of Corporate Affairs dated 24-Mar-2021, re-measurement of defined benefit plan shall be recognised as a part of retained earnings with separate disclosure of such item. Accordingly re-measurement of defined benefit plan has been disclosed as part of retained earnings.

14.1 The working capital facility from Ratnakar Bank Limited comprising of H8,000 Lakhs (March 31,2022: H3,500 Lakhs), from ICICI Bank for H3,000 Lakhs (March 31,2022: H3,000) & from Axis Bank for H4,000 Lakhs (March 31,2022: H0), has been obtained. The facility has been availed for a tenure of 12 months.

14.2 The facility is secured by way of an exclusive charge on the entire current assets and movable property, plant and equipment of the company, both present and future.

14.3 As at March 31, 2023 Interest is charged at 0.30% above 1 year MCLR on a monthly basis in case of RBL Bank, at 1.50% above 6 month MCLR in case of ICICI Bank & at 0.25% above 1 month MCLR in case of Axis Bank.

14.4 The cash credit availed has been utilised to meet the Working Capital requirements of the company.

14.5 The following is the summary of the differences between Current Asset declared with the Bank and as per Audited financial statements:

14.6 The Company does not have any charges or satisfaction of charge which is yet to be registered with the Registrar of Companies beyond the statutory period.

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

Gains arising from rent concession and early termination of lease arrangements:

The company has elected to apply the practical expedient of not assessing the rent concessions as a lease modification, as per Ind AS 116. Consequently, the remaining amount of unadjusted lease value as per Ind AS 116 computation has been credited to Other income from lease accounting, it amounts to H83.45 Lakhs in the Current Financial Year (31 March 2022: H1,461.94 Lakhs).

During the period the company has also recognised H243 Lakhs (31 March 2022: H160.41 Lakhs), as Other income from lease accounting, arising out of difference between the closing lease asset & liability value, on account of short closure of lease agreements.

The Company has discounted lease payments using the applicable incremental borrowing rate of 9% for measuring the lease liability.

27. Contingent liabilities and commitments		(Amount H In Lakhs)
Particulars	As at March 31, 2023	As at March 31, 2022
- Value Added Tax, J&K FY 15-16	0.13	0.13
- Value Added Tax, Maharashtra FY 16-17	-	0.62
- Value Added Tax, Maharashtra FY 17-18	-	1.92
- Value Added Tax, Karnataka FY 17-18	0.47	0.47
- Value Added Tax, Harayana FY 16-17	1.63	1.63
- Value Added Tax, Chattisgarh FY 16-17	0.23	-
- Telangana GST - FY 2017-18	8.61	16.83
- Telangana GST - FY 2018-19	1.28	-
- Telangana GST - FY 2019-20	0.61	-
- Telangana GST - FY 2020-21	1.23	-
- Telangana GST - FY 2021-22	3.34	-
- Orissa GST - FY 2017-18	-	0.27
- Maharashtra GST - FY 2017-18	1.70
- Maharashtra GST - FY 2018-19	0.95
- Maharashtra GST - FY 2019-20	0.73
- Tamilnadu GST - FY 2018-19	-	6.52
	132.48	131.84
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for	500.97	121.45
Less: Capital Advances paid (Refer note 7)	246.34	80.50
Net Capital Commitments	254.63	40.94
TOTAL	387.11	172.78

(i) Future cash flows in respect of the above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities. Management is hopeful of successful outcome in the appellate proceedings.

31. Financial Instruments A) Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital as well as the level of dividends on its equity shares. The Company''s objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The Company has disclosed financial instruments such as comprise of borrowings, trade payable,and other current liabilities, loans, trade receivable, cash and cash equivalents and bank balances other than cash and cash equivalents at carrying value because their carrying values are a reasonable approximation of the fair values due to their short term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party.

C) Financial Risk Management

The Company''s principal financial liabilities, comprise of borrowings, trade payable and other financial liabilities.

