2.21 Provisions, contingent liabilities and contingent
assets

Provisions are measured at the Present value of the
management's best estimate (these estimated are
reviewed at each reporting date and adjusted to reflect
the current best estimate) of the expenditure required to
settle the present obligation at the end of reporting

period. Provisions involving substantial degree of
estimation in measurement are recognized when there
is a present obligation as a result of past events and it is
probable that there will be an outflow of resources.

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

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

2.22 Revenue recognition

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

Revenue from contracts with customers is recognised
when control of the goods is transferred to the customer
on satisfaction of performance obligations. The
Performance obligations as per contracts with
customers are fulfilled at the time of dispatch or delivery
of goods depending upon the terms agreed with
customer.

Revenue towards satisfaction of performance
obligation is measured at the amount of transaction
price (net of variable consideration and provision for
sales returns) allocated to that performance obligation.
Amounts disclosed as revenue are net of returns and
trade discounts, rebates, incentives, etc. A receivable is
recognised where the Company's right to consideration
is unconditional. The Company collects goods and
services tax on behalf of the government and therefore,
these are not economic benefits flowing to the
Company. Hence, these are excluded from the revenue.

Additional points:

Contract assets/contract liabilities

When either party to a contract has performed, an entity
shall present the contract in the balance sheet as
contract asset or contract liability, depending on the
relationship between the entity's performance and the
customer's payment.

Principal vs agent :

The Company assesses its revenue arrangement in
order to determine if its business partner is acting as a
principle or as an agent by analysing whether the
Company has primary obligation for pricing latitude and
exposure to credit / inventory risk associated with the
sale of goods. The Company has concluded that certain
arrangements are on principal to agent basis where its
business partner is acting as an agent. Hence, sale of
goods to its business partner is recognised once they
are sold to the end customer.

Rights of return :

Certain contracts provide a customer with a right to
return the goods within a specified period. The
Company uses the expected value method to estimate
the goods that will be returned because this method
best predicts the amount of variable consideration to
which the Company will be entitled. The requirements in
Ind AS 115 on constraining estimates of variable
consideration are also applied in order to determine the
amount of variable consideration that can be included in
the transaction price. For goods that are expected to be
returned, instead of revenue, the Company recognises
a refundable liability. A right of return asset and
corresponding adjustment to change in inventory is also
recognised for the right to recover products from a
customer.

Returnable assets :

Assets and liabilities arising from returns i.e. Returnable
assets represents the Company’s right to recover the
goods expected to be returned by customers. The asset
is measured at the former carrying amount of the
inventory, less any expected costs to recover the
goods, including any potential decrease in the value of
the returned goods. The Company updates the
measurement of the asset recorded for any revisions to
its expected level of returns, as well as any additional
decrease in the value of the returned products.

Refundable liabilities:

A refundable liability is the obligation to refund some or
all of the consideration received (or receivable) from the
customer and is measured at the amount the Company
ultimately expects it will have to return to the customer.
The Company updates its estimates of refundable
liabilities (and the corresponding change in the
transaction price) at the end of each reporting period.
Refer to above accounting policy on variable
consideration.

Allowance for uncollectible trade receivables:

Trade receivables do not carry any interest and are
stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts.
Estimated irrecoverable amounts are based on the
ageing of the receivable balance and historical
experience. Additionally, a large number of minor
receivables is grouped into homogeneous groups and
assessed for impairment collectively. Individual trade
receivables are written off when management deems
them not to be collectible.

