We have audited the accompanying standalone financial
statements of Baazar Style Retail Limited ("the
Company"), which comprise the Balance sheet as at March
31,2026, the Statement of Profit and Loss, including the
statement of Other Comprehensive Income, the Cash
Flow Statement and the Statement of Changes in Equity
for the year then ended, and notes to the standalone
financial statements, including a summary of material
accounting policies and other explanatory information.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013, as amended ("the
Act") in the manner so required and give a true and
fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31,2026, its profit including other
comprehensive income, its cash flows and the changes
in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing (SAs), as specified under section 143(10) of
the Act. Our responsibilities under those Standards are
further described in the 'Auditor's Responsibilities for
the Audit of the Standalone Financial Statements' section
of our report. We are independent of the Company in
accordance with the 'Code of Ethics' issued by the Institute
of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the standalone financial
statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
standalone financial statements for the financial year ended
March 31, 2026. These matters were addressed in the
context of our audit of the standalone financial statements
as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed
the matter is provided in that context.
We have determined the matters described below to be
the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
Auditor's responsibilities for the audit of the standalone
financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of
the standalone financial statements. The results of our
audit procedures, including the procedures performed
to address the matters below, provide the basis for our
audit opinion on the accompanying standalone financial
statements.
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Description of the Key audit matters
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How our audit addressed the key audit matter
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1) Accounting of Right of Use (ROU) Assets and
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Our audit included, but was not limited to, the following audit
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Leases Under Ind AS 116:
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procedures:
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Refer note 4, 18 and 42 of the standalone financial
statements relating to accounting for ROU assets
and leases in accordance with Ind AS 116.
The Company has recognised the ROU assets
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Obtained an understanding of management's process for
identifying and accounting for leasing arrangements, including
the application of relevant practical expedients as permitted
under Ind AS 116.
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amounting to Rs. 60,886.73 lakhs and corresponding
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Evaluated the design and tested the operating effectiveness
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lease liability amounting to Rs. 64,750.78 lakhs as at
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of controls implemented around above mentioned process
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March 31, 2026.
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throughout the year.
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Owing to the volume of the lease contracts, the
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Reviewed the overall impact analysis prepared by the
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judgements required in the assumptions and the
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management including completeness of lease contracts and
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estimates involved, we have considered this matter
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application of practical expedients.
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to be a key audit matter in our audit
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Performed tests of details to examine the inputs used for
determining the ROU assets and lease liabilities for contracts
involving lease agreements and performed re-computation
on the amount of lease liability and the right to use on sample
basis.
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Assessed the inputs used by the management for determination
of the incremental borrowing rate.
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Assessed the appropriateness and adequacy of disclosures
related to lease liabilities, ROU assets, and the use of practical
expedients in the financial statements, in accordance with the
disclosure requirements of Ind AS 116.
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2) Existence and valuation of Inventories under
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Our procedures included, but were not limited to the following
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Ind AS 2:
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audit procedures:
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Refer note 12 of the standalone financial statements
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Obtained an understanding, evaluated the design, and tested
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relating to the carrying value of inventories.
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the operating effectiveness of controls that the Company has
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As at March 31,2026, the carrying value of inventories
amounted to Rs. 68,242.25 lakhs after considering
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in relation to existence of inventory and allowance for provision
for diminution and shrinkage.
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diminution on inventory of Rs. 2005.03 Lakhs for
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Understood Management's control over physical inventory
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valuation in accordance with Indian accounting
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counts at various stores and warehouse locations and control
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standard and provision for shrinkage of Rs. 542.99
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over inventory valuation.
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Lakhs respectively. These inventories are held at the
stores and the warehouse of the Company.
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Tested the ageing report including assessing its completeness
and the underlying management judgements and estimates
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Existence of inventory has been identified as a
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made. Further, assessed on a sample basis whether the
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key audit matter due to the high level of audit risk
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calculation of provision for obsolescence is in accordance with
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associated with it, given the nature of the retail
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Company's policy.
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industry, which is characterized by low unit values
but large volumes of inventory spread across
multiple stores and the warehouse. Allowance for
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Review management's inventory count records and observed
the inventory cycle count process on a sample basis, inspected
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inventory obsolescence and shrinkage were an
audit focus area since inventory cycle counts were
carried out during the year at periodic intervals and
further significant judgment is involved in identifying
the amount of provision for shrinkages. In addition,
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the results of the inventory cycle count and confirmed that the
variances were approved and appropriately accounted for.
Tested the adjustment made in the books of accounts basis the
results of the physical counts performed by the management.
We have also performed roll-forward on sample basis for
establishing the existence of inventory as at year end by
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the Company also makes specific provisions for
diminution as per its policy.