The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors.

This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company policies and Company''s risk objective.

The management reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk. Financial instruments affected by market risks include borrowings, security deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31 March, 2023. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31,2023.

i) Foreign Currency Risk

Foreign 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''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities (when revenue or expense is denominated in foreign currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Company''s financial liabilities comprises of interest bearing cash credit facility; however these are not exposed to risk of fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not change for any market fluctuation. Moreover, the cash credit facility is used to facilitate the cash flow movement of the Company during the year, and the Company prefers to generally maintain a positive balance, hence controlling the interest costs pertaining to the cash credit facility.

(b) Credit Risk :

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating review and individual credit limits are defined in accordance with this assessment. The Company regularly monitors its outstanding customer receivables.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company evaluates the concentration of risk with respect to trade receivables as low, as a majority of its trade receivable balance is receivable from Large Format Stores(''LFS''), who are well established business entities, and have been regular in their payments over the history of the business.

ii) Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made in bank deposits and mutual funds. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 is the carrying amounts which are given below. Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the company.

(c) Liquidity risk

Liquidity risk and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing throughthe use of short term investments and a cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be very low.

D) Fair value hierarchy

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

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

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

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

(b) Defined Benefit plans:

The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 March 2023. The present value of the defined benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit cost credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

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. When there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

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

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

33. Segment Reporting

The Company is primarily engaged in the business of retail trade through retail and departmental stores facilities, which in the terms of Ind AS 108 on ''Operating Segments'', constitutes a single reporting business segment.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments for the segment revenues or results or assets. During the year ended March 31, 2023, Revenue from transactions with a single external customer amounts to 19.37 percent of the Company''s revenues from the external customers.

34 The Company''s equity shares were listed on the National Stock Exchange (""NSE"") and on the BSE Limited (""BSE"") on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of H10 each at an issue price of H690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares.

Explanations to items included in computing the above ratios:

1. Current Ratio: Current Asset over Current Liabilities

2. Debt-Equity Ratio: Debt (includes Borrowings and Current & Non-Current Lease Liabilities) over total share holders equity (including Reserves & Surplus)

3. Debt Service Coverage Ratio: EBIT Interest on lease liabilities Depreciation over Lease payments (prinicipal interest)

4. Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)

5. Inventory turnover ratio: Revenue over average Inventory

6. Trade Receivables turnover ratio: Revenue from operations over average Trade Receivable

7. Trade payables turnover ratio: Purchases over average Trade Payable

8. Net capital turnover ratio: Revenue from operations over average working capital

9. Net profit ratio: Profit After Tax over Revenue from operations

10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed includes total share holders equity, borrowings, short term and long term lease liabilities)

11. Return on investment: Interest income on fixed deposit Mutual fund investment gain over average investments (investments includes investments in mutual funds, margin money and other bank deposits)"

The Non-GAAP measures presented may not be comparable to similarly titled measures reported by other companies. Further, it should be noted that EBITDA, EBITDA Margin, Gross Margin, Net worth, Return on Net Worth, Net Asset Value (per Equity Share), debt equity ratio, Return on Capital Employed, Return on Equity is not a measure of operating performance or liquidity defined by generally accepted accounting principles and may not be comparable to similarly titled measures presented by other companies.

36. No proceedings have been initiated during the year or are pending against the company as at March 31,2023 and as at March 31,2022 for holding any benami property under Benami Property Transactions (prohibition) Act, 1988.

37 Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

38 The Company has not traded / invested in Crypto currency or virtual currency.

39 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

40 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

(i) 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

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

41 .The Company has no 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).

42 The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

43 The Company has not declared or paid any dividend during the year and has not proposed any final dividend for the year.

44 There were no unclaimed or unpaid dividend during the previous years and hence no funds or shares required to be transferred to Investor Education and Protection Fund during the year under audit.

