3.16 Provisions, Contingent liabilities and Contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of
a past event, 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. The expense
relating to any provision is presented in the statement of profit or loss, net of any reimbursement. If the
effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as part of finance costs.

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable that an
outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely
rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The
Company does not recognize a contingent liability but discloses its existence in the financial statements.

The Company does not recognise contingent assets.

3.17 Dividend Distribution

Dividends paid (including income tax thereon) is recognized in the period in which the interim dividends
are approved by the Board of Directors, or in respect of the final dividend when approved by Shareholders.

3.18 Cash and cash equivalents

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

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding cash credit as they are considered an integral part of the
Company's cash management.

3.19 Financial instruments, Financial assets, Financial liabilities and Equity instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the
contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other
than financial assets and financial liabilities measured at fair value through profit or loss) are added to or
deducted from the fair value on initial recognition of financial assets or financial liabilities.

Financial assets
Recognition

Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and cash
equivalents. Such assets are initially recognized at transaction price when the Company becomes party
to contractual obligations. The transaction price includes transaction costs unless the asset is being fair

valued through the Statement of Profit and Loss. Investment in Subsidiary is carried at cost.
Classification

Management determines the classification of an asset at initial recognition depending on the purpose
for which the assets were acquired. The subsequent measurement of financial assets depends on such
classification. Financial assets are classified as those measured at:

a. amortised cost, where the financial assets are held solely for collection of cash flows arising from
payments of principal and/ or interest.

b. fair value through other comprehensive income (FVTOCI), where the financial assets are held not
only for collection of cash flows arising from payments of principal and interest but also from the sale
of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses
arising from changes in the fair value being recognized in other comprehensive income.

c. fair value through profit or loss (FVTPL), where the assets are managed in accordance with an
approved investment strategy that triggers purchase and sale decisions based on the fair value of
such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses
arising from changes in the fair value being recognized in the Statement of Profit and Loss in the
period in which they arise.

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for
measurement at amortised cost while investments may fall under any of the aforesaid classes.
However, in respect of particular investments in equity instruments that would otherwise be
measured at fair value through profit or loss, an irrevocable election at initial recognition may be
made to present subsequent changes in fair value through other comprehensive income.

Impairment

The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such
as investments, trade receivables, advances and security deposits held at amortised cost and financial
assets that are measured at fair value through other comprehensive income are tested for impairment
based on evidence or information that is available without undue cost or effort. Expected credit losses
are assessed and loss allowances recognized if the credit quality of the financial asset has deteriorated
significantly since initial recognition.

Reclassification

When and only when the business model is changed, the Company shall reclassify all affected financial
assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value
through other comprehensive income, fair value through profit or loss without restating the previously
recognized gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS
relating to Financial Instruments.

Derecognition

Financial assets are derecognized when the right to receive cash flows from the assets has expired, or has
been transferred, and the Company has transferred substantially all of the risks and rewards of ownership.
Concomitantly, if the asset is one that is measured at:

a. amortised cost, the gain or loss is recognized in the Statement of Profit and Loss;

b. fair value through other comprehensive income, the cumulative fair value adjustments previously
taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an
equity investment in which case the cumulative fair value adjustments previously taken to reserves

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Income Recognition

Interest income is recognized in the Statement of Profit and Loss using the effective interest method.
Dividend income is recognized in the Statement of Profit and Loss when the right to receive dividend is
established.

Financial Liabilities

Borrowings, trade payables and other financial liabilities are initially recognized at the value of the
respective contractual obligations. They are subsequently measured at amortised cost. Any discount or
premium on redemption / settlement is recognized in the Statement of Profit and Loss as finance cost
over the life of the liability using the effective interest method and adjusted to the liability figure disclosed
in the Balance Sheet. Financial liabilities are derecognized when the liability is extinguished, that is, when
the contractual obligation is discharged, cancelled or on expiry.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there
is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously.

Equity Instruments

Equity instruments are recognized at the value of the proceeds, net of direct costs of the capital issue.

4 Significant accounting judgments, estimates and assumptions

The preparation of standalone financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent liabilities at the date of the standalone financial statements
and the results of operations during the reporting period end. Although these estimates are based upon
management's best knowledge of current events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.

