our opinion thereon, and we do not provide a separate opinion on these matters. We havedetermined the matters described below to be the key audit matters to be communicated inour report.
We have audited the accompanying financial statements of Credo Brands MarketingLimited ("the Company"), which comprise the Balance Sheet as at March 31, 2026, and theStatement of Profit and Loss (including Other Comprehensive Income), the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended, and notes to thefinancial statements, including material accounting policy information and other explanatoryinformation (hereinafter referred to as the " financial statements").
In our opinion and to the best of our information and according to the explanations given tous, the aforesaid financial statements give the information required by the Companies Act,2013 ("the Act’) in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with Companies(Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and other accountingprinciples generally accepted in India, of the state of affairs of the Company as at March 31,2026, and its profit (including other comprehensive income), changes in equity and its cashflows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAsare further described in the Auditor’s Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under the provisionsof the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of mostsignificance in our audit of the financial statements of the current period. These matters wereaddressed in the context of our audit of the financial statements as a whole, and in forming
Key Audit Matters
How the Key Audit Matters was addressed in ouraudit
Existence and Valuation of
To obtain sufficient and appropriate audit evidence our
Inventory
principal audit procedures included, amongst others:
As at March 31, 2026, the Company
•
Evaluated the Company’s accounting policies
held inventories of Rs. 1,103.54
with respect to the valuation of inventories and
Millions primarily comprises finished
assessing compliance of the same with the
garments, accessories, and other
relevant Indian Accounting Standards.
fashion merchandise held acrosswarehouses, retail stores, and third-party locations.
Evaluated the design and implementationof key internal controls relating to inventorymanagement, including controls over stock
Consequently, the valuation ofinventory involves significantmanagement judgment, particularlyin determining the appropriatelevel of provisions required to stateinventory at the lower of cost andnet realisable value. Further, due tothe large volume of inventory items
recording, monitoring, and reconciliationprocesses.
Attending physical inventory counts atwarehouses and selected retail stores on asample basis and performing independent testcounts to verify the existence and condition ofinventory.
and their geographical dispersion
Evaluated the methodology used by the
across multiple locations, there is an
management to determine the provision for
inherent risk relating to the physical
inventory obsolescence and determined whether
existence and completeness of
the method is consistent with that applied in the
inventory records.
prior year.
Accordingly, we identified the
Tested the ageing report including assessing its
existence and valuation of inventory
completeness and the underlying management
as a key audit matter.
judgements and estimates made. Further,assessed on a sample basis whether thecalculation of provision for obsolescence is inaccordance with Company’s policy.
Key Audit Matters How the Key Audit Matters was addressed in our
audit
• Performing roll-forward and roll-back procedureswhere counts were conducted at dates otherthan the balance sheet date.
• Reviewing the reconciliation of physical inventorycounts with the inventory records maintained inthe Company’s ERP system and investigatingsignificant differences.
• Evaluated the adequacy of the disclosures madein the financial statements as per relevant IndianAccounting Standards, including the disclosuresrelated to accounting policies and valuationmethods.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'S REPORTTHEREON
The Company’s Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report including the Director’sreport, but does not include the financial statements and our auditor’s report thereon. TheCompany’s Annual Report which is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read theother information identified above and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in the audit,or otherwise appears to be materially misstated.
When we read the Annual Report including Director’s Report, if we conclude that there is amaterial misstatement therein, we are required to communicate the matter to those chargedwith governance.
RESPONSIBILITIES OF MANAGEMENT AND BOARD OF DIRECTORS FOR THE FINANCIALSTATEMENTS
The Company’s Management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these financial statements thatgive a true and fair view of the financial position, financial performance, changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India, including the Indian Accounting Standards specified under section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracy and completeness of the accountingrecords, relevant to the preparation and presentation of the financial statement that give atrue and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors of the Company are responsiblefor assessing the Company’s ability to continue as a going concern, disclosing, as applicable,matters related to going concern and using the going concern basis of accounting unless theBoard of Directors either intends to liquidate the Company or to cease operations, or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company’s financial reportingprocess.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
We give in "Annexure A” a detailed description of Auditor’s responsibilities for Audit of theFinancial Statements.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor’s Report) Order, 2020 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act, we
give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit ofthe aforesaid financial statements.
(b) In our opinion, proper books of account as required by law relating to preparationof the aforesaid financial statements have been kept by the Company so far as itappears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensiveincome), the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account maintained forthe purpose of preparation of the financial statements.
(d) In our opinion, the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.
(e) On the basis of the written representations received from the directors as onMarch 31,2026 taken on record by the Board of Directors, none of the directors aredisqualified as on March 31, 2026 from being appointed as a director in terms ofSection 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of suchcontrols, refer to our separate Report in "Annexure C".
(g) With respect to the other matters to be included in the Auditor’s Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion andto the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 33 to the financialstatements.
ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses.
iii. There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March31,2026.
iv. a. The Management has represented that, to the best of it’s knowledge
and belief, as disclosed in the note 42(g) to the financial statements, nofunds have been advanced or loaned or invested (either from borrowedfunds or share premium or any other sources or kind of funds) by theCompany to or in any other person(s) or entity(ies), including foreignentities ("Intermediaries"), with the understanding, whether recorded inwriting or otherwise, that the Intermediary shall, directly or indirectly lendor invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. The Management has represented that, to the best of it’s knowledge andbelief, as disclosed in the note 42(h) to the financial statements, no fundshave been received by the Company 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, directlyor indirectly, lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries.
c. Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances, nothing has come toour notice that has caused us to believe that the representations undersub-clause (i) and (ii) of Rule 11(e) contain any material mis-statement.
v. The Board of Directors of the Company have proposed final dividend for theyear which is subject to the approval of the members at the ensuing AnnualGeneral Meeting. The dividend declared is in accordance with section 123 ofthe Act to the extent it applies to declaration of dividend. (Refer Note 43 to thefinancial statements).
vi. Based on our examination, which included test checks, the Company hasused an accounting software for maintaining its books of account which hasa feature of recording audit trail (edit log) facility and the same has operatedthroughout the year for all relevant transactions recorded in the software.Further, during the course of our audit, we did not come across any instanceof audit trail feature being tampered with. Additionally, the audit trail of prioryears has been preserved by the Company as per the statutory requirementsfor record retention.
3. In our opinion, according to information, explanations given to us, the remuneration paidby the Company to its directors is within the limits laid prescribed under Section 197read with Schedule V of the Act and the rules thereunder.
For M S K C & Associates LLP
Chartered AccountantsICAI Firm Registration Number: 001595S/S000168
Ojas D. Joshi
Partner
Place: Mumbai Membership No. 109752
Date: May 21,2026 UDIN: 26109752ROMJEW7576