Provisions are recognised when the Companyhas a present obligation as a result of pastevents, for which it is probable that an outflowof resources embodying economic benefitswill be required to settle the obligation and areliable estimate of the amount can be made.A disclosure for a contingent liability is madewhere there is a possible obligation that arisesfrom past events and the existence of whichwill be confirmed only by the occurrence ornon-occurrence of one or more uncertainfuture events not wholly within the controlof the Company or a present obligation thatarises from the past events where it is eithernot probable that an outflow of resourceswill be required to settle the obligation ora reliable estimate of the amount cannotbe made. Provisions are reviewed regularlyand are adjusted where necessary to reflectthe current best estimates of the obligation.Where the Company expects a provision
to be reimbursed, the reimbursement isrecognised as a separate asset, only whensuch reimbursement is virtually certain.Contingent asset is not recognised in thestandalone financial statements. However,it is recognised only when an inflow ofeconomic benefits is probable.
(xiv) Borrowing costs
Borrowings are initially recognised at net oftransaction costs incurred and measuredat amortised cost. Any difference betweenthe proceeds (net of transaction costs)and the redemption amount is recognisedin the standalone statement of profit andloss over the period of the borrowingsusing the effective interest method.Borrowing costs majorly includes interestand amortisation of ancillary costs incurredin connection with the arrangement ofborrowings. Borrowing costs directlyattributable to the acquisition, constructionor production of an asset that necessarilytakes a substantial period of time to get readyfor its intended use or sale are capitalised aspart of the cost of the respective asset. Allother borrowing costs are expensed in theperiod in which they occur. The Companyceases capitalising borrowing costs whensubstantially all the activities necessary toprepare the qualifying asset for its intendeduse or sale are complete.
(xv) Inventories
Inventories are valued at cost or net realisablevalue, whichever is lower. Goods-in-transitare stated at cost. The cost is determinedbased on FIFO, weighted average, or specificidentification basis, as applicable, andincludes all costs incurred in bringing theinventories to their present location andcondition including nonrecoverable taxes.In the case of work-in-progress and finshedgoods, cost also includes costs of conversion.Net realisable value is the estimated sellingprice in the ordinary course of business,less estimated costs of completion andestimated costs necessary to make the sale.The net realisable value is estimated andinventory is written down for defectiveand obsolete items, wherever necessary.Property under development comprises
cost of land, rates and taxes, constructioncosts, overheads and expenses incidentalto the project undertaken by the Company.Costs towards development of property arecharged to the standalone statement of profitand loss proportionate to area sold and whencorresponding revenue is recognised.
(xvi) Income recognitionRevenue recognition
When a performance obligation is satisfied,the Company recognises as revenue theamount of the transaction price (whichexcludes estimates of variable consideration)that is allocated to that performanceobligation. Transaction price is the amount ofconsideration to which the Company expectsto be entitled in exchange for transferringpromised goods or services to a customer,excluding amounts collected on behalf ofthird parties.
Ind AS 115 “Revenue from Contract withCustomers” specifies five step model forrevenue recognition:
1. Identify the contract with a customer;
2. Identify the separate performanceobligations in the contract;
3. Determine the transaction price;
4. Allocate the transaction price to theseparate performance obligations; and
5. Recognize revenue when (or as) eachperformance obligation is satisfied.
Company accounts for a contract whenit has approval and commitment fromall parties, the rights of the parties areidentified, payment terms are identified, thecontract has commercial substance andcollectability of consideration is probable.Revenue is recognised in the standalonestatement of profit and loss with thecontracted price showing separately eachof the adjustments made to the contractprice and specifying the nature and amountof each such adjustment separately.The lifestyle business of the Company derivesrevenues primarily from sale of manufacturedgoods, traded goods and related services.The Company is also engaged in real estateproperty development.
The Company satisfies a performance
obligation and recognises revenue over time,if one of the following criteria is met:
1. The customer simultaneously receives
and consumes the benefits providedby the Company’s performance as theCompany performs; or
2. The Company’s performance creates
or enhances an asset that the
customer controls as the asset iscreated or enhanced; or
3. The Company’s performance does
not create an asset with an alternativeuse to the Company and an entity hasan enforceable right to payment forperformance completed to date.
For performance obligations where one ofthe above conditions are not met, revenue isrecognised at the point in time at which theperformance obligation is satisfied.
Sale of products and services (lifestylebusiness and civil aviation business)
The performance obligation of Companyis satisfied at a point in time. Revenuerecognition for sale of products and servicesis recognised at a point in time and revenueis recognised upon satisfaction of theperformance obligation.
Revenue is measured based on thetransaction price (which is the consideration,adjusted to discounts, incentives andreturns, etc., if any) that is allocated to thatperformance obligation. These are generallyaccounted for as variable considerationestimated in the same period the related salesoccur. The methodology and assumptionsused to estimate rebates and returns aremonitored and adjusted regularly in the lightof contractual and legal obligations, historicaltrends, past experience and projected marketconditions.
The Company operates a loyalty programmefor the customers and franchisees for the saleof goods. The customers accumulate pointsfor purchases made which entitles them todiscount on future purchases. A contractliability for the award points is recognised atthe time of the sale. Revenue is recognisedwhen the points are redeemed or on expiry.
The expenditure of loyalty programme isnetted-off to revenue.
The Company does not expect to have anycontracts where the period between thetransfer of the promised goods or services tothe customer and payment by the customerexceeds one year. As a consequence, it doesnot adjust any of the transaction prices forthe time value of money.
The Company collects goods and servicestax (‘GST’) and other indirect taxes on behalfof the government and, therefore, theseare not economic benefits flowing to theCompany and are accordingly excluded fromthe revenue.
Sale of products (real estate business)
Revenue from real estate propertydevelopment is recognised over the time, fromthe financial year in which the entity’s rightto payment for performance completed, isestablished. In determining whether an entityhas right to payment, the entity shall considerwhether it would have an enforceable right todemand or retain payment for performancecompleted to date if the contract were to beterminated before completion for reasonsother than entity’s failure to perform as perthe terms of the contract.
The revenue recognition of real estateproperty under development requiresforecasts to be made of total budgeted costswith the outcomes of underlying constructioncontracts, which further require assessmentsand judgements to be made on changesin work scopes and other payments to theextent they are probable and they are capableof being reliably measured. However, wherethe total project cost is estimated to exceedtotal revenues from the project, the loss isrecognized immediately in the standalonestatement of profit and loss.