45.Approval ofthe Financial Statements:

The Board of Directors of the Company has reviewed the realisable value of all the current assets and has confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held on May 5, 2023.

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Mar 31, 2022

1. Cost of Inventories pledged as security against current borrowings, details of which have been described in Note 14

2. Provision made for slow moving inventories amounts to H450.99 Lakhs for March 31,2022 (H311.40 Lakhs for March 31, 2021)

3. The inventories include H1,472.44 Lakhs which are lying with third parties as at March 31,2022 (H480.25 Lakhs for March 31,2021)

4. For mode of valuation of inventories refer Note 2.12 of Accounting Policies.

9.2 As per Ind AS 109, the Company uses the Expected Credit Loss (ECL) model to assess any required allowances; and uses a provision matrix to compute the ECL allowance for trade receivables. In calculating ECL, the company has also other related credit information for customers to estimate the probability of default in future and have taken into account estimates of possible effect from the COVID-19 pandemic.

9.1 Trade Receivables are hypothecated as Security for part of Cash Credit facilities (Refer Note 14.1 & 14.2). The credit worthiness of Trade Receivables and the credit terms set are determined on a case to case basis and the Management has factored in the uncertainties arising out of COVID-19, as applicable. The fair values of Trade Receivables are not considered to be significantly different from their carrying values, given their generally short period to maturity, with impairment reviews considered on an individual basis rather than when these become overdue. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

The Company in its meeting of the Board of Directors held on October 29, 2021, converted 24,99,615 Series A Compulsorily Convertible Preference shares and 23,99,860 Series B Compulsorily Convertible Preference shares into 1,49,97,690 and 71,99,580 equity shares of H10 each respectively at face value.

The Company''s equity shares were listed on the National Stock Exchange (""NSE"") and on the BSE Limited (""BSE"") on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of H10 each at an issue price of H690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares. The Company''s share of public issue expense amounting to H530.28 Lakhs has been adjusted in Securities Premium a/c.

1. Promoters mentioned above is as per Companies Act, 2013

2. PKS family trust shares are reflected in managing trustee Gautam Saraogi''s name and VKS Family Trust shares are reflected in managing trustee Rahul Saraogi''s name.

(a) Securities premium account is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings represent the amount of accumulated earnings / deficit of the Company, and re-measurement gains/ losses on defined benefit plans. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in entirety.

(c) In accordance with the notification issued by Ministry of Corporate Affairs dated 24-Mar-2021, re-measurement of defined benefit plan shall be recognised as a part of retained earnings with separate disclosure of such item. Accordingly re-measurement of defined benefit plan has been disclosed as part of retained earnings.

14.1 The cash credit facility from Ratnakar Bank Limited comprising of H3,500 Lakhs (March 31, 2021: H3,500 Lakhs) & from ICICI Bank for H3,000 Lakhs (March 31,2021: H3,000), has been obtained for the purpose of working capital. The facility has been availed for a tenure of 12 months, and is repayable on demand.

14.2 The facility is secured by way of an exclusive charge on the entire current assets and movable property, plant and equipment of the company, both present and future, and an unconditional and irrevocable personal guarantee of Mr. Prakash Saraogi, Mr. Gautam Saraogi and Mr. Rahul Saraogi.

14.3 As at March 31, 2022 Interest is charged at 0.30% above 1 year MCLR on a monthly basis in case of RBL Bank and at 1.50% above 6 month MCLR in case of ICICI Bank.

14.4 The cash credit availed has been utilised to meet the Working Capital requirements of the company.

"Note: The aforesaid difference for the year ended 31.03.2021, are due to the declarations with Banks are made before financial reporting closure process. The predominent reason for inventory being higher in

financial statements is because of reversal of sales as part of year end cut-off procedure, leading to COGS reversal. Similarly with respect to trade receivable, reversal of sales as part of year end audit cut-off procedure and discount and other expense provision has lead to lower trade receivables in the financial statements."