I Useful lives of property, plant and equipment and intangible assets

Management reviews the useful lives of property, plant and equipment and intangible assets at least
once in a year. Such lives are dependent upon an assessment of both the technical lives of the assets and
also their likely economic lives based on various internal and external factors including relative efficiency
and operating costs. Accordingly depreciable lives are reviewed annually using the best information
available to the Management.

II Actuarial Valuation

The determination of Company's liability towards employee benefits in the nature of gratuity and unpaid
leave balance is made through independent actuarial valuation including determination of amounts to
be recognized in the Statement of Profit and Loss and in other comprehensive income. Such valuation
depend upon assumptions determined after taking into account inflation, seniority, promotion and other
relevant factors such as supply and demand factors in the employment market. Information about such
valuation is provided in notes to the standalone financial statements.

16.3 During the year ended 31st March 2019, the Company had issued 4,417 equity shares of ' 10 each on exercise
of employee stock options. For details refer Note 43.

16.4 During the previous year, the Company had issued 4,08,768 fully convertible equity share warrants at ' 365
each on a preferential basis to one Promoter and two Non-Promoters. The said warrants were convertible into
fully paid-up equity shares of ' 10 at a premium of ' 355 each. Pursuant to the issue, the promoter had paid
' 60.00 millions in full towards 1,64,384 share warrants which were then duly converted into an equivalent
number of equity shares. The remaining 2,44,384 share warrants were issued to two non-promoters and were
outstanding for conversion as on 31st March 2024. Subsequently, the said warrants were converted during
the current financial year and 1,64,384 and 80,000 equity shares were issued on 29th May 2024 and 19th July
2024 respectively.

16.5 Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of Equity Shares having a face value of ' 10/- per share. Each shareholder is eligible
for one vote per share held. The Dividend proposed by the Board of Directors is subject to the approval of the
Shareholders in the Annual General Meeting, except in case of Interim Dividend. In the event of liquidation,
the Equity shareholders are eligible to receive the remaining assets of the Company after distribution of all
preferential amounts, in proportion to their shareholding.

18.2 Nature of Security of Term Loans from Banks

1 Primary security - Hypothecation charge on inventory, receivables and all other current assets of the
Company, both present and future, on second pari-passu basis with other working capital member
banks under the consortium.

Collateral security - Equitable mortgage of properties at Serampore, Salt Lake, KG Road, Bangalore and
Civil Station, Bangalore on second pari-passu basis with other working capital members banks under the
consortium, lien on fixed deposit on second pari-passu basis, and equitable mortgage of properties at
Kasba and Gariahat

2 Primary security - Same as State Bank of India Term loan (Refer Note 1 above).

Collateral security - Equitable mortgage of properties at Serampore, Salt Lake, KG Road, Bangalore
and Civil Station, Bangalore, and lien on fixed deposit on pari-passu basis with other working capital
members banks under the consortium, equitable mortgage of properties at Chandannagar, Rashbehari
Avenue and Madhyamgram.

3 First charge on specific immovable and movable property, plant and equipment of the company and
personal guarantee of promoter.

19.2 (i) The Company has recognised expenses of ' 62.45 millions (Previous year - ' 55.11 millions) in relation to

short-term leases and recorded as 'Rent expenses' and 'Commission and Discount expenses' of ' 59.36
millions and ' 3.09 millions respectively for the year ended 31st March 2025 under 'Other Expenses' in
Note 33.

19.2 (ii) The Company has recognised expenses of ' 2.73 millions (Previous Year - ' 3.08 millions) as variable lease

payment for commissioned outlets and ' Nil (Previous Year - ' 0.36 millions) for leased outlet for the year
ended 31st March 2025 and recorded as 'Commission and Discount' under Other Expenses in Note 33.

The Company has also recognised expenses of ' 4.71 millions (Previous Year - ' 4.71 millions) as variable
lease payment on account of Solar Power generated for the year ended 31st March 2025 and recorded
as 'Power & Fuel'' under Other Expenses' in Note 33.

22.1 Nature of Security of Cash Credit and Working Capital Demand Loans from Banks

1 Primary security - Hypothecation charge on inventory, receivables and all other current assets of the
Company, both present and future, on pari-passu basis with other working capital member banks under
the consortium.

Collateral security - Equitable mortgage of properties at Serampore, Salt Lake, KG Road, Bangalore
and Civil Station, Bangalore, and lien on fixed deposit on pari-passu basis with other working capital
members banks under the consortium, equitable mortgage of property at Kasba and Gariahat, personal
guarantee of promoter and corporate guarantee of group company.

