(xi) Provisions (other than employee
benefits)

A provision is recognized if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
determined by discounting the expected future
cash flows (representing the best estimate of the
expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The unwinding of the discount is recognised as
finance cost. Expected future operating losses are
not provided for.

Decommissioning liability

Decommissioning costs are provided at the present
value of expected costs to settle the obligation using
estimated cash flows and are recognised as part of
the cost of the particular asset. The cash flows are
discounted at a current pre-tax rate that reflects the
risks specific to the decommissioning liability. The

unwinding of the discount is expensed as incurred
and recognised in the statement of profit and
loss as a finance cost. The estimated future costs
of decommissioning are reviewed annually and
adjusted as appropriate. Changes in the estimated
future costs or in the discount rate applied are added
to or deducted from the cost of the asset.

Contingencies

Provision in respect of loss contingencies relating to
claims, litigation, assessment, fines, penalties, etc.
are recognized when it is probable that a liability has
been incurred, and the amount can be estimated
reliably.

(xii) Operating segments

Operating segments are defined as components
of an entity where discrete financial information is
evaluated regularly by the chief operating decision
market (“CODM”) in deciding allocation of resources
and in assessing performance. The Board of Director’s
is its CODM. The Company’s CODM reviews financial
information presented on a consolidated basis for the
purposes of making operating decisions, allocating
resources, and evaluating financial performance. As
such, the Company has determined that it operates
in one operating and reportable segment.

(xiii) Employee benefits

Short-term employee benefits

Short-term employee benefit are measured on an
undiscounted basis and are expensed as the related
service is provided. A liability is recognised for the
amount expected to be paid e.g. under short-term
cash bonus, 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
amount of obligation can be estimated reliably.

Share-based payment transactions

The grant date fair value of equity settled share-
based payment awards granted to employees is
generally recognised as an employee expense, with
a corresponding increase in equity, over the vesting
period of the awards. The amount recognised as an
expense is based on the estimate of the number of
awards for which the related service and non-market
vesting conditions are expected to be met, such that
the amount ultimately recognised as an expense is
based on the number of awards that do meet the
related service and non-market conditions at the
vesting date. For share-based payment awards with
non-vesting conditions, the grant date fair value of
the share-based payment is measured to reflect such
conditions and there is no true-up for differences
between expected and actual outcomes.

Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays specified
contributions to a separate entity and has no
obligation to pay any further amounts. The Company
makes specified monthly contributions towards
Government administered provident fund scheme.
The Company’s contribution is recognized as an
expense in the Statement of Profit and Loss during
the period in which the employee renders the related
service.

Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in future
payments is available.

Defined benefit plans

A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The
Company’s gratuity benefit scheme is a defined
benefit plan. The Company’s net obligation in respect
of a defined benefit plan is calculated by estimating
the amount of future benefit that employees have
earned in return for their service in the current and
prior periods; that benefit is discounted to determine
its present value. The fair value of plan assets is
reduced from the gross obligation under the defined
benefit plans, to recognise the obligation on net
basis. The calculation of the Company’s obligation is
performed annually by a qualified actuary using the
projected unit credit method.

Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return
on plan assets (excluding interest), are recognised
in OCI. The Company determines the net interest
expense (income) on the net defined benefit liability
(asset) for the period by applying the discount rate,
determined by reference to market yields at the
end of the reporting period on government bonds,
used to measure the defined benefit obligation at
the beginning of the annual period to the then-net
defined benefit liability (asset), taking into account
any changes in the net defined benefit liability
(asset) during the period as a result of contributions
and benefit payments. Net interest expense and
other expenses related to defined benefit plans are
recognised in statement of profit and loss.

When the benefits of a plan are changed or when
a plan is curtailed, the resulting change in benefit
that relates to past service (‘past service cost’ or ‘past
service gain’) or the gain or loss on curtailment is
recognised immediately in statement of profit and
loss. The Company recognises gains and losses on
the settlement of a defined benefit plan when the
settlement occurs.