Other income :

Interest income

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

Dividends

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

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

2.23 Income taxes

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

a) Current tax

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the tax authorities in accordance with
the Income Tax Act,1961 enacted in India. The tax
rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at the
reporting date. Current income tax relating to items
recognized outside statement of profit or loss is
recognized outside statement of profit or loss (either
in other comprehensive income or in equity). Current
tax items are recognized in correlation to the
underlying transaction either in OCI or directly in
equity. Management periodically evaluates positions
taken in the tax returns with respect to situations in
which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

b) Deferred tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of
assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

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

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

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

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

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

2.24 Employee benefits

i) Short term employee benefits

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

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

ii) Post-employment benefits

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

a) Defined contribution plans

Defined contribution plans are those plans in
which the Company pays fixed contribution into
separate entities and will have no legal or
constructive obligation to pay further amounts.
Provident Fund and Employee State Insurance
are Defined Contribution Plans in which
Company pays a fixed contribution and will have
no further obligation beyond the monthly
contributions and are recognised as an expenses
in Statement of Profit & Loss.

b) Defined benefit plans

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

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

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

c) Compensated absences

The liabilities for leave balance are not expected
to be settled wholly within 12 months after the
end of the reporting period in which the
employees render the related service. They are
therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method. The benefits are discounted using
the market yields on government bonds at the
end of the reporting period that have terms
approximating to the terms of the related
obligation. Remeasurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in statement of
profit and loss.

The obligations are presented as current

liabilities in the balance sheet if the entity does
not have an unconditional right to defer
settlement for at least twelve months after the
reporting period, regardless of when the actual
settlement is expected to occur.

2.25 Earnings per share

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

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

2.26 Leases
Leases

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

Company as lessee

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

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

Right of use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any measurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the lease
term or useful life of assets which ever is lower, if
ownership of the leased asset transfer to the Company
at the end of lease term or the cost reflects the exercise
of purchase option, depreciation is calculated using the
estimated useful life of the assets. The Right-of-use
assets are also subject to impairment.

Right of Use Assets having definite life are depreciated
on straight line method in their useful life mentioned
below:

a) Right of use assets 05-15 Years as per

term of lease

Lease liability

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.
The lease payments include fixed payments less any
lease incentives receivable. Variable lease payments
that do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or condition
that triggers the payment occurs.

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

Short term lease and leases of low value assets

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

2.27 Government grants

Grants from the Government are recognised when there
is reasonable assurance that all the underlying
conditions will be complied with and the grants will be
received.

Government Grant whose primary condition is that the
Company should purchase, construct or otherwise
acquire capital assets are presented by adding them to
the carrying value of Assets. The grant is recognized as
income over the life of depreciable asset by way of
transferring balance from deferred revenue income to
other income.

2.28 Amendments to Accounting Standards (Ind AS)
issued but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards

under Companies (Indian Accounting Standards) Rules
as issued from time to time. There are no new Standards
that became effective during the year ended 31 March
2025 which are applicable to the Company.

2.29 Amended Accounting Standards (Ind AS) and
interpretations effective during the year

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. MCA has notified below
new standards /amendments which were effective from
1 April, 2024.

a. Amendments to Ind AS 116 -Lease liability in a sale
and leaseback

The amendments require an entity to recognise lease

liability including variable lease payments which are
not linked to index or a rate in a way it does not result
into gain on Right of use asset it retains.

The amendments had no impact on the Company.

b. Introduction of Ind AS 117 - Insurance Contracts

MCA notified Ind AS 117 "Insurance Contracts", a
comprehensive standard that prescribe, recognition,
measurement and disclosure requirements, to avoid
diversities in practice for accounting insurance
contracts and it applies to all companies i.e., to all
"insurance contracts" regardless of the issuer.
However, Ind AS 117 is not applicable to the entities
which are insurance companies registered with
IRDAI.

The amendments had no impact on the Company.

(iv) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having a par value of ' 2/- per share. Every holder of equity shares is
entitled to voting rights in proportion to his shares of the paid up equity share capital. The dividend, if any, proposed by the
board of directors is subject to the approval of the shareholders in the ensuing annual general meeting. The Company
declares and pay dividend in Indian rupees.

In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

(v) Split of Shares

The board of directors of the Company at their meeting held on 12 August 2023 had considered and approved the stock
split/ sub-division of every 1 equity share of the nominal/face value of ' 10/- each into 5 equity shares of the nominal/face
value of ' 2/- each and the same has been approved by the shareholders of the Company at the annual general meeting
held on 28 September 2023.