Cost to fulfil the contractsRecurring operating costs for contractswith customers are recognised asincurred. Revenue recognition excludesany government taxes but includesreimbursement of out of pocket expenses.Provision towards onerous contracts arerecognised when the expected benefits to be
derived by the Company from a contract arelower than the unavoidable cost of meetingthe future obligations under the contract.The provision is measured at present value ofthe lower of the expected cost of terminatingthe contract and the expected net cost ofcontinuing with the contract.
Incremental costs of obtaining a contractThe incremental costs of obtaining a contractare those costs that an entity incurs to obtaina contract with a customer that it would nothave incurred if the contract had not beenobtained. In such cases, Company appliespractical expedient by recognising such costas expense, when incurred, in the standalonestatement of profit and loss instead ofcreating an asset as the amortisation periodof the asset that the Company otherwisewould have recognised is one year or less.Significant financing componentCompany considers all relevant facts andcircumstances in assessing whether acontract contains a financing componentand whether that financing component issignificant to the contract, including both theconditions:
(a) the difference, if any, between theamount of promised consideration andthe cash selling price of the promisedgoods or services; and
(b) the combined effect of both thefollowing conditions:
(i) the expected length of timebetween when the entitytransfers the promised goodsor services to the customer andwhen the customer pays forthose goods or services; and
(ii) the prevailing interest rates inthe relevant market.
Other operating revenueIt includes revenue arising from theCompany’s ancillary revenue-generatingactivities. Revenue from these activities arerecorded only when Company is reasonablycertain of such income. Export Incentivesunder various schemes are accounted in theyear of export.
Other income majorly comprises interestincome which is recognised using the effectiveinterest method and on time proportionbasis. Rental income is recognised basedon contractual terms. Dividend income isrecognised only when the right to receivepayment is established.
The 'effective interest rate’ is the rate thatexactly discounts estimated future cashpayments or receipts through the expectedlife of the financial instrument to:
- the gross carrying amount of thefinancial asset; or
- the amortised cost of the financialliability.
In calculating interest income and expense,the effective interest rate is applied to thegross carrying amount of the asset (whenthe asset is not credit impaired) or to theamortised cost of the liability. However, forfinancial assets that have become creditimpaired subsequent to initial recognition,interest income is calculated by applyingthe effective interest rate to the amortisedcost of the financial asset. If the asset is nolonger credit impaired, then the calculationof interest income reverts to the gross basis.Trade receivables, contract assets andcontract liabilities
Trade Receivable, net is primarily comprisedof billed receivables for which the Companyhas an unconditional right to consideration,net of loss allowance. A contract asset is aright to consideration that is conditional uponfactors other than the passage of time, netof loss allowance. The promised amount ofconsideration is not adjusted for the effectsof a significant financing component if theperiod between the transfer of the promisedgood or service and the payment is one yearor less.
Contract liabilities consist of advancepayments. The difference between openingand closing balance of the contract liabilitiesresults from the timing differences betweenthe performance obligation and customerpayment.
The difference between opening and closingbalance of the contract assets and liabilitiesresults from the timing differences betweenthe performances obligation and customerpayment.
(xvii) Income tax
Tax expense for the year comprises of currenttax and deferred tax. Current tax is measuredby the amount of tax expected to be paidto the taxation authorities on the taxableprofits after considering tax allowancesand exemptions and using applicable taxrates and laws. Deferred tax is recognisedon temporary differences between theaccounting base and the tax base for the yearand quantified using the tax rates and taxlaws enacted or substantively enacted as onthe balance sheet date.
There are certain transactions andcalculations for which the ultimate taxdetermination is uncertain. The Companyrecognises liabilities for anticipated taxissues based on estimates of whetheradditional taxes will be due. The uncertaintax positions are measured at the amountexpected to be paid to taxation authoritieswhen the Company determines that theprobable outflow of economic resources willoccur. Where the final tax outcome of thesematters is different from the amounts thatwere initially recorded, such differences willimpact the current and deferred income taxassets and liabilities in the period in whichsuch determination is made.
Deferred tax is recognised using the balancesheet approach. Deferred tax assets andliabilities are recognised for deductibleand taxable temporary differences arisingbetween the tax base of assets andliabilities and their carrying amount instandalone financial statements, exceptwhen the deferred tax arises from the initialrecognition of goodwill or an asset or liabilityin a transaction that is not a businesscombination and affects neither accountingnor taxable profits or loss at the time of thetransaction.
Deferred tax asset is recognised to theextent it is probable that taxable profit willbe available against which the deductible
temporary differences, and the carry forwardof unused tax credits and unused tax lossescan be utilised. Deferred tax liabilitiesare recognised for all taxable temporarydifferences. Deferred tax is measured atthe tax rates that are expected to apply tothe period when the asset is realised or theliability is settled, based on the laws that havebeen enacted or substantively enacted by thereporting date.
The measurement of deferred tax reflects thetax consequences that would follow fromthe manner in which the Company expects,at the reporting date, to recover or settle thecarrying amount of its assets and liabilities.For this purpose, the carrying amount ofinvestment property is presumed to berecovered through sale.
Current tax and deferred tax assets andliabilities are offset when there is a legallyenforceable right to set off the recognisedamount and there is an intention to settle theasset and liability on a net basis.
(xviii) Government grant
Grant from government are recognised attheir fair value, when there is reasonableassurance that the grant will be receivedand the Company will comply with all theattached conditions.
Government grant related to income aredeferred and recognised in the standalonestatement of profit and loss over the periodnecessary to match them with the costs thegrants are intended to compensate.Government grant related to PPE are includedin the non current liabilities/ current liabilitiesas deferred income, and are credited to thestandalone statement of profit and loss onstraight line basis over the expected lives ofthe related assets and presented within otherincome.
(xix) Exceptional items
When items of income and expense withinprofit or loss from ordinary activities areof such size, nature or incidence that theirdisclosure is relevant to assist users inunderstanding the financial performanceachieved and in making projections offuture financial performance, the nature and
amount of such material items are disclosedseparately as exceptional items.
(xx) Manufacturing and operating expensesand costs towards development ofproperty
Manufacturing and operating expenses andcosts towards development of property whichare directly linked to respective activities,are disclosed separately as a part of 'Otherexpenses’.
(xxi) Asset held for sale/ distribution
Non-current assets or disposal groupscomprising of assets and liabilities areclassified as 'held for sale/ distribution’when all the following criteria are met: (i)decision has been made to sell/ distribute,(ii) the assets are available for immediatesale/ distribution in its present condition, (iii)the assets are being actively marketed and(iv) sale/ distribution has been agreed or isexpected to be concluded within 12 monthsof the balance sheet date.