2 Primary security - Same as State Bank of India Cash Credit (Refer Note 1 above).

Collateral security - Equitable mortgage of properties at Serampore, Salt Lake, KG Road, Bangalore
and Civil Station, Bangalore, and lien on fixed deposit on pari-passu basis with other working capital
members banks under the consortium, equitable mortgage of property at Howrah, lien on fixed deposit,
personal guarantee of promoter and corporate guarantee of group company.

3 Primary security - Same as State Bank of India Cash Credit (Refer Note 1 above).

Collateral security - Equitable mortgage of properties at Serampore, Salt Lake, KG Road, Bangalore and
Civil Station, Bangalore, and lien on fixed deposit on pari-passu basis with other working capital members
banks under the consortium, equitable mortgage of properties at Chandannagar, Rashbehari Avenue
and Madhyamgram, personal guarantee of promoter and corporate guarantee of group company.

4 Primary security - Same as State Bank of India Cash Credit (Refer Note 1 above).

Collateral security - Equitable mortgage of properties at Serampore, Salt Lake, KG Road, Bangalore
and Civil Station, Bangalore, and lien on fixed deposit on pari-passu basis with other working capital
members banks under the consortium, personal guarantee of promoter and corporate guarantee of
group company.

35 Discontinued operations

The Board of Directors of the Company, at its meeting dated 29th September 2023, had approved a Scheme
of Arrangement between Khadim India Limited (KIL) and KSR Footwear Limited (KFL) and their respective
shareholders and creditors under sections 230 to 232, 66 and other relevant provisions of the Companies Act,
2013. Pursuant to the Scheme, KIL shall demerge its distribution business, as a going concern, into KFL. Post
the Scheme becoming effective, the existing paid up equity share capital i.e., ' 1,00,000/- divided into 10,000
equity shares of face value ' 10/- each of KFL shall stand reduced and cancelled pursuant to section 66 and
other applicable provisions of the Companies Act, 2013 and KFL will issue 1 (one) equity share of face value
of ' 10/- each fully paid up for every 1 (one) equity share of face value ' 10/- each fully paid up held by equity
shareholders of KIL. KFL will reflect a mirror shareholding as that of KIL and thereafter it will function as an
independent listed Company. The Hon'ble National Company Law Tribunal, Kolkata Bench (NCLT), vide Order
dated 27 March, 2025, has sanctioned the Scheme of Arrangement. Accordingly the Appointed Date and
Effective Date of the Scheme is 1st April 2025 and 1st May 2025 respectively.

41 Employee Benefits

The Company has recognized, in the Statement of Profit and Loss for the year ended 31st March 2025 an
amount of ' 22.88 millions (Previous Year - ' 22.67 millions) as expenses under defined contribution plans
(Employer's Contribution to Provident and Other Funds) under Note 31.

41.1 Defined Benefit Plan
Description of Plans

The employees' gratuity fund scheme is managed by Life Insurance Corporation Of India (LICI) as a defined
benefit plan. The present value of obligation is determined by actuarial valuation using the Projected Unit
Credit Method , which recognizes each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.

Risk Management

The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of investment risk, interest
rate risk and salary cost inflation risk.

Investment Risks: This may arise from volatility in asset values due to market fluctuations and impairment of
assets due to credit losses. These Plans primarily invest in debt instruments such as Government securities and
highly rated corporate bonds - the valuation of which is inversely proportional to the interest rate movements.

Interest Rate Risk: The present value of Defined Benefit Plans liability is determined using the discount rate
based on the market yields prevailing at the end of reporting period on Government Bonds. Decrease in yields
will increase the fund liabilities and vice-versa.

Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference
to the future salaries of participants under the Plan. Increase in salary due to adverse inflationary pressures
might lead to higher liabilities.

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

X. Sensitivity Analysis

The sensitivity analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation.
While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely
change in isolation and the asset value changes may offset the impact to some extent. For presenting the
sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the
Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in
the preparation of the Sensitivity Analysis from previous year.

42.1 Refer Note 22.1 in respect of guarantees given for loans taken by the Company.

42.2Post employment benefits are actuarially determined on overall basis and not included above.