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validating purchases, sales, stock movement of inventory during
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Allowance for inventory obsolescence and shrinkage
were an audit focus area since inventory cycle
counts were carried out during the year at periodic
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the intervening period i.e. from the date physical verification
was done till the year end date.
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intervals and further significant judgment is involved
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We assessed the Company's disclosures regarding this to
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in identifying the amount of provision for shrinkages.
In addition, the Company also makes specific
provisions for diminution as per its policy.
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the standalone financial statements as well as the estimates
regarding this.
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Other Information
The Company's Board of Directors is responsible for the
other information. The other information comprises
the information included in the Annual report, but does
not include the standalone financial statements and our
auditor's report thereon.
Our opinion on the standalone financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information and, in doing so, consider whether such other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on
the work we have performed, we conclude that there is a
material misstatement of this other information, we are
required to report that fact. We have nothing to report in
this regard.
Responsibility of Management for the Standalone
Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financialperformance including other comprehensive
income, cash flows and changes in equity of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act
read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, specified under section 133
of the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal
financialcontrols, that were operating effectively for
ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of
the standalone financial statements that give a true and
fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financialstatements,
management is responsible for 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 management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for
overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor'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 a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
Ý Identify and assess the risks of material misstatement
of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
Ý Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate
internal financial controls with reference to financial
statements in place and the operating effectiveness of
such controls.
Ý Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
Ý Conclude on the appropriateness of management's
use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Company's
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditor's report to the related
disclosures in the financialstatements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.
Ý Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
standalone financialstatements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the standalone
financialstatements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified
misstatements in the standalone financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internalcontrol that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements for the financial year ended March 31, 2026
and are therefore the key audit matters. We describe these
matters in our auditor's report unless law or regulation
precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the
adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
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 the "Annexure 1" a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143(3) of the Act, we report, to
the extent applicable, that:
a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books except for the matters stated in the
paragraph (2)(i)(vi) below on reporting under Rule
11(g);
c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement
of Changes in Equity dealt with by this Report are
in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended, specified under section 133 of
the Act;
e) On the basis of the written representations
received from the directors, taken on record
by the Board of Directors, none of the directors
is disqualified as on March 31, 2026 from being
appointed as a director in terms of Section 164 (2)
of the Act;
f) The qualification relating to the maintenance of
accounts and other matters connected therewith
are as stated in paragraph (b) above.
g) With respect to the adequacy of the internal
financialcontrols with reference to these
standalone financial statements and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure 2" to this report;
h) In our opinion, the managerial remuneration for
the year ended March 31, 2026 has been paid
/ provided by the Company to its directors in
accordance with the provisions of section 197
read with Schedule V to the Act;
i) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and to the best of our
information and according to the explanations
given to us:
(i) The Company has disclosed the impact of
pending litigations on its financial position in its
standalone financial statements - Refer Note
35 to the standalone financial statements;
(ii) The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses;
(iii) There were no amounts which were required
to be transferred to the Investor Education
and Protection Fund by the Company.
(iv) a) The management has represented
that, to the best of its knowledge and
belief, as disclosed in the note 49(v) to
the standalone financial statements, no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or
kind of funds) by the Company to or in any
other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, 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 provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries;
b) The management has represented that,
to the best of its knowledge and belief,
as disclosed in the note 49(vi) to the
standalone financial statements, no funds
have 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, whether, 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 provide any
guarantee, security or the like on behalf
of the Ultimate Beneficiaries; and
c) Based on such audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, nothing has come to
our notice that has caused us to believe
that the representations under sub¬
clause (a) and (b) contain any material
misstatement.
(v) No dividend has been declared or paid during
the year by the Company.
(vi) Based on our examination which included
test checks, except for the instances
mentioned below, the Company has used
accounting software for maintaining its books
of account which has a feature of recording
audit trail (edit log) facility and the same has
operated throughout the year for all relevant
transactions recorded in the software. Further,
during the course of our audit we did not
come across any instance of audit trail feature
being tampered with, in respect of accounting
software(s) where the audit trail has been
enabled. Additionally, the audit trail has
been preserved by the Company as per the
statutory requirements for record retention
where the audit trail has been enabled.
- The feature of recording audit trail
(edit log) facility was not enabled at the
database level to log any direct data
changes for five accounting software
applications, as disclosed in Note 51 to
the standalone financial statements.
For Singhi & Co.
Chartered Accountants
ICAI Firm Registration No:
302049E
Joyanta Batabyal
Partner
Place: Kolkata Membership No. 306031
Date: May 18, 2026 UDIN: 26306031YWULMY3087
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