Subsequently, such non-current assets anddisposal groups classified as 'held for sale/distribution’ are measured at the lower of itscarrying value and fair value less costs to sell.Once classified as held for sale/ distribution,intangible assets, PPE and investmentproperties are no longer amortised ordepreciated
Any impairment loss on a disposal groupis allocated first to goodwill, and then tothe remaining assets and liabilities on a prorata basis, except that no loss is allocatedto inventories, financial assets, deferred taxassets, or employee benefit assets, whichcontinue to be measured in accordance withthe Company’s other accounting policies.Impairment losses on initial classification asheld for sale/ distribution and subsequentgains and losses on remeasurement arerecognised in profit or loss.
Non-current assets classified as held forsale/ distribution and the assets of a disposalgroup classified as held for sale/ distributionare presented separately from the otherassets in the standalone balance sheet.
(xxii) Discontinued operations
A discontinued operation is a component
of the Company’s business, the operationsand cash flows of which can be clearlydistinguished from the rest of the Companyand which may:
- represents a separate major lineof business or geographic area ofoperations;
- is part of a single co-ordinated planto dispose of a separate major lineof business or geographic area ofoperations; or
- is a subsidiary acquired exclusivelywith a view to resale.
Classification as a discontinued operationoccurs at the earlier of disposal or when theoperation meets the criteria to be classifiedas held for sale/ distribution.
When an operation is classified as adiscontinued operation, the comparativestandalone statement of profit and lossis re-presented as if the operation hadbeen discontinued from the start of thecomparative year.
(xxiii) Recent accounting pronouncements
Ministry of Corporate Affairs ('MCA’) notifiesnew standards or amendments to theexisting standards under Companies (IndianAccounting Standards) Rules, 2015 (asamended). For the year ended 31 March,2025, MCA has notified amendments toInd AS 116 “Leases”, relating to sale andleaseback transactions, which is applicablew.e.f. 01 April 2024. The Company hasreviewed the new pronouncements andbased on its evaluation has determinedthat it is not likely to have any impact in itsstandalone financial statements.
New standards and amendments issuedbut not effective - New standards andamendments issued but not effective - On7 May 2025, MCA notifies the amendmentsto Ind AS 21 “Effects of Changes in ForeignExchange Rates”. These amendments aimto provide clearer guidance on assessingcurrency exchangeability and estimatingexchange rates when currencies are notreadily exchangeable. The amendments areeffective for annual periods beginning on orafter 1 April 2025. The Company is currentlyassessing the probable impact of theseamendments on its standalone financialstatements.
Notes:
(i) During the earlier years, the Company had invested an amount of ' 2,000 lakhs in the FY 2014-15 and ' 6,168 lakhs in FY 2015-16 bysubscription to the rights issue of equity shares of Raymond Luxury Cottons Limited (‘RLCL') enhancing the Company's shareholding from62.00% to 75.69%.
In the FY 2012-13, Cotonificio Honegger S.p.A (‘CH'), Italy, the erstwhile JV partner with Raymond Limited through one of its joint venture Company inIndia, RLCL had submitted request for voluntary winding up including composition of its creditors in the Court of Bergamo, Italy. Consequent to this,RLCL as at 31 March 2013, had provided for its entire accounts receivable from CH of USD 1,255,058 and Euro 612,831, equivalent to ' 1,122.24lakhs (aggregated). In the FY 2013-14, RLCL had put up its claim of receivable from CH of ' 1,122.24 lakhs before the Judicial Commissioner of theComposition (the Commissioner) appointed by the Court of Bergamo, Italy. In protraction of matter with CH, Italy, the Judicial Commissioner of theComposition (the ‘Commissioner') appointed by the Court of Bergamo, Italy, has declared RLCL as unsecured creditor for the amount outstandingfrom CH. Further, CH also sought permission from the Court of Bergamo, Italy, for initiating proceeding against RLCL in India.
RLCL had received a notice dated 23 November, 2015 notifying that CH had filed a petition against them before the Hon'ble Company LawBoard (‘CLB'), Mumbai Bench under sections 397 and 398 of Companies Act, 1956. RLCL responded to the petition filed by CH. The CLB inits order dated 26 November, 2015 had recorded the statement made by the counsel for RLCL that CH's shareholding in RLCL shall not bereduced further and the fixed assets of RLCL also shall not be alienated till further order. Subsequently, the proceedings were transferred tothe National Company Law Tribunal (‘NCLT'), Mumbai bench. RLCL had filed a Miscellaneous Application on 29 January 2019 seeking partvacation of the interim order dated 26 November 2015. The NCLT, Mumbai Bench had allowed the application filed by RLCL and had directedthat the main company petition along with the application for vacating the stay be listed for hearing. The NCLT had heard the matter both sideon 19 April 2023 and passed an interim order for settlement and adjourn this matter to 9 June 2023 for reporting settlement.
The interlocutory application was filed jointly by the parties seeking withdrawal of the company [etition along with all pending applications inthe matter. The matter was settled amicably by the parties by way of a settlement agreement dated 17 January 2023, for an amount of Euros2,100,000 to be paid by Raymond Limited to CH, for buyback of its shares in RLCL. Basis the said Settlement Agreement entered between theparties, the matter has been withdrawn by consent, as recorded by the NCLT, Mumbai Bench, in its order dated 9 June 2023. Consequently,RLCL became a wholly-owned subsidiary of the Company.
(ii) The management has considered that the losses suffered by Raymond UCO Denim Private Limited (‘RUCO'), indicate an impairment in thecarrying value of the investment. In addition to the above investment, the Company has also outstanding loans amounting to ' 2,500 lakhs(31 March 2024: ' 2,500 lakhs), have interest receivable of ' 69.26 lakhs (31 March 2024: ' 65.21 lakhs) and other receivable of ' 855.04 lakhs(31 March, 2024: ' 912.85 lakhs) as at 31 March 2025.
The RUCO has undertaken cost reduction measures as a mitigatory factor and basis its performance in the recent past, it has shown amarginal growth in the demand which management believes will further improve in the future quarters/ periods in the coming years. Further,the Company along with its joint venture partner, vide their letter of support, have committed necessary level of unconditional financial andother support to ensure that RUCO continues to operate as a going concern and to meet its liabilities as and when they fall due for payment forthe year ending 31 March 2026.
However, the management with the help of a valuation specialist, has carried out an impairment assessment for the entire investment in andother receivables from RUCO and, on a conservative basis, has recognised an estimated provision of ' 3,250 lakhs (31 March 2024: ' 2,900lakhs) as loss allowance in the investment value during the year ended 31 March 2025. The carrying value represents recoverable amount,which is also the value in use. The impairment assessment is carried out based on revenue multiple approach of comparable companies.Significant Estimates : The recoverable value of exposure in RUCO is determined by an independent registered valuer. The Company usesjudgement to select from variety of methods and make assumptions which are mainly based on market conditions existing at the end of eachreporting period.
