a. The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

b. The Company determines that a contract is or contains a lease, if the contract conveys right to control the use of an identified asset for a period of time in exchange for a consideration. At the inception of a contract which is or contains a lease, the Company recognizes lease liability at the present value of the future lease payments for non-cancellable period of a lease which is not short term in nature except for lease of low value items. The future lease payments for such non-cancellable period is discounted using the Company’s incremental borrowing rate. Lease payments include fixed payments. The Company also recognizes a right of use asset which comprises of amount of initial measurement of the lease liability. Right of use assets is amortized over the period of lease.

c The Company has not revalued any of its Property, plant and equipments during the year.

9.1 Inventory consists of stock-in-trade and is measured at the lower of cost and net realisable value. The cost of inventories of items that are not ordinarily interchangeable are assigned by using specific identification of their individual costs. The cost of other inventories is based on the first-in-first out method.

Cost of stock-in-trade includescost of purchases and other costs incurred in bringing the inventories to its present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and costs necessary to make the sale.

9.2 The carrying amount of inventory is hypothecated to secure working capital facilities of H 2500 Lakhs (previous year 2100 Lakhs).

9.3 The details of charge created on stocks, book debts and other current assets are as per Note 19.

10.1 *The allowance for bad & doubtful debts (for impairment of trade receivable) has been made on the basis of Expected Credit Loss (ECL) method based on management's judgement. To the extent of ECL provision, the trade receivables have been classified as doubtful and the remaining have been considered as good.

10.2 No trade or other receivables are due from directors or other office of the Company either severally or jointly with any other persons.

10.3 Trade receivables are non-interest bearing and are generally on terms of 30 to 120 days.

16.2 Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of H 10 per share. Each holder of equity shares is entitled to one vote per share.

Each equity shareholder is entitled to dividends as and when the Company declares and pays dividend after obtaining shareholders’ approval.

In the event of liquidation of the Company, the holders of equity shares are entitled to receive the remaining assets of the Company, after meeting all liabilities and distribution of all preferential amounts, in proportion to their shareholding.

During the year, the company declared an interim dividend of H 0.50 per equity share ( 5% ). The Board of Directors of the company has recommended a final dividend of H 0.50 (5%) per equity share on 1,05,82,800 equity shares of H 10/- each subject to share holder's approval in the forthcoming Annual General Meeting.

Nature and purpose of each reserve

17.1 Securities premium: The amount received in excess of face value of the equity shares is recognised in securities premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.

17.2 General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013. The retained earnings represent the net surplus of income over expenses. It is part of free reserves of the Company.

17.3 Dividend: The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors have proposed Final Dividend of H 1.00 per share for the Financial Year 2022-23 (Previous Year Nil).

17.4 Retained Earnings: The balance in the Retained Earnings represents the accumulated profit after payment of dividends, transfer to General Reserve and adjustments of actuarial gains/(losses) on Defined Benefit Plans.

17.5 Share Based Payment Reserve: The reserve is created on account of equity share settled options granted to the employees of the Company.

18.1 Security:

A. Term loan from Axis Bank Ltd. Indore under Emergency Credit Line Guarantee Scheme is secured by way of Extension of Charge on Primary as well as Collateral Security availble with the bank for Working Capital Limits.

B. Term loan from HDFC Bank, Indore under Union Guaranteed Emergency Line Scheme is secured by way of Extension of Charge on Primary as well as Collateral Security availble with the bank for Working Capital Limits.

C. Personal & Corporate Gurantee given on Working Capital Limits also got extended on both term loans.

(Emergency Credit Line Guarantee Scheme (ECLGS) secured by hypothecation of all current assets with equitble mortgage on existing collatoral with bank & one vehicle loan secured by hypothecation of sepcified vehicle)

The Company has used the borrowings from the banks for the specific purpose for which it was taken at the balance sheet date. All the quarterly returns filed by the Company with the banks in which total current assets and current liabilities are in agreement with the books of account for financial year 22-23 and 21-22.

23.1 Security Details

A. Loans repayable on demand from Axis Bank Ltd. , Indore are Secured by pari-passu charge by way of hypothecation on Company’s entire stocks at the Company’s Wareshoues , stores or at any other places, book debts, receivables and other current assets (both present and future) along with Union Bank of India.

Exclusive charge on the Industrial property situated at Survey No. 140/2/2, Patwari Halka No. 26, Village Musakhedi Tehsil and Dist. Indore- 452001 owned by M/s IFF Overseas Pvt. Ltd.

Exclusive charge on insurance policy of Mr. Pradeep Maheshwari.

Upfront Cash margin: In Name of Brand Concept Ltd. in form FD of Rs 4.05 Crs

Personal Guarantee of Prateek Maheshwari, Annapurna Maheshwari, Pradeep Maheshwari , Sakshi Rathi Mheshwari & Abhinav Kumar. Corporate Guarantee of IFF Overseas Pvt. Ltd.