Other long-term employee benefits -
compensated absences

Accumulated absences expected to be carried
forward beyond twelve months is treated as long¬
term employee benefit for measurement purposes.
The Company’s net obligation in respect of other
long-term employee benefit of accumulating
compensated absences is the amount of future
benefit that employees have accumulated at the end
of the year. That benefit is discounted to determine
its present value. The obligation is measured annually
by a qualified actuary using the projected unit
credit method. Remeasurements are recognised in
statement of profit and loss in the period in which
they arise.

The obligations are presented as current liabilities
in the balance sheet if the Company does not have
an unconditional right to defer the settlement for at
least twelve months after the reporting date.

Termination benefits

Termination benefits are expensed at the earlier of
when the Company can no longer withdraw the offer
of those benefits and when the Company recognises
costs for a restructuring. If benefits are not expected
to be settled wholly within 12 months of the reporting
date, then they are discounted.

(xiv) Income taxes

Income tax comprises current and deferred tax. It is
recognised in statement of profit and loss except to
the extent that it relates to a business combination,
or an item recognised directly in equity or in Other
comprehensive income.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax payable or receivable is the best estimate of the
tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any. It
is measured using tax rates enacted or substantively
enacted at the reporting date.

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off
the recognised amounts, and it is intended to realise
the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets

and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is not
recognised for:

- temporary differences arising on the initial
recognition of assets or liabilities in a transaction
that is not a business combination and affects
neither accounting nor taxable profit or loss at
the time of the transaction;

- taxable temporary differences arising on the
initial recognition of goodwill.

Deferred tax is recognized based on the expected
manner of realization or settlement of the carrying
amount of assets and liabilities using tax rates
enacted, or substantially enacted at the reporting
period.

Deferred tax assets are recognized only to the extent
that is probable that future taxable profits will be
available against which the assets can be utilized.
Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer
probable that the related tax benefits will be realized.

Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend
to settle current tax liabilities and assets on a net
basis or their tax assets and liabilities will be realised
simultaneously.

(xv) Earnings per share

Basic earnings per share is calculated by dividing
the net profit (or loss) for the year attributable to
the equity shareholders by the weighted average
number of equity shares outstanding during the
year. The weighted average numbers of equity shares
outstanding during the year are adjusted for events
such as bonus issue and share split.

Diluted earnings per share is computed by dividing
the profit (considered in determination of basic
earnings per share) after considering the effect of
interest and other financing costs or income (net of
attributable taxes) associated with dilutive potential
equity shares by the weighted average number of
equity shares considered for deriving basic earnings
per share adjusted for the weighted average number
of equity shares that would have been issued upon
conversion of all dilutive potential equity shares.

(xvi) Cash and cash equivalents

Cash and cash equivalents in the 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.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash as defined
above, net of outstanding bank overdrafts as they are
considered an integral part of the Company’s cash
management.

(xvii) Cash flow statement

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expense associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

(xviii) Contingent liabilities

A contingent liability is a possible obligation that
arises from past events and 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
recognized because it is not probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation or the amount of
the obligation can not be measured with sufficient
reliability. The Company does not recognize a
contingent liability but discloses its existence in the
financial statements.

Contingent Assets

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

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

(xix) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorized and no
longer at the discretion of the entity, on or before
the end of the reporting period but not distributed
at the end of the reporting period. The final dividend

on shares is recorded as a liability on the date of
approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by
the Company's Board of Directors. Company declares
and pays dividends in Indian rupees. Companies are
required to pay/distribute dividend after deducting
applicable taxes.

(xx) Material accounting policy information

The Company adopted Disclosure of Accounting
Policies (Amendment to Ind AS 1) from 1 April
2023. Although the amendments did not result
in any changes in accounting policies themselves,
they impacted the accounting policy information
disclosed in the financial statements.