(iii) During the year ended 31 March 2020, pursuant to approval from NCLT to RUCO towards reduction of its preference share capital, the investment of theCompany in preference share capital of RUCO having a carrying value of ? 8,700 lakhs was settled at an aggregate consideration of ? 10 lakhs. Accordingly, thebalance amount of ? 8,690 lakhs representing reduction in preference share capital investment, had been treated as deemed equity investments in RUCO.
(iv) The Board of Directors of the Company at its meeting held on 27 September 2021 had approved a Scheme of Arrangement (‘RAL Scheme') between theCompany and Raymond Apparel Limited (‘RAL' or ‘Demerged Company') (earlier, wholly owned subsidiary of the Company) for demerger of the businessundertaking of RAL comprising of B2C business including apparel business (and excluding balances identified as quasi equity) as defined in the RAL Scheme,into the Company on a going concern basis. RAL Scheme was approved by the NCLT vide its order dated 23 March 2022. The Appointed Date was 1 April 2021.Accordingly, the Company had accounted for the Scheme under the ‘pooling of interests' method in accordance with Appendix C of Ind AS 103 “BusinessCombinations”. Pursuant to the RAL Scheme, all assets and liabilities pertaining to business undertaking of the Demerged Company were transferred to theCompany without any consideration. Further, on 23 March 2022, the balances recoverable towards ICDs, trade receivables and other financial assets, byRaymond from RAL, on implementation of the RAL Scheme, were considered as quasi equity and hence re-classified as deemed equity. Since, these balanceswould continue to be retained in RAL, on the basis of the business potential of the remaining business in RAL, the aforesaid balances were not expected to berecoverable from RAL. Accordingly, loss allowance on such investment was recognised.
During the year ended 31 March 2024, the Company has sold its entire investment in wholly owned subsidiaries namely Raymond Apparel Limited andUltrashore Realty Limited (erstwhile Colorplus Realty Limited) for a consideration of ? 125 lakhs and ? 1 lakhs, respectively. Accordingly, the Company hadrecognised gain on sale of investment in subsidiaries of '126 lakhs (net of amounts fully provided in earlier year) [refer note 40(a)].
(v) During the FY 2019-20, the NCLT had vide its order dated 7 February 2020 approved the Composite Scheme of Amalgamation and Arrangement betweenJ. K. Helene Curtis Limited (‘JKHC'), J. K. Investo Trade (India) Limited (‘JKIT'), Raymond Consumer Care Private Limited (‘RCCPL'), Ray Global ConsumerTrading Limited (‘RGCTL') and Ray Universal Trading Limited (‘RUTL') and their respective shareholders (the ‘2020 Scheme'). Pursuant to said 2020 Scheme,RCCPL was amalgamated with JKIT and the FMCG business of JKHC was transferred to JKIT. The combined FMCG business was then transferred to andvested in RUTL. In consideration for the transfer and vesting of the combined FMCG business undertaking in RUTL, RGCTL had issued and allotted equityshares to all the shareholders of JKIT during the FY 2020-21.
Pursuant to approval of lifestyle demerger scheme of the Company by the NCLT vide its order dated 21 June 2024 as further explained in note 40(a), RGCTL hasbeen amalgamated in Raymond Lifestyle Limited w.e.f. 30 June 2024.
(vi) During the year ended 31 March 2024, Ring Plus Aqua Limited (‘RPAL'), a step-down subsidiary of Raymond Limited [direct subsidiary of JK Files & EngineeringLimited (‘JKFEL')] had acquired 59.25% stake in Maini Precision Products Limited (‘MPPL') for a total cash consideration of ' 68,209 lakhs in accordance withthe share purchase agreement (‘SPA') entered between RPAL and shareholders of MPPL.
The Board of Directors of JKFEL in its meeting held on 2 May 2024 had approved Composite Scheme of Arrangement between JKFEL, MPPL, RPAL, JK MainiPrecision Technology Limited (formerly known as JKFEL Tools and Technologies Limited) and JK Maini Global Aerospace Limited (formerly known as Ray GlobalConsumer Enterprise Limited) (the ‘Scheme') under the provisions of sections 230 to 232 read with section 66 and other applicable provisions of the Act andthe rules framed thereunder, subject to the requisite regulatory approvals. The Appointed Date proposed under this scheme was 1 April 2024. Based on thedirections of NCLT to convene the meetings of shareholders' and creditors', meetings were held on 20 December 2024 wherein the Scheme was approved bythe members and creditors of the respective companies. The next motion of hearing in the said matter is awaited. Pending receipt of statutory approvals asrequired, no adjustments are made in the books of account of respective companies and in these financial statements.
(vii) During the year ended 31 March 2024, the Company had made an investment in 12,500,000 0.01% Non- Convertible Redeemable preference shares (‘NCRPS')with face value of ? 10 each of Ten X Realty Limited (‘Ten X') of ? 12,500 lakhs [refer note 40(b)] and 5,000,000 NCRPS with face value of ? 100 each of JKFELof ' 5,000 lakhs for a period of 8 years and 20 years, respectively. The same had been presented as follows:
Dues from directors or other officers of the Company - -
Dues from firms or private companies in which director is a partner or a director or a member - -
Imported garments were fully exempted from payment of CVD under Notification No. 30/2004- C.E. dated 9 July 2004, subject to thecondition that no CENVAT credit has been availed on the inputs or on capital goods. However, during the relevant period (FY 2011 to 2014),there was a dispute between the importers and the customs department regarding the applicability of the said benefit and the fulfilmentof the aforesaid conditions. The customs department had taken a view that the condition of “where NO CENVAT credit has been availedon the inputs by suppliers” was not applicable on the imported goods and accordingly, the importers were not eligible for the benefit ofthe aforesaid notification. Based on the above notification, Raymond Apparel Limited (business undertaking of Raymond Apparel Limitedmerged with Raymond Limited w.e.f. 23 March 2022) had paid CVD under protest amounting to ' 2,257 lakhs and expensed it out during therelevant period, as aforesaid.
Also, Raymond Apparel Limited had filed refund applications of CVD paid under protest based on the order passed by the Hon’ble SupremeCourt of India in the case of M/s. SRF Ltd. vs Commissioner of Customs, Chennai reported at 2015 (318) E.L.T. 607 (SC) on 26.03.2015interpreted condition No. 20 of Notification No. 06/2002-CE (Sl. No. 122). The Hon’ble Supreme Court held that importers of goods couldclaim benefit of such notification at the time of import for exemption from payment of CVD.
