(k) Provisions
General

Provisions are recognised when the
Company has a present obligation (legal or
constructive) as a result of past events, it is
probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and a
reliable estimate can be made of the amount
of the obligation. Provisions are not
recognised for future operating losses. The
expense relating to any provision is
presented in the standalone statement of
profit and loss, net of any reimbursement.
Provisions are measured at the present value
of management's best estimate of the
expenditure required to settle the present
obligation at the end of the reporting period.
The discount rate used to determine the
present value is a pre-tax rate that reflects
current market assessments of the time
value of money and the risks specific to the
liability. The increase in the provision due to
the passage of time is recognised as part of
finance costs.

Warranty provisions

Provisions for warranty-related costs are
recognised when the product is sold to the
customer. Initial recognition is based on
actuarial valuation. The estimate of warranty
related costs is revised semi-annually as per
actuarial valuation.

(l) Contingent liability

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain
future events not wholly within the control
of the Company or a present obligation that
arises from past events but is not recognised
because it is not probable that an outflow
of resources embodying economic benefits
will be required to settle the obligation or
an amount of obligation cannot be measured
with sufficient reliability.

The Company does not recognise a
contingent liability but discloses its
existence in the standalone financial
statements.

(m) Cash and cash equivalents

Cash and cash equivalents in the standalone
balance sheet comprise cash at banks and
on hand and short-term deposits with
'original maturities' of three months or less,
which are subject to an insignificant risk of
changes in value.

'Funds in transit', which represent cash
collected from retail stores by the bank
which is yet to be credited to the bank
account, are considered as Cash and cash
equivalents as such amounts are readily
convertible to cash, there is an insignificant
risk of changes in value, and the lapse of time
is merely as a result of an administrative
settlement process.

For the purpose of the standalone statement
of cash flows, cash and cash equivalents
consist of cash on hand, balances with banks
and deposits with original maturities of three
months or less, net of outstanding bank
overdrafts, if any if they are considered an
integral part of the Company's cash
management.

(n) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument
of another entity.

Financial assetsRecognition and initial measurement

Financial assets are classified, at initial
recognition, as subsequently measured at
amortised cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing
them. With the exception of trade
receivables that do not contain a significant
financing component, the Company initially
measures a financial asset at its fair value
plus, in the case of a financial asset not at
fair value through profit or loss, transaction
costs. Trade receivables that do not contain
a significant financing component are
measured at the transaction price.

Financial assets at amortised cost (debt
instruments)

Financial assets at amortised cost are
subsequently measured using the effective
interest rate (EIR) method. Amortised cost
is calculated by taking into account any
discount or premium on acquisition and fees
or costs that are an integral part of the EIR.
The EIR amortisation is included in finance
income in the profit or loss. The losses arising
from impairment are recognised in the profit
or loss. The Company's financial assets at
amortised cost includes trade receivables,
cash and cash equivalents, other bank
balances and other financial assets.

Financial assets measured at fair value
through profit or loss

Assets that do not meet the criteria for
amortised cost or FVOCI are measured at

fair value through profit or loss. A gain or
loss on a debt instrument that is
subsequently measured at fair value through
profit or loss is recognised in profit or loss
and presented net within Other Income in
the period in which it arises. Interest income
from these financial assets is included in
other income.

Equity investment in subsidiaries

The Company recognises its investment in
subsidiaries at cost less any impairment
losses. The said investments are tested for
impairment whenever circumstances
indicate that their carrying values may
exceed the recoverable amount (viz. higher
of the fair value less costs of disposal and
the value in use).

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a group of
similar financial assets) is primarily
derecognised (i.e, removed from the
Company's standalone balance sheet) when:

- The rights to receive cash flows from the
asset have expired, or

- The Company has transferred its rights
to receive cash flows from the asset or
has assumed an obligation to pay the
received cash flows in full without
material delay to a third party under a
'pass-through' arrangement- and either

(a) the Company has transferred
substantially all the risks and rewards of
the asset, or (b) the Company has
neither transferred nor retained
substantially all the risks and rewards of
the asset but has transferred control of
the asset.