42.3Mr.Siddhartha Roy Burman was re-designated from 'Chairman and Managing Director' to 'Managing Director'
on 29 September 2024 and then to 'Executive Chairman' on 1st April 2025.

42.4 Mr.Rittick Roy Burman was re-designated from 'Wholetime Director' to 'Managing Director' on 1st April 2025.

42.5Prof.(Dr.) Surabhi Banerjee was re-designated from 'Non-Executive Independent Director' to 'Chairperson,
Independent Director' on 29th September 2024 and then to 'Non-Executive Independent Director' on
31st March 2025

42.6Mrs.Upma Mukherjee was re-designated from “Non-Executive Non-Independent Director” to "Non-Executive
Independent Director” of the Company on 1st April 2025

42.7 Mr.Indrajit Chaudhuri was re-designated from 'Chief Financial Officer' to Group Chief Financial Officer' on 29th
September 2024

42.8 Mr.Abhijit Dan was re-designated from 'Company Secretary and Head Legal' to 'Group Company Secretary
and Head Legal' on 29th September 2024.

C Financial risk management objectives

The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity
risk. The Company's financial risk management process seeks to enable the early identification, evaluation
and effective management of key risks facing the business. Backed by strong internal control systems, the
current risk management framework rests on policies and procedures issued by appropriate authorities;
process of regular reviews to set appropriate risk limits and controls; monitoring of such risks and compliance
confirmation for the same.

Interest rate risk

As majority of the financial assets and liabilities of the Company are either non-interest bearing or fixed
interest bearing instruments, the Company's net exposure to interest risk is negligible.

Price risk

The Company invests its short term funds primarily in debt mutual fund. Accordingly, these do not pose any
significant price risk.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial
assets and liabilities. The Company consistently generated strong cash flows from operations by ensuring
timely collections of its trade receivables and this together with the available cash and cash equivalents
provides adequate liquidity in short terms as well in the long term.

Credit Risk

The Company's customer base is diverse limiting the risk arising out of credit concentration. Further, credit
is extended in business interest in accordance with guidelines issued centrally and business-specific credit
policies. All overdue customer balances are evaluated taking into account the age of the dues, specific credit
circumstances, the track record of the counterparty etc. Loss allowances and impairment are recognized,
where considered appropriate by responsible management.The Company has adopted a simplified approach
by computing the expected credit loss allowance for trade receivables based on a provision matrix taking into
account historical credit loss experience.

Of the trade receivables balance at the end of the year, no dues from any one customer exceeded 20 per cent
of gross financial assets. The Company does not have significant credit risk exposure to any single counterparty
or any group of counterparties having similar characteristics.

Foreign currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro and Pound
Sterling) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated
in foreign currency are also subject to reinstatement risks.

The aforesaid contracts have a maturity of less than 1 year from the year end.

45 Fair value measurement
Fair value hierarchy

Fair value of the financial instruments is classified in various hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability,
either directly (i.e.as prices) or indirectly (i.e. derived from prices)

The fair value of financial instruments that are not traded in an active market is determined using market
approach and valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2.

Level 3: Inputs for the assets and liabilities that are not based on observable market data (unobservable
inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined
using generally accepted pricing models based on a discounted cash flow analysis, with the most significant
inputs being the discount rate that reflects the credit risk of counterparty.

The fair value of trade receivables, current investments, trade payables, other current financial assets and
liabilities and short-term borrowings are considered to be equal to the carrying amounts of these items due
to their short-term nature and accordingly not included in the below table. Where such items are Non-current
in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis.
Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or
if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of
fair value.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company
has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no
transfers between Level 1 and Level 2 during the year.

47 In respect of borrowings from banks on the basis of security of current assets, there are no material discrepancies
between the quarterly returns or statements of current assets filed by the Company with banks and the books
of account.

49 The financial statements were approved for issue by the Board of Directors on 20th May 2025.

50 Previous year's figures have been regrouped/rearranged wherever necessary to make them comparable with
those of current year.

For and on behalf of Board of Directors

Siddhartha Roy Burman Rittick Roy Burman

Executive Chairman Managing Director

DIN: 00043715 DIN: 08537366

Abhijit Dan Indrajit Chaudhuri

Place: Kolkata Group Company Secretary & Head - Legal Group Chief Financial Officer

Date: 20^th May 2025 Membership No.: ACS 21358 Membership No.:FCA 61162