Based on above, Raymond Apparel Limited had brought the said amount in the books of account as “Claim receivables” and created a lossallowance for an equivalent amount in financial year ended 31 March 2019, as prudent practice.
During the FY 2013-14, out of total claim the Company had received a refund of ' 1,215 lakhs, which is classified under 'Other income’.Pursuant to demerger scheme of lifestyle business [Refer note 40(a)], the remaining receivables are transferred to Raymond Lifestyle Limited.
Trade receivables include ' Nil (31 March 2024: ' 2,449.84 lakhs) for which credit risk is retained by the Company under a factoringarrangement and are net of ' Nil lakhs (31 March 2024: ' 22,048.54 lakhs) de-recognised (along with corresponding liability) ontransfer 'without recourse’ under a factoring arrangement. Company retains interest liability up to an agreed date on the entireamount, the costs for which are recognised as part of finance costs.
The trade receivables includes ' Nil (31 March 2024: ' 1,137.75 lakhs) receivables against which bills are discounted. Under thisarrangement, Company has transferred the relevant receivables to the banks in exchange for cash. However, the Company hasretained late payment liability and credit risk. The Company therefore continues to recognize the transferred assets in entirety in itsstandalone balance sheet. The amount repayable under the bills discounted is presented as current borrowings.
1. Trade receivables are non-interest bearing and are generally settled in 60 to 120 days.
2. Refer note 45 for information on credit risk and market risk.
3. Refer note 35 for information on assets provided as collateral or security for borrowings or financing facilities availed by theCompany.
Refer note 44 for information on interest risk, market risk and liquidity risk.
The Company had used the borrowing for the specific purpose for which it was availed.
There is no default in repayment of borrowings and payment of interest thereon during the year ended 31 March 2025 and
31 March 2024.
Refer note 35 for information on assets provided as collateral or security for borrowings or financing facilities availed by the Company.
Quarterly statements of current assets filed by the Company with banks are in agreement with the books of account.
(i) These loans, along with commercial papers which were fully redeemed during the year ended 31 March 2024, are securedas per the consortium agreement by hypothecation of inventories, receivables, book debts and other current assets of theCompany excluding liquid investments and assets pertaining to realty division, both present and future. Also, refer note 40(a).The applicable rate of interest is 1 month MIBOR, 3 months T-Bill or overnight MIBOR spread of 0.6%. Effective interest rateranges from 6.83% to 11.05% p.a. (31 March 2024: 7.00% to 9.45% p.a.).
(ii) Bill discounting facility is secured against book debts, receivables, claims and bills discounted under this facility. Also, refernote 40(a).
(iii) Effective rate of interest ranges from 9.20% to 10.01% p.a. (31 March 2024: 7.00% to 9.45% p.a.).
* Full or partial liability has been transferred to Raymond Lifestyle Limited, refer note 40(a)
** A demand order has been received by real estate division of the Company amounting to Rs. 900 lakhs during the year ended 31March 2025 which is contested by the management. Under the scheme of demerger of real estate business undertaking [refer note40(b)], the contingent liability will be transferred to Raymond Realty Limited and accordingly, it is not forming part of above disclosure.
1. The Company is contesting all of the above demands and the management believes that its positions are likely to be upheld.No expense has been accrued in the standalone financial statements for the aforesaid demands. The management believesthat the ultimate outcome of these proceedings are not expected to have a material adverse effect on the Company’s financialposition and results of operations and hence no provision has been made in this regard.
2. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolutionof the respective proceedings.
3. The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and do notinclude any penalty payable.
4. The Company does not expect any reimbursements in respect of the above contingent liabilities, other than stamp duty mattermentioned in (a) above.
5. Amount outstanding as at balance sheet date represents gross demand raised by the tax authorities, as amount paid underprotest is not charged to the standalone statement of profit and loss by the Company.
6. Also refer notes 2A(vi) and 5 (i) for other disputes.
7. Raymond Limited, Silver Spark Apparel Limited (‘SSAL’), Sanven Apparel Limited (formerly known as Raymond Apparel Limited)(‘RAL’), Ring Plus Aqua Limited (‘RPAL’), are in receipt of income tax demand notices in April 2025 related to assessment year(‘AY’) 2019 to AY 2023. The additions are made to the taxable income as unexplained expenditure in relation to cars which wereprocured in the previous years and later sold to JKIB by the respective entities. These additions are in relation to disallowanceof depreciation claim and unexplained expenditure.
Pursuant to scheme of arrangement between Raymond Limited and Raymond Lifestyle Limited [refer note 40(a)], the incometax demand related to Raymond Limited (lifestyle division), SSAL and RAL, as aforementioned, has been transferred to RaymondLifestyle Limited.
As the underlying assets are now in ownership and possession of JKIB, the management/ Board of JKIB has given an undertakingthat the tax demand (past, present and future) will be borne by JKIB. Accordingly, no provision/ contingent liability is recorded/disclosed in the standalone financial statements of the Company. The demand as shown below is exclusive of penalty that
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(i) Gratuity
Under the gratuity plan, every employees who have completed at least five years of service gets a gratuity on departureat 15 days of last drawn salary for each completed year of service. This defined benefit plan is governed by The Paymentof Gratuity Act, 1972. The gratuity plan is a funded plan and the Company makes contributions to Raymond LimitedEmployees Gratuity Fund and other recognised funds in India. Each year, the Board of Trustees reviews the [eve! offunding in the gratuity plan. Such a review includes the asset-liability matching strategy and investment risk managementpolicy. This includes employing the use of annuities and longevity swaps to manage the risks.
(ii) Pension
The Company operates defined benefit pension plans which provide benefits to certain employees in the form ofa guaranteed level of pension payable for certain years after retirement. The level of benefits provided depends onmembers’ length of service and their salary in the final years leading up to retirement. The plan is unfunded.
(iii) Provident fund
In case of certain employees, the contribution is made to a trust administered by the Company. In terms of the guidancenote issued by the institute of Actuaries of India, the actuary has provided a valuation of provident fund liability based onthe assumptions listed above and determined that there is no shortfall as at 31 March 2025.
NOTE 40(A): DEMERGER OF LIFESTYLE BUSINESS UNDERTAKING
During the previous year, the Board of Directors of the Company at its meeting held on 27 April 2023 had approved the CompositeScheme of Arrangement for the demerger of the lifestyle business undertaking of Raymond Limited ('Demerged Company’) intoRaymond Lifestyle Limited ('Resulting Company’) on a going concern basis. The appointed date proposed under this scheme was 1April 2023.