The amendments require the disclosure of ‘material”
rather than ‘significant’ accounting policies.
The amendments also provide guidance on the
application of materiality to disclosure of accounting
policies, assisting entities to provide useful, entity-

specific accounting policy information that users
need to understand other information in financial
statements.

(xxi) Recent Accounting 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. On 7^th May 2025,
MCA issued the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which made
certain amendments to Ind AS 21 The Effects
of Changes in Foreign Exchange Rates, effective
from 1 April 2025. These amendments define
currency exchangeability and include guidance on
estimating spot exchange rates when a currency is
not exchangeable. The Company does not expect
this amendment to have any significant impact on
its financial statements.

Aggregate number of shares issued for consideration other than cash during the period
of five years immediately preceding the reporting date:

During the five year ended 31 March 2025:

Bonus issues:

The shareholders of the Company at its general meeting held on 27 September 2019 approved the allotment
of bonus shares in the ratio of 1:1541 as on the record date of 27 September 2019 to each of the equity
shareholders of the Company. Subsequently, 14,99,87,071 Bonus Shares of 10 each amounting to INR 149.99
crore, were allotted on 26 October 2019 in the ratio of 1:1541 to the eligible equity shareholders^

Shares reserved for issue under options:

Information relating to the Company’s share based payment plans, including details of options issued,
exercised and lapsed during the financial year and options outstanding at the end of the reporting year, is set
out in note 41.

b. The Company had imported plant and
machinery in 2015-16 under EPCG scheme. An
export obligation ('EO') amounting to INR 2.39
crore was placed on the Company which was to
be fulfilled in a period of 8 years from the date
of Inspection of Licence. Duty saved under EPCG
Scheme amounting to INR 0.37 crore. During
the previous year, the Company has paid INR
0.01 crore along with interest of INR 0.02 crore
being the shortfall in meeting the obligation
with Directorate General of Foreign Trade and
closed this matter vide letter dated on 04 April
2024.

:. Pursuant to judgement by the Honourable
Supreme Court dated 28 February 2019, it
was held that basic wages, for the purpose of
provident fund, to include special allowances
which are common for all employees. However,
there is uncertainty with respect to the
applicability of the judgement and period from
which the same applies.

Owing to the aforesaid uncertainty and pending
clarification from the authorities in this regard,
the Company has not recognised any provision
till F.Y. 2018-2019. Further, management also
believes that the impact of the same on the
Company will not be material.

(ii) Defined benefit plan:

Gratuity

The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee
to receive 15 day's salary for each year of completed service at the time of retirement/exit.The present value of
obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognize
each period of service as giving rise to additional employee benefit entitlement and measures each unit
separately to build up the final obligation.

The most recent actuarial valuation of the present value of the defined benefit obligation for gratuity was
carried out as at 31 March 2025. The present value of the defined benefit obligations and the related current
service cost and past service cost, were measured using the Projected Unit Credit Method.

A. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the
gratuity plan and the amounts recognised in the Company’s financial information as at reporting date:

(a) The Company's borrowings have fair values
that approximate to their carrying amounts
as they are based on the net present value of
the anticipated future cash flows using rates
currently available for debts on similar terms,
credit risk and remaining maturities.

(b) The carrying amount of loans, trade receivables,
cash and cash equivalents, bank balances other
than those included in cash and cash equivalents,
other current financial assets, trade payable and
other current financial liabilities approximates
the fair values, due to their short term nature.

(c) The carrying value of non-current financial
assets and Other non-current financial liabilities
approximate the fair values as on the reporting
date, as these are carried at amortised cost
and are based on the net present value of the
anticipated future cash flows using applicable
discount rate.

(d) The carrying value of lease liabilities approximates
the fair values as on the reporting date, as these
are carried at amortised cost and are based on
the net present value of the anticipated future
cash flows using applicable discount rate.