B. Loans repayable on demand from HDFC Bank , Indore are Secured by pari-passu charge by way of hypothecation on Company’s entire stocks at the Company’s Wareshoues , stores or at any other places, book debts, receivables and other current assets (both present and future) along with Axis Bank Ltd.

Exclusive charge on the Industrial Plot situated at Survey No. 140/2, Peki, Patwari Halka No. 26, Village Musakhedi Tehsil and Dist. Indore- 452001 owned by M/s IFF Overseas Pvt. Ltd.

Exclusive charge on Residential Flat No. G1 Ground Floor , Gurukripa Apartment , Plot No. 14 , RK Puram Colony Owned by Mr. Pradeep Maheshwari.

Exclusive charge on Residential Flat No. G2 Ground Floor , Gurukripa Apartment , Plot No. 14 , RK Puram Colony Owned by Mrs. Annapurna Maheshwari.

Exclusive charge on Residential Flat No. 202 Arms Majestic Plot no. 34-C, Sector F, Slice-3, Shahid Bhagat Singh Ward, Indore Owned by Mr. Prateek Maheshwari & Mrs. Sakshi Rathi Maheshwari.

Exclusive charge on Residential Flat No. 301 Arms Majestic Plot no. 34-C, Sector F, Slice-3, Shahid Bhagat Singh Ward, Indore Owned by Mr. Prateek Maheshwari & Mrs. Sakshi Rathi Maheshwari.

Exclusive charge on insurance policy of Mr. Prateek Maheshwari.

Personal Guarantee of Prateek Maheshwari, Annapurna Maheshwari, Pradeep Maheshwari , Sakshi Rathi Mheshwari & Abhinav Kumar. Corporate Guarantee of IFF Overseas Pvt. Ltd.

The Company’s capital management objectives are:

(a) to ensure the Company’s ability to continue as a going concern; and

(b) to provide an adequate return to shareholders through optimization of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balances (excluding earmarked balances with banks.

Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements.

Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.

Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.

This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to meet its contractual obligations causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.

Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its financial obligation as it becomes due.

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices.

Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long term debt.

The Company is exposed to market risk primarily related to foreign exchange rate risk.

Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Foreign exchange risk:

There are no foreign exchange transactions in the Company. Consequentially, no foreign exchange risk arises from foreign currency revenues

and expenses. As a result, if the value of the Indian rupee appreciates relative to foreign currencies, the Company’s revenues and expenses

measured in Indian rupees are not affected.

Sensitivity:

There is no effect of fluctuation of foreign currency in the Company for the years ended March 31,2023 and March 31,2022.

Hedge Accounting:

The Company does not have any financial instruments which are subject to benchmark reforms. Consequentially, the Company does not have

any risk of being exposed to such interest rate benchmark reforms.

Note 44 Employee benefit plans:

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan’s debt investments.

iii) 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.

45.1 The Company has Employee Stock Option Scheme,i.e , ESOP Scheme - 2020 under which options have been granted. Total Number of options available that is available under this scheme is 5,29,140 ( Previous Year 2,11,656 ) out of which compnay has offered 75,000 options with 3 different vesting periods.

45.3 Fair Value on the date of grant

The fair value at grant date is determined using “Black Scholes Model” which takes into account the exercise price, term of the option, share price at grant date and expected price volatility of the underlying shares, expected dividend yield and the risk free interest rate for the term of the option.

Note 46 Relationship with Struck off Companies

There are no transactions with struck-off companies.

Note 47 Details of Crypto Currency or Virtual Currency:-

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Note 48 Additional Regulatory Information:-

1 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of Benami Transactions Act,1988 (Earliers titled as Benami transactions (Prohibitions) Act,1988

2 The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the books of accounts.

3 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender.

4 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under section 530 of Companies Act,1956.

5 No charges of satisfication are pending for registration with the Registrar of Companies (ROC) except for 3 Loans From Mas financial Services.

6 The Company has no subsidiary. The clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017 is not applicable.

7 Title deeds of immovable properties not held in the name of Company. Details of all the immovable properties (other than properties where the Company is the leesee of and the lease agreements are duly executed in favour of the leesee) whose deeds are held in the name of the Company.

8 There are no investment in properties

9 The Company has not revalued its Property,Plant and Equipment during the year.

10 The Company has not revalued its intangible assets during the year.

11 During the year, the Company has not issued any securitites.

12 The amount borrowed from Banks and Financial Institution have been used for the specific purpose it was taken.

Note 49 Rounding off

The figures appearing in financial statements haves been rounded off to the nearest lakhs, as required by General Instructions for preparation of Financial Statements in Division II Schedule III to the Companies Act,. 2013.

Note 50 Approval of Financial Statements

The Financial Statements were approved for issue by Board of directors in its meeting held on 25th May, 2023.

51 Dividend

The Board of Directors have proposed Final dividend of H 1.00/- per equity share subject to approval by the shareholders in the general meeting. If approved, this will result in payment of dividend of H 1.06 Cr.

The Group has only one reportable operating segment i.e. “Trading of Travel Bags and accessories”.

The revenues from external customers are attributable to India. The non-current assets are also located within India.