During the current year, the Company has received requisite approval from NCLT vide its order dated 21 June 2024. Respectivecompanies have filed the certified true copy of NCLT order along with the sanctioned scheme with the Registrar of Companies on 30June 2024 (closing hours). Accordingly, the scheme was effective w.e.f. 30 June 2024. The accounting of this scheme in the books ofDemerged Company was done based on Appendix A to Ind AS 10 “Distribution of Non-cash Assets to Owners” ('Ind AS 10’).
The Demerged Company has accordingly debited the fair value of lifestyle business undertaking amounting to ' 851,600 lakhs toretained earnings as dividend distribution attributable to each of the shareholders of Demerged Company. The difference betweenthe aforementioned fair value and the carrying amount of net liability of ' 26,376 lakhs of lifestyle business undertaking as at 30June 2024 was recognised as gain on demerger in the standalone statement of profit and loss as an exceptional item amounting to' 877,976 lakhs. Further, upon the scheme becoming effective, the investment made by the Demerged Company in the ResultingCompany stands cancelled.
As a consideration for the demerger, the Resulting Company has issued its equity shares to each shareholder of the DemergedCompany as on record date in 4:5 swap ratio (i.e., four shares of ' 2 each have been issued by the Resulting Company for every fiveshares of ' 10 each held in the Demerged Company). The equity shares of Resulting Company are listed on NSE and BSE w.e.f. 05September 2024.
The net results of lifestyle business undertaking for the comparative year are disclosed separately as discontinued operations in thestandalone statement of profit and loss, as required by Ind AS 105 “Asset Held for Sale and Discontinued Operations” ('Ind AS 105’)and Division II of Schedule III to the Act.
The Board of Directors of the Company had recommended final dividend of ' 10 per share the year ended 31 March 2024 (refer note45), which was approved by the shareholders of the Company in the annual general meeting held on 27 June 2024. Subsequently,NCLT approved the scheme of arrangement for demerger of lifestyle business undertaking and it was effective w.e.f. 30 June 2024.In terms of provision contained in the aforesaid scheme whereby certain powers are given to the Board of Directors of the Company,both the companies agreed and allocated dividend declared/ paid of ' 6,000 lakhs to Raymond Lifestyle Limited. The compliancewith respect to declaration of dividend under the Act and other relevant rules has been ensured by the Company.
Under the aforesaid scheme of arrangement, specific properties related to the lifestyle business at Vapi, Jalgaon, Chhindwara,DodabaUapur and retail shops were transferred from the Company to Raymond Lifestyle Limited. Transfer under the aforesaid schemedoes not include the properties owned by and in possession of the Company, being the Thane office building and the retail shops at JKHouse, Ballard Estate and Thane. These properties are neither explicitly referred to nor form part of or transferred under the aforesaidscheme and they continue to be owned and possessed by the Company, though temporarily allowed to be used by Raymond LifestyleLimited. None of the applications, annexures forming part of the aforesaid scheme or any subsequent applications explicitly refer tothese properties as the same were never intended to be transferred to Raymond Lifestyle Limited. Based on the legal advice soughtby the the Company, it has been interpreted and agreed between both the Boards that aforementioned properties will continue to beowned and possessed by the Company.
NOTE 40(B): DEMERGER OF REAL ESTATE BUSINESS UNDERTAKING
The Board of Directors of the Company at its meeting held on 4 July 2024, has approved the Scheme of Arrangement of RaymondLimited ('Demerged Company’) and Raymond Realty Limited ('Resulting Company’) and their respective shareholders ('Real EstateScheme’) as per the provisions of sections 230 to 232 read with section 66 of the Act and the rules framed thereunder. The appointeddate proposed under this scheme is 1 April 2025.
FOR THE YEAR ENDED 31st MARCH, 2025
The Real Estate Scheme, inter alia, provides for demerger of real estate business carried on by the Demerged Company (‘Real EstateBusiness Undertaking’), into Resulting Company, a wholly owned subsidiary of Raymond Limited and issue of equity shares by theResulting Company to each shareholder of the Demerged Company, along with the consequential reduction and cancellation of thepaid-up share capital of Resulting Company held by Demerged Company.
During the current year, the Company has received requisite approval from NCLT, Mumbai Bench, vide its order dated 27 March2025. Respective companies have subsequently filed the certified true copy of NCLT order along with the sanctioned scheme withthe Registrar of Companies on 30 April 2025 (closing hours). Accordingly, the Real Estate Scheme is effective w.e.f. 30 April 2025. Theaccounting of this Real Estate Scheme in the books of Demerged Company will be done based on Appendix A to Ind AS 10.Accordingly, the assets and liabilities as at 31 March 2025 related to Real Estate Business Undertaking have been classified as “heldfor distribution” and the net results of Real Estate Business Undertaking for the current and previous year are disclosed separately as“discontinued operations” in the standalone statement of profit and loss, as required by Ind AS 105 and Division II of Schedule III tothe Act.
Cumulative income or expenses included in OCI relating to the disposal group - The remeasurement gain/ loss on definedbenefit obligation is included in the OCI and provision for employee benefits. However, it is not reasonably possible to compute suchcumulative impact related to real estate business undertaking. The impact is not expected to be material to the standalone financialstatements.
The non-recurring fair value measurement for the disposal group has been categorised as a level 3 fair value based on the inputs tothe valuation technique used. The major asset in the disposal group is land in Panchpakhadi, Thane. The fair valuation is based oncurrent prices in the active market for similar land. The main inputs used are quantum, area, location, demand, restrictive entry tothe complex, age, and trend of fair market rent in village Panchpakhadi area. This fair value is based on best evidence of fair value inan active market for similar land (ready reckoner rate - 1,825 lakhs per acre). Fair valuation is based on replacement cost method.
41 Segment disclosure
The Company has presented data related to its segments in its consolidated financial statements. No disclosures regardingsegments are therefore presented in these standalone financial statements.
NOTE: 43 FINANCIAL INSTRUMENTS
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in acurrent transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions are used to estimate the fair values:
1. Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, trade payables,other current financial assets/ liabilities (except derivative financial instruments) and short term borrowings approximate theircarrying amounts largely due to short term maturities of these instruments.
2. Financial instruments are evaluated by the Company based on parameters such as individual credit worthiness of the counter¬party. Based on this evaluation, allowances are taken to account for expected losses on these receivables. Accordingly, fairvalue of such instruments is not materially different from their carrying amounts.
3. The fair values for deposits were calculated based on cash flows discounted using market interest rate on the date of initialrecognition and subsequently on each reporting date. The lease liability is initially recognised at the present value of thefuture lease payments and is discounted using the interest rate implicit in the lease or, if not readily determinable, using theincremental borrowing rates and subsequently measured at amortised cost.
4. The fair value of long term borrowings approximate their carrying amounts due to the fact that no upfront fees is paid ascompensation to secure the borrowing and the interest rate is equal to the market interest rate.
