(n) Provisions and contingent liabilities

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).

Provisions are recognised when the Company has a present legal or constructive obligation as
a result of past events, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and the amount can be reliably estimated. The expense
relating to a provision is presented in the Standalone Statement of Profit and Loss, net of any
reimbursements.

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.

A present obligation that arises from past events, where it is either not probable that an outflow
of resources will be required to settle or a reliable estimate of the amount cannot be made,
is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a
possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company (Refer Note - 45).

Claims against the Company, where the possibility of any outflow of resources in settlement is
remote, are not disclosed as contingent liabilities.

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

(o) Interest Income

Interest income on all debt instruments is measured at amortised cost. Interest income is recorded

using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the financial asset. When calculating the EIR,
the Company estimates the expected cash flows by considering all the contractual terms of the
financial instrument. Interest income is included in other income in the Standalone Statement of
Profit and Loss.

(p) Employee benefits

(a) Short-term employee benefits

Short-term employee benefits are recognised as an expense on accrual basis.

(b) Defined contribution plan

The Company makes defined contribution to the Government Employee Provident Fund
and Superannuation Fund, which are recognised in the Standalone Statement of Profit and
Loss, on accrual basis. The Company recognises contribution payable to the provident fund
scheme as an expense, when an employee renders the related service. The Company has no
obligation, other than the contribution payable to the provident fund.

(c) Defined benefit plan

The Company operates a defined benefit gratuity plan in India. The Company operates
gratuity plan through a Trust wherein certain employees are entitled to the benefit
equivalent to fifteen days salary last drawn for each completed year of service as per the
Payment of Gratuity Act, 1972. In case of some employees, the Company’s scheme is more
favourable as compared to the obligation under Payment of Gratuity Act, 1972. The benefit
vests after five years of continuous service and the same is payable on termination of
service or retirement, whichever is earlier. A part of the gratuity plan is funded (maintained
by an independent insurance company) and another part is unfunded and managed
within the Company, hence the liability has been bifurcated into funded and unfunded.
The Company’s liabilities under The Payment of Gratuity Act, 1972 are determined on the
basis of actuarial valuation made at the end of each financial year using the projected unit
credit method. Obligation is measured at the present value of estimated future cash flows
using a discounted rate that is determined by reference to market yields at the Standalone
Balance Sheet date on Government bonds, where the terms of the Government bonds are
consistent with the estimated terms of the defined benefit obligation. The net interest
cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and fair value of plan assets. This cost is included in the ‘Employee benefits
expense’ in the Standalone Statement of Profit and Loss. Re-measurement gains or losses
and return on plan assets (excluding amounts included in net Interest on the net defined
benefit liability) arising from changes in actuarial assumptions are recognised in the
period in which they occur, directly in OCI. These are presented as re-measurement gains
or losses on defined benefit plans under other comprehensive income in other equity.
Remeasurements gains or losses are not reclassified subsequently to the Standalone
Statement of Profit and Loss.

(d) Compensated absences

The employees of the Company are entitled to compensated absences. The employees can

carry forward a portion of the unutilised accumulating compensated absences and utilise it
in future periods or receive cash at retirement or termination of employment. The Company
records an obligation for compensated absences in the period in which the employee
renders the services that increases this entitlement. The Company measures the expected
cost of compensated absences as the additional amount that the Company expects to pay
as a result of the unused entitlement that has accumulated at the end of the reporting
period. The Company recognises accumulated compensated absences based on actuarial
valuation in the Standalone Statement of Profit and Loss.

The Company presents the entire leave as a current liability in the Standalone Balance Sheet,
since it does not have any unconditional right to defer its settlement for twelve months after
the reporting date.

(q) Share-based payment

Employees of the Company receive remuneration in the form of equity-settled instruments and
stock appreciation rights for rendering services over a defined vesting period. Equity-settled
share-based payments to employees and others providing similar services are measured at the
fair value of the equity instruments at the grant date using an appropriate valuation model.

The fair value determined at the grant date of the equity-settled share-based payments is expensed
on a straight-line basis over the vesting period, based on the Company’s estimate of equity
instruments that will eventually vest, with a corresponding increase in equity. At the end of each
reporting period, the Company revises its estimate of the number of equity instruments expected
to vest. The impact of the revision of the original estimates, if any, is recognised in the Standalone
Statement of Profit and Loss, such that the cumulative expense reflects the revised estimate, with
a corresponding adjustment to the equity-settled share options outstanding account.