When the Company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement, it
evaluates if, and to what extent, it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards of

the asset, nor transferred control of the
asset, the Company continues to recognise
the transferred asset to the extent of the
Company's continuing involvement. In that
case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a
basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
mea sured at the lower of the ori gi na l
carrying amount of the asset and the
maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

The Company assesses on a forward-looking
basis the expected credit losses associated
with its assets carried at amortised cost and
FVOCI debt instruments. The impairment
methodology applied depends on whether
there has been a significant increase in credit
risk. Note 35 details how the Company
determines whether there has been a
significant increase in credit risk.

For trade receivables only, the Company
applies the simplified approach required by
Ind AS 109, which requires expected lifetime
losses to be recognised from initial
recognition of the receivables.

Offsetting of financial instruments

Financial assets and financial liabilities are
offset and the net amount is reported in the
standalone balance sheet if there is a
currently enforceable legal right to offset the
recognised amounts and there is an intention
to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

(o) Non-current assets held for sale

Non-current assets are classified as held for
sale if their carrying amount will be
recovered principally through a sale
transaction rather than through continuing
use and a sale is considered highly probable.

They are measured at the lower of their
carrying amount and fair value less costs to
sell.

Non-current assets are not depreciated
while they are classified as held for sale.

(p) Government grants

Export benefits in the form of duty
drawback, duty entitlement pass book
(DEPB) and other schemes are recognised
in the Standalone Statement of Profit and
Loss when the right to receive credit as per
the terms of the scheme is established in
respect of exports made and when there is
reasonable assurance that the grant will be
received and the Company will comply with
all the attached conditions.

2. Critical estimates and judgements

The preparation of financial statements requires
the use of accounting estimates which, by
definition, will seldom equal the actual results.
Management also needs to exercise judgement
in applying the Company's accounting policies.

Estimates and judgements are continually
evaluated. They are based on historical
experience and other factors, including
expectations of future events that may have a
financial impact on the Company and that are
believed to be reasonable under the
circumstances.

This note provides detailed information of the
areas that involved a higher degree of judgement
or complexity, and of items which are more likely
to be materially adjusted due to estimates and
assumptions turning out to be different than
those originally assessed.

The areas involving critical estimates or
judgements are:

i. Defined benefit plans

The cost of the defined benefit gratuity plan
and other post-employment defined
benefits (Provident Fund) are determined
using actuarial valuations. An actuarial
valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to
the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in
these assumptions. All assumptions are
reviewed at each reporting date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans, the management
considers the interest rates of government
bonds in currencies consistent with the
currencies of the post-employment benefit
obligation. The underlying bonds are further
reviewed for quality.

The mortality rate is based on publicly
available mortality tables for the specific
countries. Those mortality tables tend to
change only at interval in response to
demographic changes. Future salary
increases and gratuity increases are based
on expected future inflation rates.

Further details about defined benefit
obligations are given in note 28.

ii. Determination of lease term

In determining the lease term, management
considers all facts and circumstances that
create an economic incentive to exercise an
extension option, or not exercise a
termination option. Extension options (or
periods after termination options) are only
included in the lease term if the lease is
reasonably certain to be extended (or not
terminated).

For leases of offices, warehouses and retail
stores, the following factors are normally the
most relevant:

- If there are significant penalty payments
to terminate (or not extend), the
Company is typically reasonably certain
to extend (or not terminate).

- If any leasehold improvements are
expected to have a significant remaining

value, the Company is typically
reasonably certain to extend (or not
terminate).

- Otherwise, the Company considers
other factors including the costs and
business disruption required to replace
the leased asset.

Most extension options in above leases have
been included in lease liabilities, because the
lease is reasonably certain to be extended.

iii. Useful lives of property, plant and
equipment

Useful life is determined by the management
based on a technical evaluation considering
nature of asset, past experience, estimated
usage of the asset, vendor's advice etc and
same is reviewed at each financial year end.

iv. Net Realisable value of inventory

The Company has defined policy for
provision on inventory based on obsolete,
damaged and slow moving inventories. The
Company provides provision based on
policy, past experience, current trend and
future expectations of these materials
depending on the category of goods.