5. The fair value of investment in quoted investment in equity shares and debentures is based on the bid price of respectiveinvestment as at the balance sheet date.
6. The fair value of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of thesemutual fund units in the published statements as at balance sheet date. NAV represents the price at which the issuer will issuefurther units of mutual fund and the price at which issuers will redeem such units from the investors.
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices)or indirectly (i.e. derived from prices).
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable marketdata (unobservable inputs).
There have been no transfer amongst the levels of fair value hierarchy during the year.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determineswhether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input thatis significant to the fair value measurement as a whole) at the end of each reporting period.
The investment in government securities and equity instruments (level 3) are not material to the standalone financial statements.Thus, the disclosure of valuation techniques and significant unobservable inputs is not presented.
NOTE 44: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s primary focusis to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. TheCompany’s management oversees these risks and formulates the policies which are reviewed and approved by the Board of Directorsand Audit Committee. Such risks are summarised below:
a) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in marketprices. The primary market risk to the Company is currency risk and interest risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’sdebt obligations.
The Company’s exposure to risk of change in foreign currency exchange rates arising from foreign currency transactions,is primarily with respect to the currencies where the exchange rates are not fixed. Foreign exchange risk arises from futurecommercial transactions and recognised assets and liabilities denominated in a currency that is not the functional currencyof the Company. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. Thecounter party of these derivative instruments are primarily banks. These derivative financial instruments are valued based oninputs that is directly or indirectly observable in the marketplace.
The Company procures/ sell goods in their functional currency and in case of imports/ exports, it primarily deals in United StatesDollars (‘USD’) and Australian Dollar (‘AUD’). Other currencies are Euro, Great Britain Pound (‘GBP’), United Arab EmiratesDirham (‘AED’), Chinese Yuan (‘RMB’), Bangladeshi Taka (‘BDT’) and Swiss Franc (‘CHF’). The Company evaluates exchangerate exposure arising from foreign currency transactions and follows established risk management policies. There are earningsfrom customers in foreign currency which act as a natural hedge against foreign currency risk.
All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills,experience and supervision. It is the Company’s policy that no trading in derivative for speculative purposes may be undertaken.These derivative financial instruments are forward contracts which are used to mitigate the foreign exchange exposure of highlyprobable future forecasted sales or purchase.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet itscontractual obligations, and arises from cash and cash equivalents, bank balances other than cash and cash equivalents,other financial assets as well as credit exposures to customers including outstanding receivables and contract assets. Themaximum exposure to credit risk is equal to the carrying value of the financial assets.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. To managethis, the Company periodically assesses the financial reliability of customers, taking into account the financial condition,current economic trends, forward looking macroeconomic information, analysis of historical bad debts and ageing of accountsreceivables. Individual risk limits are set accordingly. The Company’s exposure to credit risk is influenced mainly by theindividual characteristics of each customer. The demographics of the customer including the default risk of the industry andcountry in which the customer operates also has an influence on credit risk assessment.
The expected credit loss rates are based on the payment profiles of sales over a period of 36 months before the reportingdate and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted toreflect current and forward-looking information on macro-economic factors affecting the ability of the customers to settlethe receivables. The Company recognises lifetime expected losses for all trade receivables and contract assets that do notconstitute a financing component.
The Company has no concentration of credit risk as the customer base is widely distributed both economically andgeographically. Revenue of ' 216 lakhs (31 March 2024: ' 385 lakhs) is derived from two customers, who are individuallycontributing more than 10% of the Company’s revenue.
Outstanding customer receivables and contract assets are regularly monitored.
The Company periodically monitors the recoverability and credit risks of its other financial assets. The Company evaluates 12months expected credit losses for all the financial assets for which credit risk has not increased significantly. In case credit riskhas increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.The Company has considered financial condition, current economic trends, forward looking macroeconomic information,analysis of historical bad or doubtful receivables and ageing of receivables related to cash and cash equivalents, bankbalances other than cash and cash equivalents, margin deposits, security deposits and other financial assets. In most of the
The Company does not require collateral in respect of trade receivables and contract assets. Also, there are no such receivablesfor which no loss allowance is recognised because of collateral.c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Companymanages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.Also, the Company has unutilized credit limits with banks. The Company manages its liquidity needs by monitoring scheduleddebt servicing payments for financial liabilities as well as forecast cash inflow and outflows due in day to day business. Inaddition, processes and policies related to such risks are overseen by senior management. The Company’s managementmonitors the net liquidation position through rolling forecast on the basis of expected cash flows.
The Company has undrawn ' 1,350 lakhs (31 March 2024: ' 120,149 lakhs) credit facility that is secured and can be drawn downto meet short-term financing needs. Interest would be payable at a rate mutually agreed with banks at the time of drawdown.NOTE 45: CAPITAL RISK MANAGEMENT
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimisereturns to its shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balanceof key elements in order to meet its strategic and day-to-day needs. Management considers the amount of capital in proportion torisk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, returncapital to shareholders or issue new shares. The Company’s policy is to maintain a stable and strong capital structure with a focus ontotal equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business.The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The Company had implemented employee share-based payment plans for the employees of the Company and group companies.AH the options issued by the Company are equity-settled options. The equity shares to be allotted to employees under theEmployee Stock Option Plan (‘ESOP Plan 2023’) will be acquired by the Raymond Limited ESOP Trust (the ‘Trust’) formed for thisspecific purpose. The equity shares would be acquired through fresh issue made by the Company or through secondary acquisitionthrough recognised stock exchanges. The shareholders through postal ballet had approved grant of 1,680,588 stock options on27 March 2023. The Nomination and Remuneration Committee and Board of Directors of the Company had approved the ESOP Plan2023 at their respective meetings held on 17 February 2023. The options are granted at an exercise price, which is in accordance withthe relevant Securities and Exchange Board of India (‘SEBI’) guidelines in force, at the time of such grants.
* WAEP denotes weighted average exercise price of the option
** Weighted average of remaining contractual life of options outstanding at the end of the respective yearWeighted average share price for options exercised during the year ended 31 March 2025 is ' Nil (31 March 2024:' Nil).
For the options outstanding as at 31 March 2025, the exercise price range is ' 1,615 to ' 2,295 (31 March 2024: ' 1,615 to ' 1,738)The weighted average fair value of the stock options outstanding as at 31 March 2025 is ' 851 (31 March 2024: ' 849).
Volatility: Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during the period. Themeasure of volatility used in BLack-SchoLes-Merton formula is the annualised standard deviation of the continuously compoundedrates of return on the stock over a period of time. Company considered the daily historical volatility of Company’s stock price on NSEover a period prior to the date of grant, corresponding with the expected Life of the options.