14.6 The Company does not have any charges or satisfaction of charge which is yet to be registered with the Registrar of Companies beyond the statutory period.

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

Gains arising from rent concession and early termination of lease arrangements:

The company has elected to apply the practical expedient of not assessing the rent concessions as a lease modification, as per Ind AS 116. Consequently, the remaining amount of unadjusted lease value as per Ind AS 116 computation has been credited to Other income from lease accounting on IND AS 116, it amounts to H1461.94 Lakhs in the Current Financial Year (31 March 2021: H2,433.11 Lakhs).

During the period the company has also recognised H160.41 Lakhs (31 March 2021: H119.28 Lakhs), as Other income from lease accounting on IND AS 116, arising out of difference between the closing lease asset & liability value, on account of short closure of lease agreements.

The Company has discounted lease payments using the applicable incremental borrowing rate of 9% for measuring the lease

liability.

27. Contingent liabilities and commitments		(Amount H In Lakhs)
Particulars	As at March 31, 2022	As at March 31,2021
(i) Contingent liabilities
a) Claims against the company not acknowledged as debts
- Income Tax - AY 17-18	74.39	74.39
- Income Tax - AY 18-19	23.89	26.28
- Income Tax - AY 19-20	5.16	5.16
- Value Added Tax, J&K FY 15-16	0.13	0.13
- Value Added Tax, Maharashtra FY 16-17	0.62	0.62
- Value Added Tax, Maharashtra FY 17-18	1.92	1.92
- Value Added Tax, Karnataka FY 17-18	0.47	-
- Value Added Tax, Harayana FY 16-17	1.63	-
- Telangana GST - FY 2017-18	16.83	8.36
- Orissa GST - FY 2017-18	0.27	-
- Tamilnadu GST - FY 2018-19	6.52	-
	131.84	116.86
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for	121.45	123.33
Less: Capital Advances paid	80.50	63.61
Net Capital Commitments	40.94	59.72
TOTAL	172.78	176.58

(i) Future cash flows in respect of the above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities. Management is hopeful of successful outcome in the appellate proceedings.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The Company has disclosed financial instruments such as comprise of borrowings, trade payable,and other current liabilities, loans, trade receivable, cash and cash equivalents and bank balances other than cash and cash equivalents at carrying value because their carrying values are a reasonable approximation of the fair values due to their short term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party.

C) Financial Risk Management

The Company''s principal financial liabilities, comprise of borrowings, trade payable and other financial liabilities.

The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade receivables, cash and cash equivalents and bank balances other than cash and cash equivalents that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors.

This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company policies and Company''s risk objective.

The management reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk. Financial instruments affected by market risks include borrowings, security deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31 March, 2022. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2022.

i) Foreign Currency Risk

Foreign 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''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities (when revenue or expense is denominated in foreign currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Company''s financial liabilities comprises of interest bearing cash credit facility; however these are not exposed to risk of fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not change for any market fluctuation. Moreover, the cash credit facility is used to facilitate the cash flow movement of the Company during the year, and the Company prefers to generally maintain a positive balance, hence controlling the interest costs pertaining to the cash credit facility.

(b) Credit Risk :

(c) 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 reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing throughthe use of short term investments and a cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be very low.

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating review and individual credit limits are defined in accordance with this assessment. The Company regularly monitors its outstanding customer receivables.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company evaluates the concentration of risk with respect to trade receivables as low, as a majority of its trade receivable balance is receivable from Large Format Stores(''LFS''), who are well established business entities, and have been regular in their payments over the history of the business.

ii) Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made in bank deposits and mutual funds. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2022 is the carrying amounts which are given below. Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the company.

D) Fair value hierarchy

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

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

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

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

32. Employee benefits

(a) Defined Contribution plan:

(i) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also provides, for covered employees, health insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

(b) Defined Benefit plans:

"The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India.