No expense is recognised for awards that do not ultimately vest because non-market performance
and/ or service conditions have not been met.

The dilutive effect of outstanding options is reflected as additional share dilution in the
computation of diluted earnings per share.

For cash-settled share-based payment, a liability is recognised for the goods or services acquired,
measured initially at the fair value of the liability using a binomial method. At the end of each
reporting period until the liability is settled and at the date of settlement, the fair value of the
liability is re-measured, with any changes in the fair value recognised in ‘Employee benefits
expense’ in the Standalone Statement of Profit and Loss for the year.

The Company has created an "ABFRL Employee Welfare Trust”(ESOP Trust) and uses it as a
vehicle for distributing shares to employees under the Employee Stock Option Scheme 2019
or any subsequent Stock Option Scheme. The trust purchase shares of the Company from the
market, for issuing shares to employees. The Company treats trust as its extension and shares
held by trust are treated as treasury shares.

Own equity instruments that are reacquired (treasury shares) are recognised at cost and
deducted from other equity. No gain or loss is recognised in the standalone statement of profit
and loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
Any difference between the carrying amount and the consideration, if reissued or sold, is
recognised in capital reserve. Share options exercised during the reporting period are settled
with treasury shares.

(r) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holders
of the Company by the weighted average number of equity shares outstanding during the period.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid equity share during the reporting period.
Earnings, considered in ascertaining the Company’s earnings per share, is the net profit for the
period after deducting preference dividends. The weighted average number of equity shares
outstanding during the period is adjusted for treasury shares and events such as bonus issue,
bonus element in a rights issue that have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders of the Company and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(s) Cash and cash equivalents

Cash and cash equivalents in the Standalone Balance Sheet and for the purpose of the Standalone
Statement of Cash Flows comprise cash on hand and cash at bank including fixed deposits with
original maturity period of three months or less and short-term highly liquid investments with an
original maturity of three months or less net of outstanding bank overdrafts as they are considered
an integral part of the Company’s cash management.

NOTE - 56

ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

(i) DETAILS OF BENAMI PROPERTY HELD

No proceedings have been initiated on or are pending against the Company under the Prohibition
of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder.

(ii) COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company has complied with the number of layers prescribed under Section 2(87) of the
Companies Act, 2013 read with Companies (Restriction of number of layers) Rules, 2017.

(iii) RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has no transactions with the companies struck off under Companies Act, 2013 or
Companies Act, 1956.

(iv) BORROWINGS SECURED AGAINST CURRENT ASSETS

The Company has borrowings from banks on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks are in agreement with
the books of accounts.

(v) WILFUL DEFAULTER

The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.

(vi) COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

The Company has accounted for the Scheme of arrangement with resulting Company in accordance
with the accounting treatment as specified in the Scheme. (Refer Note - 51).

(vii) UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any funds from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(viii) UNDISCLOSED INCOME

There is no income surrendered or disclosed as income during the current or previous year in
the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of
account.

(ix) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in crypto currency or virtual currency during the current
or previous year.

(x) VALUATION OF PROPERTY PLANT AND EQUIPMENT (INCLUDING RIGHT-OF-USE ASSETS) AND
INTANGIBLE ASSETS

The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets)
and Intangible assets during the current or previous year. The Company did not have any Investment
Property during the current or previous year.

(xi) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies
beyond the statutory period.

As per our report of even date

For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board of Directors of

Chartered Accountants Aditya Birla Fashion and Retail Limited

ICAI Firm Registration No. 304026E/E-300009

A.J. SHAIKH ASHISH DIKSHIT SANGEETA TANWANI

Partner (Managing Director) (Whole-time Director)

Membership No.: 203637 (DIN: 01842066) (DIN: 03321646)

Place: Mumbai Place: Mumbai

Date : May 23, 2025 Date : May 23, 2025

JAGDISH BAJAJ ANIL MALIK

(Chief Financial Officer) (Company Secretary)

(M.No.: A11197)

Place: Mumbai

Date : May 23, 2025 ^{Place: Mumbai Place: Mumbai}

Date : May 23, 2025 Date : May 23, 2025