(vi) Issue of equity shares under preferential allotment :

a) On 18 January 2024, the board of directors of the Company approved a preferential issue of 2,000,000 fully paid up
equity shares of face value of '2/- each, for cash, at ' 252/- per equity share (including a premium of '250/- per equity
share) amounting to '5,040 Lakhs to Think India Opportunities Master Fund LP, an exempted limited partnership
formed under the laws of Cayman Islands situated at United Kingdom by way of preferential allotment on private
placement basis in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) regulations, 2018 (“ICDR Regulations”) as amended and other applicable laws.

b) The Company received the approval of the shareholders in its extra ordinary general meeting (EGM) held on 14
February 2024.

c) On 22 February 2024, the board of directors approved the allotment to the investor on receipt of consideration
aggregating to ' 5,040 Lakhs towards 20,00,000/- fully paid up equity shares.

During the year ended 31 March 2024, the Company has raised through preferential issue of 2,000,000 equity shares
of ' 2 each for cash, at ' 252/- per equity share (including a premium of ' 250/- per equity share) amounting to ' 5,040
Lakhs. As at 31 March 2024, unutilised amounts have been kept in short term investments and monitoring account.
During the current year, the unutilised amounts were applied for the working capital purposes for which the funds were
raised.

(vii) No shares have been issued by the Company for consideration other than cash, during the period of five years
immediately preceding the reporting periods. Further, no shares are reissued for use under options and contracts or
commitment for sale of shares or disinvestment.

(viii) Further, there has been no buy back of shares during the period of five years immediately preceding 31 March 2025 and 31
March 2024.

(ix) The Company has not issued any bonus shares during the financial year ended on 31 March 2025 and 31 March 2024.

Notes:

(i) Standard Chartered Bank

Interest payable @three month MIBOR 1.81% p.a. to be applied on daily balances.

Primary Security : Hypothecation of entire present and future current assets of the Company on pari passu basis with HDFC Bank, Axis
Bank and State Bank of India.

Collateral Security : On industrial land and building of the Company bearing at plot No. 359, 360 & 361 phase 4B, HSIIDC industrial
estate, Bahadurgarh (Haryana) pari passu with HDFC Bank, Axis Bank and State Bank of India by way of equitable mortgage.

Personal guarantee of Mr. Vijay Bansal (Chief Managing Director) and Mr. Deepak Bansal (Whole Time Director ) .

At 31 March, 2025, the Company has available 1,500.00 lakhs (31 March 2024 1,432.39 lakhs) of undrawn committed borrowing
facility.

(ii) State Bank of India:

Interest payable @ MCLR 8.55% 0.5%, i.e. 9.05% p.a. effectively chargeable on monthly rests, to be applied on daily balances of the
cash credit facility.

Primary Security :First pari-passu charge along with HDFC Bank, Standard Chartered Bank and Axis Bank by hypothecation over
Company's entire current assets such as stocks of raw material, stock-in-process, Finished goods, stores & Spares of garment
manufacturing unit and book debts and other current assets lying in the factory premises and existing trading offices/ branches or
elsewhere present or Future.

Collateral Security : First pari passu Charge along with HDFC Bank, Standard Chartered Bank and Axis Bank on industrial land and
building of the Company bearing at plot No. 359, 360 & 361 Phase 4B, HSIIDC industrial estate, Bahadurgarh (Haryana) by way of
equitable mortgage.

Personal guarantee of Mr. Vijay Bansal (Chief Managing Director) and Mr. Deepak Bansal (Whole Time Director ) .

At 31 March, 2025, the Company has available 1,450.00 lakhs (31 March 2024 906.79 lakhs) of undrawn committed borrowing
facility.

(iii) HDFC Bank :

Interest payable @ 8.34% p.a. linked with 3 month Repo rate , reset on quarterly basis, chargeable on monthly rests, to be applied on daily
balances of the overdraft facility.