In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 March 2022. The present value of the defined benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit cost credit method.

The Code on Wages, 2019 and Code on Social Security, 2020 ("the Codes") relating to employee compensation and postemployment benefits that received Presidential assent have not been notified. Further, the related rules for quantifying the financial impact have not been notified. The company will assess the impact of the Codes when the rules are notified and will record any related impact in the period the codes become effective.

33. Segment Reporting

The Company is primarily engaged in the business of retail trade through retail and departmental stores facilities, which in the terms of Ind AS 108 on ''Operating Segments'', constitutes a single reporting business segment.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments for the segment revenues or results or assets. During the year ended March 31, 2022 and the period ended March 31,

2021, revenue from transactions with a single external customer did not amount to 10 percent or more of the Company''s revenues from the external customers.

34 In March 2020, the World Health Organization (WHO) declared COVID-19 to be pandemic. The Company''s operations were impacted from 25.03.2020 till 01.05.2020 and from 25.04.2021 till 27.06.2021 as most of the stores and offices were closed. The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the financial statements of the Company. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of information. The company has performed an analysis on the assumptions used and based on current estimates expects the carrying amount of its assets will be recovered. The impact of COVID-19 on the Company''s financial statements may differ from that estimated as at the date of approval of these financial statements. As on date of approval of these financial statements, significant part of stores are opened and others are in the process of reopening.

35 The Company''s equity shares were listed on the National Stock Exchange (""NSE"") and on the BSE Limited (""BSE"") on November 30, 2021, by completing the Initial Public Offering (IPO) of 1,46,89,983 equity Shares of face value of H10 each at an issue price of H690 per equity share, consisting of an offer for sale of 1,28,78,389 equity shares by the selling shareholders and fresh issue of shares of 18,11,594 equity shares.

Explanations to items included in computing the above ratios:

1. Current Ratio: Current Asset over Current Liabilities

2. Debt-Equity Ratio: Debt (includes Borrowings and Current & Non-Current Lease Liabilities) over total share holders equity (including Reserves & Surplus)

3. Debt Service Coverage Ratio: EBIT Interest on lease liabilities Depreciation over Lease payments (prinicipal interest)

4. Return on Equity Ratio: Profit After Tax over average Equity (including Reserves & Surplus)

5. Inventory turnover ratio: Revenue over average Inventory

6. Trade Receivables turnover ratio: Revenue from operations over average Trade Receivable

7. Trade payables turnover ratio: Purchases over average Trade Payable

8. Net capital turnover ratio: Revenue from operations over average working capital

9. Net profit ratio: Profit After Tax over Revenue from operations

10. Return on Capital employed: Profit Before Interest & Tax over Capital employed (Capital employed includes total share holders equity, borrowings, short term and long term lease liabilities)

11. Return on investment: Interest income on fixed deposit Mutual fund investment gain over average investments (investments includes investments in mutual funds, margin money and other bank deposits)

The Non-GAAP measures presented may not be comparable to similarly titled measures reported by other companies. Further, it should be noted that EBIDTA, EBITDA Margin, Gross Margin, Net worth, Return on Net Worth, Net Asset Value (per Equity Share), debt equity ratio, Return on Capital Employed, Return on Equity is not a measure of operating performance or liquidity defined by generally accepted accounting principles and may not be comparable to similarly titled measures presented by other companies.

37 No proceedings have been initiated during the year or are pending against the company as at March 31,2022 for holding any benami property under Benami Property Transactions (prohibition) Act, 1988.

38 Transactions and balances with companies which have been removed from register of Companies [struck off companies] as at the above reporting periods is Nil.

39 The Company has not traded / invested in Crypto currency or virtual currency.

40 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

41 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

(i) 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

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

42 The Company has no 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).

43 The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

44 Approval of the Financial Statements:

The Board of Directors of the Company has reviewed the realisable value of all the current assets and has confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held on May 7, 2022.