3. New and amended standards

New and amended standards adopted by the
Company

The Ministry of Corporate Affairs vide
notification dated 7^th May 2025 and 13^th August
2025 notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025 and
Companies (Indian Accounting Standards)
Second Amendment Rules, 2025, respectively,
which amended certain accounting standards
(see below), and are effective for annual
reporting periods beginning on or after 1^st April
2025:

(a) Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants - Amendments to Ind AS 1

The amendment relates to classification of
liabilities as current or non-current and non¬
current liabilities with covenants. In the

context of classifying a liability as current, it
removes the requirement of existence of a
right to defer settlement for at least 12
months after the reporting date and instead
requires that the said right should exist on
the reporting date and have substance. The
amendment also introduces guidance on
classification of liabilities with covenants.
The Company has no impact of these
amendments in its classification criteria of
current and non-current liabilities.

(b) Supplier Finance Arrangements -
Amendments to Ind AS 7 and Ind AS 107

The amendment in Ind AS 7 requires to
inform users of standalone financial
statements of the existence of supplier
finance arrangements and explain the nature
of the arrangements, the carrying amount
of liabilities and the range of payment due
dates. Ind AS 107 has been amended to add
supplier finance arrangements as a factor
that may cause concentration of liquidity
risk. The Company has reviewed the
amendment and based on its evaluation has
determined that it does not have any impact
in its standalone financial statements.

(c) International Tax Reform - Pillar Two Model
Rules - Amendments to Ind AS 12

The Company has reviewed the model rules
and based on the current assessment, it does
not expect a financial impact from the
application of Pillar Two Model Rules.

(d) Lack of Exchangeability - Amendments to
Ind AS 21

The amended Ind AS 21 have added
requirements to help entities to determine
whether a currency is exchangeable into
another currency, and the spot exchange
rate to use where it is not.

These amendments did not have any
material impact on the amounts recognised
in prior periods and are not expected to
significantly affect the current or future
periods.

New standards or amendments not yet
adopted

Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with
Covenants - Amendments to Ind AS 1 - This
amendment also includes specific provisions
that will take effect for reporting periods
beginning on or after 1^st April 2026, as
outlined below.

Under the existing Ind AS 1, where there is a
breach of a material provision of a long-term
loan arrangement on or before the end of
the reporting period with the effect that the
liability becomes payable on demand on the
reporting date, the entity does not classify
the liability as current, if the lender agreed,
after the reporting period and before the
approval of the standalone financial
statements for issue, not to demand
payment as a consequence of the breach.

However, the amended requirements
stipulate that entities will no longer be
permitted to consider lender waivers that
are granted after the reporting date but
before the financial statements are approved
for the purpose of classification of loans. This
amendment is required to be applied
retrospectively in accordance with Ind AS
8.

The Company does not expect this
amendment to have material impact on its
operations or standalone financial
statements.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.

Variable lease payments

Some store leases contain variable payment terms that are linked to sales generated from such stores. For some
individual stores, up to 100% of lease payments are on the basis of variable payment terms with percentages
generally ranging from 5% to 20% of sales. Variable payment terms are used for a variety of reasons, including
minimising the fixed costs base for newly established stores. Variable lease payments that depend on sales are
recognised in profit or loss in the year in which the condition that triggers those payments occurs.

A 10% increase in sales across all stores in the Company with such variable lease contracts would increase total
lease payments by approximately INR 7.23 million (31st March 2025: INR 13.37 million).

Extension and termination options

Extension and termination options are included in a number of property leases of the Company. These are used to
maximise operational flexibility in terms of managing the assets used in the Company's operations. The majority of
extension and termination options held are exercisable only by the Company and not by the respective lessor.

Expenses relating to short-term leases (included in other expenses) (refer note 25) and expenses relating to variable
lease payments not included in lease liabilities (included in other expenses) (refer note 25) were INR 869.22 million
(31st March 2025: INR 875.65 million) and INR 90.52 million (31st March 2025: INR 132.75 million) respectively.