There are no transfer between Level 1, Level 2 and
Level 3 during the year ended 31 March 2025 and
31 March 2024.

II. Financial risk management

Risk Management Framework

The Company's Board of directors has overall
responsibility for the establishment and oversight
of the Company's risk management framework and

also responsible for developing and monitoring the
Company's risk management policy.

The Company's risk management policies are
established to identify and analyse the risk faced
by the Company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed
regularly to reflect changes in market conditions
and the Company's activities. The Company,
through its training and management standards
and procedures, aims to maintain a disciplined
and constructive control environment in which all
employees understand their roles and obligations.
The Board of directors with top management oversee
the formulation and implementation of the risk
management framework. The risks are identified at
business unit level and mitigation plans are identified,
deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks
arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk"

i. Credit risk

Credit risk is the risk of financial loss to the Company if
a customer or counterparty to a financial instrument
fails to meet its contractual obligations resulting
in a financial loss to the Company. Credit risk arises
principally from trade receivables, loans, advances,
cash and cash equivalents and deposits with banks.
The carrying amounts of financial assets represent
the maximum credit risk exposure.

Trade receivables

The Company exposure to credit risk is influenced
mainly by the individual characteristics of each
customer. However, management also considers
the factors that may influence the credit risk of its
customer base, including the default risk of the
industry and country in which customers operate.

The management has established a credit policy
under which each new customer is analysed
individually for creditworthiness before the
standard payments and delivery terms and
conditions are offered. The average credit period
provided to customers varies from 0 to 90 days.
For new customers, in addition to feedback from

retail traders, they start doing the business with
Company on advance payment terms. Post a
business for 3 months and a successful payment
track record, the customers are then converted to
business with standard credit terms.

An impairment analysis is performed for all the
customers at each reporting date on an individual
basis. According to the analysis done, the Company
establishes an allowance for impairment that
represents its expected credit losses in respect of
trade and other receivables. The management
uses a simplified approach for the purpose of
computation of expected credit loss for trade
receivables. An impairment analysis is performed
at each reporting date.

Interest rate risk

Currently the Company's borrowings are within acceptable risk levels, as determined by the management,
hence the Company has not taken any swaps to hedge the 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 exposure to the risk changes in market interest relates
primarily to the Company’s long term debt obligations with floating interest rates. The Company is carrying its
borrowings primarily at variable rate.

Security deposits

The Company has furnished security deposits to its lessors for obtaining the premises on lease. The Company
considers that its deposits have low credit risk or negligible risk of default as the parties are well established
entities and have strong capacity to meet the obligations. Also, where Company expects that there is an
uncertainty in the recovery of deposit, it provides for suitable impairment on the same.

During the year, trade receivable with a contractual amount of INR 5.43 crore were written off (31 March 2024:
INR 5.44 crore) and the Company does not expect to receive future cash flows or recoveries from collection of
receivables previously written off. The Company's management also pursues all legal options for recovery of
dues, wherever necessary, based on its internal assessment.

The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience
and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the
days the receivables are due and the rates as per Company's policy.

For trade receivables balance from related parties, there are no indications at the period/year end for default in
payments. Accordingly, the Company does not anticipate risk of recovery and expected credit loss in respect
thereof.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
cash flow generated from operations to meet obligations when due and to close out market positions. Due
to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by
maintaining availability under committed credit lines.

iii. Market risk

Market risk is the risk that changes in market
prices such as foreign exchange rates will affect the
Company's income or the value of its holdings of
financial instruments. The objective of market risk
management is to manage and control market
risk exposures within acceptable parameters, while
optimising the return.

The Company’s business activities are exposed to a
variety of market risks, namely:

• Currency risk;

• Commodity risk

Currency risk

The Company is exposed to foreign currency risk
to the extent that there is a mismatch between
the currencies in which sales and purchases are
denominated and the functional currency of
the Company, hence exposure to exchange rate
fluctuations arises. The risk is that the functional
currency value of cash flows will vary as a result
of movements in exchange rates. The functional
currency of the Company is INR and the currency in
which these transactions are primarily denominated
is USD and CNY.