Primary Security : First pari passu charge on entire current assets with State Bank of India, Axis Bank and Standard Chartered Bank by
way of hypothecation.

Collateral Security : First pari passu charge along with State Bank of India, Standard Chartered Bank and Axis Bank on industrial land and
building of the Company bearing at plot No. 359, 360 & 361 Phase 4B, HSIIDC industrial estate, Bahadurgarh (Haryana) by way of
equitable mortgage.

Personal guarantee of Mr. Vijay Bansal (Chief Managing Director) and Mr. Deepak Bansal (Whole Time Director ) .

At 31 March, 2025, the Company has available 1,500.00 lakhs (31 March 2024 1,416.16 lakhs) of undrawn committed borrowing facility.

(iv) Axis Bank:

Interest payable @ REPO 2% (Presently 8.50% p.a.) chargeable on monthly rests to be applied on daily balances of the cash credit
facility.

Primary Security : First pari-passu charge on entire current assets of the Company both present and future with State Bank of India,
HDFC Bank Ltd. and Standard Chartered Bank by way of hypothecation.

52 Fair Value Disclosures
i) Fair Values Hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are divided into three
Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation Process and Technique used to Determine Fair Value

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference
to quoted prices in the active market. This category consists of mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other
than quoted prices included within Level 1 that are observable for such items, either directly or indirectly. This level of
hierarchy consists of investment in equity shares of private limited companies.

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company’s maximum
exposure to credit risk is limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans and receivables carried at amortised cost, and

- deposits with banks

a) Credit Risk Management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring
defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this
information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with
different characteristics. The Company assigns the following credit ratings to each class of financial assets based on
the assumptions, inputs and factors specific to the class of financial assets.

Cash and Cash Equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks
and diversifying bank deposits and accounts in different banks.

Trade receivables and other financial assets

The Company has established a credit policy under which each new customer (Business to Business sales model) is
analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The
Company’s review includes external ratings, if they are available, financial statements, credit agency information,
industry information and business intelligence. Sale limits are established for each customer and reviewed annually.
Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether
they are an individual or a legal entity, whether they are a institutional, dealers, their geographic location, industry,
trade history with the Company and existence of previous financial difficulties.

Expected credit loss for trade receivables:

The Company based on internal assessment which is driven by the historical experience/ current facts available in
relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The
Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for
more than 6 month, is ' 26.93 lakhs (31 March 2024: ' 45.07 lakhs).

Loan and Other financial assets measured at amortised cost includes security deposits, fixed deposits loan to related
parties and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of
such amounts continuously, while at the same time internal control system in place ensure the amounts are within
defined limits.

B) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated
with financial liabilities that are required to be settled by delivering cash or another financial asset. The Company's
objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral obligations . The Company
requires funds both for short term operational needs as well as for long term investment programs mainly in growth
projects. The Company closely monitors its liquidity position and deploys a robust cash management system. It aims to
minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash
and cash equivalents, liquid investments and sufficient committed fund facilities, will provide liquidity.

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 comprise three types of risk: interest rate risk, foreign currency risk and competition and price
risk.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s policy is to minimise interest rate cash flow risk exposures. The
Company is exposed to changes in market interest rates as some of the bank and other borrowings are at variable
interest rates.

The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of /-
1%. These changes are considered to be reasonably possible based on management’s assessment. The calculations
are based on a change in the average market interest rate for each period, and the financial instruments held at each
reporting date that are sensitive to changes in interest rates. All other variables are held constant.

54. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure
that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder
value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total
capital plus net debt. The Company’s policy is to keep the gearing ratio optimum. The Company's net debts includes working
capital borrowings.

57 Leases

The lease asset class primarily consists of leases for buildings with the exception of short-term leases, leases of low-value and
cancellable long-term leases underlying assets, each lease is reflected on the balance sheet as a right of use asset and a lease
liability. Lease liabilities are measured at the present value of the remaining lease payments, discounted using the incremental
borrowing rate on the date of adoption that is 9% per annuam.