28 Employee benefit obligations
a. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn salary per month computed proportionately as per the
Payment of Gratuity Act, 1972 for 15 days salary multiplied for the number of years of service. The gratuity
scheme is primarily funded through the Company's own trust with certain employee categories covered under
an unfunded arrangement.

The following tables summarise the components of net benefit expense recognised in the standalone statement
of profit and loss and the funded status and amounts recognised in the standalone balance sheet for the
gratuity plan:

c. Provident fund

Provident fund benefits provided under plan wherein contributions are made to an irrevocable trust set up by
the Company to manage the investments and distribute the amounts entitled to employees are treated as a
defined benefit plan as the Company is obligated to provide the members a rate of return which should, at the
minimum, meet the interest rate declared by Government administered provident fund. A part of the Company's
contribution is transferred to Government administered pension fund. The contributions made by the Company
and the shortfall of interest, if any, are recognised as an expense in standalone statement of profit and loss
under employee benefits expense. In accordance with an actuarial valuation of provident fund liabilities based
on guidance issued by Actuarial Society of India and based on the assumptions as mentioned below, there is
no deficiency in the interest cost as the present value of the expected future earnings of the fund is greater
than the expected amount to be credited to the individual members based on the expected guaranteed rate of
interest of Government administered provident fund.

Risk Exposures for defined benefit obligation- Gratuity

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the
value of the liability.

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may
arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets
not being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan's liability.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act,
1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts
(e.g. Increase in the maximum limit on gratuity).

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of
assets, exposing the Company to market risk for volatilities/fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any
particular investment.

The category wise brief description of major contingent liabilities has been given below:

Excise, customs and service tax: The claim for excise duty pertain to demand in respect of concessional duty
on sale of goods in domestic tariff area. The customs demand pertain to non-availability of concessional duty
in respect of import of moulds and the service tax demand relate to restriction on availment of credit on
certain input services.

Sales tax and entry tax: The claim pertains to levy of interest on delay in payment of taxes.

Employee state insurance: The claim pertains to demand by the department for payment of contributions for
the period during which the Company had applied for exemption before the concerned authority.

Note:

(a) It is not practicable for the Company to estimate the timing of cash outflow, if any, in respect of the above
pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

B Commitments

Estimated amount of contracts remaining to be executed for capital expenditure and not provided for amounting
to INR 393.94 million (31st March 2025 INR 361.51 million).

30 Fair value measurements

The carrying amount of financial assets and liabilities are considered to be same as their fair values.

31 Capital Management

The Company's objective when managing capital is to safeguard its ability to continue as a going concern and to
maintain an optimal capital structure so as to maximize shareholder value. In order to maintain or achieve an
optimal capital structure, the Company may adjust the amount of dividend payment, return capital to shareholders,
issue new shares or buy back issued shares. As at 31st March 2026, the Company has only one class of equity shares
and has no borrowings from banks or financial institutions. Consequent to the above capital structure, there are no
externally imposed capital requirements

The Company has agreed to ensure appropriate financial support only if and to the extent required by its
subsidiary - Way Finders Brands Limited.

Terms and Conditions:

Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.

The loan to subsidiary is repayable on demand at interest rates of 8% per annum (31st March 2025- 8% per
annum).

Goods were sold to related parties during the year based on the price lists in force and terms that would be
available to third parties. Management services were rendered to the group companies on a cost-plus basis,
allowing a margin ranging from 8% to 15% (31st March 2025 - 8% to 15%). All other transactions were made on
normal commercial terms and conditions and at market rates.

All outstanding balances are unsecured and receivable / payable in cash except supplier advances.

35 Financial risk management objectives and policies

The Company's principal financial liabilities comprise trade and other payables, lease liabilities and liabilities towards
license rights. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include investments, loans, security deposits, bank deposits, trade and other receivables,
and cash and cash equivalents that it derives directly from its operations.

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance.

The Company's risk management is predominantly controlled by a central treasury department under policies
approved by the Board of Directors. Central treasury identifies, evaluates and hedges financial risks in close co¬
operation with the Company's operating units. The Board provides written principles for overall risk management,
as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative
financial instruments and non-derivative financial instruments, and investment of excess liquidity.