Risk free rate: The risk free rate being considered for the calculation is the interest rate applicable for a maturity equal to the expectedLife of the options based on zero coupon yield curve for government securities.
Expected life of the options: Expected Life of the options is the period for which the Company expects the options to be Live. Theminimum Life of stock options is the minimum period before which the options cannot be exercised and the maximum Life of theoption is the maximum period after which the options cannot be exercised. The Company has caLcuLated expected Life as the averageof the minimum and the maximum Life of the options.
Dividend yield: Expected dividend yield has been caLcuLated by dividing the Last decLared dividend per share by the market price pershare as on the date of grant.
The Company’s spend towards CSR does not involve any long term projects and accordingly, disclosure requirements relating toongoing projects is not applicable as at reporting dates. Also, there are no related party transactions in CSR.
NOTE 49: CYBERSECURITY INCIDENT
The Company had identified a ransomware infection within their network that resulted in the encryption of critical user data anddisrupted the operations for a brief period. The threat actor infiltrated the network via VPN using compromised credentials associatedwith a local VPN user from 11 February 2025 to 16 February 2025. The Company immediately involved external experts and isolatedthe infected infrastructure. Also, the Company promptly took steps to contain and remediate the impact of the incident and short¬term goals were agreed and implemented. The Company implemented alternate controls and conducted containment, evaluation,restoration, and remediation activities as part of its response to the cyberattack with the assistance of external cybersecurity andinformation technology specialists. The Company has assessed and concluded that the accuracy and completeness of the financialinformation post the aforesaid remediation activities has not been affected as a result of the incident. The Company continues tostrengthen its cybersecurity infrastructure and is in the process of implementing certain long-term measures including improvementsto its cyber and data security systems to safeguard against such risks in future.
NOTE 50: AUDIT TRAIL
The Ministry of Corporate Affairs (‘MCA’) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accountingsoftware for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trailof each and every transaction, creating an audit log of each change made in the books of account along with the date when suchchanges were made and ensuring that the audit trail cannot be disabled. The Company has used accounting software for maintainingits books of account which have a feature of audit trail (edit log) facility and the same was enabled at the application level. During theyear ended 31 March 2025, the Company has not enabled the feature of recording audit trail (edit log) at the database level for thesaid accounting software to log any direct data changes. Additionally, the audit trail has been preserved by the Company as per thestatutory requirements for record retention where such feature was enabled.
Reason for variance of more than 25% as compared to the previous year :
Debt-equity ratio: Ratio has increased mainly due to decrease in net worth and increase in overall debt
Debt service coverage ratio: There is a significant improvement in operations (earnings available for debt service) as compared toprevious year
Return on equity ratio: The net worth has experienced a significant decline in the current year due to current year loss and thusresulted into a decrease in the overall ratio
Net capital turnover ratio: Though revenue has increased, reduction in ratio is attributable to negative working capital in current yearReturn on capital employed : Ratio has improved on account of reduction in lossesReturn on investment : Ratio has improved on account of reduction in loss for the yearNet profit ratio : Ratio has improved on account of reduction in loss for the year
**Cost of Good sold = Cost of materials consumed Purchases of stock-in-trade Changes in inventories of finished goods,stock-in-trade, work-in-progress and property under development Manufacturing and operating expenses Costs towardsdevelopment of property
Note: Pursuant to demerger schemes of lifestyle and real estate undertaking, the above-mentioned ratios are not comparable.
NOTE 52: ADDITIONAL REGULATORY INFORMATION REQUIRED BY DIVISION II SCHEDULE III OF THE ACT
Company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rulesmade thereunder as at 31 March 2025 and 31 March 2024. Further, no proceedings have been initiated or pending against theCompany for holding any benami property under the said act and rules mentioned above for the years ended 31 March 2025and 31 March 2024.
b) Willful defaulter
The Company has not been declared willful defaulter by any bank or financial institution or any other lender for the years ended31 March 2025 and 31 March 2024.
c) Relationship with struck off companies
There is no transaction and year-end balance as at 31 March 2025 and 31 March 2024 with struck off companies.
d) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under section 2(87) of the Act for the years ended 31 March2025 and 31 March 2024.
e) Compliance with approved scheme of arrangements
Scheme of arrangements mentioned in note 40 are in compliance with sections 230 to 232 read with section 66 of the Act andthe rules framed thereunder.
f) Utilisation of borrowed funds and share premium (for the years ended 31 March 2025 and 31 March 2024)
The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) to any other person or entity, including foreign entity ('Intermediaries’) with the understanding (whether recordedin writing or otherwise) 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 theCompany ('Ultimate Beneficiaries’) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. The Company has not receivedany fund from any person or entity, including foreign entity ('Funding Party’) with the understanding (whether recorded inwriting or otherwise) that the Company shall: a. directly or indirectly lend or invest in other persons or entities identifiedin 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.
No income has been surrendered or disclosed as income during the current and previous year.
h) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current and previous year.
i) Registration of charges or satisfaction with Registrar of Companies (‘ROC’)
There are no charges which are yet to be registered with the ROC beyond the statutory period as at 31 March 2025 and31 March 2024.
j) Revaluation
The Company has not revalued its PPE, ROU assets and intangible assets during the current and previous year.
k) Loans or advances to specified persons
The Company has not granted any loan or advance in the nature of loan, during the current and previous year, to promoters,directors, KMPs or other related parties, either severally or jointly with any other person, that is repayable on demand or withoutspecifying any terms or period of repayment. Refer notes 6 and 14 for outstanding loans as at reporting dates.
Note 56: As per the transfer pricing rules, the Company has examined international transactions and documentation in respectthereof to ensure compliance with the said rules. The management does not anticipate any material adjustments with regard to thetransactions involved.
NOTE 57: AUTHORISATION OF STANDALONE FINANCIAL STATEMENTS
The standalone financial statements as at and for the year ended 31 March 2025 were approved by the Board of Directors on12 May 2025.
Note 58: Previous year figures have been regrouped, reclassified and rearranged wherever necessary, to conform to this year’spresentation, and these are not material to the standalone financial statements.
These are the material accounting policies and other explanatory information referred to in our report of even date
For Walker Chandiok & Co LLP For and on behalf of Board of Directors
Chartered Accountants
Firm’s Registration No. 001076N / N500013
Bharat Shetty Amit Agarwal Gautam Hari Singhania
Partner Chief Financial Officer Chairman and Managing Director
Membership No.: 106815 DIN: 00020088
Rakesh Darji
Company Secretary
Place: Mumbai Place: Mumbai
Date: 12 May 2025 Date: 12 May 2025