Each lease generally imposes a restriction that, unless there is a contractual right to sublet the asset to another party, the right
of use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a
substantive termination fee. Some leases contain an option to extend the lease for a further term. The Company is prohibited
from selling or pledging the underlying leased assets as security against the Company other debts and liabilities.

The Company also has certain leases of offices, store premises and warehouses with lease terms of 12 months or less. The
Company applies the ‘short-term lease’ recognition exemptions for these leases. The lease payments for such leases is being
recognised on actual basis by applying paragraph 6 of Ind AS 116.

(i) Central excise and service tax

Central excise department had raised a demand amounting to '110.39 lakhs on the Company on 30 September 2013. The
demand order has been set aside by Central Excise and Service Tax Appellate Tribunal (CESTAT) by order dated 01 June
2017. However, the department has made an appeal before Hon'ble Delhi High Court against the order of CESTAT. In case
department succeeds in the appeal, the Company may be liable to pay the said demand of ' 110.39 lakhs along with due
interest.

(ii) Other matters

There are various labour, consumer and other cases under other acts pending against the Company, the liability of which
cannot be ascertained. However, the management does not expect significant or material liability devolving on the
Company.

Note: In respect of all litigations mentioned above, based on the opinion taken from independent consuitants/lawyers an
based on assessment, the management believes that the outcome of these cases will be favourable and does not result
into outflow of any economic resources. Accordingly, no adjustment is required in the financial statements.

(iii) Custom duty against unexecuted export obligation

In respect of pending export obligation of ' 405.08 lakhs (31 March 2024'433.92 lakhs), the Company may be required to
pay custom duty of ' 67.52 lakhs (31 March 2024'72.32 lakhs) along with interest to the custom authority if such export
obligation is not met by the Company.

(iv) Enhancement cost for industrial plot at Bahadurgarh

During the year 2019, the Company has received a demand order from Haryana State Industrial and Infrastructure
Development Corporation Ltd (HSIIDC) over land enhancement cost for Company’s Bahadurgarh industrial plot in Sector
4B, HSIIDC Industrial estate, Footwear Park, Bahadurgarh, Haryana amounting to ' 1,438.82 lakhs and 12% interest
thereon, which was upheld by the Hon'ble Punjab and Haryana High Court (""High Court"") in 2020.

The Company contested the demand before Hon’ble Supreme Court of India which passed a stay order on enhancement
demands in November 2021 and referred back the case to Hon'ble Punjab and Haryana High Court (""High Court"").
Subsequently, HSIIDC issued a show cause notice dated 12 April 2022 with a demand of ' 1,152.17 lakhs towards the land
enhancement cost of plots. High Court in June 2022, ordered a fresh hearing and restrained all demands. The matter is still
pending before Hon'ble High Court of Punjab and Haryana.

In absence of any revised order, the Company has proposed to pay an amount of ' 335.05 lakhs for the applicable
enhanced cost towards portion of the plot within sector 4B and sector 17, in line with HSIIDC’s geographical demarcation.
Accordingly, the management based on their assessment in consultation with legal counsel believes that the maximum
liability that could be devolved on the Company would be ' 335.05 lakhs. Management has recorded the liability by
capitalising the said amount under “Property, plant and equipment” and corresponding increase in “Provision for
contingencies” in the financial statements.

*Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances)

The Company has saved custom duty amounting to ' 72.32 lakhs under zero duty export promotion capital goods(EPCG)
scheme on import of machinery in FY 2018-19, 2019-20 and 2022-23 . Under the said scheme the Company is required to fulfill
future export obligation amounting to '405.08 lakhs. The Company has not received any redemption letter during the year from
relevant authorities, which makes export obligation to the extent unexecuted as on 31 March 2025 remains ' 405.08 lakhs. In
case the Company fails to fulfill the export obligation then the Company shall be liable to pay the custom duty saved related to
unexecuted export obligation along with 15% interest per annum to the customs authority.