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. The primary market risk to the Company is foreign
exchange risk. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is
denominated in a foreign currency) primarily with respect to USD and EURO.

The Company manages foreign currency risk by hedging its transactions using foreign currency forward
contracts. The foreign exchange forward contracts are not designated as cash flow hedges, and are entered
into for periods consistent with foreign currency exposure of the underlying transactions. The Company's
exposure to unhedged foreign currency risk as at 31st March 2026 and 31st March 2025 has been disclosed as
below:

B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables and deposits to landlords) and from its investing activities, including deposits with banks
and financial institutions, investment in mutual funds, foreign exchange transactions and other financial
instruments.

a) Trade receivables

Sales to retail customers are required to be settled in cash or using major credit cards, mitigating credit
risk. There are no significant concentrations of credit risk, whether through exposure to individual customers,
specific industry sectors and/or regions. For non-retail customers, the Company assesses the credit quality
of the customer, taking into account its financial position, past experience and other factors. Individual
risk limits are set based on internal or external ratings by the management. The compliance with credit
limits by customers is regularly monitored by line management.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk
characteristics and the days past due. The calculation is based on historical data. The maximum exposure
to credit risk at the reporting date is the carrying value of each class of financial assets. The credit risk to
the Company is limited in cases of retail sales since they are in nature of cash and carry and for non-retail
sales, the Company's exposure to customers is diversified and there is no concentration of credit risk with
respect to any particular customer.

b) Loans and other financial assets

With regards to all the financial assets with contractual cashflows other than trade receivables, management
believes these to be high quality assets with negligible credit risk. The management believes that the
parties from which these financial assets are recoverable, have strong capacity to meet the obligations
and where the risk of default is negligible. The maximum exposure to credit risk at the reporting date in
each class of financial assets is disclosed in note 5, 10 and 11.

C) Liquidity risk

The Company's principal source of liquidity is cash and cash equivalents and the cash flow that is generated
from operations. The Company has no outstanding bank borrowings. The Company believes that the working
capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As at 31st March 2026, the Company had a working capital of INR 6,793.79 million (31st March 2025: 7,720.21
million) including cash and cash equivalents of INR 89.82 million (31st March 2025: 2,001.22 million).

36 Segment Reporting

Segment information is presented in respect of the Company's key operating segments. The operating segments
are based on the company's management and internal reporting structure.

Operating Segments

(a) The Company's Managing Director & CEO has been identified as the Chief Operating Decision Maker ('CODM'),
since he is responsible for all major decision with respect to the preparation and execution of business plan,
preparation of budget and other key decisions.

The Managing Director & CEO reviews the operating results at the company level to make decisions about the
Company's performance. Accordingly, management has identified the business as single operating segment
i.e. Footwear & Accessories. Accordingly, there is only one reportable segment for the Company which is
"Footwear and Accessories”, hence no specific disclosures have been made.

(b) The non-current assets of the Company are located in the country of domicile i.e. India. Hence no specific
disclosures have been made.

(c) There are no major customer having revenue greater than 10% of turnover of the Company.

38 Additional regulatory information required by Schedule III to the Act:

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any benami property.

(ii) The Company has not been declared as wilful defaulter by any bank or financial Institution or government or
any government authority.

(iii) The Company has complied with the number of layers prescribed under the Act.

(iv) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(v) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries),
with the understanding (whether recorded in 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 the Company (Ultimate Beneficiaries) or

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

(vi) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding
Parties), 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
("Ultimate Beneficiaries”) by or on behalf of the Funding Party or

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

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

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

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

(x) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period except for below-

The Company had entered into a Development Agreement with Riverbank Developers Pvt. Ltd. (RDPL) in
2010 pursuant to which certain land was contributed by the Company for the development of housing
apartments. RDPL obtained a loan of INR 3,000 million against the land from Housing Development Finance
Corporation Limited ("HDFC Limited”). A charge of INR 3,000 million was created in favour of HDFC, under
the said agreement and the same is still appearing in the records of ROC, West Bengal. The said charge is not
yet satisfied due to the non receipt of the appropriate documents from HDFC Limited/RDPL.