The Company is exposed to foreign currency risk
to the extent that there is a mismatch between
the currencies in which sales and purchases are
denominated and the functional currency of
the Company, hence exposure to exchange rate
fluctuations arises. The risk is that the functional
currency value of cash flows will vary as a result
of movements in exchange rates. The functional
currency of the Company is INR.

For assets and liabilities denominated in foreign
currencies, the Company's policy is to ensure that its
net exposure is kept to an acceptable level by buying
or selling foreign currencies at spot rates when
necessary to address short-term imbalances.

Commodity Risk

Exposure of the Company to Commodity and Commodity Risks faced by the Company throughout the year.

Commodities form a major part of the raw materials required for Company’s products portfolio and hence
commodity price risk is one of the important market risk for the Company. The Company is exposed to the risk
of changes in commodity prices in relation to its purchase of raw materials. The Company’s price arrangements
with its suppliers are typically linked to the spot prices of such raw materials, and any increase in the spot prices
may result in an increase in the price of such raw materials procured from its suppliers.

The Company has adequate risk assessment and minimization system in place including for Commodities. The
risk is hedged through additional and strategic buying from time to time. Further, the Company typically pass
on some portion of the change in the raw material price to the customers.

Purchases sensitivity analysis

A reasonably possible change of 1% in prices of purchases during the year, would have increased/(decreased)
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain

rnncta nt

45. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, securities
premium and all other equity reserves attributable to the equity holders of the Company. The primary objective
of the Company’s capital management is to maximise the shareholder value. Management monitors the return
on capital, as well as the level of dividends to ordinary shareholders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company
may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The
Company monitors capital using a gearing ratio, which is net debt divided by equity. Net debt is calculated as
total liabilities (as shown in the balance sheet) less cash and cash equivalents and other bank balances. The
Company’s net debt to adjusted equity ratio i.e. capital gearing ratio is as follows:

46. 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

The Company has identified the business as single operating segment i.e. Footwear and Accessories. Accordingly,
there is only one Reportable Segment for the Company which is "Footwear and Accessories”, hence no specific
disclosures have been made.

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

d. The Company does not have any transactions
with companies struck off.

e. The Company has not any such transaction
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.

f. There are no charges or satisfaction yet to be
registered with ROC beyond the statutory period.

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

i. 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

ii. provide any guarantee, security or the like to
or on behalf of the Ultimate Beneficiaries.

h. 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:

i. 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

ii. provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

i. The Company (as per the provisions of the
Core Investment Companies (Reserve Bank)
Directions, 2016) does not have any CIC as part
of the Company.

j. The Company does not have any subsidiary,
hence clause (87) of Section 2 of the Act read
with Companies (Restriction on number of
Layers) Rules, 2017 is not applicable to the
Company.

k. 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.

50. EVENTS OCCURRING AFTER THE
REPORTING PERIOD

Refer to note 20 for the final dividend recommended
by the directors which is subject to the approval of
shareholders in the ensuing annual general meeting.

For B S R and Co For and on behalf of the Board of Directors of

Chartered Accountants Campus Activewear Limited

ICAI Firm Registration Number: 128510W

Sandeep Batra Hari Krishan Agarwal Nikhil Aggarwal

Partner Chairman and Managing Director Whole Time Director and Chief Executive Officer

Membership Number: 093320 DIN: 00172467 DIN: 01877186

Place: Gurugram Place: Gurugram

Date: 29 May 2025 Date: 29 May 2025

Sanjay Chhabra Archana Maini

Chief Financial Officer General Counsel and Company Secretary

Place: Gurugram Membership No.: A16092

Place: Gurugram Date: 29 May 2025 Place: Gurugram

Date: 29 May 2025 Date: 29 May 2025