61. Skill development program under Deen Dayal Upadhyay - Gramm Kaushal Yojna (DDU-GKY)

The Company has entered into an memorandum of understanding to implement the skill development training programs under
DDU-GKY (Deen Dayal Upadhyay - Gramin Kaushal Yojna) project funded by ministry of rural development (MoRD) and
Haryana State Rural Livelihood Mission (HSRLM) on "no profit no loss basis". The objective of the project is to work for the
empowerment of the poor and for reduction in poverty by focusing on livelihoods of the poor and vulnerable sections of the
society in rural areas. Total estimated cost of the project is ' 483.14 lakhs. Total amount spent till 31 March 2025 was ' 416.09
lakhs (31 March 2024'286.14 lakhs), out of which ' 62.11 lakhs (31 March 2024'44.59 lakhs) is receivable.

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.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the funding party (ultimate beneficiaries) or

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

(g) The Company has not undertaken any transactions 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) .

(h) The Company has not been declared a 'willful defaulter' by any bank or financial Institution (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guildlines on willful defaulter issued by the Reserve
Bank of India.

(i) The Company has duly complied with the number of layers prescribed under clause (87) of section 2 of the act read with
the Companies (restriction on number of layers) rules, 2017.

(j) The borrowings obtained by the Company from banks have been applied for the purpose for which such loans were
taken.

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

(l) The Company has not filed for any Scheme of Arrangements that has been approved by the Competent Authority in terms
of sections 230 to 237 of the Companies Act, 2013.

(m) The Company has not granted Loans or Advances to promoters, directors, KMPs and the related parties (as defined under
Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand; or without
specifying any terms or period of repayment during the year. Also, there is no outstanding balance receivable from
promoters, directors, KMPs and the related parties as on 31 March 2025 for loan that are repayable on demand; or without
specifying any terms or period of repayment .

(n) The Company has been sanctioned working capital limits in excess of ' 500 lakhs, in aggregate, at points of time during the
year, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed
by the Company with such banks are in agreement with the books of account of the Company of the respective quarters .

(o) As per Section 128 of the Companies Act, 2013 read with proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014
with reference to use of accounting software by the Company for maintaining its books of account, has 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 change were made and ensuring that the audit trail cannot be disabled is applicable with effect
from the financial year beginning on 1 April 2023. Further the audit trail shall be preserved by the Company as per the
statutory requirements for record retention.

The Company, in respect of financial year commencing on 1 April 2024, has used an accounting software for maintaining
its books of account which have a feature of recording audit trail (edit log) facility and the same have been operated
throughout the year for all relevant transactions recorded in the software except that the audit trail feature was not enabled
at the database level for accounting software to log any direct data changes, used for maintenance of all accounting
records by the Company. Further, there were no instance of audit trail feature being tampered with and the audit trail has
been preserved by the Company as per the statutory requirements for record retention, other than the consequential
impact of the exception given above.

(p) Title deeds of all immovable properties owned by the Company under Property, Plant and Equipment are held in the
Company's name except for below mentioned property.

66 Recent pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,2025, MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to
the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

67 Previous year's figures have been regrouped/reclassified wherever necessary to conform to current year's grouping and
classifications. The impact of such reclassification/regrouping is not material to the financials statements.

68 The financial statements for the year ended 31 March 2025 were approved by the Board of director's on 15 May 2025.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors

Chartered Accountants Cantabil Retail India Limited

Firm's Registration No.: 001076N/N500013

Kartik Gogia Vijay Bansal Deepak Bansal

Partner Chairman and Managing Director Whole Time Director

Membership No.: 512371 DIN: 01110877 DIN: 01111104

Place: New Delhi Shivendra Nigam Poonam Chahal

Date: 15 May 2025 Chief Financial Officer Company Secretary

and Head Legal,
Membership No: F-9872