(xi) The Company has not been sanctioned any working capital limits from its banks or financial institutions on the
basis of security of current assets.

(xii) Title deeds of immovable properties not held in the name of the Company:

39 Exceptional items

Exceptional items are those which are considered for separate disclosure in the financial statements considering
their size, nature or incidence.

Expense towards VRS: During the year ended 31st March 2025, the Company implemented a voluntary retirement
scheme ("VRS”) at one of its manufacturing units, incurring an expense of INR 107.84 million, which was disclosed
as an exceptional item. Subsequently, during the year ended 31st March 2026, an additional expenditure of INR
47.78 million was incurred relating to the same scheme, along with INR 280.60 million incurred for a separate VRS
introduced at the same manufacturing unit, out of which INR 139.30 million is payable as at 31st March 2026.
Furthermore, a separate VRS was introduced at another manufacturing unit, resulting in an expenditure of INR
95.28 million during the year ended 31st March 2026. This expense has also been disclosed as an exceptional item.

Impact of labour codes: On 21st November, 2025, the Government of India notified the provisions of the Code on
Wages, 2019, the Industrials Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety,
Health and Working Conditions Code, 2020, (together referred to as the 'Labour Codes') which consolidates twenty-
nine existing labour laws into a unified framework governing employee benefits during employment and post¬
employment. The Labour Codes amongst other things introduces changes, including a uniform definition of wages
and enhanced benefits relating to leave. The Company has assessed the financial implications of these changes
which has resulted in increase in gratuity liability and leave liability arising out of past service cost by INR 61.01
million and INR 5.65 million respectively. The Company continues to monitor the developments pertaining to Labour
Codes and will evaluate impact if any on the measurement of liability pertaining to employee benefits. This expense
has been disclosed as an exceptional item.

Gain on sale of land (net of related expenses): During the year ended 31st March 2025, the Board of Directors of
the Company approved the sale of the freehold industrial land to an unrelated party for a consideration of INR
1,560.00 million. The sale deed had been executed and the total consideration also received on the same date.
There was a gain on sale of aforesaid land (net of related expenses) of INR 1,339.52 million which had been disclosed
as an exceptional item.

40 Acquisition of license rights

During the year ended 31st March 2025, the Company had renewed a license agreement with Wolverine World
Wide, Inc. and has obtained exclusive rights to manufacture, sale, purchase, market and distribute Hush Puppies
footwear, apparel and accessories across India. As part of the license agreement, the Company is required to pay
royalty for the above rights including a minimum contractual royalty payable over the life of the agreement. The
Company has recognised "Licence Rights” under intangible assets at the present value of the minimum royalty
payable amounting to INR 2,577.95 million with a corresponding financial liability at the date of inception of the
agreement. The said asset is being amortised over the term of agreement.'

41 During the year ended 31st March 2026, the Company has reclassified below mentioned comparative figures which
are primarily to conform them to current year classifications. The amounts do not have any impact on profit or total
equity of the Company.

Reason for variance of more than 25%

1. Decrease in net profit ratio (%) and return on equity ratio (%) is due to exceptional items during the current
and previous year.

2. Decrease in trade receivables turnover ratio (in times) is due to change in timing of revenue recognition for a
specific category of sales, resulting in higher average trade receivables.

* Profit for the year Depreciation and amortisation expense Finance costs Allowance for doubtful debts and
other financial assets Allowance for loan and other financial assets in subsidiary (net of reversals) Loss on sale/
disposal of property, plant and equipment (net)

** Total equity non current lease liabilities

***Average of opening and closing other balances with banks, Deposits with original maturity of less than 3 months
and Deposits having remaining maturity of more than 12 months.

#Current assets- Current liabilities

## Cost of raw materials and components consumed Purchases of stock-in-trade Changes in inventories of
finished goods, stock-in-trade and work in progress

###Profit before tax Exceptional items Finance Costs - Other Income